OBJECTIVES OF THE PROJECT

To study the various investment avenues and investors risk preference towards it. To study the saving habits of the different customers and the amount they invest in various financial instruments. To study in which type of financial instrument people like to invest. To know the rate of return expected by the people on investment. To find out the general demographic factors of the people dealing in capital market.

METHODOLOGY

The study was based on both primary data and secondary data derived through customer survey using pretested structured instruments (questionnaires) and the secondary data derived through information from the company, websites journal and magazines. Study was based on finding the perception of people towards investments with reference to Karvy.The said company chosen because it is leading stock broking company which provides the financial services to clients.corporates or the people. The instruments pertaining to various investment avenues available. It is very essential to know the accuracy of the findings which depends on how systematically the study has been carried out so that it can make sense

SAMPLING TECHNIQUES:Initially, a rough draft was prepared keeping in mind the objective of the research. respondents are taken. Convenience sampling technique was used for collecting the data from the people who are investing in various investment avenues.

SAMPLING SIZE AND UNITS:

The sample size is of 100 people which comprised of people of service class and business class.

DATA COLLECTION:Based on the questionnaires prepared data are collected by survey method. This questionnaire was primarily aimed to respondents who belong to business class and service class. With respect to primary and secondary data, the information is collected. Primary data tells us present scenario of financial market. Secondary data means that to get the data from the internet, company magazines, talking with people and convince.

DATA ANALYSIS
For the purpose of analysing, the raw primary data that was collected by way of a Structured questionnaire was analysed question by question. The analysis of survey has been done on percentage method.pie chart, bar graph is prepared to analyse the data. The data is analysed after the personal interaction by the people who are investing in capital market. All the views and data are interpreted clearly and come on with some findings.

LIMITATIONS OF THE STUDY

Total number of financial instrument 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. As the project is based on secondary data, possibility of unauthorized information cannot be avoided. Due to time constraints, a small sample size was taken to conduct the research.

EXECUTIVE SUMMARY
Indias economy is highly developing. The development is taken place due to the growth in the financial system. This financial system provides the background to various investors regarding varied options to invest. Thus, development of the economy depends on how these investors invest for the well being in long run. As financial markets become more sophisticated and complex, investors need a financial intermediary who provides the required knowledge and professional expertise on successful investing. Mutual Funds represent perhaps the most appropriate investment opportunity for investors. No wonder the concept of Mutual Fund was initially developed in the U.S. market, but the entry of the concept in the Indian Financial Market was in the year 1964 with the formulation Of the UTI, at the initiative of the RBI and Govt. of India. For most people, money is a delicate matter and when it comes to investing they are wary. Simply because there are many investment options out there, each out promising the other. An important question facing many investors is whether to Invest in Banks, National Savings, Post office, Non-banking finance companies, Fixed deposits, Shares etc. or to invest distinctively in Mutual Funds. I have observed that approximately 40% of the people are unaware of Trading but most of them are interested to know about trading and ready to attend Seminar arranged by KARVY. They are also interested to work with KARVY if sufficient information is provided to them about Trading and KARVY. People from service class prefers safety of income plus the regular income as well as tax benefits while on the other hand Professional and Businessman focus on high return with some risk. For growth and development of the Stock Market Industry, the misconception regarding Share Market should be removed & the awareness for the same should be made.

INTRODUCTION TO INVESTMENT
Investment is putting money into something with the expectation of profit. More specifically, investment is the commitment of money or capital to the purchase of financial instruments or other assets so as to gain profitable returns in the form of interest, dividends, or appreciation of the value of the instrument (capital gains). It is related to saving or deferring consumption. Investment is involved in many areas of the economy, such as business management and finance no matter for households, firms, or governments. An investment involves the choice by an individual or an organization, such as a pension fund, after some analysis or thought, to place or lend money in a vehicle, instrument or asset, such as property, commodity, stock, bond, financial derivatives (e.g. futures or options), or the foreign asset denominated in foreign currency, that has certain level of risk and provides the possibility of generating returns over a period of time. Investment comes with the risk of the loss of the principal sum. The investment that has not been thoroughly analyzed can be highly risky with respect to the investment owner because the possibility of losing money is not within the owner's control. The difference between speculation and investment can be subtle. It depends on the investment owner's mind whether the purpose is for lending the resource to someone else for economic purpose or not. 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. The money you earn is partly spent and the rest saved for meeting future expenses. Instead of keeping the savings idle you may like to use savings in order to get return on it in the future. This is called Investment. One needs to invest to and earn return on your 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 costs 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:
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 Invest early Invest regularly Invest for long term and not short term Investment comes with the risk of the loss of the principal sum. The investment that has not been thoroughly analyzed can be highly risky with respect to the investment owner because the possibility of losing money is not within the owner's control. The difference between speculation and investment can be subtle. It depends on the investment owner's mind whether the purpose is for lending the resource to someone else for economic purpose or not. In the case of investment, rather than store the good produced or its money equivalent, the investor chooses to use that good either to create a durable consumer or producer good, or to lend the original saved good to another in exchange for either interest or a share of the profits. In the first case, the individual creates durable consumer goods, hoping the services from the good will make his life better. In the second, the individual becomes an entrepreneur using the resource to produce goods and services for others in the hope of a profitable sale. The third case describes a lender, and the fourth describes an investor in a share of the business. In each case, the consumer obtains a durable asset or investment, and accounts for that asset by recording an equivalent liability. As time passes, and both prices and interest rates change, the value of the asset and liability also change. An asset is usually purchased, or equivalently a deposit is made in a bank, in hopes of getting a future return or interest from it. The word originates in the Latin "vestis", meaning garment, and refers to the act of putting things (money or other claims to resources) into others' pockets.[4] The basic meaning of the term being an asset held to have some recurring or capital gains. It is an asset that is expected to give returns without any work on the asset per se. The term "investment" is used differently in economics and in finance. Economists refer to a real investment (such as a machine or a house), while financial economists refer to a financial asset, such as money that is put into a bank or the market, which may then be used to buy a real asset.

VARIOUS INVESTMENT AVENUES: Mutual fund Equity shares Real estates Bond Commodities Deposits Cash equivalents

KARVY AS AN ORGANIZATION
KARVY, is a premier integrated financial services provider, and ranked among the top five in the country in all its business segments, services over 16 million individual investors in various capacities, and provides investor services to over 300 corporate, comprising the who is who of Corporate India. KARVY covers the entire spectrum of financial services such as Stock broking, Depository Participants, Distribution of financial products - mutual funds, bonds, fixed deposit, equities, Insurance Broking, Commodities Broking, Personal Finance Advisory Services, Merchant Banking & Corporate Finance, placement of equity, IPOs, among others. Karvy has a professional management team and ranks among the best in technology, operations and research of various industrial segments. The birth of Karvy was on a modest scale in 1981. It began with the vision and enterprise of a small group of practicing Chartered Accountants who founded the flagship company. Karvy Consultants Limited. Started with consulting and financial accounting automation, and carved in roads into the field of registry and share accounting by 1985. Since then, Karvy used its experience and superlative expertise to go from strength to strength, to better services, to provide new ones, to innovate, diversify and in the process, evolved Karvy as one of Indias premier integrated financial service enterprise. Thus over the last 20 years Karvy has travelled the success route, towards building a reputation as an integrated financial services provider, offering a wide spectrum of services. And have made this journey by taking the route of quality service, path breaking innovations in service, versatility in service and finally totality in service. KARVY highly qualified manpower, cutting-edge technology, comprehensive infrastructure and total customer-focus has secured for the position of an
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emerging financial services giant enjoying the confidence and support of an enviable clientele across diverse fields in the financial world. Values and vision of attaining total competence in servicing has served as the building block for creating a great financial enterprise, which stands solid on our fortresses of financial strength - various companies. With the experience of years of holistic financial servicing and years of complete expertise in the industry to look forward to, Karvy now emerged as a premier integrated financial services provider. As the flagship company of the Karvy Group, Karvy Consultants Limited has always remained at the helm of organizational affairs, pioneering business policies, work ethic and channels of progress.

MILESTONE OF KARVY
INCEPTION 1979 Corporate Registry services 1985 Stock Broking & ISCs 1990 Financial Product Distribution 1993 Corporate Finance 1995 Depository Services 1997 ITES & BPO Services 2000 Personal Finance Advisory Services 2001 Secondary Debt & WDM Services 2003 Joint Venture with Computer Share 2004 Comtrade 2004

MAJOR AREAS OF OPERATION

Karvy Stock Broking Limited Karvy Investors Service Limited Karvy Computershare Pvt. Limited Karvy Consultant Limited Karvy Global Services Limited Karvy Comtrade Limited Karvy Insurance Broking Private Limited

KARVY STOCK BROKING LIMITED

Member - National Stock Exchange (NSE), The Bombay Stock Exchange (BSE), and The Hyderabad Stock Exchange (HSE).Karvy Stock Broking Limited, one of the cornerstones of the Karvy edifice, flows freely towards attaining diverse goals of the customer through varied services. Creating a plethora of opportunities for the customer by opening up investment vistas backed by research based advisory services. Here, growth knows no limits and success recognizes no boundaries. Helping the customer create waves in his portfolio and empowering the investor completely is the ultimate goal.

STOCK BROKING SERVICES:Karvy offer services that are beyond just a medium for buying and selling stocks and shares. Instead we provide services which are multi dimensional and multi-focused in their scope. There are several advantages in utilizing our Stock Broking services, which are the reasons why it is one of the best in the country. It offers trading on a vast platform National Stock Exchange, Bombay Stock Exchange and Hyderabad Stock Exchange. More importantly, they make
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trading safe to the maximum possible extent, by accounting for several risk factors and planning accordingly. Assisted in this task by in-depth research, constant feedback and sound advisory facilities. Highly skilled research team, comprising of technical analysts as well as fundamental specialists, secure result-oriented information on market trends, market analysis and market predictions. This crucial information is given as a constant feedback to customers, through daily reports delivered thrice daily; The Pre-session Report, where market scenario for the day is predicted, The Mid-session Report, timed to arrive during lunch break, where the market forecast for the rest of the day is given and The Post-session Report, the final report for the day, where the market and the report itself is reviewed. Karvy also offer special portfolio analysis packages that provide daily technical advice on scrips for successful portfolio management and provide customized advisory services to help you make the right financial moves that are specifically suited to customer portfolio. Karvy Stock Broking services are widely networked across India, with the number of trading terminals providing retail stock broking facilities, services have increasingly offered customer oriented convenience, which provide to a spectrum of investors, high-net worth or otherwise, with equal dedication and competence. To empower the investor further we have made serious efforts to ensure that research calls are disseminated systematically to all our stock broking clients through various delivery channels like email, chat, SMS, phone calls etc.

DEPOSITORY PARTICIPANTS:The onset of the technology revolution in financial services Industry saw the emergence of Karvy as an electronic custodian registered with National Securities Depository Ltd (NSDL) and Central Securities Depository Ltd (CSDL) in 1998. Karvy set standards enabling further comfort to the investor by promoting paperless trading across the country and emerged as the top 3 Depository Participants in the country in terms of customer serviced. Offering a wide trading platform with a dual membership at both NSDL and CDSL, a powerful medium for trading and settlement of dematerialized shares. A 1600 team of highly qualified and dedicated professionals drawn from the best of academic and professional backgrounds are committed to maintaining high levels of client service delivery. This has propelled us to a position among the top distributors for equity and debt issues with an estimated market share of 15% in terms of applications mobilized, besides being established as the leading procurer in all public issues.

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 KARVY THE FINAPOLIS

To further tap the immense growth potential in the capital markets we enhanced the scope of our retail brand, Karvy the Finapolis, thereby providing planning and advisory services to the mass affluent. Here understanding the customer needs and lifestyle in the context of present earnings and provide adequate advisory services that will necessarily help in creating wealth. Judicious planning that is customized to meet the future needs of the customer deliver a service that is exemplary. The market-savvy and the ignorant investors, both find this service very satisfactory. The edge that has over competition is portfolio of offerings and professional expertise. The investment planning for each customer is done with an unbiased attitude so that the service is truly customized. Monthly magazine, Finapolis, provides up-dated market information on market trends, investment options, opinions etc. Thus empowering the investor to base every financial move on rational thought and prudent analysis and embark on the path to wealth creation.

ADVISORY SERVICES:Under retail brand Karvy the Finapolis', delivers advisory services to a crosssection of customers. The service is backed by a team of dedicated and expert professionals with varied experience and background in handling investment portfolios. They are continually engaged in designing the right investment portfolio for each customer according to individual needs and budget considerations with a comprehensive support system that focuses on trading customers' portfolios and providing valuable inputs, monitoring and managing the portfolio through varied technological initiatives. This is made possible by the expertise that has gained in the business over the years.

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KARVY INVESTOR SEVICE LIMITED

MERCHANT BANKING:Recognized as a leading merchant banker in the country, registered with SEBI as category one merchant banker. This reputation was built by capitalizing on opportunities in corporate consolidations, mergers and acquisitions and corporate restructuring, which have earned the reputation of a merchant banker. Raising resources for corporate or Government Undertaking successfully over the past two decades have given us the confidence to renew focus in this sector. Quality professional team and work-oriented dedication have propelled to offer value-added corporate financial services and act as a professional navigator for long term growth of our clients, who include leading corporate, State Governments, foreign institutional investors, public and private sector companies and banks, in Indian and global markets. Karvy also emerged as a trailblazer in the arena of relationships, both at the customer and trade levels because of unshakable integrity, seamless service and innovative solutions that are tuned to meet varied needs. Team of committed industry specialists, having extensive experience in capital markets, further nurtures this relationship. Financial advice and assistance in restructuring, divestitures, acquisitions, demergers, spin-offs, joint ventures, privatization and takeover defence mechanisms have elevated relationship with the client to one based on unshakable trust and confidence.

KARVY COMPUTERSHARE PRIVATE LIMITED

Karvy has traversed wide spaces to tie up with the worlds largest transfer agent, the leading Australian company, Computershare Limited. The company that services more than 75 million shareholders across 7000 corporate clients and makes its presence felt in over 12 countries across 5continents has entered into a 50-50 joint venture with us. With management team completely transferred to this new entity, we will aim to enrich the financial services industry than before. The future holds new arenas of client servicing and contemporary and relevant technologies as we are geared to deliver better value and foster bigger investments in the business. The worldwide network of Computershare will hold in good stead as expect to adopt international standards in addition to leveraging the best of technologies from around the world. Excellence has to be the order of the day when two companies with such similar ideologies of growth, vision and competence, get together.
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KARVY CONSULTANT LTD.

Having emerged as a leader in the registry business, the first of the businesses that ventured into, Karvy transferred this business into a joint venture with Computershare Limited of Australia, the worlds largest registrar. With the advent of depositories in the Indian capital market and the relationships that have created in the registry business, believing they were best positioned to venture into this activity as a Depository Participant. Karvy is the early entrants registered as Depository Participant with NSDL (National Securities Depository Limited), the first Depository in the country and then with CDSL (Central Depository Services limited). Today, service over 6 lakh customer accounts in this business spread across over 250 cities/towns in India and are ranked amongst the largest Depository Participants in the country. With a growing secondary market presence, we have transferred this business to Karvy Stock Broking Limited (KSBL), associate and a member of NSE, BSE and HSE.

IT ENABLED SERVICES:Technology Services division forms the ideal platform to unleash technology initiatives and make our presence felt on the Internet. Past achievements include many quality websites designed, developed and deployed by it. Karvy also possess own web hosting facilities with dedicated bandwidth and a state-of-theart server farm (data center) with services functioning on a variety of operating platforms such as Windows, Solaris, Linux and Unix. The corporate website of the company,www.karvy.com, gives access to in-depth information on financial matters including Mutual Funds, IPOs, Fixed Income Schemes, Insurance, Stock Market and much more. A link called Resource Center, devoted solely to research conducted by our team of experts on various financial aspects like Sector Research, deals exclusively with in-depth analysis of the key sectors of the Indian economy. Besides, a host of other links like My Portfolio which acts as a personalized and customized financial measure,makes this site extremely informative about investment options, market trends, news as also about our company and each of the services offered here.

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KARVY GLOBAL SERVICE LIMITED

The specialist Business Process Outsourcing unit of the Karvy Group. The legacy of expertise and experience in financial services of the Karvy Group serves well as enter the global arena with the confidence of being able to deliver and deliver well. Here it offers several delivery models on the understanding that business needs are unique and therefore only a customized service could possibly fit the bill. Service matrix has permutations and combinations that create several options to choose from. Be it in re-engineering and managing processes or delivering new efficiencies, service meets up to the most stringent of international standards , outsourcing models are designed for the global customer and are backed by sound corporate and operations philosophies, and domain expertise. Providing productivity improvements, operational cost control, cost savings, improved accountability and a whole gamut of other advantages. Karvy operate in the core market segments that have emerging requirements for specialized services, wide vertical market coverage includes Banking, Financial and Insurance Services (BFIS), Retail and Merchandising, Leisure and Entertainment, Energy and Utility and Healthcare. Karvy horizontal offerings do justice to our stance as a comprehensive BPO unit and include a variety of services in Finance and Accounting Outsourcing Operations, Human Resource Outsourcing Operations, Research and Analytics outsourcing Operations and Insurance Back Office Outsourcing Operations.

KARVY COMTRADE LIMITED

At Karvy Commodities, focused on taking commodities trading to new dimensions of reliability and profitability. Karvy have made commodities trading, an essentially age-old practice, into a sophisticated and scientific investment option .Here it enable trade in all goods and products of agricultural and mineral origin that include lucrative commodities like gold and silver and popular items like oil, pulses and cotton through a well systematized trading platform, technological and infrastructural strengths and especially street-smart skills make an ideal broker. Service matrix is holistic with a gamut of advantages, the first and foremost being legacy of human resources, technology and infrastructure that comes from being part of the Karvy Group. Karvy wide national network, spanning the length and breadth of India, further supports these advantages. Regular trading workshops and seminars are conducted to hone trading strategies to perfection. Every move made is a calculated one, based on reliable research that is converted into valuable information through daily, weekly and monthly newsletters, calls and intraday alerts. Further,
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personalized service is provided here by a dedicated team committed to giving hassle-free service while the brokerage rates offered are extremely competitive. Commitment to excel in this sector stems from the immense importance that commodity broking has to a cross-section of investors & farmers, exporters, importers, manufacturers and the Government of India itself.

KARVY INSURANCE BROKING PRIVATE LIMITED

At Karvy Insurance Broking Pvt. Ltd. provide both life and non-life insurance products to retail individuals, high net-worth clients and corporate. With the opening up of the insurance sector and with a large number of private players in the business, they are in a position to provide tailor made policies for different segments of customers. In journey to emerge as a personal finance advisor, it will be better positioned to leverage relationships with the product providers and place the requirements of customers appropriately with the product providers. With Indian markets seeing a sea change, both in terms of investment pattern and attitude of investors, insurance is no more seen as only a tax saving product but also as an investment product. Karvys wide national network, spanning the length and breadth of India, further supports these advantages. Further, personalized service is provided here by a dedicated team committed in giving hassle-free service to the clients.

WHERE KARVY STAND IN THE MARKET?

KARVY is a legendary name in financial services, Karvys credit is defined by its mission to succeed, passion for professionalism, excellent work ethics and customer centric values. Today KARVY is well known as a premier financial services enterprise, offering a broad spectrum of customized services to its clients, both corporate and retail. Services that KARVY constantly upgrade and improve are because of companys skill in leveraging technology. Being one of the most techno-savvy organizations around helps company to deliver even more cost effective financial solutions in the shortest possible time. What bears ample testimony to Karvys success is the faith reposed in company by valued investors and customers, all across the country. Indeed, with Karvys wide network touching every corner of the country, even the most remote investor can easily access Karvys services and benefit from companys expert advice.

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ACHIVEMENTS: Among the top 5 stock brokers in India (4% of NSE volumes) India's No. 1 Registrar & Securities Transfer Agents Among the top 3 Depository Participants Largest Network of Branches & Business Associates ISO 9002 certified operations by DNV Among top 10 Investment bankers Largest Distributor of Financial Products Adjudged as one of the top 50 IT uses in India by MIS Asia Full Fledged IT driven operations

QUALITY POLICY OF KARVY

To achieve and retain leadership, Karvy shall aim for complete customer satisfaction, by combining its human and technological resources, to provide superior quality financial services. In the process, Karvy will strive to exceed Customer's expectations.

QUALITY OBJECTIVES
As per the Quality Policy, Karvy will: Build in-house processes that will ensure transparent and harmonious relationships with its clients and investors to provide high quality of services. Establish a partner relationship with its investor service agents and vendors that will help in keeping up its commitments to the customers.
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Provide high quality of work life for all its employees and equip them with adequate knowledge & skills so as to respond to customer's needs. Continue to uphold the values of honesty & integrity and strive to establish unparalleled standards in business ethics. Use state-of-the art information technology in developing new and innovative financial products and services to meet the changing needs of investors and clients. Strive to be a reliable source of value-added financial products and Services and constantly guide the individuals and institutions in making a Judicious choice of same. Strive to keep all stake-holders(shareholders, clients, investors, employees, suppliers and regulatory authorities) proud and satisfied.

BOARD OF DIRECTORS: KEY EXECUTIVES FOR KARVY STOCK BROKING LIMITED:

NAME

BOARD RELATIONSIP
No relationship 13 relationship No relationship

TITLE

AGE

Hemindra Hazari M.S.Ramakrishna Y.Sailaja

Head of research Whole time director Company secretary

--56 ---

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 KARVY STOCK BROKING LIMITED BOARD MEMBERS:

NAME
C. Parthasarathy M.S.Ramakrishna Meka Yugandhar Sudhir Variyar Jimmy Loachmandas Mahtani

BOARD RELATIONSIP
27 relationship 13relationsip 15 relationship 4 relationship 14 relationship

PRIMARY COMPANY
Karvy Consultants Limited KARVY Stock Broking Limited Karvy Consultants Limited Multiples Alternate Asset Management Bhushan Power and Steel Limited

AGE
55 56 59 -----

KARVY CONSULTANTS LIMITED: Parthasarathy C Yugandhar M Ramakrishna M S Prasad V Potluri Robert Gibson Sanjay Kumar Dhir R Shyamsunder

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 KARVY INVESTOR SERVICES LIMITED: Parthasarathy C Yugandhar M Ramakrishna M S

KARVY SECURITIES LIMITED: Parthasarathy C Yugandhar M Ramakrishna M S Ajay Kumar K William Samuel Nicholas Tully

BRANCHES:STATES
Andhra Pradesh Assam Bihar Chandigarh Chhattisgarh Goa Gujarat Haryana Himachal Pradesh Jammu & Kashmir Jharkhand Karnataka Kerala Madhya Pradesh Maharashtra Manipur Meghalaya New Delhi Orissa
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TOTAL BRANCHES
37 8 10 1 7 2 26 15 3 1 7 48 24 19 27 1 1 11 13

Punjab Rajasthan Sikkim Tamil Nadu Tripura Union territory Uttar Pradesh Uttaranchal West Bengal

11 10 1 57 1 1 38 5 26

BUSINESS ASSOCIATES:-

STATES
Andhra Pradesh Bihar Delhi Gujarat Haryana Himachal Pradesh Jharkhand Karnataka Kerala Madhya Pradesh Maharashtra Orissa Punjab ( UT) Rajasthan Tamil Nadu Tripura Uttar Pradesh West Bengal

BUSINESS ASSOCIATES
53 2 7 17 7 1 1 15 29 6 21 3 11 4 8 3 19 5

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VARIOUS INVESTMENT AVENUES

MUTUAL FUNDS:Mutual fund is a pool of money collected from investors and is invested according to stated investment objectives Mutual fund investors are like shareholders and they own the fund. Mutual fund investors are not lenders or deposit holders in a mutual fund. Everybody else associated with a mutual fund is a service provider, who earns a fee. The money in the mutual fund belongs to the investors and nobody else. Mutual funds invest in marketable securities according to the investment objective. The value of the investments can go up or down, changing the value of the investors holdings.NAV of a mutual fund fluctuates with market price movements. The market value of the investors funds is also called as net assets. Investors hold a proportionate share of the fund in the mutual fund. New investors come in and old investors can exit, at prices related to net asset value per unit.

HISTORY OF MUTUAL FUNDS:In the second half of 19th century, investor in UK considered the stock market is good for the investment. But for small investor it is not possible to operate in the market effectively. This led to establishment of an investment company which led to the small investor to invest in equity market. The first investment company was the Scottish-American Investment Company, set up in London in 1860.

BENEFITS OF INVESTING IN MUTUAL FUNDS

PROFESSIONAL MANAGEMENT: Mutual Funds provide the services of experienced and skilled professionals, backed by a dedicated investment research team that analyses the performance and prospects of companies and selects suitable investments to achieve the objectives of the scheme.

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 DIVERSIFICATION: Mutual Funds invest in a number of companies across a broad cross-section of industries and sectors. This diversification reduces the risk because seldom do all stocks decline at the same time and in the same proportion. You achieve this diversification through a Mutual Fund with far less money than you can do on your own.

CONVENIENT ADMINISTRATION: Investing in a Mutual Fund reduces paperwork and helps you avoid many problems such as bad deliveries, delayed payments and follow up with brokers and companies. Mutual Funds save your time and make investing easy and convenient.

RETURN POTENTIAL: Over a medium to long-term, Mutual Funds have the potential to provide a higher return as they invest in a diversified basket of selected securities.

LOW COSTS: Mutual Funds are a relatively less expensive way to invest compared to directly investing in the capital markets because the benefits of scale in brokerage, custodial and other fees translate into lower costs for investors.

LIQUIDITY: In open-end schemes, the investor gets the money back promptly at net asset value related prices from the Mutual Fund. In closed-end schemes, the units can be sold on a stock exchange at the prevailing market price or the investor can avail of the facility of direct repurchase at NAV related prices by the Mutual Fund.

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 TRANSPARENCY: You get regular information on the value of your investment in addition to disclosure on the specific investments made by your scheme, the proportion invested in each class of assets and the fund manager's investment strategy and outlook.

FLEXIBILITY: Through features such as regular investment plans, regular withdrawal plans and dividend reinvestment plans, you can systematically invest or withdraw funds according to your needs and convenience.

AFFORDABILITY: Investors individually may lack sufficient funds to invest in high-grade stocks. A mutual fund because of its large corpus allows even a small investor to take the benefit of its investment strategy.

CHOICE OF SCHEMES: Mutual Funds offer a family of schemes to suit your varying needs over a lifetime.

WELL REGULATED:All Mutual Funds are registered with SEBI and they function within the provisions of strict regulations designed to protect the interests of investors. The operations of Mutual Funds are regularly monitored by SEBI.

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DISADVANTAGES OF INVESTING MUTUAL FUNDS: PROFESSIONAL MANAGEMENT: Some funds doesnt perform in neither the market, as their management is not dynamic enough to explore the available opportunity in the market, thus many investors debate over whether or not the so called professionals are any better than mutual fund or investor himself, for picking up stocks.

COSTS:
The biggest source of AMC income is generally from the entry & exit load which they charge from investors, at the time of purchase. The mutual fund industries are thus charging extra cost under layers of jargon.

DILUTION:
Because funds have small holdings across different companies, high returns from a few investments often don't make much difference on the overall return. Dilution is also the result of a successful fund getting too big. When money pours into funds that have had strong success, the manager often has trouble finding a good investment for all the new money.

TAXES: When making decisions about your money, fund managers don't consider your personal tax situation. For example, when a fund manager sells a security, a capital-gain tax is triggered, which affects how profitable the individual is from the sale. It might have been more advantageous for the individual to defer the capital gains liability.

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TYPES OF MUTUAL FUNDS

Mutual fund schemes may be classified on the basis of its structure and its objective:-

BY STRUCTURE: OPEN-ENDED FUNDS:An open-end fund is one that is available for subscription all through the year. These do not have a fixed maturity. Investors can conveniently buy and sell units at Net Asset Value ("NAV") related prices. The key feature of open-end schemes is liquidity.

CLOSED-ENDED FUNDS:A closed-end fund has a stipulated maturity period which generally ranging from 3 to 15 years. The fund is open for subscription only during a specified period. Investors can invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the units of the scheme on the stock exchanges where they are listed. In order to provide an exit route to the investors, some close ended funds give an option of selling back the units to the Mutual Fund through periodic repurchase at NAV related prices. SEBI Regulations stipulate that at least one of the two exit routes is provided to the investor.

INTERVAL FUNDS:Interval funds combine the features of open-ended and close-ended schemes. They are open for sale or redemption during pre-determined intervals at NAV related prices.

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 MONEY MARKET FUNDS:The aim of money market funds is to provide easy liquidity, preservation of capital and moderate income. These schemes generally invest in safer shortterm instruments such as treasury bills, certificates of deposit, commercial paper and inter-bank call money. Returns on these schemes may fluctuate depending upon the interest rates prevailing in the market. These are ideal for Corporate and individual investors as a means to park their surplus funds for short periods.

LOAD FUNDS:A Load Fund is one that charges a commission for entry or exit. That is, each time you buy or sell units in the fund, a commission will be payable. Typically entry and exit loads range from 1% to 2%. It could be worth paying the load, if the fund has a good performance history.

NO-LOAD FUNDS:A No-Load Fund is one that does not charge a commission for entry or exit. That is, no commission is payable on purchase or sale of units in the fund. The advantage of a no load fund is that the entire corpus is put to work.

TAX SAVING SCHEMES:These schemes offer tax rebates to the investors under specific provisions of the Indian Income Tax laws as the Government offers tax incentives for investment in specified avenues. Investments made in Equity Linked Savings Schemes (ELSS) and Pension Schemes are allowed as deduction u/s 88 of the Income Tax Act, 1961. The Act also provides opportunities to investors to save capital gains u/s 54EA and 54EB by investing in Mutual Funds, provided the capital asset has been sold prior to April 1, 2000 and the amount is invested before September 30, 2000.

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EQUITY SHARES

At the most basic level, stock (often referred to as shares) is ownership, or equity, in a company. Investors buy stock in the form of shares, which represent a portion of a company's assets (capital) and earnings (dividends).As a shareholder, the extent of your ownership (your stake) in a company depends on the number of shares you own in relation to the total number of shares available For example, if you buy 1000 shares of stock in a company that has issued a total of 100,000 shares, you own one per cent of the company. While one per cent seems like a small holding, very few private investors are able to accumulate a shareholding of that size in publicly quoted companies, many of which have a market value running into billions of pounds. Your stake may authorize you to vote at the company's annual general meeting, where shareholders usually receive one vote per share. In theory, every stockholder, no matter how small their stake, can exercise some influence over company management at the annual general meeting. In reality, however, most private investors' stakes are insignificant. Management policy is far more likely to be influenced by the votes of large institutional investors such as pension funds.

STOCKS SYMBOLS:A stock symbol, or 'Epic' symbol, is the standard abbreviation of a stock's name. You can find stock symbols wherever stock performance information is published - for example, newspaper stock listings and investment websites. Company names also have abbreviations called ticker symbols. However, it's worth remembering that these may vary at the different exchanges where the company is quoted.

PERFORMANCE INDICATORS: CLOSING PRICE: - last price at which stock was sold or bought. HIGH AND LOW:-the highest and lowest price of stock from the previous trading day.

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 52 WEEK RANGE: - The highest and lowest price over the previous 52 week. VOLUME: - The amount of shares traded during the previous trading day High and low. NET CHANGE:- The difference between the closing price on the last trading day and the closing price on the trading day prior to the last

THE STOCK EXCHANGES:A marketplace in which to buy or sell something makes life a lot easier. The same applies to stocks. A stock exchange is an organization that provides a marketplace in which investors and borrowers trade stocks. Firstly, the stock exchange is a market for issuers who want to raise equity capital by selling shares to investors in an Initial Public Offering (IPO). The stock exchange is also a market for investors who can buy and sell shares at any time. TRADING SHARES ON THE STOCK EXCHANGE:

As an investor in the INDIA, you can't buy or sell shares on a stock exchange yourself. You need to place your order with a stock exchange member firm (a stockbroker) who will then execute the order on your behalf. The NSE AND BSE are the leading stock exchange in the INDIA. Trading is done through computerized systems.

THE TRADING PROCESS:If you decide to buy or sell your shares, you need to contact a stockbroker who will buy or sell the shares on your behalf. After receiving your order, the stockbroker will input the order on the SETS or SEAQ system to match your order with that of another buyer or seller. Details of the trade are transmitted electronically to the stockbroker who is responsible for settling the trade. You will then receive confirmation of the deal.

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 TYPES OF SHARES AVAILABLE ON THE STOCK EXCHANGE:You cannot trade all stocks on the stock exchange. To be listed on a stock exchange, a stock must meet the listing requirements laid down by that exchange in its approval process. Each exchange has its own listing requirements, and some exchanges are more particular than others. It is possible for a stock to be listed on more than one exchange. This is known as a dual listing.

INSURANCE
People need insurance in the first place. An insurance policy is primarily meant to protect the income of the familys bread earners. The idea is if any one or both die their dependents continue to live comfortably. The circle of life begins at birth follower by education, marriage and eventually after a lifetime of work we look forward to life of retirement. Our finances too tend to change as we go through the various phases of life. In the first twenty of our life, we are financially and emotionally dependents on our parents and there are no financial commitments to be met. In the next twenty years we gain financial independence and provide financial independence to our families. This is also the stage when our income may be unable to meet the growing expenses of a young household. In the next twenty as we see our investments grow after our children grow and become financially independent. Insurance is a provision for the distribution of risks that is to say it is a financial provision against loss from unavoidable disasters. The protection which it affords takes form of a guarantee to indemnify the insured if certain specified losses occur. The principle of insurance so far as the undertaking of the obligation is concerned is that for the payment of a certain sum the guarantee will be given to reimburse the insured. The insurer in accepting the risks so distributes them that the total of all the amounts is paid for this insurance protection will be sufficient to meet the losses that occur. Insurance then provide divided responsibility. This principle is introduced in most stores where a division is made between the sales clerk and the cashiers department the arrangement dividing the risks of loss. The insurance principle is similarly applied in any other cases of divided responsibility. As a business however insurance is usually recognized as some form of securing a promise of indemnity by the payment of premium and the fulfilment of certain other stipulations

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 GOVERNMENT SECURITIES
Government securities (G-secs) are sovereign 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 programme. The term Government Securities includes: Central Government Securities. State Government Securities treasury bills The Central Government borrows funds to finance its 'fiscal deficit'.The market borrowing of the Central Government is raised 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 programme of the Central Government

TYPES OF GOVERNMENT SECURITIES

Government Securities are of the following types:-

DATED SECURITIES :
Dated securities are generally fixed maturity and fixed coupon securities usually carrying semi annual coupon. These are called dated securities because these are identified by their date of maturity and the coupon, e.g., 11.03% GOI 2012 is a Central Government security maturing in 2012, which carries a coupon of 11.03% payable half yearly. The key features of these securities are: They are issued at face value. Coupon or interest rate is fixed at the time of issuance, and remains constant till redemption of the security. The tenor of the security is also fixed. Interest /Coupon payment is made on a half yearly basis on its face value. The security is redeemed at par (face value) on its maturity date.

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 ZERO COUPON BONDS:

Zero coupon bonds are bonds issued at discount to face value and redeemed at par. These were issued first on January 19, 1994 and were followed by two subsequent issues in 1994-95 and 1995-96 respectively. The key features of these securities are: They are issued at a discount to the face value. The tenor of the security is fixed. The securities do not carry any coupon or interest rate. The difference between the issue price (discounted price) and face value is the return on this security. The security is redeemed at par (face value) on its maturity date.

PARTLY PAID STOCK:

Partly paid stock is stock where payment of principal amount is made in instalments over a given time frame. It meets the needs of investors with regular flow of funds and the need of Government when it does not need funds immediately. The first issue of such stock of eight year maturity was made on November 15, 1994 for Rs. 2000 crore. Such stocks have been issued a few more times thereafter. The key features of these securities are: They are issued at face value, but this amount is paid in instalments over a specified period. Coupon or interest rate is fixed at the time of issuance, and remains constant till redemption of the security. The tenor of the security is also fixed. Interest /Coupon payment is made on a half yearly basis on its face value. The security is redeemed at par (face value) on its maturity date.

FLOATING RATE BONDS

Floating rate bonds are bonds with variable interest rate with a fixed percentage over a benchmark rate. There may be a cap and a floor rate attached thereby fixing a maximum and minimum interest rate payable on it. Floating rate bonds
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of four year maturity were first issued on September 29, 1995, followed by another issue on December 5, 1995. Recently RBI issued a floating rate bond, the coupon of which is benchmarked against average yield on 364 Days Treasury Bills for last six months. The coupon is reset every six months. The key features of these securities are: They are issued at face value Coupon or interest rate is fixed as a percentage over a predefined benchmark rate at the time of issuance. The benchmark rate may be Treasury bill rate, bank rate etc. Though the benchmark does not change, the rate of interest may vary according to the change in the benchmark rate till redemption of the security. The tenor of the security is also fixed. Interest /Coupon payment is made on a half yearly basis on its face value. The security is redeemed at par (face value) on its maturity date.

BONDS WITH CALL/PUT OPTION:

First time in the history of Government Securities market RBI issued a bond with call and put option this year. This bond is due for redemption in 2012 and carries a coupon of 6.72%. However the bond has call and put option after five years i.e. in year 2007. In other words it means that holder of bond can sell back (put option) bond to Government in 2007 or Government can buy back (call option) bond from holder in 2007. This bond has been priced in line with 5 year bonds.

CAPITAL INDEXED BONDS:

Capital index bonds are bonds where interest rate is a fixed percentage over the wholesale price index. These provide investors with an effective hedge against inflation. These bonds were floated on December 29, 1997 on tap basis. They
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were of five year maturity with a coupon rate of 6 per cent over the wholesale price index. The principal redemption is linked to the Wholesale Price Index. The key features of these securities are: They are issued at face value . Coupon or interest rate is fixed as a percentage over the wholesale price index at the time of issuance. Therefore the actual amount of interest paid varies according to the change in the Wholesale Price Index. The tenor of the security is fixed. Interest /Coupon payment is made on a half yearly basis on its face value. The principal redemption is linked to the Wholesale Price Index.

FEATURES OF GOVERNMENT SECURITIES

NOMENCLATURE
The coupon rate and year of maturity identifies the government security. Example: 12.25% GOI 2008 indicates the following:12.25% is the coupon rate, GOI denotes Government of India, which is the borrower, 2008 is the year of maturity.

ELIGIBILITY
All entities registered in India like banks, financial institutions, Primary Dealers, firms, companies, corporate bodies, partnership firms, institutions, mutual funds, Foreign Institutional Investors, State Governments, Provident Funds, trusts, research organisations, Nepal Rashtra bank and even individuals are eligible to purchase Government Securities.

AVAILABILITY
Government securities are highly liquid instruments available both in the primary and secondary market. They can be purchased from Primary Dealers.
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PNB Gilts Ltd., is a leading Primary Dealer in the government securities market, and is actively involved in the trading of government securities.

FORMS OF ISSUANCE OF GOVERNMENT SECURITIES

Banks, Primary Dealers and Financial Institutions have been allowed to hold these securities with the Public Debt Office of Reserve Bank of India in dematerialized form in accounts known as Subsidiary General Ledger (SGL) Accounts. Entities having a Gilt Account with Banks or Primary Dealers can hold these securities with them in dematerialized form. In addition government securities can also be held in dematerialized form in demat accounts maintained with the Depository Participants of NSDL.

MINIMUM AMOUNT
In terms of RBI regulations, government dated securities can be purchased for a minimum amount of Rs.10, 000/-only. Treasury bills can be purchased for a minimum amount of Rs 25000/- only and in multiples thereof. State Government Securities can be purchased for a minimum amount of Rs 1,000/only.

REPAYMENT
Government securities are repaid at par on the expiry of their tenor. The different repayment methods are as follows: For SGL account holders, the maturity proceeds would be credited to their current accounts with the Reserve Bank of India. For Gilt Account Holders, the Bank/Primary Dealers would receive the maturity proceeds and they would pay the Gilt Account Holders.

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 For entities having a demat account with NSDL, the maturity proceeds would be collected by their DP's and they in turn would pay the demat Account Holders.

DAY COUNT
For government dated securities and state government securities the day count is taken as 360 days for a year and 30 days for every completed month. However for Treasury bills it is 365 days for a year.

EXAMPLE:
A client purchases 7.40% GOI 2012 for face value of Rs. 10 lacs.@ Rs.101.80, i.e. the client pays Rs.101.80 for every unit of government security having a face value of Rs. 100/- The settlement is due on October 3, 2002. What is the amount to be paid by the client? The security is 7.40% GOI 2012 for which the interest payment dates are 3rd May, and 3rd November every year. The last interest payment date for the current year is 3rd May 2002. The calculation would be made as follows: Face value of Rs. 10 lacs.@ Rs.101.80%.Therefore the principal amount payable is Rs.10 lacs X 101.80% =10,18,000 Last interest payment date was May 3, 2002 and settlement date is October 3, 2002. Therefore the interest has to be paid for 150 days (including 3rd May, and excluding October 3, 2002) (28 days of May, including 3rd May, up to 30th May + 30 days of June, July, August and September + 2days of October). Since the settlement is on October 3, 2002, that date is excluded. Interest payable = 10 lacs X 7.40% X 150 = Rs. 30833.33. 360 X 100 Total amount payable by client =10, 18,000+30833.33=Rs. 10, 48,833.33

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BENEFITS OF INVESTING IN GOVERNMENT SECURITIES

No tax deducted at source Additional Income Tax benefit u/s 80L of the Income Tax Act for Individuals Qualifies for SLR purpose Zero default risk being sovereign paper Highly liquid. Transparency in transactions and simplified settlement procedures through CSGL/NSDL

METHODS OF ISSUANCE OF GOVERNMENT SECURITIES

Government securities are issued by various methods, which are as follows:

AUCTIONS:
Auctions for government securities are either yield based or price based. In an yield based auction, the Reserve Bank of India announces the issue size (or notified amount) and the tenor of the paper to be auctioned. The bidders submit bids in terms of the yield at which they are ready to buy the security. In a price based auction, the Reserve Bank of India announces the issue size (or notified amount), the tenor of the paper to be auctioned, as well as the coupon rate. The bidders submit bids in terms of the price. This method of auction is normally used in case of reissue of existing government securities.
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The basic features of the auctions are given below:

METHOD OF AUCTION: There are two methods of auction which

are followed1. Uniform price Based or Dutch Auction procedure is used in auctions of dated government securities. The bids are accepted at the same prices as decided in the cut off. 2. Multiple/variable Price Based or French Auction procedure is used in auctions of Government dated securities and treasury bills. Bids are accepted at different prices / yields quoted in the individual bids.

BIDS: Bids are to be submitted in terms of yields to maturity/prices as

announced at the time of auction.

CUT OFF YIELD: It is the rate at which bids are accepted. Bids at
yields higher than the cut-off yield is rejected and those lower than the cutoff are accepted. The cut-off yield is set as the coupon rate for the security. Bidders who have bid at lower than the cut-off yield pay a premium on the security, since the auction is a multiple price auction.

CUT OFF PRICE: It is the minimum price accepted for the security.
Bids at prices lower than the cut-off are rejected and at higher than the cutoff are accepted. Coupon rate for the security remains unchanged. Bidders who have bid at higher than the cut-off price pay a premium on the security, thereby getting a lower yield. Price based auctions lead to finer price discovery than yield based auctions.

NOTIFIED AMOUNT: The amount of security to be issued is

notified prior to the auction date, for information of the public. The Reserve Bank of India (RBI) may participate as a non-competitor in the auctions. The unsubscribed portion devolves on RBI or on the Primary Dealers if the auction has been underwritten by PDs. The devolvement is at the cut-off price/yield.

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 UNDERWRITING IN AUCTIONS
For the purpose of auctions, bids are invited from the Primary Dealers one day before the auction wherein they indicate the amount to be underwritten by them and the underwriting fee expected by them. The auction committee of Reserve Bank of India examines the bids and based on the market conditions, takes a decision in respect of the amount to be underwritten and the fee to be paid to the underwriters. Underwriting fee is paid at the rates bid by PDs, for the underwriting which has been accepted. In case of the auction being fully subscribed, the underwriters do not have to subscribe to the issue necessarily unless they have bid for it. If there is a devolvement, the successful bids put in by the Primary Dealers are set-off against the amount underwritten by them while deciding the amount of devolvement.

ON-TAP ISSUE
This is a reissue of existing Government securities having pre-determined yields/prices by Reserve Bank of India. After the initial primary auction of a security, the issue remains open to further subscription by the investors as and when considered appropriate by RBI. The period for which the issue is kept open may be time specific or volume specific. The coupon rate, the interest dates and the date of maturity remain the same as determined in the initial primary auction. Reserve Bank of India may sell government securities through on tap issue at lower or higher prices than the prevailing market prices. Such an action on the part of the Reserve Bank of India leads to a realignment of the market prices of government securities. Tap stock provides an opportunity to unsuccessful bidders in auctions to acquire the security at the market determined rate.

FIXED COUPON ISSUE

Government Securities may also be issued for a notified amount at a fixed coupon. Most State Development Loans or State Government Securities are issued on this basis.
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 PRIVATE PLACEMENT
The Central Government may also privately place government securities with Reserve Bank of India. This is usually done when the Ways and Means Advance (WMA) is near the sanctioned limit and the market conditions are not conducive to an issue. The issue is priced at market related yields. Reserve Bank of India may later offload these securities to the market through Open Market Operations (OMO). After having auctioned a loan whereby the coupon rate has been arrived at and if still the government feels the need for funds for similar tenure, it may privately place an amount with the Reserve Bank of India. RBI in turn may decide upon further selling of the security so purchased under the Open Market Operations window albeit at a different yield.

OPEN MARKET OPERATIONS (OMO)

Government securities that are privately placed with the Reserve Bank of India are sold in the market through open market operations of the Reserve Bank of India. The yield at which these securities are sold may differ from the yield at which they were privately placed with Reserve Bank of India. Open market operations are used by the Reserve Bank of India to infuse or suck liquidity from the system. Whenever the Reserve Bank of India wishes to infuse the liquidity in the system, it purchases government securities from the market, and whenever it wishes to suck out the liquidity from the system, it sells government securities in the market.

NATIONAL SAVINGS CERTIFICATE

National Savings Certificate, popularly known as NSC, is a time-tested tax saving instrument that combines adequate returns with high safety. NSCs are an instrument for facilitating long-term savings. A large chunk of middle class families use NSCs for saving on their tax, getting double benefits. They not only save tax on their hard-earned income but also make an investment which is sure to give good and safe returns.

HOW TO INVEST

National Savings Certificates are available at all post-offices. The application can be made either in person or through an agent. Post office agents are active in nooks and corners of the country. Following types of NSC are issued:
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 SINGLE HOLDER TYPE CERTIFICATE: This can be issued to: (a) An adult for himself or on behalf of a minor (b) A Trust. JOINT 'A' TYPE CERTIFICATE: Issued jointly to two adults payable to both holders jointly or to the survivor. JOINT 'B' TYPE CERTIFICATE: Issued jointly to two adults payable to either of the holders or to the survivor.

WHO CAN INVEST

An adult in his own name or on behalf of a minor A trust Two adults jointly

DENOMINATIONS AND LIMIT

National Savings Certificates are available in the denominations of Rs. 100 Rs 500, Rs. 1000, Rs. 5000, & Rs. 10,000. There is no maximum limit on the purchase of the certificates. So it is for you to decide how much you want to put in the NSCs. This is of course a huge benefit for you can decide as much as your budget allows.

MATURITY
Period of maturity of a certificate is six years. Presently interest paid is 8 % per annum half yearly compounded. Maturity value of a certificate of any other denomination is at proportionate rate. Premature encashment of the certificate is not permissible except at a discount in the case of death of the holder(s), forfeiture by a pledge and when ordered by a court of law.

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 TAX BENEFITS
Interest accrued on the certificates every year is liable to income tax but deemed to have been reinvested. Income Tax rebate is available on the amount invested and interest accruing under Section 88 of Income Tax Act, as amended from time to time. Income tax relief is also available on the interest earned as per limits fixed vide section 80L of Income Tax, as amended from time to time.

BONDS
A bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest (the coupon) and/or to repay the principal at a later date, termed maturity. It is a formal contract to repay borrowed money with interest at fixed intervals. Thus a bond is like a loan: the issuer is the borrower, the bond holder is the lender, and the coupon is the interest. Bonds provide the borrower with external funds to finance long-term investments, or, in the case of government bonds, to finance current expenditure. Certificates of deposit (CDs) or commercial paper are considered to be money market instruments and not bonds. Bonds must be repaid at fixed intervals over a period of time. Bonds are issued by public authorities, credit institutions, companies and supranational institutions in the primary markets. The most common process of issuing bonds is through underwriting. In underwriting, one or more securities firms or banks, forming a syndicate, buy an entire issue of bonds from an issuer and re-sell them to investors. The security firm takes the risk of being unable to sell on the issue to end investors. However government bonds are instead typically auction. The most important features of a bond are: Nominal, principal or face amount the amount on which the issuer pays interest, and which has to be repaid at the end. The price at which investors buy the bonds when they are first issued, which will typically be approximately equal to the nominal amount. The net proceeds that the issuer receives are thus the issue price, less issuance fees.

ISSUE PRICE

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M ATURITY DATE The date on which the issuer has to repay

the nominal amount. As long as all payments have been made, the issuer has no more obligations to the bond holders after the maturity date. The length of time until the maturity date is often referred to as the term or tenor or maturity of a bond. The maturity can be any length of time, although debt securities with a term of less than one year are generally designated money market instruments rather than bonds. Most bonds have a term of up to thirty years. Some bonds have been issued with maturities of up to one hundred years, and some even do not mature at all. In early 2005, a market developed in Euros for bonds with a maturity of fifty years. In the market for U.S. Treasury securities, there are three groups of bond maturities: Short term (bills): maturities up to one year; Medium term (notes): maturities between one and ten years; Long term (bonds): maturities greater than ten years.

COUPON The interest rate that the issuer pays to the bond holders.
Usually this rate is fixed throughout the life of the bond. It can also vary with a money market index, such as LIBOR, or it can be even more exotic. The name coupon originates from the fact that in the past, physical bonds were issued which coupons had attached to them. On coupon dates the bond holder would give the coupon to a bank in exchange for the interest payment. The quality of the issue, which influences the probability that the bondholders will receive the amounts promised, at the due dates. This will depend on a whole range of factors.

INDENTURES AND COVENANTS

An indenture is a formal debt agreement that establishes the terms of a bond issue, while covenants are the clauses of such an agreement. Covenants specify the rights of bond holders and the duties of issuers, such as actions that the issuer is obligated to perform or is prohibited from performing. In the U.S., federal and state securities and commercial laws apply to the enforcement of these agreements, which are construed by courts as contracts between issuers and bond holders. The terms may be changed only with great difficulty while the bonds are outstanding, with amendments to the governing document

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generally requiring approval by a majority (or super-majority) vote of the bondholders.

HIGH YIELD BONDS

High yield bonds are bonds that are rated below investment grade by the credit rating agencies. As these bonds are more risky than investment grade bonds, investors expect to earn a higher yield. These bonds are also called junk bonds.

COUPON DATES: the dates on which the issuer pays the coupon to
the bond holders. In the U.S. and also in the U.K. and Europe, most bonds are semi-annual, which means that they pay a coupon every six months.

OPTIONALITY: Occasionally a bond may contain an embedded

option; that is, it grants option-like features to the holder or the issuer:

CALLABILITY: Some bonds give the issuer the right to repay the
bond before the maturity date on the call dates; see call option. These bonds are referred to as callable bonds. Most callable bonds allow the issuer to repay the bond at par. With some bonds, the issuer has to pay a premium, the so called call premium. This is mainly the case for high-yield bonds. These have very strict covenants, restricting the issuer in its operations. To be free from these covenants, the issuer can repay the bonds early, but only at a high cost.

PUTABILITY: Some bonds give the holder the right to force the issuer
to repay the bond before the maturity date on the put dates; see put option. (Note: "Putable" denotes an embedded put option;"Puttable" denotes that it may be putted.)

CALL DATES AND PUT DATES: the dates on which callable and
putable bonds can be redeemed early. There are four main categories. a. A Bermudan callable has several call dates, usually coinciding with coupon dates. b. A European callable has only one call date. This is a special case of a Bermudan callable. c. An American callable can be called at any time until the maturity date.
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d. A death put is an optional redemption feature on a debt instrument allowing the beneficiary of the estate of the deceased to put (sell) the bond (back to the issuer) in the event of the beneficiary's death or legal incapacitation. Also known as a "survivor's option". Sinking fund provision of the corporate bond indenture requires a certain portion of the issue to be retired periodically. The entire bond issue can be liquidated by the maturity date. If that is not the case, then the remainder is called balloon maturity. Issuers may either pay to trustees, which in turn call randomly selected bonds in the issue, or, alternatively, purchase bonds in open market, then return them to trustees.

CONVERTIBLE BOND
Lets a bondholder exchange a bond to a number of shares of the issuer's common stock.

EXCHANGEABLE BOND
Exchangeable bonds allows for exchange to shares of a corporation other than the issuer.

FIXED RATE BONDS

Fixed rate bonds have a coupon that remains constant throughout the life of the bond.

FLOATING RATE NOTES

(FRNs) have a coupon that is linked to an index. Common indices include:a. Money market indices, such as LIBOR or Euribor, and CPI (the Consumer Price Index). Coupon examples: three month USD LIBOR + 0.20%, or twelve month CPI + 1.50%. FRN coupons reset periodically, typically every one or three months. In theory, any Index could be used as the basis for the coupon of an FRN, so long as the issuer and the buyer can agree to terms.

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ZERO-COUPON BONDS
Zero coupon bonds don't pay any interest. They are issued at a substantial discount to par value. The bond holder receives the full principal amount on the redemption date. An example of zero coupon bonds is Series E savings bonds issued by the U.S. government. Zero-coupon bonds may be created from fixed rate bonds by a financial institutions separating "stripping off" the coupons from the principal. In other words, the separated coupons and the final principal payment of the bond are allowed to trade independently. See IO (Interest Only) and PO (Principal Only).

INFLATION LINKED BONDS

Inflation linked bonds are those in which the principal amount and the interest payments are indexed to inflation. The interest rate is normally lower than for fixed rate bonds with a comparable maturity (this position briefly reversed itself for short-term UK bonds in December 2008). However, as the principal amount grows, the payments increase with inflation. The government of the United Kingdom was the first to issue inflation linked Gilts in the 1980s. Treasury Inflation-Protected Securities (TIPS) and I-bonds are examples of inflation linked bonds issued by the U.S. government. Other indexed bonds, for example equity-linked notes and bonds indexed on a business indicator (income, added value) or on a country's GDP

ASSET-BACKED SECURITIES:
Asset backed securities are bonds whose interest and principal payments are backed by underlying cash flows from other assets. Examples of assetbacked securities are mortgage-backed securities (MBS's), collateralized mortgage obligations (CMOs) and collateralized debt obligations (CDOs).

SUBORDINATED BONDS
Subordinate bonds are those that have a lower priority than other bonds of the issuer in case of liquidation. In case of bankruptcy, there is a hierarchy of creditors. First the liquidator is paid, then government taxes, etc. The first
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bond holders in line to be paid are those holding what is called senior bonds. After they have been paid, the subordinated bond holders are paid. As a result, the risk is higher. Therefore, subordinated bonds usually have a lower credit rating than senior bonds. The main examples of subordinated bonds can be found in bonds issued by banks, and asset-backed securities. The latter are often issued in tranches. The senior tranches get paid back first, the subordinated tranches later.

PERPETUAL BONDS
Perpetual bonds are also often called perpetuities. They have no maturity date. The most famous of these are the UK Consols, which are also known as Treasury Annuities or Undated Treasuries. Some of these were issued back in 1888 and still trade today, although the amounts are now insignificant. Some ultra long-term bonds (sometimes a bond can last centuries: West Shore Railroad issued a bond which matures in 2361 (i.e. 24th century)) are virtually perpetuities from a financial point of view, with the current value of principal near zero.

BEARER BOND
Bearer bonds are an official certificate issued without a named holder. In other words, the person who has the paper certificate can claim the value of the bond. Often they are registered by a number to prevent counterfeiting, but may be traded like cash. Bearer bonds are very risky because they can be lost or stolen. Especially after federal income tax began in the United States, bearer bonds were seen as an opportunity to conceal income or assets. U.S. corporations stopped issuing bearer bonds in the 1960s, the U.S. Treasury stopped in 1982, and state and local tax-exempt bearer bonds were prohibited in 1983.Registered bond is a bond whose ownership (and any subsequent purchaser) is recorded by the issuer, or by a transfer agent. It is the alternative to a Bearer bond. Interest payments, and the principal upon maturity, are sent to the registered owner.

MUNICIPAL BOND
Municipal bond is a bond issued by a state, U.S. Territory, city, local government, or their agencies. Interest income received by holders of municipal bonds is often exempt from the federal income tax and from the income tax of the state in which they are issued, although municipal bonds
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issued for certain purposes may not be tax exempt. Book-entry bond is a bond that does not have a paper certificate. As physically processing paper bond and interest coupons became more expensive, issuers (and banks that used to collect coupon interest for depositors) have tried to discourage their use. Some book-entry bond issues do not offer the option of a paper certificate, even to investors who prefer them.

LOTTERY BOND
Lottery bond is a bond issued by a state, usually a European state. Interest is paid like a traditional fixed rate bond, but the issuer will redeem randomly selected individual bonds within the issue according to a schedule. Some of these redemptions will be for a higher value than the face value of the bond.

WAR BOND
War bond is a bond issued by a country to fund a war.

SERIAL BOND
Serial bond is a bond that matures in instalments over a period of time. In effect, a $100,000, 5-year serial bond would mature in a $20,000 annuity over a 5-year interval.

REVENUE BOND
Revenue bond is a special type of municipal bond distinguished by its guarantee of repayment solely from revenues generated by a specified revenue-generating entity associated with the purpose of the bonds. Revenue bonds are typically "non-recourse," meaning that in the event of default, the bond holder has no recourse to other governmental assets or revenues.

INVESTING IN BONDS
Bonds are bought and traded mostly by institutions like pension funds, insurance companies and banks. Most individuals who want to own bonds do so through bond funds. Still, in the U.S., nearly 10% of all bonds outstanding are held directly by households.

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Sometimes, bond markets rise (while yields fall) when stock markets fall. More relevantly, the volatility of bonds (especially short and medium dated bonds) is lower than that of shares. Thus bonds are generally viewed as safer investments than stocks, but this perception is only partially correct. Bonds do suffer from less day-to-day volatility than stocks, and bonds' interest payments are often higher than the general level of dividend payments. Bonds are liquid it is fairly easy to sell one's bond investments, though not nearly as easy as it is to sell stocks and the comparative certainty of a fixed interest payment twice per year is attractive. Bondholders also enjoy a measure of legal protection: under the law of most countries, if a company goes bankrupt, its bondholders will often receive some money back (the recovery amount), whereas the company's stock often ends up valueless. However, bonds can also be risky. Fixed rate bonds are subject to interest rate risk, meaning that their market prices will decrease in value when the generally prevailing interest rates rise. Since the payments are fixed, a decrease in the market price of the bond means an increase in its yield. When the market interest rate rises, the market price of bonds will fall, reflecting investors' ability to get a higher interest rate on their money elsewhere perhaps by purchasing a newly issued bond that already features the newly higher interest rate. Note that this drop in the bond's market price does not affect the interest payments to the bondholder at all, so long term investors who want a specific amount at the maturity date need not worry about price swings in their bonds and do not suffer from interest rate risk. Price changes in a bond will also immediately affect mutual funds that hold these bonds. If the value of the bonds held in a trading portfolio has fallen over the day, the value of the portfolio will also have fallen. This can be damaging for professional investors such as banks, insurance companies, pension funds and asset managers (irrespective of whether the value is immediately "marked to market" or not). If there is any chance a holder of individual bonds may need to sell his bonds and "cash out", interest rate risk could become a real problem. (Conversely, bonds' market prices would increase if the prevailing interest rate were to drop, as it did from 2001 through 2003.) One way to quantify the interest rate risk on a bond is in terms of its duration. Efforts to control this risk are called immunization or hedging. Bond prices can become volatile depending on the credit rating of the issuer for instance if the credit rating agencies like Standard & Poor's and Moody's upgrade or downgrade the credit rating of the issuer. A downgrade will cause the market price of the bond to fall. As with interest rate risk, this risk does not affect the bond's interest payments (provided the issuer does not actually default), but puts at risk the market price, which affects mutual funds holding these bonds, and holders of individual bonds who may have to sell them.
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A company's bond holders may lose much or all their money if the company goes bankrupt. Under the laws of many countries (including the United States and Canada), bondholders are in line to receive the proceeds of the sale of the assets of a liquidated company ahead of some other creditors. Bank lenders, deposit holders (in the case of a deposit taking institution such as a bank) and trade creditors may take precedence. There is no guarantee of how much money will remain to repay bondholders. As an example, after an accounting scandal and a Chapter 11 bankruptcy at the giant telecommunications company World com, in 2004 its bondholders ended up being paid 35.7 cents on the dollar. In a bankruptcy involving reorganization or recapitalization, as opposed to liquidation, bondholders may end up having the value of their bonds reduced, often through an exchange for a smaller number of newly issued bonds. Some bonds are callable, meaning that even though the company has agreed to make payments plus interest towards the debt for a certain period of time, the company can choose to pay off the bond early. This creates reinvestment risk, meaning the investor is forced to find a new place for his money, and the investor might not be able to find as good a deal, especially because this usually happens when interest rates are falling.

COMMODITIES
A commodity is a normal physical product used by everyday people during the course of their lives, or metals that are used in production or as a traditional store of wealth and a hedge against inflation. For example, these commodities include grains such as wheat, corn and rice or metals such as copper, gold and silver. The full list of commodity markets is numerous and too detailed. The best way to trade the commodity markets is by buying and selling futures contracts on local and international exchanges. Trading futures is easy, and can be accessed by using the services of any full or on-line futures brokerage service. Traditionally, there is an expectation when trading commodity futures of achieving higher returns compared to shares or real estate, so successful investors can expect much higher returns compared to more conventional investment products. The process of trading commodities, as mentioned above, must be facilitated by the use of trading liquid, exchangeable, and standardized futures contracts, as it is not practical to trade the physical commodities. Futures
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contracts give the investor ease of use and the ability to buy or sell without delay. A futures contract is used to buy or sell a fixed quantity and quality of an underlying commodity, at a fixed date and price in the future. Futures contracts can be broken by simply offsetting the transaction For example, if you buy one futures contract to open then you sell one futures contract to close that market position. The execution method of trading futures contracts is similar to trading physical shares, but futures contracts have an expiry date and are deliverable.Futures contracts have an expiry date and need to be occasionally rolled over from the current contract month to the following contract month. The reason is because the biggest advantage to trading commodity futures, for the private investor is the opportunity to legally short-sell these markets. Shortselling is the ability to sell commodity futures creating an open position in the expectation to buy-back at a later time to profit from a fall in the market. If you wish to trade the up-side of commodity futures, then it will simply be a buy-toopen and sell-to close set of transactions similar to share trading. The commodity markets will always produce rising of falling trends, and with the abundance of information and trading opportunities available there is no reason for any investor to exclusively trade the share market when there is potential profits from trading commodity futures. The increased use of commodity trading vehicles in investment management has led practitioners to create investable commodity indices and products that offer unique performance opportunities for investors in physical commodities. As is true for stock and bond performance, as well as investment in managed futures and hedge fund products, commodity-based products have a variety of uses. Besides being a source of information on cash commodity and futures commodity market trends, they are used as performance benchmarks for evaluation of commodity trading advisors and provide a historical track record useful in developing asset allocation strategies. However, the investor benefits of commodity or commodity-based products lie primarily in their ability to offer risk and return trade-offs that cannot be easily replicated through other investment alternatives. Previous research that direct stock and bond investment offers little evidence of providing returns consistent with direct commodity investment. Commodity-based firms may not be exposed to the risk of commodity price movement. Thus for investors, direct commodity investment may be the principal means by which one can obtain exposure to commodity price movements. The commodities that are traded in the market

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 Gold Copper Silver Sugar Wheat Zeera Guar

FIXED DEPOSITS
The most popular and widely known type of investment. They are offered by banks / corporate / financial institutions. Returns on such instruments are assured and the risk is very low. Fixed deposits invested for more than 5 years can be claimed for tax deduction. Investing in bank or post-office deposits is a very common way of securing surplus funds.

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ANALYSIS OF DATA
1. Awareness of Financial Instrument

Financial Mutual instruments funds yes no No. Of 85 15 person

Equity shares yes no 90 10

Fixed deposits yes no 65 35

gold yes 95 no 5

Others yes 60 no 40

financial instruments
YES 15 10 35 NO 5 40

85

90 65

95 60

MUTUAL FUND

EQUITY SHARES

FIXED DEPOSITS

GOLD

OTHERS

INFERENCES

Table 1 shows that the sample size consists of 100 respondents and out of which almost all the people are fully aware about investment avenues like gold and fixed deposits and almost 90 are aware about equity shares and 95 are aware about gold and 90 are aware about mutual funds

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2. Basis on which people invest in any particular Financial Instrument

BASIS PAST PERFORMANC E

PORTFOLI O

FUND MANAGE R

MARKET SENTIMENT S

FUNDAMENTAL/ TECHNICAL ANALYSIS

No.of 12 perso n

30

12

18

28

BASIS OF INVESTING
PAST PERFORMANCE 12% FUNDAMENTAL/TEC HNICAL ANALYSIS 28% MARKET SENTIMENTS 18%

PORTFOLIO 30%

FUND MANAGER 12%

INFERENCES

Table 2 shows that the respondents were mostly of the opinion that portfolio is the most important factor before investing i.e.30% and then fundamental analysis done by them or by the financial advisor and then the other factors

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3. Source of investment in any financial instruments.

SOURCE OF YOURSELF SUB INVESTMENT BROKER/AGENTS NO.OF PERSON

THROUGH BANKS

STOCK BROKING COMPANY

OTHERS

12

38

12

30

SOURCE OF INVESTMENT
OTHERS YOURSELF 8% 12%

STOCK BROKING COMPANY 30%

SUB BROKER/AGENT S 38%

THROUGH BANKS 12%

INFERENCES

Table 3 shows that people invest their money through broker i.e.38% then through a stock broking company i.e.30% and through others

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4. People get information about investment avenues. advertisement Compan s y sales force 42 10 Magazines/newspape Friends/relative other r s s 28 15 5

others 5%

medium

friends/relatives 15% advertisement 42%

magazines/mewspap er 28%

company salesforce 10%

INFERENCES

Table 4 shows that 42% of the people get the information from the advertisement on the television and internet and rest from the magazines, friends or company sales force.

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5. Factors that consider while investing in any financial instrument.

Factors respondents

Return 35

Tax savings 17

Risk 15

safety 30

Others 13

factors while investing

other 12% return 32% safety 27%

risk 14%

tax saving 15%

INFERENCES

Table 5 shows that 32% of return and 27 % of safety are the factors considered while investing.

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6. Rate of Return people expect from the investments.

Returns (in %) persons

10-20 10

20-30 24

30-40 32

More than 40 34

return(in %)
return(in %) 34

32 24

10-20%

20-30%

30-40%

more than 40

INFERENCES

Table 6 shows that 34% of the people expect more than 40% of return on their investment and 32% expect between 30-40% return on investment.

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7. Time period people prefer to keep their money invested

Time interval Less than 6 months No. Of 12 persons

6 months to 1 year 8

1year to 3year 30

More than 3 year 50

time interval
less than 6 months 12% 6months-1 yr 8%

more than 3 yr 50% 1yr-3yr 30%

INFERENCES

Table 7 shows that 50% of the people like to invest for the period of more than 3 years.

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8. Amount of money people invest in financial instrument.

Income No. Of person

10%-20% 20

20%-30% 35

30%-40% 40

More than 40% 5

more than 40% 5%

income
10%-20% 20%

30%-40% 40% 20%-30% 35%

INFERENCES

Table 8 shows that 40% of the people like to invest their 30-40% of their income in financial instrument.

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9. Type of Financial Instrument people would like to invest.

Type No. of persons

Equity based 45

Debt based 28

Balanced fund 12

Hybrid fund 9

others 6

type of financial instrument

others hybrid 6% fund 9% balanced fund 12% equity based 45%

debt based 28%

INFERENCES

Table 9 shows that 45% of the people like to invest on equity based financial instrument which is fair.

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10. Satisfaction level of people in their investment decision.

Rating No. Of persons

Highly satisfied 35

satisfied 40

Less satisfied No satisfaction 15 10

ratings
no satsifactio n 10% less satisfied 15% highly satisfied 35%

satisfied 40%

INFERENCES

Table 10 shows that 40% of the people are satisfied by their investment decision which is fair.

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INTERPRETATION
The study shows that maximum numbers of people are aware of the available investments avenues. Service class people likes to invest in real estate and gold and business class people likes to invest in equity and debits. The study shows that the Karvy provide the people to have in place investment system with all its checks and balance. According to the survey it was found that the maximum of the people invest their money through Karvy and other brokers and agents. A good majority of people invest in various available investment avenues such as equity, mutual fund and gold. The majority of people like to invest in gold because the value of gold keep on increasing and the risk is minimum. Mostly the people are in opinion that the portfolio is important basis to be considered before investment and after that they consider the other basis such as past performance and fundamental analysis. The study shows that the people expect between 30%-40% return on investment. According to the survey done it shows that maximum number of they people like to invest for the purpose of tax saving, health care and children education. The study shows that the people like to invest 20-30% of their income. From the study it was found that majority of people are satisfied with their investment decision.
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CONCLUSION

The study was very fruit giving job. It helped us to study and examine a complete detail of various investment avenues. According to our study, it concluded that investing is very important and investing in stock market is a major challenge ever for professionals. People are divided into two categories i.e. business class and service class. Business class people like to invest in equity and debits where as service class people like to invest in real estate and gold. Before investment investors do have focus on tax saving, income, capital preservation etc. they also have a predetermination of the time period of investment. Karvy is a legendary name in financial service offering a broad spectrum of customized service to its clients both corporate and retail. The Karvy success is the faith reposed in company by valued investors and customers. Most remote investor can easily access Karvy services and benefits from companies expert advice. As the people exposing their money to the market such as in equity, debits etc and their associated risks. The higher the risk taken the higher is the return expected. Risk in equity market is high and the expected return is also higher. Before exposing money to the market people have to apply common sense and learning to reduce risk to acceptable level. Thus making this project was very helpful and interesting and has increased our knowledge to a great extent.

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RECOMMENDATION

People should keep their eyes open and keep updating themselves about various investment avenues so that they can get safe returns. The people should start investing earlier so that they can get the benefits of investing. The people should invest in real estate and gold because the return is always above the investment. The people should invest through stock broking company such as Karvy which provide guidance to people.

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BIBLIOGRAPHY
BOOKS REFERRED:

1. Jaffrey.C.Hooke; Security Analysis and Business Valuation; Wall Street; Second Edition 2. Glen Arnold; The Definitive Comparisons To Investment And The Financial Market; F T Prentice Hall Financial Times Guides 3. Redney Mobson; Shares Made Simple A beginners Guide To The Stock Market; Copyright Hariman House Ltd

SITES REFERRED: 1. www.schwab_global.com/public/schwab_gcb_en?src=pql 2. www.investorideas.com/ism/ 3. en.wkipedia.org/wiki/Investment/ 4. http://broking.karvy.com/ 5. www.karvy.com/v2/about us.aspx

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ANNEXURE

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QUESTIONNAIRES
1. NAME:

2. DESIGNATION:

3. ORGANIZATION:

4. AGE GROUP: Below 20 Between 20-30 Between 30-40 Above 40

5. QUALIFICATION: Under Graduate Graduate Post Graduate Other

6. OCCUPATION (WHAT CATEGORY DO YOU COME UNDER): Salaried Other Business Housewife Retired

7. ANNUAL INCOME: Below Rs.2, 00,000 Rs.4, 00,000-Rs.6, 00,000 Rs.2, 00,000-Rs.4, 00,000 Above Rs.6, 00,000

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8. Do you know about the following financial instruments? FINANCIAL INSTRUMENTS Mutual fund Equity shares Fixed deposits Gold others 9. On what basis you will invest in any particular Financial Instrument? Past Performance Market sentiments Portfolio Fund Manager YES NO

fundamental/technical analysis

10. How will you invest your money in any financial instrument? Yourself Sub Broker/Agents Through Bank Stock Broking Company Others

11. How do you get information regarding these Financial Instrument? Advertisement Friends/relatives Others company sales force magazines/newspapers

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12. What are the factors that you consider while investing in any financial instrument? Return Safety Tax Savings Other Risk

13. How much return do you expect from your investments? 10%-20% More than 40% 14. How long do you prefer to keep your money invested? Less than 6 months More than 3yrs 15. How much of your income you invest in financial instruments? 10%-20% More than 40% 16. In what type of Financial Instrument you like to invest? Equity based Hybrid Fund Balanced Fund Others Debt Fund 20%-30% 30%-40% 6 months -1 yr 1 yr -3yrs 20%-30% 30%-40%

17. Are you satisfied with your investment decision, Please rate? Highly Satisfied No Satisfaction 18. Any other comments. ................................................................................................................................ ................................................................................................................................ ...............................................................................................................................
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Satisfied

Less Satisfied

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