A Study On Investors Preference On Various Investment Avenues With Special Reference To Ramapuram Gramapanchayath

“A STUDY ON INVESTORS PREFERENCE ON VARIOUS INVESTMENT AVENUES WITH SPECIAL REFERENCE TO RAMAPURAM GRAMAPANCHAYATH” PROJECT REPORT SUBMITTED TO MAHATMA GANDHI UNIVERSITY IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF

BACHELOR OF COMMERCE Submitted By

JEFFIN JOSEPH Reg. No. – 11139132

JEFFY AUGUSTINE Reg. No. - 11139133

JINIL JOSEPH Reg. No. - 11139135 Under the guidance of Ms. KALA S, M.Com Lecturer-Department of Commerce

Department of Commerce MAR AUGUSTHINOSE COLLEGE (Affiliated to Mahatma Gandhi University)

Ramapuram-686576 March 2014

MAR AUGUSTHINOSE COLLEGE RAMAPURAM, KERALA - 686576

CERTIFICATE This is to certify that the project work entitled “A STUDY ON INVESTORS PREFERENCE ON VARIOUS INVESTMENT AVENUES WITH SPECIAL REFERENCE TO RAMAPURAM GRAMA PANCHAYATH” is the bonafide work done by JEFFIN JOSEPH, JEFFY AUGUSTINE AND JINIL JOSEPH under my guidance, in partial fulfillment of their sixth semester requirements for the award of the degree Bachelor of Commerce of Mahatma Gandhi University. Countersigned by, Mr. Jose Joseph Ms. Kala S Head of the Department Project Guide of Commerce Department of commerce

External valuation conducted on: External Examiner: Place: Date:

ACKNOWLEDGEMENT It is a great pleasure to express our thanks, while presenting this project report to all those who helped us in completing this study successfully. First of all, we thank God Almighty for having showered all the blessings to complete the work successfully. We proudly utilize the privilege to express our thanks and sincere gratitude to Rev. Dr. George Njarakkunnel Manager, Dr. Joseph V. J Principal,

Rev.

Fr.

Joseph

Alancheril

Vice

Principal, and Mr. Jose Joseph Head of the Department

of

Commerce,

Mar

Augusthinose

College Ramapuram. We also express our deep sense of gratitude and indebtedness to Ms. Kala S,

Lecturer, Department of Commerce our project guide, for her valuable guidance, suggestions and encouragements which helped us to bring this project completed. Finally we extend our immense gratitude to our parents and friends for their help and cooperation for the successful completion of this project.

Place: Ramapuram JEFFIN JOSEPH Date: JEFFY AUGUSTINE JINIL JOSEPH

DECLARATION

We, JEFFIN JOSEPH, JEFFY AUGUSTINE and JINIL

JOSEPH

students

of

Mar.

Augusthinose

college, Ramapuram hereby declare that the

project report entitled “A Study on Investors preference on various investment avenues with

special

references

to

Ramapuram

Gramapanchayath.” is a record of bonafide project work carried out under the supervision and guidance of Ms. Kala S, Lecturer, Department of Commerce,

Mar.

Augusthinose

college,

Ramapuram. This project has not been previously formed the basis for the award of any other degree or diploma of any other university or institution.

Place: Ramapuram JEFFIN JOSEPH Date: JEFFY AUGUSTINE

JINIL JOSEPH

CONTENTS TITLE

No.

Pag e No.

Acknowledgement List of Tables List of Figures 1.

Introduction

2.

Review of Literature

3.

Analysis of Primary Data

23-54

4.

Findings, Suggestions & Conclusion

55-59

Bibliography Appendix

1-8 9-22

LIST OF TABLES Tabl TITLE e No. Table Table showing classification of 3.1 respondents on the basis of age Table 3.2 Table 3.3

Table showing classification of respondents on the basis of gender Table showing classification of respondents on the basis of education

Table 3.4 Table 3.5

Page No. 24 26 27

Table showing classification of respondents on the basis of occupation Table showing classification of respondents on the basis of monthly income Table Table showing classification of 3.6 respondents on the basis of marital status Table Table showing the number of respondents 3.7 having savings

28

Table Table showing the Number of respondents 3.8 having awareness about investment avenues Table Table showing the respondent’s

33

30 31 32

34

3.9 Table 3.10 A Table 3.10 B Table 3.11

preference for their savings Table showing whether the respondents are satisfied with their investment

36

Table showing the level of satisfaction of respondents

37

Table showing investment motive of respondents

38

Table Table showing investment objective of 3.12 respondents

39

Table 3.13 A Table 3.13 B Table 3.14

Table showing whether respondents get a regular income or not

40

Table showing the level of satisfaction from regular return on investment

41

Table showing respondent’s preference regarding profitable investment avenue

42

Table Table showing respondent’s opinion 3.15 regarding profitable and safe investment method Table Table showing respondent’s opinion 3.16 regarding risk taking in investment

44

Table 3.17 A Table 3.17 B Table 3.18

Table showing respondent’s opinion about changing their current investment to a new investment avenue Table showing respondent’s preference for new investment avenue

46

Table showing respondent’s preference regarding time period of investment

49

45

48

Table Table showing respondent’s opinion about 3.19 to what extent they want to take risk in investment Table Table showing grading of investment 3.20 avenues on the basis of profitability

51

Table Table showing grading of investment 3.21 avenues on the basis of risk

53

52

LIST OF FIGURES Figure No. Figure 3.1 Figure 3.2 Figure 3.3 Figure 3.4 Figure 3.5 Figure 3.6

TITLE Figure showing Age wise classification of respondents Figure showing Gender wise classification of respondents Figure showing Educational qualification wise classification of respondents Figure showing occupation wise classification of respondents Figure showing Income wise classification of respondents Figure showing classification on the basis of marital status of respondents

Page No. 25 26 27 29 30 31

Figure 3.7 Figure 3.8

Figure showing the number of respondents having savings Figure showing the number of respondents having awareness about investment avenues Figure Figure showing the respondent’s 3.9 preference regarding their savings Figure Figure showing whether the respondent 3.10 A is satisfied in their investment Figure Figure showing the level of satisfaction 3.10 B of respondents Figure Figure showing investment motive of 3.11 respondents

32

Figure 3.12

39

Figure 3.13 A Figure 3.13 B Figure 3.14 Figure 3.15

Figure showing investment objective of respondents

Figure showing whether respondent get a regular income or not Figure showing the level of satisfaction from regular return on investment Figure showing respondent’s preference regarding profitable investment avenue Figure showing respondent’s opinion regarding profitable and safe investment method Figure Figure showing respondent’s opinion 3.16 regarding risk taking in investment Figure Figure showing respondent’s opinion 3.17 A about changing their current investment to a new investment avenue Figure Figure showing respondents preference 3.17 B for new investment avenue Figure Figure showing respondent’s preference 3.18 regarding time period of investment Figure Figure showing respondents opinion 3.19 about to what extent they want to take

33 35 36 37 38

40 41 43 44 45 47 48 50 51

risk in investment

CHAPTER 1 INTERODUCION

CHAPTER 1

INTRODUCTION Savings are generated when people and

institutions restrict or abstain from current spending, for the sake of future needs. Such savings are deployed to suitable avenues based on various considerations like safety, profitability, liquidity, etc. This process of deploying savings in different forms leads to various types of investments. Thus investment means employment of funds with the aim of achieving additional income or growth in value. In financial parlance investment means purchase of some financial asset that yield a return, which is proportionate to risk assumed over some future period of time. Essentially investment involves waiting for a reward. In other words investment is allocation of monetary resources to assets that are expected to yield some gain or positive return over a given period of time. Investment is the allocation of monetary resources to asset that are expected to yield some gain or positive return over a given period of time. From the point of view of people who invest their funds, they are the suppliers of ‘capital’ and in person’s funds to derive future income in the form of the appreciation of the value of their principal capital. To the financial investor, it is not important whether money is invested for a productive use or for the purchase of second hand instruments such as existing shares and stocks listed on the stock exchanges. Most of the investments are considered to be transfers of financial assets from one person to another. The nature of investment in the financial sense differs from its use in the economic sense. To the economist, investment means the net addition to the economy’s capital stock which consists of goods and services that are used in the production of other goods and services. In this

context, the term investment, therefore, implies the formation of new and productive capital in the form of new construction, new producer’s durable equipment such as plant and equipment. Inventories and human capital are included in the economist’s definition of investment. Keeping money idle is unproductive. Moreover, money gets its value reduced over a period of time due to inflation. Therefore surplus funds, if any, must be deployed in a most fruitful way to make it productive and also to beat the erosion in value due to inflation. There are different ways in which one can deploy the savings or surplus funds. However, selecting the best investment alternative is not an easy task. One has to be aware of all the alternatives, to choose the best one based on his risk-return preferences. Modern financial markets offer a variety of investment avenues, apart from the traditional ones. Following are the major financial investment avenues available to an ordinary investor: 1. Corporate securities 2. Government bonds 3. Post Office savings schemes 4. Provident funds 5. Mutual funds 6. Bank deposits 7. Life insurance 8. Real estate 9. Others SIGNIFICANCE OF THE STUDY

There are number of investment options before an investor and each investor’s preference is different according to his risk taking capacity and expected return. To know about investment avenues and investors preference it is essential to find out a profitable investment option among various investment avenues. Savings are very essential component for people without which there cannot be any proper planning of our expenditure. Only if money is invested properly, they can get their expected income or returns. This study is conducted to find out proper investment avenue among the people who wish to save their money in appropriate ventures. PROFILE OF RAMAPURAM GRAMA PUNCHAYATH Ramapuram is a beautiful village with an illustrious past and a rich heritage. It is a special grade Panchayath located at the North East side of Kottayam District, bordering Ernakulam and Idukki Districts. It spreads over an area of 54.54sq.km, Sheltering 33000 people which amount to 0.14 percent of the total area and 0.11 percent of the population of the state of Kerala. Ramapuram is under Pala Assembly Constituency and Kottayam Parliament Division. The area comes under Uzhavoor Development Block and consists of all the areas of Ramapuram and Vellilappilly Villages in Meenachil Taluk. The Block Panchayath includes whole of Ramapuram, Pazhamala and certain parts of Uzhavoor Division. The District Panchayath Division is Ramapuram. It has an area of 12 Sq.km. each from Nellappara, the boundary of Idukki District in the North to Chakkampuzha in the South and from Anthyalam in the East to Parathod in the West. There are 18 Panchayath

wards and 36 election booths.

STATEMENT OF THE PROBLEM Investment avenues are plenty, some are simple and some are complex. Some are direct and some are indirect. Investment suitable for one person may not be suitable for another person. Normally investors will make a detailed analysis about these investment avenues for comparing risk and return at these investment alternatives. This study is conducted to analyze the various investment avenues, find out investors preference, risk taking capacity, and perception regarding return from investment among investors in Ramapuram Gramapanchayath. The problem under study is stated as ‘A Study on Investors preference on various investment avenues with special reference to Ramapuram Gramapanchayath.’

OBJECTIVES OF THE STUDY 1. To know about various investment avenues.

2. To study preference of the investors. 3. To study the risk taking capacity of investors. 4. To know about the investors motive behind investment. 5. To know investors perception regarding return from investment. 6. To find out which investment avenue is mostly preferred by the investors.

PERIOD OF STUDY Period of study is from December 2013 to March 2014 RESEARCH METHODOLOGY Primary data The study is mainly based on primary data. Primary data are collected through questionnaire and personal interviews. Secondary data Secondary data was used to supplement and support the findings as well as to develop theoretical framework of the study. Secondary data are collected from published reports, books, dailies and periodicals. Sample size The whole number of sample unit on which survey is conducted is known as sample size. It consists of 50 respondents. Sample unit A single section selected to research and gather statistics of the whole is called sample unit.

In this study, an investor in the Ramapuram Gramapanchayath is a sample unit. Sampling method For the purpose of the study, simple random sampling method was adopted. TOOLS FOR ANALYSIS All data collected are tabulated, so as to facilitate analysis. Collected data have been analyzed with the help of simple statistical tools like percentage, tables, graphs, etc. Percentage In mathematics, a percentage is a number or ratio expressed as a fraction of 100. It is often denoted using the percent sign, ‘%’. Table A table presents the data as table of rows and columns, and is used to see details and compare values. Graph A graph is a visual way to make comparison between two or more sets of information. LIMITATIONS OF THE STUDY 1. The study was based on the opinion given by the respondents. The attitude of the respondents may likely to change according to their views. 2. Limited number of respondents is another limitation. 3. Time consuming process. CHAPTER SCHEME Chapter 1- Introduction This chapter includes the statement of the

problem, significance of the study, objectives of the study, period of study, data and methodology, tools of analysis and limitations of the study. Chapter 2- Review of literature It includes meaning and definition of investment, factors influencing investment decisions, importance of investment, investment objectives and investment avenues. Chapter 3- Analysis of data This chapter includes the analysis of primary data which includes analysis and interpretation of data where data is being presented in tables and figures. Chapter 4- Findings, suggestions and conclusions This chapter includes findings, suggestions and conclusion.

CHAPTER 2 REVIEW OF LITERATURE

CHAPTER 2

REVIEW OF LITERATURE MEANING OF INVESTMENT Investment is a conscious act of an individual or any entity that involves deployment of money in securities or assets issued by any financial institution with a view to obtain the target returns over a specified period of time. Investment avenues are the sectors in which people prefer for their investment. DEFINITIONS “Purchase of a financial asset that produces a yield that is proportionate to the risk assumed over some future investment period”. – F.Amling. “Investment is sacrifice of certain present value

for some future investment period”. – Sharpe FACTORS INFLUENCING INVESTMENT DECISIONS The following are the important factors normally influencing the investment decisions. 1. Return An investment characterized by the expectation of return. Investment is always made with an objective of earning a return. The amount of return from an investment depends on the maturity period and several other factors. The return may be earned in the form of dividend or interest or in the form of capital appreciation. 2. Risk Deviation of actual returns from anticipated returns is something which one cannot precisely predict in all cases. This is due to the risk associated with any investment opportunity. Broadly speaking, an investment decision is a trade-off between risk and return. Risk varies from investment to investment. In other words, higher the risk more is the return. 3. Safety The safety of investment refers to the certainty of getting back the invested funds. The principal amount invested should be received back without loss of value and delay. 4. Liquidity Liquidity means easy convertibility of investment into money. Some investments are marketable while some others are not. Easy marketability ensures liquidity which is considered to be a desirable feature of a good investment. 5. Tax implications Some investments provide income tax benefits and some others do not. The tax benefits available to investments can be of three types. Certain investments get initial tax benefits at the time of investment. Some others enjoy annual tax benefits on returns during the life time of the investment. In certain cases, there is terminal tax benefit available at the end of the duration of the investment. IMPORTANCE OF INVESTMENT Investments are both usual and important. In the context of present day conditions some factors that have made investment

decisions increasingly important are: 1. Interest Rate Another aspect which is necessary for a investment plan is the level of interest rates. Interest rates vary between one investment and another. These may vary between risky and safe investments; they may also differ due to different benefit schemes offered by the investments. These aspects must be considered before actually allocating any amount. 2. Increasing rate of Taxation Taxation is the one of the crucial factors in any country, which introduces an element of compulsion in person’s savings. There are various from of savings outlets in our county in the form of investment which help in bringing down the tax level of offering deductions in personal income. 3. Longer Life Expectancy Investment decisions have become significant as most people retire between the age of 55 and 60. 4. Income Another reason why investment decisions have assumed importance is the general increases in rise to increases in the number of both male and female work force. More incomes and more avenues of investments have led to the ability and willingness of working people to save and inset their funds. 5. Investment Channel The growth and development of the country leading to greater economic activity has led to the introduction of a vast array of investment outlets. 6. Inflation Due to inflation purchasing power of people will reduce in order to reduce the effect of inflation we are investing our savings in more profitable. The investor will try and search an outlet which will give him a high rate of return in the form of interest to cover any decrease due to inflation.

INVESTMENT OBJECTIVES Though people make investment for a variety of purposes, all of them have a common objective of minimizing the risk involved in the investment and maximizing the return. But still different investors may have different objectives behind their investment decisions. Some such specific investment objectives are mentioned below: 1. Safety While no investment option is completely safe, there are products that are preferred by investors who are risk averse. Some individuals invest with an objective of keeping their money safe, irrespective of the rate of return they receive on their capital. Such near-safe products include fixed deposits, savings accounts, government bonds, etc. 2. Growth While safety is important objectives for many investors, a majority of them invest to receive capital gains, which means that they want the invested amount to grow. There are several options in the market that offer this benefit. These include stocks, mutual funds, gold, property, commodities, etc. It is important to note that capital gains attract taxes, the percentage of which varies according to the number of years of investment. 3. Income Some individuals invest with the objective of generating a second source of income. Consequently, they invest in products that offer returns regularly like bank fixed deposits, corporate and government bonds, etc.

4. Tax exemptions Some people invest their money in various financial products solely for reducing their tax liability. Some products offer tax exemptions while many offer tax benefits on long-term profits. 5. Liquidity Many investment options are not liquid. This means they cannot be sold and converted into cash instantly. However, some people prefer investing in options that can be used during emergencies. Such liquid instruments include stock, money market instruments and exchangetraded funds, to name a few.

INVESTMENT AVENUES In the modern financial system there are so many investment avenues to choose from today in financial market and it has become difficult for anyone to decide about these avenues. Some of these investment avenues offer attractive returns but with high risks and some offer lower returns with very low risk. An overall analysis of these investment avenues with risk and return trade is presented in this article. These investment avenues are: 10.Corporate securities 11.Government bonds 12.Post Office savings schemes

13.Provident funds 14.Mutual funds 15.Bank deposits 16.Life insurance 17.Real estate 18.Others A brief description about the different investment avenues is given below. 1. CORPORATE SECURITIES The instruments through which companies collect funds from the public for meeting their long term financial requirements are called corporate securities. Such securities, which are also known as industrial securities, can be broadly classified into two categories as follows. a) Ownership Securities The securities allotted to those who contribute the share capital of the company are called ownership securities. A share represents the smallest unit of ownership instrument and hence shareholders are the real owners of the company. Ownership securities may be either equity shares or preference shares. b) Creditorship Securities Those who contribute funds to the company in the form of long term debt get creditorship securities of the company. The holder of creditorship securities are lenders of funds to the company. Debentures and bonds are the common form of debt capital.

2. GOVERNMENT SECURITIES As in the case of companies collecting funds from debenture

holders, governments borrow from public by issuing bonds. Such securities are absolutely risk-free, since they are offered by the government, but the rate of return will be low. The following are the different types of bonds issued by the government in the securities market. a) Fixed Rate Bonds These are bonds on which the coupon rate is fixed for the entire life of the bond. b) Floating Rate Bonds These are securities which do not have a fixed coupon rate. The coupon rate is reset at regular intervals, based on interest rate fluctuations. c) Zero Coupon Bonds These are bonds with no coupon payments. Like Treasury bills they are issued at a discount to the face value. d) Capital Indexed Bonds These are bonds whose principal is linked to an accepted index of inflation with a view to protect the holder from the impact of inflation. e) Bonds with Call or Put Option Bonds can also be issued with features of options where the issuer reserves an option to buy-back them or the investor shall have the option to sell to the issuer, during the currency of the bond. 3. POST OFFICE SAVING SCHEMES Post office savings schemes provides a safe or risk free and attractive investment option for the small investors. The following are the major saving schemes offered by the Indian Postal Department.

a) Savings Bank Account The post office savings bank is the oldest and one of the largest banking systems in the country, serving the investment needs of both urban and rural people. Tax benefit is another important attraction because interest on post office savings bank is absolutely tax free. b) Recurring Deposit account This is a five year monthly investment option which offers a high annual interest. Deposits of small denominations are possible without any maximum limit. One withdrawal up to 50% of the balance is allowed after one year. c) Time Deposit This is a fixed deposit option for periods ranging from one to five years with facility to draw yearly interest offered at compounded rates. The interest rate ranges from 8.2% for one year deposit to 8.5% for that of five years. The minimum amount of deposit is Rs 200 and multiples thereof. d) Monthly income scheme The MIS is a safe and sure way to get regular monthly income. This scheme offers an opportunity for fixed investment for five years with monthly interest payment facility. It is especially suitable for retired employees, senior citizens, etc. The rate of interest is 8.5%. e) Public Provident Fund This is an investment option for both salaried as well as self employed classes. PPF offers intermittent deposits for a period of 15 years. Interest rate is 8.8% per annum. Interest is completely tax-free. f) Senior Citizens savings Scheme This is a new avenue of investment and return for senior citizens who attained age of 60 years or above on the date of

opening of the account. Interest at the rate of 9.3% per annum from the date of deposit on quarterly basis is available. 4. PROVIDENT FUNDS In order to encourage savings for social security of employees the government has set up various kinds of provident funds. Employees are required to contribute fixed percentage of their salary towards these funds and in many cases employer also contribute. The whole contributions as well as interest thereon are credited to the account of the employee. a) Statutory Provident Fund It was started in the year 1925 through Provident Fund Act 1925 and is the oldest type of fund. This fund was started with a view of promoting saving among government employees and is maintained by government or semi-government employees like government departments, schools and colleges, universities and other similar institutions. b) Recognized Provident Fund A provident fund recognised by the commissioner of Income Tax is called recognized provident fund. In this case employer’s contribution up to 12% of the salary of the employee and interest credited to the fund up to the prescribed rate are not taxable. c) Unrecognised Provident Fund A provident fund not recognised by the Commissioner of Income Tax is called unrecognized provident fund. Deposit in unrecognised PF is also a saving. However such contributions do not get any tax benefits at all. 5. MUTUAL FUNDS It is an investment scheme by which money collected from large number of investors is invested in stocks, bonds, short term money market instruments and other securities. In other

words, mutual fund is a mechanism that pools the small savings of a large number of investors, which is invested in a variety of financial products. The surplus resulting from such investment is shared by the investors proportionately. Based on the structure of operations, mutual funds are classified as open ended schemes and close ended schemes. a) Open Ended schemes An open ended scheme is one which allows the investor to enter into the mutual fund and exist from it at anytime. Open ended schemes are those schemes where investors can buy new units of the fund or redeem the existing units at NAV related prices. b) Close Ended schemes A close ended scheme is one which has a fixed corpus, stipulated maturity period ranging from 2 to 15 years and the investor’s freedom for entry and exit is restricted. Based on investment objective, mutual funds can be classified as follows. a) Growth funds The main objective of growth funds is capital appreciation. Therefore growth funds invest most of the corpus in equity shares with high growth potentials and offers good returns to the unit holders in long term. Because of this reason growth funds are also called as equity funds. b) Income funds Income funds focus mainly on regular income to investors. Therefore the corpus of the income fund is primarily invested in assumed income bearing instruments like bonds, debentures, government securities, commercial paper, etc. c) Balanced funds The aim of balanced fund is to provide both capital appreciation and regular income. Funds in these schemes divide their corpus in suitable proportions and invest in equity shares and fixed interest bearing instruments.

d) Money Market Mutual funds MMMFs which are also known as cash funds first appeared in the US in 1972. These are open ended mutual funds that specialise in investing in safer short term money market instruments like call money, Treasury bill, commercial paper, etc. Special schemes of mutual funds a) Tax saving schemes b) Equity linked saving schemes c) Gilt funds d) Load and No-load funds e) Index funds f) Sectoral funds g) Funds of funds

6. BANK DEPOSITS The most important function of a bank is to accept deposits from the public. Through this function banks pools together the scattered savings of the society for being used for productive purposes. The various types of deposits accepted by banks form a good avenue of investment to customers. The different types of deposits accepted by a commercial bank are: a) Fixed or Time deposits In the case of fixed deposits, money is deposited for a fixed period of time and can be withdrawn only after the expiry of the period. The rate of interest on this type of deposit is higher as compared to other type of deposits. b) Current or Demand deposits

Current deposits are those deposits into which money can be deposited any number of times and from which money can be withdrawn as many times as the depositor wants. These accounts are usually maintained by traders and business man who have to make a number of payments on a single day. c) Savings deposits In the case of savings deposits, customers can deposit any amount of money at any number of times. But certain restrictions are imposed on the number of withdrawals. Currently interest is calculated on the daily balance available in the account. d) Recurring deposits In this case, a fixed sum of money is invested every month for a predetermined period. The rate of interest on these deposits is almost the same as that of FD. On maturity the depositor gets back the amount deposited together with the interest accrued. 7. LIFE INSURANCE SCHEMES A life insurance contract is one whereby the insurer, in consideration of a premium paid either in lump-sum or in periodical instalments, undertakes to pay an annuity or a certain sum of money, either on the death of the insured or on the expiry of a certain number of years. Naturally, if a person dies, the payment will be made to the nominee of the deceased. But if the money becomes due during his life time the amount will be paid to him. In India, life insurance business was nationalised on 19th January 1956 and since then it is carried on by the government owned Life Insurance Corporation of India. But after the implementation of the Insurance (amendment) Act 2002, private sectors have been allowed to conduct insurance business-both life and general. a) Whole life policy Under this policy the assured sum becomes due for payment to

the beneficiary only after the death of the insured. It means that the insurer has to pay premium on such policy throughout his life time. b) Endowment life policy Endowment policy is a policy which runs for a fixed period or up to a particular age to the insured. The insured amount becomes due for payment either on the death of the insured or on the expiry of the specified period whichever is earlier. c) With-profit policy This type of policy entitles the policy holder to receive, in addition to the guaranteed sum payable on maturity, a share in the profit made by the Life Insurance Corporation also. d) Without profit policy This policy entitles the policy holder to get only the stated sum on the maturity of the policy. 8. REAL ESTATE Land and house property are commonly describes as ‘real estate’. Real estate offers an attractive from of investment, now a day. Real estate differs from investments in other financial assets mainly on the ground that it involves the ownership of a tangible asset, in other words, investment is in a real ‘property’ rather than a financial ‘claim’. Though real estate is a highly attractive investment opportunity, the quantum of capital investment required is huge, so that the ordinary investors do not have easy accessibility in real estate market. Another feature of real estate market is that the price is extremely different from region to region. Therefore property must be evaluated in terms of price, location and use before making any investment. 9. OTHER INVESTMENT AVENUES a) Gold Gold is one of the most valuable assets in any economy. It has been used in India primarily as a form of savings by the

households. Investing in gold is good form of hedge against inflation as well as a reservoir for future use. Investment in gold can be in form of gold coins, gold bars, ornaments and gold ETF. Currently investment in gold has become speculative than for long term investment. b) Silver As in the case of gold, silver is another good investment avenue. The price of silver, though less than gold, normally moves in the same direction as that of gold. Since silver is extensively used for industrial requirements, general factors influencing industrial growth also affect the price and future of silver. c) Diamonds The price of diamonds keep on increasing in the same way as the price of gold and it is another investment avenue. Diamonds are valued on the basis of weight, size, shape and luster. Therefore it is an extremely risky form of investment since the value of diamond is based on personal judgments too. Moreover, diamonds do not have much importance or use other than for ornaments. d) Coins and Stamps Collection of rare coins and stamps has become an investment avenue, in recent times. Old and rare coins and stamps have antique value and can be sold for very high prices. e) Antiques As in the case of coins and stamps, antiques also have become a focal area for many of the investors. Antiques in the form of paintings, watches, cars, coins, stamps, flower vases have great demand. Since supply of antiques is very rare they have huge value which increases due to passage to time. Longer the time of holding this instrument the greater will be the value.

CHAPTER 3 DATA ANALYSIS AND INTEPRETATION

CHAPTER 3

ANALYSIS OF PRIMARY DATA This chapter deal with analysis and interpretation of primary data collected through questionnaire. For evaluating the investor’s preference on various investment avenues, a

descriptive form of analysis is required. The sampling unit in the study consists of respondents from Ramapuram Grama Panchayath. The sampling size was fixed at 50 respondents. A. ANALYSIS OF PERSONAL PROFILE OF RESPONDENTS This part of the study covers a brief description of respondent’s age, gender, education, occupation, monthly income etc. 1. Age wise classification Age is an important factor influencing the investment awareness of a person. The following table and figure shows age wise classification of respondents. Table 3.1 Table showing classification of respondents on the basis of age Source: Primary Data

Figure 3.1 Age wise classification of respondents Age No. Of Respondents Percentage 20-30 14 28 30-40 8 16 40-50 19 38 Above 50 9 18 Total 50 100

20 18 16 14 12 No of respondents 10 8

No. Of Respondents

6 4 2 0

20-30

30-40

40-50

Above 50

Age of respondents

Source: Table 3. 1

Interpretation: From the above table and figure it is clear that, out of 50 respondents 28% of respondents belongs to the age group of 20-30, 16% of respondents belongs to age group of 30-40, 38% of respondents belong to the age group of 40-50 and remaining 18% of respondents come under the age group above 50. 2. Gender wise classification The study consists of both males and females. The following table shows the classification on the basis of gender. Table 3.2 Table showing classification of respondents on the basis of gender Gender No. Of Respondents Percentage Male 41 82

Female Total

9 50

18 100

Source: Primary Data

Figure 3.2 Gender wise classification of respondents 45 40 35 30 25 No of respondents 20

No of respondents

15 10 5 0

Male

Female

Gender of respondents

Source: Table 3. 2

Interpretation: The above table and figure indicates that, majority of respondents are male, which comes 82% and remaining 18% are female. 3. Educational qualification wise classification Education is one of the most important factors influencing the investment awareness of a person. The following table shows the education wise classification of

respondents.

Table 3.3 Table showing classification of respondents on the basis of education Education No. Of Respondents Percentage SSLC 8 16 +2/pdc 18 36 Graduate 13 26 Postgraduate 11 22 Total 50 100 Source: primary Data

Figure 3.3 Educational qualification wise classification of respondents

SS

G ra du at e

No of respondents

LC

No.of respondents

20 18 16 14 12 10 8 6 4 2 0

Educational qualifications of respondents

Source: Table 3. 3

Interpretation: From the above table and figure it is clear that, out of 50 respondents, 16% belongs to SSLC, 36% belongs to P.D.C/+2, 26% are Graduate and remaining 22% of respondents are Post Graduate.

4. Occupation wise classification Occupation is another important factor influencing the investment of a person. The following table shows the occupation wise classification of respondents. Table 3.4 Table showing classification of respondents on the basis of occupation Occupation No. Of Respondents Percentage Govt. Employee 2 4 Pvt. Employee 12 24 Business 17 34 Farmer 8 16 House wife 4 8 others 7 14 Total 50 100 Source: Primary Data

Figure 3.4 Occupation wise classification of respondents

H ou se

wi fe

No of respondents Bu si ne ss

G ov t.E m

pl oy ee

No of respondents

18 16 14 12 10 8 6 4 2 0

Occupation of respondents

Source: Table 3. 4

Interpretation: Occupation wise classification of respondents shows that, out of 50 respondents 4% Govt. Employees, 24% Pvt. Employees, 34% business man, 16% farmers, 8% house wife, and others are 14%. 5. Monthly Income wise classification Income is an important factor which motivates a person to make investment. The following table and figure shows the classification of respondents on the basis of monthly income. Table 3.5 Table showing classification of respondents on the basis of monthly income Monthly Salary No. Of Respondents Percentage Below 10000 15 30 10000-20000 11 22 20000-30000 11 22 Above 30000 13 26 Total 50 100 Source: Primary Data

Figure 3.5 Income wise classification of respondents

16 14 12 10 8 6

No of respondents

4

No of respondents

2 20 00 030 00 0

Be lo w

10 00 0

0

Monthly salary

Source: Table 3. 5

Interpretation: From the above table and figure it is clear that, out of 50 respondents, 30% belongs to the income level of Below 10000, 22% belongs to the income level of 10000-20000, 22% belongs to the income level of 20000-30000, and remaining 26% belongs to the income level of Above 30000. 6. Marital Status wise classification The following table and figure shows the classification of respondents on the basis of marital status. Table 3.6 Table showing classification of respondents on the basis of marital status Marital Status No. Of Respondents Percentage Single 15 30 Married 35 70 Total 50 100 Source: Primary Data

Figure 3.6 Classification on the basis of marital status of respondents 40 35 30 25

No of respondents 20 No of respondents

15 10 5 0

Single

Married

Marital status of respondents

Source: Table 3. 6

Interpretation: From the above table and figure it is clear that, 30% of respondents are single and remaining 70% of respondents are married. B. ANALYSIS OF INVESTORS PREFERENCE ON VARIOUS INVESTMENT AVENUES This part of the study covers a brief description of investor’s preference and awareness of various investment avenues like Govt. Securities, Bank Deposits, Share market, Provident fund, Life insurance, Post office savings, Mutual funds, Real estate etc. from respondents of Ramapuram grama panchayath. 1. Number of respondents having savings

The investment in various avenues provides savings. The following table and figure shows number of respondents having savings. Table 3.7 Table showing the number of respondents having savings Savings Yes No Total

No. Of Respondents 50 0 50

Percentage 100 0 100

Source: Primary Data

Figure 3.7 Figure showing the number of respondents having savings 60 50 40 No of respondents 30 No of respondents

20 10 0

Yes

No

Savings

Source: Table 3. 7

Interpretation: From the above table and figure it is clear that, all the respondents having savings. 2. Number of respondents having awareness about all investment avenues Awareness about all investment avenues is an important factor to make profitable investment. The following table and

figure shows the number of respondents having awareness about all investment avenues. Table 3.8 Table showing the Number of respondents having awareness about investment avenues Awareness No. Of Respondents Percentage Yes 43 86 No 7 14 Total 50 100 Source: Primary Data

Figure 3.8 Figure showing the Number of respondents having awareness about investment avenues 50 40 30 No of respondents

20

No of respondents

10 0

Yes

No

Investors awareness

Source: Table 3. 8

Interpretation:

From the above table and figure it is clear that, 86% of respondents are aware about investment avenues and remaining 14% of respondents are unaware of investment avenues. 3. Investors preference for savings The investor should invest their savings in investment avenues such as Govt. Securities, Bank deposit, Share market, Provident fund, Life insurance, Post office savings, Mutual funds, Real estate etc. The following table and figure shows the investors preference for their savings. Table 3.9 Table showing the respondent’s preference for savings Investment Preference Govt. Securities Bank Deposit Share market Provident fund Life insurance Post office savings Mutual funds Real estate

No. Of Respondents 3 38 8 0 21 3 8 2

Source: Primary Data

Figure 3.9 Figure showing the respondent’s preference regarding their savings

40 35 30 25 20 15

No of respondents

10

No of respondents

5 M ut ua lf un ds

in su ra nc e Li fe

ar ke t m Sh ar e

G ov t.

Se cu rit ie s

0

Preference of respondents

Source: Table 3. 9

Interpretation: Most of the investors are having their savings in one or more investment avenues. From the above table and figure it is clear that, out of 50 respondents, majority of the respondents prefer bank deposit for their savings.

4. A) Investment satisfaction Satisfaction is necessary for all investments and the

following table and figure shows whether the respondents are satisfied or not with their investment. Table 3.10 A Table showing whether the respondents are satisfied with their investment Investment No. Of Respondents Percentage Satisfaction Yes 45 90 No 5 10 Total 50 100 Source: Primary Data

Figure 3.10 A Figure showing whether the respondents are satisfied with their investment 50 45 40 35 30 No of respondents

25 20

No of respondents

15 10 5 0

Yes

No

Satisfaction

Source: Table 3. 10 A

Interpretation: From the above table and figure it is clear that, 90% of respondents are satisfied with their investment and the remaining 10% are not satisfied. 4. B) Investor’s level of satisfaction from their investment For all investments, there is a satisfaction and the level of

satisfaction is different for each one. The following table and figure shows the level of satisfaction of respondents. Table 3.10 B Table showing the level of satisfaction of respondents Level of Satisfaction No. Of Respondents Very Good 10 Good 27 Satisfactory 7 Poor 1 Source: Primary Data

Figure 3.10 B Figure showing the level of satisfaction of respondents 30 25 20 15 No of respondents

10 No of respondents

5

Sa tis fa ct or y

Ve ry

G oo d

0

Level of satisfaction

Source: Table 3. 10 B

Interpretation: From the table and figure it is clear that, out of 45 respondents who are satisfied with their investment, 10 respondents marked their satisfaction level as Very good, 27 respondents marked their satisfaction level as Good, 7 respondents marked their satisfaction level as Satisfactory and

the remaining 1 marked his satisfaction as Poor. 5. Investment motive of respondents For every investor there will be a motive behind his investment. It can be return, safety, savings or tax benefits. From the following table and figure we can look into the respondents investment motives.

Table 3.11 Table showing investment motive of respondents Investment Motive No. Of Respondents Return 10 Safety 12 Savings 25 Tax Benefit 3 Total 50

Percentage 20 24 50 6 100

Source: Primary Data

Figure 3.11 Figure showing investment motive of respondents 30 25 20 15 No of respondents 10 No of respondents

5 Sa vi ng s

Re tu rn

0

Investment motives

Source: Table 3. 11

Interpretation: From the above table and figure it is clear that, out of 50 respondents 10 respondents chose their investment motive as return while 12 respondents motive is safety, 25 respondents motive is saving and 3 respondents motive is tax benefits. 6. Investment objective of respondents For every investor there will be an objective behind his investment. It can be savings or capital appreciation. From the following table and figure we can look into the respondent’s investment objective. Table 3.12 Table showing investment objective of respondents Investment objective No. Of Respondents Percentage Savings 37 74 Capital appreciation 13 26 Total 50 100 Source: Primary Data

Figure 3.12 Figure showing investment objective of respondents 40 35 30 25 20 No. of respondemts

15 10

No. Of Respondents

5 Sa vi ng s

0

Investment objective

Source: Table 3. 12

Interpretation: From the above table and figure it is clear that, out of 50 respondents 74% respondents chose their investment objective as savings and 26% respondent’s objective is capital appreciation. 7. A) Regular income from investment Every investor’s prime motive is to gain a regular income from investment. The following table and figure shows whether respondents get a regular income or not. Table 3.13 A Table showing whether respondents get a regular income or not Regular Income No. Of Respondents Percentage Yes 34 68 No 16 32 Total 50 100 Source: Primary Data

Figure 3.13 A Figure showing whether respondents get a regular income or not

40 35 30 25 No of respondents 20 15 10 5 0

No of respondents

Yes

No

Return from investment

Source: Table 3.13 A

Interpretation: From the above table and figure it is clear that, out of 50 respondents 34 respondents get a regular income from investment while the remaining 16 respondents do not get a regular income. 7. B) Satisfaction on regular income from investment Satisfaction on regular return from investment for each respondent can be understood from the following table and figure. Table 3.13 B Table showing the level of satisfaction from regular return on investment Satisfaction on Return No. Of Respondents Very good 8 Average 19 Satisfactory 6 Dissatisfied 1 Source: Primary Data

Figure 3.13 B Figure showing the level of satisfaction from regular return on investment

No of respondents Sa tis fa ct or y

Ve ry

go od

No of respondents

20 18 16 14 12 10 8 6 4 2 0

Level of satisfaction

Source: Table 3.13 B

Interpretation: From the above table and figure it is clear that, out of 34 respondents who get a regular income (as table 3.12A shows) 8 respondents mark their level of satisfaction as very good while 19 respondents mark their level of satisfaction as average, 6 respondents as satisfactory and the remaining 1 respondent as not satisfied. 8. Respondent’s preference regarding profitable investment avenue. Investor’s idea about profitable investment avenue is

different for each individual. From the following table and figure we get a clear idea about investor preference regarding profitable avenue.

Table 3.14 Table showing respondent’s preference on profitable investment avenue Profitable Sector No. Of Respondents Percentage Govt. Securities 4 8 Bank Deposit 10 20 Share market 19 38 Provident fund 1 2 Life insurance 5 10 Post office savings 2 4 Mutual funds 3 6 Real estate 6 12 Total 50 100 Source: Primary Data

Figure 3.14 Figure showing respondent’s preference regarding profitable investment avenue

20 18 16 14 12 10 8 No of respondents

6 No of respondents

4 2

G ov t.

Se cu rit ie s

Pr ov id en tf un d M ut ua lf un ds

0

Investment sectors

Source: Table 3. 14

Interpretation: From the above table and figure it is clear that, out of 50 respondents 10 respondents prefer Bank deposit as profitable one while 19 respondents prefer Share market, 2 respondents prefer Post office savings, 5 respondents prefer life insurance, 1 respondent prefer Provident fund, 3 respondent prefer Mutual fund, 6 respondents prefer Real estate as profitable investment avenue and 4 respondents prefer Govt. securities as a profitable investment avenue. 9. Profitability and safety on the basis of investment portfolio. Investing in a particular sector and in different sectors are two types of investment method adopted by investors. From the following table and figure we get a clear idea regarding respondent’s opinion about profitable and safe investment methods.

Table 3.15 Table showing respondent’s opinion regarding profitable and safe investment method Profitable and Safe No. Of Respondents Percentage Investment in a 15 30 particular sector Investment in different 35 70 sectors Total 50 100 Source: Primary Data

Figure 3.15 Figure showing respondent’s opinion regarding profitable and safe investment method 40 35 30 25 No of respondents

20 15

No of respondents

10 5 0 Investment in a particular sector Opinion of respondents

Source: Table 3. 15

Interpretation: From the above table and figure we get a clear idea that, out of 50 respondents 15 respondents opined that investing in particular sector is profitable and safe and the remaining 35 respondents are of the view that investing in different sectors is profitable and safe. 10. Risk taking in investment

Risk is a hidden element in every investment. Taking risk in investment is according to investor’s choice. And the following table and figure gives a clear idea regarding investor’s opinion about whether risk is essential or not in their investment. Table 3.16 Table showing respondent’s opinion regarding risk taking in investment Risk Taking No. Of Respondents Percentage Essential 34 68 Not Essential 16 32 Total 50 100 Source: Primary Data

Figure 3.16 Figure showing respondent’s opinion regarding risk taking in investment 40 35 30 25 20 15 10 5 0 ot Es s N

Es s

en tia l

No of respondents en tia l

No of respondents

Opinion about risk taking

Source: Table 3. 16

Interpretation: From the above table and figure it is clear that, out of 50 respondents 34 respondent’s opinion is that risk taking is essential in investment while the remaining 16 respondent’s opinion is risk taking is not essential in investment. 11. A) Investors opinion regarding changing

current investment to another investment Changing of current investments to another investment avenue is necessary to earn more return and to get a regular check on our investment. From the following table and figure we get a clear idea regarding respondent’s opinion about changing their current investment to a new investment avenue. Table 3.17 A Table showing respondent’s opinion about changing their current investment to a new investment avenue Investment Changes Yes No T0tal

No. Of Respondents 11 39 50

Percentage 22 78 100

Source: Primary Data

Figure 3.17 A Figure showing respondent’s opinion about changing their current investment to a new investment avenue

45 40 35 30 25 No of respondents 20

No of respondents

15 10 5 0

Yes

No

Opinion of respondents

Source: Table 3. 17 A

Interpretation: From the above table and figure it is clear that, out of 50 respondents 11 respondents are willing to change their current investment and the remaining 39 respondents are not willing to change their current investment. 11. B) Preference of the respondents who wish to change their current investment to a new investment avenue. For changing current investment respondents need to prefer a new investment avenue. The following table and figure shows the respondents preference for new investment avenue. Table 3.17 B Table showing respondent’s preference for new investment avenue New Investment Avenue No. Of Respondents Govt. Securities 0 Bank Deposit 2 Share market 2

Provident fund Life insurance Post office savings Mutual funds Real estate

1 1 1 1 3

Source: Primary Data

Figure 3.17 B Figure showing respondents preference for new investment avenue

3.5 3 2.5 2 1.5 1

No of respondents

No of respondents

0.5 in su ra nc e

Li fe

G ov t.

Se cu rit ie s

0

Preference of respondents

Source: Table 3. 17 B

Interpretation: From the above table and figure it is clear that, out of 11 respondents (as table 3.16A shows) who wish to change their current investment to a new profitable investment avenue 2 respondents prefer bank deposit, 2 respondent prefer share market, 1repondent prefer provident fund, 1 respondent prefer life insurance, 1 respondent prefer post office saving, 1 respondent prefer mutual funds and 3 respondent prefer real estate for their new investment and no one prefer Govt. Securities for their new investment. 12. Respondents preference regarding time period of investment Time is an essential element in investment. Time period of investment can make high changes in return from investment. Both short term and long term investments are available in our financial markets. Respondent’s preference regarding time period of investment can be analysed from the following table and figure. Table 3.18

Table showing respondent’s preference regarding time period of investment Preference of Investment Duration Long Term Short Term Both of them Total

No. Of Respondents

Percentage

14 16 20 50

28 32 40 100

Source: Primary Data

Figure 3.18 Figure showing respondent’s preference regarding time period of investment 25 20 15 10

No of respondents

No of respondents

5

of th em

Te rm

Bo th

Sh or t

Lo ng

Te rm

0

Preference of respondents

Source: Table 3. 18

Interpretation: From the above table and figure it is clear that, out of 50 respondents 14 respondents prefer long term investment, 16 respondents prefer short term investment and 20 respondents prefer both the short and long term investment.

13. Respondent’s opinion about the extent of risk taking in investment. From the table 3.15 it is clear that it is essential to take risk in investment. The following table and figure shows respondents opinion about to what extent they want to take risk in investment. Table 3.19 Table showing respondent’s opinion about to what extent they want to take risk in investment. Risk Taking No. Of Respondents Percentage High Risk 5 10 Average Risk 21 42 Low Risk 19 38 No Risk 5 10 Total 50 100 Source: Primary Data

Figure 3.19 Figure showing respondents opinion about to what extent they want to take risk in investment.

25 20 15 10

No of respondents

No of respondnets

5

Ri sk Lo w

H ig h

Ri sk

0

Opinion of respondents

Source: Table 3. 19

Interpretation: From the above table and figure t is clear that, out of 50 respondents 5 respondents prefer to take high risk, 21 respondents prefer to take an average risk, 19 respondents prefer to take low risk and remaining 5 respondent do not prefer risk in their investment. 14. Grading of investment avenues on the basis of profitability Every investment gives a profit and the profitability of investment avenues can be measured. Here it is a tabular representation on profitability of Investment Avenue on the basis of the respondent’s preference. Table 3.20 Table showing grading of investment avenues on the basis of profitability Particula Rank Rank Rank Rank Rank Rank Rank Rank Tota r -1 -2 -3 -4 -5 -6 -7 -8 l Govt. 5 4 5 6 13 4 7 6 50 Securitie s

Bank Deposit Share market Providen t fund Life insuranc e Post office savings Mutual funds Real estate Total

10

13

8

3

3

2

4

7

50

15

6

5

3

5

4

5

7

50

1

3

1

7

10

8

6

14

50

3

7

7

14

3

7

3

6

50

4

4

7

5

5

6

15

4

50

1

3

7

7

8

14

6

4

50

11

10

10

5

3

5

4

2

50

50

50

50

50

50

50

50

50

Source: Primary Data

Interpretation According to the respondents view regarding profitable investment avenue it is found that share market is the profitable one and 2nd bank deposit, 3rd real estate, 4th life insurance, 5th govt. Securities, 6th mutual fund, 7th post office savings, and the last one is provident fund. 15. Grading of investment avenues on the basis of risk Every investment is having a risk and the risk in the investment avenues can be measured. Here it is a tabular representation on risk in Investment Avenue on the basis of the respondent’s preference. Table 3.21 Table showing grading of investment avenues on the basis of risk Particular Rank Rank Rank Rank Rank Rank Rank Rank- Total -1 -2 -3 -4 -5 -6 -7 8 Govt. 5 9 7 7 5 17 50

Securitie s Bank Deposit Share market Provident fund Life insurance Post office savings Mutual funds Real estate Total

1 31

1 14

2

4

8

7

15

12

50

3

1

-

1

-

-

50

-

1

7

11

17

9

3

2

50

-

1

8

12

9

7

10

3

50

-

-

1

-

4

15

14

16

50

2

10

18

10

4

4

2

-

50

16

23

6

3

1

-

1

-

50

50

50

50

50

50

50

50

50

Source: Primary Data

Interpretation According to the respondents view, the high risky avenue is share market, 2nd real estate, 3rd mutual fund, 4th life insurance, 5th provident fund, 6th post office savings, 7th bank deposit and the last one is govt. Securities.

CHAPTER 4 FINDINGS SUGGESTIONS AND CONCLUSTION

CHAPTER 4 FINDINGS, SUGGESTIONS AND CONCLUSION This chapter deals with the findings suggestions and conclusion drawn from the study. The purpose of the study was to know the investor preference on various investment avenues with special reference to Ramapuram grama punchayath. The study was conducted with the following objectives: 7. To know about various investment avenues. 8. To study the preference of the investors. 9. To study the risk taking capacity of investors. 10. To know about the investors motive behind investment. 11. To know investors perception regarding return from investment. 12. To find out which investment avenue is mostly preferred by investors.

FINDINGS A. PERSONAL PROFILE OF RESPONDENTS 1. The study reveals 38% of respondents belong to the age group of 40-50. 2. The study reveals that 82% of respondents are male and 18% of respondents are female. 3. It was found that 36% of respondents are +2/P.D.C and 26% are graduates.

4. Out of 50 respondents, 4% Govt. Employees, 24% Pvt. Employees, 34% business man, 16% farmers, 8% house wife, and others are 14%. 5. Out of 50 respondents, 30% belongs to the income level of Below 10000, 22% belongs to the income level of 10000-20000, 22% belongs to the income level of 2000030000, and remaining 26% belongs to the income level of Above 30000. 6. Out of 50 respondents, 70% respondents are married and 30% are single. B. INVESTOR PREFERENCE OF VARIOUS INVESTMENT AVENUES 1. The study reveals that all the respondents are having saving. 2. Out of 50 respondents, 86% are aware about all the investment avenues. 3. The study reveal that majority of respondents prefer BANK DEPOSIT for their savings. 4. Out of 50 respondents, 45% are satisfied in their investment. 5. Out of 45 satisfied respondents, 60% of respondent’s level of satisfaction is good and 22.22% respondent’s level of satisfaction is very good.

6. Out of 50 respondents, 50% of respondent’s investment motive is savings, 24% of respondent’s investment motive is safety, 20% of respondent’s investment motive is return and 6% of respondent’s investment motive is tax benefits. 7. Out of 50 respondents, 68% of respondents having a regular income from investment and 32% of respondents are not getting a regular income from investment. 8. Out of 68% of respondents who get a regular income from investment 55.88% of respondents level of satisfaction in regular income is average and 23.52% of respondents level of satisfaction in regular income is very good. 9. Out of 50 respondents, 38% of respondents prefer share market as profitable investment avenue. 10. Out of 50 respondents, 70% of respondents opinion is investment in different sectors is profitable and safe investment method. 11. Out of 50 respondents, 68% of respondents opinion is risk taking in investments are essential.

12. Out of 50 respondents, 78% of respondents are not willing to change their investment to another one. 13. Out of 22% of respondents who wish to change investment, 27.27% prefer real estate for their new investment. 14. Out of 50 respondents, 40% of respondents prefer long term and short term for their investment. 15. Out of 50 respondents, 42% of respondents are ready to take an average risk in their investment. 16. The study reveals that share market is the risky investment avenue.

SUGGESTIONS

1. Conduct more awareness programs about investment avenues especially in rural areas. 2. Aware investors about the tax benefits from investment. 3. Investors should get services of investment consultants before taking an investment decision.

CONCLUSION Investment is an activity by which a person is able to earn income in future. The object of investment may be regular income or capital appreciations. There are number of investment avenues in modern financial sector. It includes high risk securities, low risk securities, no risk securities etc. Therefore, surplus funds if any must be deployed in a most fruitful way to make it productive and also to beat the erosion in value due to inflation. However, selecting the best alternative investment is not an easy task. One has to be aware of all the alternatives, to choose the best based on his risk return preferences.

BIBLIOGRAPHY

1. Avadhani V.A. “INDIAN CAPITAL MARKET”. 1ST Ed., Himalaya Publishing House, Mumbai, 1997. 2. Avadhani V.A. “SECURITIES ANALYSIS AND PORTFOLIO MANAGEMENT”. 7TH Ed., Himalaya Publishing House, Mumbai, 2004. 3. Chandra Prasanna. “INVESTMENT ANALYSIS AND PORTFOLIO

MANAGEMENT”. 2ND Ed., Tata Mc Graw-Hill publishing company ltd. New Delhi, 2005. 4. Dr. Joseph K Jojo “CAPITAL MARKET AND INVESTMENT MANAGEMENT”1st Ed., Soba Publication, Changanacherry, 2012. 5. Dr. Mathew Tomy. “CAPITAL MARKET”. 1st Ed., Prathibha Publishers, Changanacherry, 2011. 6. Singh Preeti. “INVESTMENT MANAGEMENT” 13TH Ed., Himalaya publishing house, Mumbai, 2005. 7. Subramonion P. “CAPITAL MARKET AND FINANCIAL SERVICE THEORY AND OPERATIONS”. 3RD Ed., Kalyani Publishers, New Delhi, 2003.

QUESTIONNAIRE Dear Respondents, We are doing our graduation in Commerce

at

Mar

Augusthinose

College

Ramapuram and as per our curriculum, we are conducting “A Study on Investor Preference of Various

Investment

Avenues

with

Special

Reference to Ramapuram Grama Panchayath” and your valuable feedback will help us a lot to complete our study successfully. So we request you to please fill up the given questionnaire. Jeffin Joseph Jeffy Augustine Jinil Joseph 1. Name 2. Age 30-40

: : 20-30 40-50

above 50 3. Gender female 4. Education Graduate

: male : SSLC +2/pdc

Postgraduate Others 5. Occupation Govt. Employee Business Farmer others 6. Monthly salary 10000-20000

: Pvt. Employee House wife : Below 10000 20000-30000

above 30000 7. Marital status Married 8. Do you have savings? No

: :

Single Yes

9. Are you aware about all investment avenues? Yes No 10. From the following which one you prefer for your savings? Govt. Securities Provident fund Mutual funds Bank Deposit Life insurance Real estate Share market Post office savings others 11. a) Are you satisfied with your investment? Yes No b) If yes, your level of satisfaction. Very good Good Satisfactory Poor 12. What is your investment motive? Return Safety Savings Tax benefit 13. What is your investment objective? Savings Capital appreciation 14. a) Do you get regular income from investment? Yes No b) If yes, how much you are satisfied in your return? Very good Average Satisfactory Not satisfied 15. Which sector you prefer as profitable one? Govt. Securities Provident fund Mutual fund Bank Deposit Life insurance Real estate Share market Post office savings others 16. In your opinion which is profitable and safe?

Investment in a particular sector Investment in different sectors 17. Opinion about the element of risk taking in investment? Essential Not essential 18. A) Do you wish to change your current investment to another profitable Investment? Yes No B) If yes, which investment you prefer? Govt. Securities Provident fund Mutual funds Bank Deposit Life insurance Real estate Share market Post office savings others 19. In your opinion, which one you prefer? Long term investment

Short term

investment Both of them 20. To what extent you prefer to take risk in investment? No risk risk

Low risk High risk

21. Grade the investment on the basis of

Average

profitability. (E.g. More profitable-grade 1) Investment Avenues Govt. Securities

Grad e

Provident fund Mutual funds Bank Deposit Life insurance Real estate 22. Grade investment basis of (E.g. -grade 1)

Share market

the on the risk. High risk

Post office savings

Investment Avenues Govt. Securities Provident fund Mutual funds Bank Deposit Life insurance Real estate Share market Post office savings

Grad e