SUMMER INTERNSHIP PROJECT REPORT

ON
VARIOUS INVESTMENT OPPORTUNITY FOR CONSUMER
PROJECT REPORT SUBMITTED IN PARTIAL FULFILMENT
OF THE REQUIREMENTS
OF BACHELOR OF BUSINESS ADMINISTRATION
By: KOMAL GARG
Enrolment No: 02490201717
UNDER THE GUIDANCE OF
MS. SUMEET KAUR

SRI GURU TEGH BAHADUR INSTITUTE OF

MANAGEMENT & INFORMATION TECHNOLOGY
(Affiliated to Guru Gobind Singh Indraprastha University)
(2017-2020)

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 DECLARATION

I hereby declare that the project work entitled Summer Training

Project on Various Investment Opportunity for Consumer
submitted to the Guru Gobind Singh Indraprastha University is
record of an original work done by me under the guidance of MS.
SUMEET KAUR, faculty member, Sri Guru Tegh Bahadur
Institute of Management & Information Technology.

Signature of the scholar

Place: Delhi Komal Garg

Date:
Enrollment No.-024902017171

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 CERTIFICATE
This is to certify that Komal Garg BBA (G) (2017-20 Batch) a
student of Sri Guru Tegh Bahadur Institute of Management and
Information Technology has undertaken the project on “Various
Investment Opportunity for Consumer”. The project has been
carried out by the student in partial fulfilment of the requirements for
the award of BBA, under the guidance and supervision of MS.
SUMEET KAUR.

---------------------------
Signature of Project In charge
MS. INDERPREET KAUR

-------------------------------
Signature of Guide
MS. SUMEET KAUR

---------------------------
Signature of Scholar
Place: Delhi KOMAL GARG
Date: _______________ Enrolment No.: 02490201717

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 ACKNOWLEDGEMENT

As a part of curriculum at Sri Guru Tegh Bahadur Institute of Management

and Information Technology, Delhi, the “Summer Internship Program”
aims at overall development of the students by providing them an opportunity to
gain corporate exposure and space to apply their theoretical knowledge in
practice in a mutually beneficial manner.
A project cannot be said to be the work of an individual. A project is a
combination of views and ideas, suggestions and contributions of many people.
Before getting to brass tacks of things. I would like to add a heartfelt word for
the people who have helped me in bringing out the creativeness of this project.
I would like to express my heartiest gratitude towards my Mentor Ms.
SUMEET
KAUR (Academic Mentor - SGTBIMIT) who has been as source of inspiration
thought out, without their help and valuable feedback this project could not
have been possible.

__________________
(Signature of the scholar)
Place: Delhi Name: Komal Garg
Date: Enrolment No: (02490201717)

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 List of Contents
S no. Topic Page no.

1 Chapter -1 Introduction to Company 1

1.1 Introduction to Organization 1

1.2 Product Profile 4

1.3 Product Profile to Deal in Finamigo 13

2. Chapter-2 Introduction to Topic 15

2.1 Introduction 15

2.2 Investment Industry 16

2.3 Objectives of Investment 17

2.4 Where You Should Invest Your Money 18

2.5 Types of Investment Avenues 20

2.6 Comparative Analysis 32

3 Chapter-3 Research Methodology 33

3.1 Research Methodology 33

3.2 Objective of The Study 33

3.3 Type of Research Design 34

3.4 Sources of Data 35

3.5 Sampling 36

3.6 Sampling Method 36

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3.7 Population 36

3.8 Sampling Area 36

3.9 Sampling Unit 36

3.10 Limitations of The Study 37

4 Chapter-4 Data Analysis and Interpretation 38

5 Chapter -5 Findings and Discussion 46

5.1 Findings 46

6 Chapter -6 Conclusion 47

6.1 Conclusion 47

7 Chapter -7 Suggestions and Recommendations 48

7.1 Recommendations 48

7.2 Suggestions 49

8 Bibliography 50

9 Annexure 51

S List of Tables Page No

No.

1 Merits and Demerits of banking sector (Table 2.5.1) 22

2 Merits and Demerits in NPS, debt funds (Table 2.5.2) 25

3 Merits and Demerits of Insurance (Table2.5.3) 26

4 Merits and Demerits of PPF (Table 2.5.4) 28

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5 Merits and Demerits of Sukanya Samriddhi Yojana (Table 29

2.5.5)

6 Merits and Demerits of Post office Time Deposits (Table 2.5.6) 30

7 Merits and Demerits of EPF (Table 2.5.7) 31

8 Comparative Analysis (Table 2.6) 32

S NO. List of Figures Page No.

1 Fig.2.5.1 Investment Avenues 21

2 Fig.3.3.1 Research Design 34

3 Fig.4.1 Analysis of responses according to age 38

4 Fig.4.2 Analysis of responses on the basis of profession of 39

investors

5 Fig.4.3 Analysis of no. of members in the family 40

6 Fig.4.4 Analysis of monthly income of investors 41

7 Fig.4.5 Analysis of objective for investment 42

8 Fig.4.6 Analysis of awareness among investors 43

9 Fig.4.7 Analysis of source of information 44

10 Fig.4.8 Analysis of sector preferred by investors 45

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 Chapter 1
Introduction
1.1 Introduction of company

Company Name- Finamigo Consultants Private Limited. Finamigo is one of

India's emerging consulting firm. At finamigo, we provide wealth management
services to high and Ultra high-net-worth individuals (HNIs & UHNIs). Our
highly trained and specialized team engage with clients from across the country
as well as those based abroad. In addition to our custom-designed solutions, we
focus on 'un complicating' the entire process of investment for each client. Our
focus on building long-term relationships defines our business. Our advisory
backed by a strong product and research team, underscores the unmatched value
of the Finamigo proposition. At Finamigo, we cater to financial needs of
Individual and corporate clients.
It was incorporated on 28 September 2018 and is in North West, Delhi. It is
classified as a private limited company. The company has two directors
– aayushi and Gumbert registered office of the company is at Ground Floor,
House No. 52 Sandesh Vihar Pitampura, DELHI, North West, Delhi.

The total paid-up capital is INR 50,000.00. The last reported AGM (Annual
General Meeting) of the company, per our records, was held on 05 August
2019. Also, as per our records, its last balance sheet was prepared for the period
ending on 31 March 2019.

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Current status of Finamigo Consultants Private Limited company is Active.

Company sub-category : Non-Government

Class of Company : private

Listing status : Unlisted

Company Website : www.finamigo.co.in

It deals with the product of India First Life Insurance.

India First Life Insurance Company is a life insurance company in India. It

started as a joint venture between two of India's public sector banks – Bank of
Baroda (44%) and Andhra Bank (30%), and UK's financial and investment
company Legal & General(26%).

It was incorporated in November 2009. It has its headquarters in Mumbai.

IndiaFirst Life made more than Rs. 2 billion in turnover in just four and half
months since the insurance company became operational. IndiaFirst Life
insurance company is headquartered in Mumbai.

IndiaFirst Life Insurance Company is promoted by Bank of Baroda, Andhra

Bank and Carmel Point Investments India Private Limited. Bank of Baroda is
one of the largest public sector banks in the country with an enviable network of
over 5200 branches that spreads across the geography of India and over 100
branches across 24 countries globally. This behemoth financial institution is

2
over 100 years old and has been built on financial prudence, corporate
governance and most importantly – the trust of valuable customers like you. 7
Andhra Bank has been serving the Indian customer for over 90 years and
currently has a network of over 2500 branches. The bank has developed best in
class deposit and lending schemes for its valued customers. Both the banks are
nationalized and provide best in class products and services to their customers.
Carmel Point Investments India Private Limited is incorporated by Carmel Point
Investment Ltd, a body corporate incorporated under the laws of Mauritius and
owned by private equity funds managed by Warburg Pincus LLC.

● Business Model

IndiaFirst Life Insurance follows the "Bancassurance" (Bank Insurance Model)

using the existing customer base of the promoter banks. As of December 2011,
the company has 1600 plus employees.

● Sale of Stake

In June 2018, one of the original founders Legal & General sold its stake to
private equity firm Warburg Pincus for INR 7.1 Billion / 710 Crore. Other
suitors included General Atlantic, Ergo International AG, Manulife Financial
Corp and Canadian billionaire Waste’s Fairfax .

Legal & General sold its stake as it was refocussing its insurance business in
recent years on the UK and the US markets.

In November 2018, Insurance Regulatory and Development Authority gave its

in-principle approval for IndiaFirst Life Insurance to the stake sale from Legal
& General to Warburg Pincus. 

In February 2019, another promoter Andhra Bank announced plans to sell its

30% stake for INR 9 Billion / 900 Crore.

1.2 Product Profile of India First Life Insurance

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● India First life plan

IndiaFirst Life Plan assures your family of a lump sum benefit in case of your
untimely death.

REASONS TO BUY INDIAFIRST LIFE PLAN

● Enjoy a life cover for a period of up to 40 years

● Assured benefit in case of life assured's untimely death
● Under Section 80C, you can enjoy tax benefits on the premium you invest
● Your family also gets a tax break on the benefits they receive from your plan
under Section 10(10D).
WHAT ARE THE ELIGIBILITY CRITERIA?
● The minimum age for applying is 18 years and the maximum age for
applying is 60 years
● The minimum age at the end of the plan is 70 years
● Minimum sum assured: Rs 1,00,000.
● Maximum sum assured Rs 5,00,00,000

● India First Happy India Plan

IndiaFirst Happy India Plan is an investment as well as a life insurance plan. It

allows you to receive funds when you need it the most. It also takes care of your
family in the face of uncertainties.

REASONS TO BUY INDIAFIRST HAPPY INDIA PLAN

● Receive a planned flow of funds during the most significant stages of your
life
● Receive lump sum benefit in case of unexpected demise of the policyholder
● Stress-free premium payment in case of untimely demise of the policyholder
– IndiaFirst Life will pay all the remaining premium

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● Option to switch funds
● Partial withdrawal lets you easily access your funds
● Plan terms available are 10, 15, 20 or 25 years
● Avail tax benefits under Section 80 C and Section 10 (10D) as per prevailing
Income Tax Laws
WHAT ARE THE ELIGIBILITY CRITERIA?
● Minimum age at entry is 18 years and maximum age at entry is 50 years
● Maximum age at maturity is 60 years

● India first Money Balance plan

The IndiaFirst Money Balance Plan is a unit-linked insurance plan, it gives you
the best of both worlds – investment and security. With this plan your money is
automatically transferred to safer funds. It diversifies your funds and reduces
risks while building a secure future.

REASONS TO BUY INDIAFIRST MONEY BALANCE PLAN

● Optimize your investments with the help of our ‘automatic trigger-based'

investment strategy
● Pay your premium either regularly for a limited period, or through a single
payment
● Safeguard your family’s future through a life cover, in case of the life
assured's untimely demise
● Get easy access to your money through partial withdrawals
● Avail tax benefits under Section 80 C and Section 10 (10D) as per prevailing
Income Tax Laws

WHAT ARE THE ELIGIBILITY CRITERIA?

● Minimum age at entry is 5 years and maximum age at entry is 65 years
5
● Life cover for a minor starts at the end of two years from the date of
commencement of the plan or at the first monthly plan anniversary after
attainment of majority, whichever is first.

● India First Life Cash Back Plan

IndiaFirst Life Cash Back Plan guarantees payouts at regular intervals to meet
your immediate needs and an assured maturity payout to secure your future.

REASONS TO BUY INDIA FIRST LIFE CASH BACK PLAN

● Ensures your family's financial security in case of the life assured's

unfortunate demise by paying higher of 10 times the annualized premium or
sum assured on maturity along with accumulated guaranteed additions.
● Meet your short- and medium-term financial goals through regular assured
payouts
● Boost your investments through Guaranteed Additions
● Enjoy long term investment benefits by paying only for a limited period
● Avail tax benefits under section 80C and section 10(10D) as per the
prevailing Income Tax Laws
WHAT ARE THE ELIGIBILITY CRITERIA?
● For a 9-year plan, the minimum age for applying is 15 years and maximum
age is 45 years respectively
● For a 12-year plan, the minimum age for applying is 15 years and maximum
age is 50 years respectively
● For a 15-year plan, the minimum age for applying is 15 years and maximum
age is 55 years respectively.
● The maximum age at the time of maturity is 70 year.
● Minimum sum assured is Rs. 50,000. There is no limit on maximum sum
assured (subject to underwriting.)

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● India First Maha Jeevan Plan.

IndiaFirst Maha Jeevan Plan is a participating, non-linked endowment plan that

offers an assured maturity amount plus a revisionary bonus declared by the
company every financial year end and terminal bonus, if any.

REASONS TO BUY INDIA FIRST MAHA JEEVAN PLAN

● Accumulate your savings systematically, through regular premium

contributions based on your income and needs
● Plan your future needs and decide when you need the assured amount -
anytime between 15 – 25 years
● Prosper with the guaranteed maturity amount (sum assured) + the bonus (if
any)
● Enjoy additional earnings through terminal bonus (if any)
● opt from Term Rider and Waiver of Premium Rider to enhance your base
plan benefits
● Avail tax benefits under Section 80 C and Section 10 (10D) as per prevailing
Income Tax Laws.
WHAT ARE THE ELIGIBILITY CRITERIA?
● The minimum age for applying is 5 years and the maximum age for applying
is 55 years.
● The minimum age at the end of the plan is 20 years and the maximum age at
the end of the plan is 70 years.
● Minimum Sum Assured: Rs. 50,000 and Maximum Sum Assured: Rs.
20,00,00,000. The minimum and maximum policy term is 15 and 25 years
respectively.

● India First immediate annuity plan

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The Immediate Annuity Plan is designed to help you maintain your choice of
lifestyle post retirement. It helps you cope with your healthcare costs and stay
ahead of inflation.

REASONS TO BUY INDIAFIRST IMMEDIATE ANNUITY PLAN

● Empowers you to choose your retirement age, between 40 and 80 years

● Enjoy complete financial independence by receiving a definite regular
monthly/ quarterly/ half-yearly/ yearly income throughout your years of
retirement
● There are 4 different annuity options to choose from life annuity, life annuity
with return of purchase price, joint life last survivor annuity for life and
annuity certain for a period of 5 years/ 10 years/ 15 years
● Choose the joint life option to support your spouse through annuity proceeds,
even in your absence
● Choose to return of purchase price option to protect your nominees as they
can get back the investment amount
● Enjoy a comfortable retirement for a defined time, under the option of
annuity certain for a period and life thereafter
● Existing individual, deferred and group deferred annuity policyholder/
member/ beneficiaries can avail the benefits of the plan anytime between 0 to
99 years
WHAT ARE THE ELIGIBILITY CRITERIA?
● Minimum age for application (first annuitant) is 40 years for new members; 0
years for existing pension members/beneficiaries of IndiaFirst Life Insurance
● Minimum age for application (second annuitant) is 18 years
● Maximum age for application (first/second annuitant) is 80 years
● Minimum premium is Rs. 3,00,000 while maximum premium is limitless
● Minimum annuity installment per month is Rs 1000 and for a year is Rs
12,500

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● India First simple benefit plan

IndiaFirst Simple Benefit Plan offers protection as well as an opportunity to

save for the future. The plan pays out an assured amount plus bonuses on
specific events like death or maturity.

REASONS TO BUY INDIAFIRST SIMPLE BENEFIT PLAN

● Prosper with the guaranteed maturity amount (sum assured) + the bonus (if
any))
● Flexibility in saving towards your future
● Over the counter plan issuance with simplified underwriting for a Sum
Assured up to Rs. 2 Lacs
● Access your money during emergencies by availing a loan of up to 90% of
surrender value
● Enjoy tax benefits on the premium you invest under 80 (C) and maturity
benefits under Section 10 (10D), as per the Income Tax Act, 1961
WHAT ARE THE ELIGIBILITY CRITERIA?
● The minimum age for applying is 18 years and the maximum age for
applying is 50 years.
● The maximum age at the end of the plan is 70 years.
● The minimum sum assured is Rs. 20,000 and maximum sum assured is Rs.
5,00,000

● India First Life Guaranteed Monthly Income Plan.

The IndiaFirst Life Guaranteed Annuity Plan is designed to assure you regular
income throughout your lifetime. It helps you cope with your healthcare costs
and stay ahead of inflation through your retirement years.

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REASONS TO BUY INDIA FIRST LIFE GUARANTEED ANNUITY
PLAN

● Get the assurance of a regular lifetime income as you choose from 12

different annuity options as per your need
● Avail the Return of Purchase Price facility with options like Life Annuity,
Joint Life Last Survivor Annuity, Deferred Life Annuity, Escalating Life
Annuity and protect your nominee(s) as your loved ones get back the
premium amount
● Get assurance through the Annuity Certain option! Receive your annuity
amount for a pre-decided period irrespective of an unfortunate event and life
thereafter
● Delay your annuity instalments in sync with your needs as you choose the
Deferred Life Annuity Option
● Support your loved ones even in your absence with options like Joint Life or
Family Income
● Choose the Escalating Life Annuity option and receive an annuity amount
growing at a constant rate
● Stay protected from Critical Illnesses as you get the amount in the form of
purchase price and utilize it for your treatment
● Receive a regular monthly/quarterly/half-yearly/yearly income through your
retirement years

WHAT ARE THE ELIGIBILITY CRITERIA?

● Minimum entry age in the plan is 40 years* and maximum entry age is 80
years
● Minimum premium (purchase price) in the plan is INR 1,00,000 with no
limit on maximum premium
● Minimum annuity amount is INR 1,000 monthly and INR 12,500 yearly with
no limit on maximum annuity amount

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● India First Life Smart Pay Plan

IndiaFirst Life Smart Pay Plan is a perfect mix of disciplined savings with the
benefit of liquidity and life cover, thus providing the best to you and your
family.

REASONS TO BUY INDIA FIRST LIFE SMART PAY PLAN

● Pay for shorter period with options suiting your time horizon and fulfil your
long-term goals
● Continue to enjoy life cover benefit even if you miss to pay one premium
(applicable after you have paid two full years’ premiums)
● Enjoy the upside of earnings with an annual bonus (if any)
● Get 103% of your one annual premium back as survival benefit
● At the end of term, you get Sum Assured at Maturity plus accrued bonuses
(if any)
● opt for Waiver of Premium Rider to enhance your base plan benefits

● Tax benefit may be available on the premiums paid and benefits received as
per prevailing tax laws.

WHAT ARE THE ELIGIBILITY CRITERIA?

● The minimum age for applying is 3 years (15 years plan term) and 8 years
(10 years plan term) and maximum age for applying 50 years. Buy the plan
for 10- or 15-year plan term
● Pay premium for 5 years for a 10-year policy or 5/6/7/8 for a 15-year policy
● Minimum basic sum assured is 1,50,000 and no limit on maximum sum
assured
● Minimum premium is 18,000 yearly, 9,215 half-yearly, 4,662 quarterly,
1,566 months with no limit on maximum premium

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● IndiaFirst Life POS INSURANCE KHATA Plan
IndiaFirst Life POS INSURANCE KHATA Plan is a term assurance with return
of premium plan. It takes care of both your family’s needs in case of your
untimely demise and returns your money if no untoward event takes place

REASONS TO BUY INDIAFIRST LIFE POS INSURANCE KHATA

PLAN

● Simple to understand and easy to purchase anywhere through any POS

merchant
● Designed to provide financial protection to your family.
● Return of your premium! - if all goes well you get back total premium(s)
paid
● Be rest assured, as you know the exact amount of benefits right at the
inception
● Pay through single premium and get coverage for 5/7/10 years as per your
choice
● Pay the single premium once or multiple times to increase your cover as per
your capacity.

WHAT ARE THE ELIGIBILITY CRITERIA?

● Minimum age at entry is 25 years and maximum age is 50 years
● Minimum premium is Rs. 500 and maximum premium is Rs. 15,000
● Minimum Sum Assured: Rs. 2500.
● Maximum Sum Assured: Rs. 1,50,000
● You can buy the plan for a term of 5 years, 7 years or 10 years

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1.3 Product Profile to deal In Finamigo

● IndiaFirst Life Maha Jeevan Plan

● IndiaFirst Life Smart Pay Plan

India First Maha Jeevan Plan:

India First Maha Jeevan Plan is a participating, non-linked endowment plan that
offers an assured maturity amount plus a revisionary bonus declared by the
company every financial year end and terminal bonus, if any.

13
India First Life Smart Pay Plan

India First Life Smart Pay Plan is a perfect mix of disciplined savings with the
benefit of liquidity and life cover, thus providing the best to you and your
family.

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 Chapter 2
Introduction to Topic
2.1 INTRODUCTIONS
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. To invest is to allocate money in the expectation of
some benefit in the future. In finance, the benefit from an investment is called a
return. Though certainly not the best or deepest of markets in the world, it has
reasonable options for an ordinary man to invest his savings. Investment
benefits both economy and the society. It is an outgrowth of economic
development and the maturation of modern capitalism. Specific types of
investments provide other benefits to society as well.

INVESTOR

An investor is who makes an investment into one or more categories of assets-

equity, debt -securities, real estate, currency, commodity, derivatives such as
put and call options, etc. with the objective of making a profit.  Investor is a
consumer utilize investments in order to grow their money and/or provide an
income during retirement, such as with an annuity

INVESTMENT

Investment refers to the concept of deferred consumption, which involves

purchasing an asset, giving a loan or keeping funds in a bank account with the
aim of generating future returns. Various investment options are available,

15
offering, differing risk-reward trade-offs. An understanding of the core
concepts and a thorough analysis of the options can help an investor create a
portfolio that maximizes returns while minimizing risk exposure.

2.2 INVESTMENT INDUSTRY

To invest is to allocate money in the expectation of some benefit in the future.

In finance, the benefit from an investment is called a return. The return may
consist of a gain (or loss) realized from the sale of property or an investment,
unrealized capital appreciation (or depreciation), or investment income such
as dividends, interest, rental income etc., or a combination of capital gain and
income. The return may also include currency gains or losses due to changes in
foreign currency exchange rates.

Investments are important because in today’s world, just earning money is not
enough. You work hard for the money you earn. But that may not be adequate
for you to lead a comfortable lifestyle or fulfil your dreams and goals. To do
that, you need to make your money work hard for you as well. Therefore, you
invest. Money lying idle in your bank account is an opportunity lost. You
should invest that money smartly to get good returns out of it.

16
While selecting an investment avenue, you must match your own risk profile
with the risks associated with the product before investing. The Indian investor
has several investment options to choose from. Some are traditional investments
that have been used across generations, while some are relatively newer options
that have become popular in recent years. Here are some popular investment
options available in India. Most investors want to make investments in such a
way that they get sky-high returns as fast as possible without the risk of losing
the principal money they have invested. This is the reason why many investors
are always on the lookout for top investment plans where they can double their
money in few months or years with little or no risk.

2.3 OBJECTIVES FOR INVESTMENT

The main investment objectives are increasing the rate and reducing the risk.
Other objectives like safety, liquidity and hedge against inflation can be
considered as subsidiary objectives

● RETURN

Investors always expect a good rate of return from their investments. Rate of
return could be defined as the total income the investor receives during the
holding period stated as a percentage of the purchasing price at the beginning of
the holding period.

● RISK

Risk of holding securities is related with the probability of actual return

becoming less than the expected return. The word risk is synonymous with the
phrase variability of return.

● LIQUIDITY

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Marketability of the investment provides liquidity to the investment. The
liquidity depends upon the marketing and trading facility.

● HEDGE AGAINST INFLATION

Since there is inflation in almost all the economy, the rate of return should
ensure a cover against the inflation. The return rate should be higher than the
rate of inflation; otherwise the investor will have loss in real terms. Growth
stocks would appreciate in their values overtime and provide a protection
against inflation. The return thus earned should assure the safety of the principal
amount, regular flow of income and be a hedge against inflation.

● SAFETY

The selected investment avenue should be under the legal and regulatory
framework. If it is not under the legal framework, it is difficult to represent the
grievances, if any. Approval of the law itself adds a flavor of safety.

2.4 WHERE SHOULD YOU INVEST YOUR MONEY?

Figuring out how to invest money can be a real challenge. There’s certainly no
shortage of information on investing available in the digital age. However, too
much information can be overwhelming. When figuring out how to invest
money, it’s best to start with the basics. I’m sure any financial advisor will
agree with that.

Since there are so many types of investment vehicles, it is normal for an

investor to get overwhelmed. Someone new to investing would not where to
invest their money. Making the wrong investment choice can lead to financial
losses, which is something that no one wants.

18
Therefore, you should use the following factors to decide where to invest
your money.

● Age

Typically, younger investors have fewer responsibilities and a longer time

horizon. When you have a long working life in front of you, you can invest in
vehicles with a long-term view and keep increasing your investment amount
with an increase in your income. This is why equity-oriented investments
like equity mutual funds would be a better option for young investors, as
compared to something like fixed deposits. But on the other hand, older
investors can opt for safer avenues like FDs.

● Goal

Investment goals can be either short-term or long-term. For a short-term goal,

you should opt for a safer investment and use the return-generating potential of
equities for long-term goals. Goals can also be negotiable and non-negotiable.
For non-negotiable goals like children’s education or down payment for a
house, guaranteed-return investments would be a good choice. But if the goal is
negotiable, which means that it can be pushed back by a few months, then
investing in equity mutual funds or stocks can be beneficial. Plus, if these
investments do well, then you can even meet the goal before time.

● Profile

Another thing to think about when choosing an investment option is your own
profile. Factors like how much you are earning and how many financial
dependants you have are also critical. A young investor with a lot of time on
hand may not be able to take equity-related risks if he also has the responsibility
to take care of his family. Similarly, someone older with no dependents and a
steady source of income can choose to invest in equities to earn higher returns.

19
How consumer can plan an investment?

The first step in planning your investments is to figure out the right investment
that fits your profile and needs. Here are a few things to keep in mind when
planning your investments:

● Choose investments carefully after doing adequate research

● Don’t fall for quick-buck schemes that promise high returns in a short time
● Review your stock and mutual fund investments periodically
● Consider the tax implications on returns you earn from your investments
● Keep things simple and avoid complicated investments that you don’t
understand

In this article, we have learned a lot about investments and the various types of
investments. Now, it’s your time to be smart and to generate wealth. Insurance
is a contract, represented by a policy, in which an individual or entity receives
financial protection or reimbursement against losses from an insurance
company. The company pools client risk to make payments more affordable for
the insured.

Investing versus Speculation

Whether buying a security qualifies as investing or speculation depends on three
factors:

● The amount of risk taken on - Investing usually involves a lower amount of

risk compared with speculation.
● The holding period of the investment - Investing typically involves a longer
holding period, measured quite frequently in years; speculation involves
much shorter holding periods.
● Source of returns: Price appreciation may be a relatively less important part
of returns from investing, while dividends or distributions may be a major
part. In speculation, price appreciation is generally the main source of returns.

20
2.5 Types of Investments in India

There are several investment avenues, while selecting an investment avenue,

you have to match your own risk profile with the risks associated with the
product before investing. There are some investments that carry high risk but
have the potential to generate high inflation-adjusted returns than other asset
class in the long term while some investments come with low-risk and therefore
lower returns.

The Banking Sector

Mutual Funds
Debt Funds
National Pension System (NPS)
Insurance
PPF
Sukanya Samriddhi Yojna
Post Office Time Deposits
EPF/VPF
Fi
g.2.5.1 Investment Avenues

The Banking Sector

The banking or financial sector comprises companies that provide consumers
with financial services. The banking sector is the section of the economy
devoted to the holding of financial assets for others, investing those financial
assets as leverage to create more wealth and the regulation of those activities by
government agencies. This includes retail banks, insurance companies, and

21
investments services firms. This sector has a great impact on the economy. The
stronger it is, the stronger the economy becomes. But as the sector weakens—as
evidenced by the events leading up to the Great Depression—the economy
begins to trail. So, a healthy, stable economy requires a strong financial and
banking sector.

Many of the stocks in this sector pay dividends, which many value investors
believe is a good sign of a company's quality. The longer the dividend history,
the better it is for the investor, as it demonstrates a good track record of success.
It also shows that the company has a history of providing investors with a share
of the profits.

Fixed Rate Investments

Fixed rate investments offer a fixed or pre-determined rate of return over a pre-
specified period. For example, a fixed deposit will offer you a fixed rate of
interest on your investment for a fixed time period, beyond which it will mature,
and may either be redeemed or extended further.

MERITS DEMERITS

Global reach Low rate of return

Economies of large scale No sec. 80c

Propellant of economy High penalties

No availability of cheap No life security

loans.

22
 Security No sec. 10(10D)

In some cases, premature withdrawal might be available for these investment

options however, there might be significant penalties involved in such cases. In
the following section, we will discuss some of the leading fixed rate investment
plans in India.

Table 2.5.1 Merits and Demerits of Banking

Mutual Funds

A mutual fund is a professionally managed investment fund that pools money

from many investors to purchase securities. Equity mutual funds investment is
like investing in ELSS except the tax saving factor is not there and risk-reward
potential could be relatively on the higher side.

23
In terms of returns, investing in equity mutual funds is best in the class but the
risk factor is equally high. However, the risk can be minimized by staying
invested for the long term and diversifying your investment between the large
cap, mid cap and small cap space. A well-diversified equity mutual fund
portfolio can provide you anywhere between 15-18% in the long run.

From the taxation perspective, if you hold units of these investments for over 1
year on, you will be liable to LTCG at 10% only if the overall gains of the year
exceed Rs. 1 lakh. Otherwise, if the holding period is less than a year, Short
Term Capital Gains Tax (STCG) at 15% would be charged on the gains.

Debt Funds

Debt mutual funds invest mainly in debt and money market instruments and
therefore, best-suited for investors who are risk-averse but still seeking high
returns. Debt funds generate income on their investments primarily through the
coupon rate or interest rate offered by the bonds held by the fund. Debt
funds are mutual funds that invest in fixed income securities like bonds and
treasury bills.

A secondary route is through the trading of bonds on bond markets which

makes debt funds a market-linked product. However, it should be noted that
bond markets, unlike equity markets, are very less volatile, which makes
investing in debt funds a less risky bet. However, the lower risk does come at a
price – average historical returns offered by debt funds are around 9-10%
annually as compared to 13-15% provided by equity funds.

Depending on time horizon and risk involved, debt funds can be categorized as
liquid funds, ultra-short-term funds, short term funds, accrual funds, gilt funds,
fixed maturity plans and so on.

National Pension System (NPS)

24
NPS or the National Pension System is a government sponsored pension
scheme to build a long-term retirement corpus. National Pension System (NPS)
is the best pension scheme for retirement planning . NPS contributions can be
made by any Indian citizen and these contributions are invested by designated
fund management companies (currently 8) into equity and debt markets.

There are four asset classes in which NPS invests its corpus in different
proportions which include equities (Class E), government bonds (Class G),
corporate bonds (Class C) and alternative assets (Class A).

NPS offers prospective investors a few choices – the investor can choose a
specific fund house to manage NPS contributions and choose the investment
style in terms of individual allocation into equity, debt, and other investments.

The subscriber can withdraw up to 60% of the corpus at the time of maturity
while the rest are to be used to buy an annuity plan.

In terms of taxation, you can claim tax deduction benefits up to Rs. 1.5 lakh
under section 80C of the Income Tax Act. Further, an additional sum of Rs.
50,000 can be claimed for tax benefits under section 80CCD (1B) which are
exclusively available for NPS and Atal Pension Yojana (APY).

Merits Demerits

Greater returns Market exposure

Beats inflation Risks involved

25
 Tax benefits Liquidity

Shorter lock in period Not suitable for risk averse

Hassel free Nil

Table 2.5.2 Merits and Demerits NPS, debt funds

Table 2.5.2 Merits and Demerits of Investment In NPS, Debt Funds
All in all, you should invest in products but align that investment to your risk
appetite. If you think you are comfortable exposing yourself slightly to the
market’s fluctuation, I suggest you go for it. However, if you are wary or your
circumstances do not allow you to dabble with market-linked investments.

Insurance

Insurance is a means of protection from financial loss. It is a form of risk

management, primarily used to hedge against the risk of a contingent or

26
uncertain loss. An entity which provides insurance is known as an insurer,
insurance company, insurance carrier or underwriter. A person or entity who
buys insurance is known as an insured or as a policyholder. The insurance
transaction involves the insured assuming a guaranteed and known relatively
small loss in the form of payment to the insurer in exchange for the insurer's
promise to compensate the insured in the event of a covered loss .  The insurance
industry of India consists of 57 insurance companies of which 24 are in life
insurance business and 33 are non-life insurers. Among the life insurers, Life
Insurance Corporation (LIC) is the sole public sector company. Apart from that,
among the non-life insurers there are six public sector insurers. Other
stakeholders in Indian Insurance market include agents (individual and
corporate), brokers, surveyors and third-party administrators servicing health
insurance claims. Gross premiums written in India reached Rs 5.53 trillion (US$
94.48 billion) in FY18, with Rs 4.58 trillion (US$ 71.1 billion) from life
insurance and Rs 1.51 trillion (US$ 23.38 billion) from non-life insurance.
Overall insurance penetration (premiums as % of GDP) in India reached 3.69
per cent in 2017 from 2.71 per cent in 2001.
In FY19 (up to October 2018), premium from new life insurance business
increased 3.66 per cent year-on-year to Rs 1.09 trillion (US$ 15.46 billion).   In
FY19 (up to October 2018), gross direct premiums of non-life insurers reached
Rs 962.05 billion (US$ 13.71 billion), showing a year-on-year growth rate of
12.40 per cent.

Merits Demerits

Income guaranteed through Inconsistent premiums

annuities
Dividends enable growth Deduction of funds

Risk guard Insufficient funds

27
 Tax benefits Expiration of term insurance

Mortgage recovery Language of premium

Table 2.5.3 Merits and Demerits of insurance

The future looks promising for the life insurance industry with several changes
in regulatory framework which will lead to further change in the way the
industry conducts its business and engages with its customers.
The overall insurance industry is expected to reach US$ 280 billion by 2020.
Life insurance industry in the country is expected grow by 12-15 per cent
annually for the next three to five years.

PPF

Public Provident Fund or PPF is one of the most popular government

guaranteed saving schemes which provide a fixed interest rate on the deposits.
The scheme comes with a lock-in period of 15 years and tax benefits under
section 80C. The interest rates are decided by the government every quarter.
The current rate is fixed at 8% for PPF deposits.

28
Since the returns are government guaranteed, PPF fares very low on the risk
meter but that comes with a price of average returns. PPF investments are best
suited for individuals who are risk averse.

However, PPF is an EEE category investment which makes the maturity amount
as well as interest accrued tax free. PPF accounts are freely transferable from
one part of the country to another and can be opened by an Indian resident at
any location within the country.  The maturity period of PPF deposits is 15
years from the date of initial opening with the option to extend by blocks of 5
years later. Partial withdrawal is also allowed but only on specified grounds and
fixed conditions.

PPF Product Features

● Attractive interest rate of 7.9% that is fully exempted from Income Tax under
Section 80C
● Good long-term investments of 15 years
● Deposit Amount as low as Rs.500 and maximum Rs.1,50,000 in one
financial year. Deposits should be in multiples of Rs.5 
● Deposits d41
● 100can be done maximum in 12 transactions Loan can be availed between
3rd to 6th financial year
● Partial withdrawal facility can be availed after completion of 5 financial
years
● Account can be extended in a block period of 5 years after maturity

Merits Demerits

Tax-free earnings upon maturity Interest rate may not be able to beat
inflation
Minimum investment of Rs 500 only per Lock-in period of 15 years
year

29
 Guaranteed returns as set by the NRIs and HUFs cannot open an account
government every year
Complete capital protection Only one account allowed for every
citizen
Easy to open an account from banks or The account cannot be closed until
post offices maturity
Facility to make partial withdrawals and Nil
loans
Option to extend tenure with or without Nil
contributions

Table 2.4.4 Merits and Demerits of PPF

The PPF has a some advantages as well as disadvantages when compared to

other options like tax-saving fixed deposits and ELSS mutual funds. PPF is one
of the preferred options because it is something that our parents and
grandparents have used to save taxes. It does have its benefits, but young
investors should carefully consider other options as well before they invest in it.

Sukanya Samriddhi Yojana

Sukanya Samriddhi Yojana is a government backed saving scheme which aims

to secure the financial future of the girl child. Under the scheme, a Sukanya
Samriddhi Account is opened in the name of the girl child by the parent and
features the parents as the joint holder. The initial deposits can range anywhere
between Rs. 250 to 1.5 lakh.

Tax deductions are available under Section 80C of the Income Tax Act and
being an EEE investment, it is completely tax exempt including principal
invested, interest earned and maturity amount. With 8.5% interest rate, the

30
scheme fares as one of the best in the fixed return category options. Tax saving
is an added benefit.

Merits Demerits

Higher Rate of Return on Investment Returns May Not Be Able to Counter

Inflationary Impact

Tax Benefit Returns Lower as Compared to Market

Linked Schemes

Ease of Investment Investment is Not Very Flexible

Flexible Approach Nil

Investment Does Not Involve Risk Nil

The account matures either on the marriage of the girl child (when she reaches
the official marriageable age of 18) or when she turns 21 – whichever is earlier.
Partial withdrawal is possible for key events such as tuition fees for higher
education.

Table 2.5.5 Merits and Demerits of Sukanya Samriddhi Yojana

31
Post Office Time Deposits

Probably one of the oldest and most trusted modes of investment in India, Post
Office Time Deposits and bank fixed deposits have lost some of their appeals in
recent times due to unattractive returns .The investment tenure of such products
can range from as short as 7 days to 10years with the option of extending it
further after maturity. The rate of interest can be as low as 3.5% or as high as
7.45% depending on the bank, the amount invested and the tenure of the FD.
Premature withdrawal of such deposits is allowed however, penalty would be
charged. There are no tax benefits available on any of these products which is
another reason of declining popularity in recent times.

Merits Demerits
5 Year Time Deposits qualify Linked to Place of
for tax deduction under Section 80C. Investment

Even minors aged 10 years and above can

Not digitized
operate the account by themselves.

Flexible investments – low minimum

Unfriendly Post office Staff
amount of Rs. 200 and no maximum
investment limit.

5 Year Time Deposits qualify

Post Office Agents Rule the
for tax deduction under Section 80C.
Roost
Premature withdrawal of deposits is allowed.
Nil

Table 2.5.6 Merits and Demerits of Post Office Time Deposits

32
EPF/VPF

EPF or Employee’s Provident Fund Scheme is a social security scheme which is

only available to the salaried Indian residents. Up to 12% of the basic salary of
the individual can be contributed per month and an equal contribution must be
mandatorily contributed by the employer to the EPF account.

VPF or Voluntary Provident Fund is the same scheme as EPF, but in this case,
the amount contributed by the individual salaried employee can be greater than
the allotted 12% and the employer is not liable to make an equivalent
contribution to the VPF scheme.

The corpus of EPF and VPF is managed by the EPFO (Employees Provident
Fund Organization) and the current interest rate being offered is 8.65%.

Merits Demerits

Tax exemption under Section 80C The EPF contribution is rigid and
fixed at 12% 

The interest rate earned is exempt Withdrawal before 5 years from

from income tax. account opening of EPF is taxable.

Lifelong pension. Nil

Insurance benefit Nil

Higher returns Nil

Table 2.5.7 Merits and Demerits of EPF

33
2.6 A Comparative Analysis:
Investment Option Investment 5 Year Mean Risk Tax Exemption
Type Returns Benefits

Equity Funds Market-linked 13-15% High None

Debt Funds Market-linked N/A Low None

NPS Market-linked 9-11% Moderate Yes

Insurance Market-linked 7-9% High Yes

PPF Fixed Rate 8% Very Yes

Low

EPF/VPF Fixed Rate 8.65% Very Yes

Low

Sukanya Samriddhi Fixed Rate 8.50% Very Yes

Scheme Low

Post Office Time Fixed Rate 6-9% Very None

Deposit Low

Table 2.6 Analysis

34
 Chapter -3
Research Methodology
3.1 Research Methodology
Research methodology is the specific procedures or techniques used to identify,
select, process, and analyze information about a topic. In a research paper,
the methodology section allows the reader to critically evaluate a study's overall
validity and reliability.
When you conduct primary research, you’re typically gathering two basic kinds
of information:
● Exploratory: This research is general and open-ended, and typically
involves lengthy interviews with an individual or small group.
● Specific: This research is more precise, and is used to solve a problem
identified in exploratory research. It involves more structured, formal
interviews.
3.2 OBJECTIVES OF THE STUDY
This study deals with the behavior of the investor /consumer to identify the
better investment avenues available in India. The investment strategy is a plan,
which is created to guide an investor to choose the most appropriate investment
portfolio that will help them to achieve their financial goals within a period. By
increasing personal wealth, investing can contribute to higher, overall economic
growth and prosperity. The process of investing helps companies where they
can raise their capital through financial markets. Specific types of investments
provide other benefits for the investor, corporate as well as the society. The
Indian investors are very much aware about the concept of portfolio allotments
and risk and return of the investment.

35
Main objective for the study

✔ To study different types of investment avenues

✔ How consumer satisfaction is growing in the towards investment avenues.
✔ To study the investors preference towards the investment.
✔ To evaluate the factors underlying consumer perception towards
investment.
✔ To find out how investors get information about the financial instrument.
✔ To compare the differences in consumer perception of male and female
consumers.
✔ To suggest suitable recommendations for investment decisions based on
the study.
3.3 Type of Research Design
The research design refers to the overall strategy that you choose to integrate
the different components of the study in a coherent and logical way, thereby,
ensuring you will effectively address the research problem; it constitutes the
blueprint for the collection, measurement, and analysis of data.

3 Types of
reseach design

Exploratory research Descriptive research Causal research

Fig.3.3.1 Research Design

36
Research design used to gain better understanding of respondent is Descriptive
Research Design.

3.4 SOURCES OF DATA

SECONDARY DATA:
It is the data which has been collected by individual or someone else for the
purpose of other than those of our particular research study or in other words we
can say that secondary data used previous for the analysis and the results are
undertaken for the nest process.
Secondary research is a type of research that has already been compiled,
gathered, organized and published by others. It includes reports and studies by
government agencies, trade associations or other businesses in your industry.
For small businesses with limited budgets, most research is typically secondary,
because it can be obtained faster and more affordably than primary research.

The secondary data will be collected from the newspapers, expert reports,
internet and website, etc.
● Internet: - www.licindia.com
www.marketingprofessor.com
● Past records and analysis
● Books, Magazines & Journals.
Both primary and secondary data will be collected to analyze:
● Existing market scenario of Indian market with respect to consumer
satisfaction towards Life Insurance.
● Customers views regarding Life Insurance.
● Experts’ opinion regarding Insurance Industry and contribution of
life insurance companies into it.

37
 Primary Data:

Primary data will be collected from the people from life insurance companies as
a marketing manager or senior level management. The primary information will
be collected through questionnaire and Interviews presented to the life insurance
companies customers and retailers.
● Questionnaire – Structured
Dichotomous, open ended, multiple choice
● Personal Interview
● General Discussions

3.5 Sampling
Sample Size: 50
Due to limitation of time 50 has been taken as sample. Out of total population
50 respondents gave their precious response to complete this study. This whole
study is conducted based on their responses. Delhi has been large population
but, so to take response of each person could not be possible that is why here 50
samples has been taken as a sample.

3.6 Sampling method

Non - Random Sampling chosen by the gathering of data
3.7 Population
Delhi
3.8 Sampling Area
Rani Bagh
3.9 Sampling Unit
Individuals indulging investment in different sectors with different backgrounds
have been selected.

38
3.10 Limitations of the study

The limitations of the study are those characteristics of design or methodology

that impacted or influenced the interpretation of the findings from your
research. They are the constraints on generalizability, applications to practice,
and/or utility of findings that are the result of the ways in which you initially
chose to design the study or the method used to establish internal and external
validity or the result of unanticipated challenges that emerged during the study.

✔ There might be errors in the expression of opinion of respondents due to

their personal bias.
✔ The information collected may not be up to date, hence accuracy may not
be there
✔ The study was restricted to urban areas in Delhi.
✔ Due to Time constraints sample size was restricted to 50.
✔ The main constraint of study was insufficient access to information which
has significantly disturbed the scope of the analysis that is required for
the study.
✔ The economy and study are so wide and comprehensive that it is not
possible to encompass all likely factors influencing investor’s investment
pattern during the period.
✔ The interpretation is done on the assumptions that information is correct.

Chapter -4

39
 Data Analysis and Interpretation
Ques1) Age

Age Group No of Respondent Percentage

20-40Yrs. 25 50

41-60 Yrs. 16 32

Above 60 Yrs. 8 16

Total 50 100

No. of Respondent

Above 60 Yrs
16%
20-40Yrs
20-40Yrs 41-60 Yrs
50% Above 60 Yrs
41-60 Yrs
32%

Fig.4.1 Analysis of responses according to age

Interpretation:

Here, we can see that 50% of the respondent belonged to the age group of below
20-40 years, followed by 32% who belonged to the age group between 41-60
years, then 16% of respondents belong to above 60 years but there is no
respondent from the age group above 60.

Ques2) profession

40
 Profession No of Respondent Percentage

Student 6 12

Employee 16 32

Business 28 56

Total 50 100

No. of Respondent

Student
12% Student
Employee
Business
Business Employee
56% 32%

Fig4.2 Analysis of responses on the basis of profession of investors

Interpretation:

41
Here, we can see that 12% of the respondent belonged to the age group of
students, followed by 32% who belonged to the employees, then 56% of
respondents belong to business.

42
Ques3) How many no. of members is there in family

Members in family No of Respondent Percentage

less than 4 10 20
4-6 25 50
above 6 15 30
Total 50 100

No. of Responses

less than 4
above 6 20%
30%

less than 4
above 6

4-6
50%

Fig.4.3 Analysis of no. of members in the family

Interpretation:

The above analysis shows that 20%of the investors are from family having less
than 4 members i.e. may be from nuclear family ,50% of members have 4-6
members and others have more than 6 members.

Ques 4) What is your monthly Income?

43
 Income No of Percentage
Respondent

Below 100000 6 12

100000-200000 16 32

Above 200000 28 56

Total 50 100

No. of Respondent

Above 60 Yrs
16%
20-40Yrs
20-40Yrs 41-60 Yrs
51% Above 60 Yrs
41-60 Yrs
33%

Fig. 4.4 Analysis of monthly income of investors

Interpretation

44
Here it is easily visible that the major response(40%)s are given the respondents
whose annual income is between 1 lakhs to 2 lakhs, that means majority of them
are belongs to middle age group .26% responses are given by the respondents
whose annual income is below 1 lakh 34 % responses given by the respondents
whose annual income is above lakh and they might be investing in investment
avenue like stock market, mutual fund, insurance etc.

45
Ques5) The main objective of your investment
Objective No. of responses Percentage
Safety 15 30

Liquidity 6 12

Return 9 18

Reliability 10 20

Low risk 10 20
Total 50 100

No. of Respondants
50
50

45

40

35

30
25
25

20
15
15
10
10

0
less than 4 15-Feb above 6 Total

46
 Fig.4.5 Analysis of objective for investment

Interpretation:

Above graph shows that most of the investors prefer safety at the most then
reliability, after that return and then liquidity.

Ques 6) Type of investment Awareness Investment made in Rs.

Sectors No of respondents Percentage

Real estate 10 20

Shares 12 24

Gold 5 10

Insurance 10 20

Any other (specify) 13 26

Total 50 100

No. of Respondants

any other (banks or Real estate

specify) 20%
26% Real estate

Shares
Shares
insurance 24% Gold
20%
Gold insurance
10%
Any other (specify)

47
 Fig. 4.6 Analysis of awareness among investors

Interpretation:
Above the chart and table shows that 26% investor were aware and invests in
(any others) savings A/C Bank FD (safe/low risk), 24% investor were about
Equity management (shares) (high risk), 20% investor were about to invest in
insurance, 10% investor were about Gold, silver (traditional).20% invest in real
estates.
Ques7) sources preferred for references

Sectors No of respondents Percentage

Internet 10 20
Family and friends 25 50
Newspaper 5 10
Advisor 10 20
Total 50 100

No. of Responses

advisor internet
20% 20%
internet
newspaper family and friends
10% newspaper
advisor

family and friends

50%

48
 Fig.4.7 Analysis of source of reference
Interpretation:
Above analysis shows that most of the investments are done by taking
references from family and friends i.e.50%, then people usually prefer advice
from the financial advisor or consider internet as a source, other sources such as
newspaper are least preferred.

49
Ques 8) sector preferred for investment

No. of Responses

private
40% public private
public
60%

Fig. 4.8 Analysis of sector preferred by investors

Sector No. of responses Percentage

Public 30 60

Private 20 40
Total 50 100

Interpretation

Above graph shows that most of the investors prefer public sector at the most
for investment than the private sectors.

50
 Chapter -5
Findings and Discussion
The results section of the research paper is where you report the findings of
your study based upon the information gathered as a result of
the methodology [or methodologies] you applied. The results section should
simply state the findings, without bias or interpretation, and arranged in a
logical sequence 

5 .1 FINDINGS

✔ Most of the investors possess higher education like graduation and above.
✔ Investor opt for two or more sources of information to make investment
decision.
✔ Most of the investor discuss with their family and friends before making
an investment decision.
✔ Percentage of income that they invest depend on the annual income, more
the income more percentage of income they invest.
✔ Most of the investor prefer to invest their funds in avenues like life
insurance, FD’S etc.
✔ Main objective of many investor is safety and then returns.
✔ People belonging to different age group have different perception towards
investments.

51
 Chapter -6
Conclusion
6.1 Conclusion

Investors decisions are driven by the economic indicators such as inflation rate,
government policies, unemployment rate etc. An individual does investment
plan then they will be investing their savings and in any investment avenue as
per their convenience.
The study shows how different factors and instruments have different risk,
returns and tax considerations while taking investment decisions and are of
diverse natures. It is very difficult to come to any definite conclusions that how
a particular market instrument is doing and how they will perform in the
future ,but still the study concludes to an extent that the particular instruments
or product like equity or government security has performed well in the past ,
and supported with strong demands will perform well in the future .
The study also draws an important conclusion from the study that the investors
are keen to invest in long term and less risk products, much interested to earn
the good return on their investments.

Investors are aware about the factor affecting their short term as well a long -
term investment plans and they do take advice from different experts, self -
analysis by investors themselves. This intensive study will somehow help
investors in deciding the correct investment for their savings.

The study says that Indian investment community have shown much interest in
investing in different financial products available in the market due to the
growth of GDP, better performance by the companies etc.

52
 Chapter-7

Suggestion and Recommendations

7.1 Recommendations for Future Research

The following recommendations are suggested for future research in the field of
investor attitude and behavior. These recommendations are based on the results
of this study.

✔ Replicate the study using the larger nationwide sampling so that the
potential for generalization of the study can be statistically established
with a larger sample base.
✔ Replicate the study using only demographic characteristics found to be
statistically significant in influencing attitude, preference and behavior.
Future research should use education, gender, self-employment status,
and income as classification factors. Use of these demographic
characteristics may lead to major improvements in understanding investor
behavior.
✔ Future empirical tests of investor risk attitudes and preferences also
should include longitudinal studies. Previous research has tended to rely
on
cross sectional assessments.
✔ Future research should explore the reasons why certain demographics are
or are not effective factors in differentiating among levels of awareness,
preferences, perceptions, risk attitudes and behavior.
✔ This study has reported only on the results of a quantitative, and the
results presented provide only a brief explanation how various factors like
demographics, psychology and sociology effect individual investment
0behavior.

53
 ✔ Qualitative methods would be an ideal way to examine the underlying
reasons that make certain characteristics effective in differentiating and
classifying factors.
✔ Future research should investigate the relationship between investment
behavior and social styles of the individual investor.

7.2 Suggestions

Following suggestions are based on individual investor’s response which can be

considered:

✔ Investor should be aware of company’s profile and returns associated

with insurance.
✔ Financial advisor should be right enough to serve the consumers.
Consumer should be aware of the advisor or others who is looking after
their investment.
✔ Better analysis tools should be used to make better predictions.
✔ Risk and return should be evaluated before making an investment.
✔ To avoid risk investor should invests in treasury notes or high rated
municipal bonds and debentures.
✔ Awareness programs can be conducted.

54
 BIBLIOGRAPHY

● https://cleartax.in/s/investments
● https://shodhganga.inflibnet.ac.in/bitstream/10603/51167/9/09_chapter
%203.pdf
● https://en.wikipedia.org/wiki/Investment_company
● http://www.ijhssnet.com/journals/
Vol_4_No_4_Special_Issue_February_2014/11.pdf
● https://www.researchgate.net/publication/
261173666_INVESTORS_BEHAVIOUR_IN_VARIOUS_INVESTMEN
T_AVENUES_A_STUDY
● https://www.paisabazaar.com/mutual-funds/best-investment-plans/
● https://www.indiafirstlife.com/individual-insurance-plan/traditional-
plan/smart-pay-plan
● http://www.yourarticlelibrary.com/marketing/research-design-
introduction-contents-and-types/48714
● http://ijepr.org/panels/admin/papers/37ij18.pdf
● https://efinancemanagement.com/financial-management/advantages-and-
disadvantages-of-banks
❖ Books & Magazines
● Business World and Business India Magazine
● Varshney, P.N “Banking law and Practice”

55
 Annexure

QUESTIONNAIRE
Name:

Ques1) Age: 20 – 40years 40-60 years above 60 years

Ques 2) Sex: Male Female

Ques 3) Occupation/Profession

Salaried

Professional

Business

Others, specify ___________________

Ques 4) How many members are there in your family ?

Less than 4 4–6 Above 6

Ques 5) What is your Monthly Income?

Below Rs.100000 Rs. 100000– Rs.200000 above Rs.

200,000

Ques 6) Which sector is preferred for investment?

Public

private

Ques7) Objective of your investment: Rank (1, 2, 3….)

Safety

56
 Liquidity

Return

Reliability

Low risk

Ques 8) What are the benefit come in your mind investing?

52% 17%
7 Wealth creation
Tax benefit
Future expectation
Other
Ques 9) From where did you find reference for investment?
36%
Internet
Family & Friends
Newspaper
Advisor
Ques10) Your Knowledge on various types of investment and the
investments made.

Real estate Yes No If yes, investment made in Rs.

Shares Yes No If yes, investment made in Rs.

Gold Yes No If yes, investment made in Rs.

Mutual Yes No If yes, investment made in Rs.

funds

Any other Yes No If yes, investment made in Rs.

(specify)

Type of investment Awareness (please tick) Investment made in Rs.

57
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