A Study on Investment Plans or Patterns among Gen-z with

reference to Wadala region in Mumbai

A Project submitted to University of Mumbai for partial completion of the

degree of MASTER OF COMMERCE under the Faculty of Commerce.

SEMESTER III

PROJECT – 1

By

MS. NEELAM VARMA

ROLL NO. 44

Under the Guidance of

PROF. IRVIN KAUR

Guru Nanak College Of Arts, Science & Commerce G.T.B Nagar, SION (E).

November 2023

1
 DECLARATION

I the undersigned Miss. Neelam Varma hereby, declare that the work embodied in this project work titled “A
study on investment plans or patterns among Gen-z with reference to Wadala region in Mumbai” forms my
own contribution to the research work carried out under the guidance of Prof. Irvin Kaur as a result of my own
research work and has not been previously submitted to any other University for any other Degree/ Diploma to this
or any other University.

Wherever reference has been made to previous works of others, it has been clearly indicated as such and included
in the bibliography.

I, hereby further declare that all information of this document has been obtained and presented in accordance with
academic rules and ethical conduct.

Certified by Signature of
Researcher

College seal Signature of

Guide

2
 CERTIFICATE

This is to certify that Ms. Neelam Varma has worked and duly completed her project work for the degree of
Master in Commerce under the Faculty of

Commerce in the subject of accountancy and her project is entitled,

“A study on investment plans or patterns among gen-z with reference to Wadala region in Mumbai” under
my supervision. I further certify that the entire work has been done by the learner under my guidance and that no
part of it has been submitted previously for any Degree or Diploma of any university.

It is her own work and facts reported by her personal findings and investigations.

Certified by

Signature of Guide

Signature of Principal Signature of External Examine

Seal of the College

3
 ACKNOWLEDGEMENT

This research project entitled “A study on investment plans or patterns among gen-z with reference to
Wadala region in Mumbai” is the result of the guidance and help of my Guide PROF. IRVIN KAUR.
His encouragement and support only has made me pursue this project. My first salute is due to him.
I am indeed grateful to our Principal Dr. Pushpinder G. Bhatia for her direct and indirect support in doing
this project.
I am indebted to all my friends for their support and invaluable assistance and advice in initiating the
research, conducting the pilot survey for finalization of the questionnaire, in pursuing the research and to
prepare this project report on time. I am thankful to all the survey respondents, for diligently filling the
questionnaires and for giving their valuable opinions on the questions asked without which the project
report would not have been possible.
I extended my sincere thanks to the librarian Ms. Anuradha Namjoshi, and the library staff for their
services in acquiring the required reference books and for collecting data from the books and other
sources.

November 2023

4
 INDEX

CHAPTER CONTENT PAGE NO

NO.
DECLARATION
CERTIFICATE
ACKNOWLEDEMENT
LIST OF TABLES
1. INTRODUCTION 9 - 27
2. BACKGROUD INFORMATION 29 - 42
3. DATA ANALYSIS AND INTERPRETATION 44 - 64
4. CONCLUSIONS AND SUGGESTIONS 66 - 67
REFERENCES 68 - 68
ANNEXURE 69 - 72

5
SR NO. LIST OF TABLES PAGE
NO

16.
1. What factors influenceGender
your investment decisions? 59
44

17.
2. According to youAge
which
Group
is better investment? 60
45

18.
3. Do you use any
Occupation
App for Investment? 61
46

19.
4. If yes, Please specify
Annual
the which
Income
app are you using? 62
47

Annual saving 48
5.

6. How would you rate your level of financial literacy 49

on a scale from 1 to 5 ?

7. Are you aware of different investment Plans? 50

8. How did you learn about investment Plans? 51

9. What percentage of your income do you allocate for 52

investing?

10. Do you currently have any investment? 53

11. If yes, please specify the type of investment you 54

have?

12. How long would you like to invest in the financial 55

market?
How would you describe your risk tolerance when it
13. comes to investments? 56

14. What are your primary investment goals? 57

How comfortable are you with taking investment 58

15. risk?

6
Chapter – 01
Introduction

7
Introduction

Investment is traditionally defined as the commitment of resources to achieve later benefits. If an

investment involves money, then it can be defined as a “commitment of money to receive more money
later”. From a broader viewpoint, an investment can be defined as “to tailor the pattern of expenditure and
receipt of resources to optimize the desirable patterns of these flows”. When expenditure and receipts are
defined in terms of money, then the net monetary receipt in a time period is termed as cash flow, while
money received in a series of several time periods is termed as cash flow stream.

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

Investors generally expect higher returns from riskier investments. When a low-risk investment is made,
the return is also generally low. Similarly, high risk comes with a chance of high losses.

8
Investors, particularly novices, are often advised to diversify their portfolio. Diversification has the
statistical effect of reducing overall risk.

Type of Investments:

1. Stock

Investments in equity markets or stocks provide avenue for wealth creation over a long period of time. It
takes a great deal of research and prudence to understand the different types of investment opportunities
and identify the right stocks to invest in. You also need to time your entry and exit prudently, and it
involves continuous monitoring of investments. Capital appreciation happens over long period of time
and is dependent upon market volatility.

9
Depending on the types of investors in India, stock investments can bring good returns on the basis of
risk-appetite. The good news is that in the long run, some of the stocks has been shown to deliver greater
inflation-adjusted returns when compared with many other classes of assets.

2. Certificate of Deposit

Among the many investment types in India, Certificate of Deposit is a money market instrument which is
issued against the funds deposited by an investor. It is invested with the bank in a dematerialized form for
a certain period of time. Certificate of Deposit is issued by Federal Deposit Insurance Corporation (FDIC)
and regulated by the Reserve Bank of India (RBI).

Investment tips for Certificate of Deposit

 A CD can be issued to a single issuer for a minimum of Rs.1 Lakh and its multiples.

 Maturity period of a Certificate of Deposit issued by the commercial banks can range from 7 days
to 1 year. Whereas, maturity period for a certificate of deposit issued by financial institutions
ranges from 1 year to 3 years.

3. Bonds

Bonds are a type of debt investment that have gained popularity in India. Bond investors lend money to
the issuer of the instrument. In the return, the bond issuer i.e., borrower pays interest to the investor at a
pre-defined coupon rate till the maturity of the bond. Once the bond matures, the investor receives the

10
original investment back. While most Bonds in India feature a fixed coupon rate, other types of bonds like
floating rate bonds and zero-coupon bonds have grown in popularity over the years.

Tips for investing in bonds in India

 The bond issuer is required to pay the investor’s principal amount back at the time of maturity.

 Currently, bond investments in India can be made either directly or through Debt Mutual Funds.

4. Real Estate

Investing in real estate involves purchasing residential or commercial properties to allow your capital to
appreciate or to generate regular rental income. With such investment types, you get to enjoy a steady
stream of income in the form of rent. Another option is to make real estate investments without actually
purchasing the property. This can be done by purchasing units of Real Estate Investment Trusts (REITs).
REITs in India typically invest in commercial properties and investors earn based on the rental income
received from these properties.

Investment in Real Estate Tips

 If you are looking to score a higher rate of appreciation, make simple improvements and upgrades
to your real estate investment. This can go a long way in increasing the market value of your
property.

 Understand the additional costs you may have to incur on your real estate purchase. These may
include annual maintenance and upkeep outgo, taxation, utility expenses and more.

11
 5. Fixed Deposits (FD)

Fixed Deposits, which are offered by banks and non-banking financial organisations (NBFCs), are an
excellent option to grow your funds while maintaining the highest level of safety. Among the different
types of investments in India, this remains a popular choice since it allows you to deposit a lump sum
cash with your lender and choose a tenor that suits your needs. Following the conclusion of the pre-
determined tenor, your deposit begins collecting interest at the interest rate you locked in for the duration
of your deposit.

Investment tips for Fixed Deposits

 If you are looking to score a higher rate of appreciation, make simple improvements and upgrades
to your real estate investment. This can go a long way in increasing the market value of your
property.

 Understand the additional costs you may have to incur on your real estate purchase. These may
include annual maintenance and upkeep outgo, taxation, utility expenses and more.

6. Mutual Funds

Mutual funds (MFs) invest in market-linked instruments such as stocks, bonds, or a mix of both equity
and debt instruments. The different types of investors in India can choose between equity funds, debt
funds, and balanced funds depending on your financial goals and requirements. Furthermore, you can also
invest small amounts periodically in MFs using a Systematic Investment Plan (SIP).

12
Investment tips for Mutual Funds

 Review your risk preferences before choosing from the different types of investment options.
Invest in equity mutual funds if you have a higher risk appetite; for conservative investors, debt
schemes are ideal. The options exist to suit the preferences of varying types of investors in India.

 Understand the prevalent taxation system before investing. You can invest in tax-saving mutual
funds such as the ELSS (Equity Linked Savings Scheme) to help maximize your returns.

 Understand the prevalent taxation system before investing. You can invest in tax-saving mutual
funds such as the ELSS (Equity Linked Savings Scheme) to help maximize your returns.

13
 7. Public Provident Fund (PPF)

Considered to be one of the safest option among the different types of investment in India, Public
Provident Fund (PPF) is an instrument backed by the government. You can invest in PPF by opening an
account with any bank or post office. While opening the account, the minimum investment amount is as
low as Rs.100 in some of the banks (can vary for every bank). Thereafter, the annual limits for PPF
deposits range from a minimum of Rs.500 to a maximum of Rs.1.5 lakh. These investment types come
with a lock-in period of 15 years and are eligible for tax deductions under section 80C of the Income Tax
Act, 1961.

Investment Tips for PPF

 PPF interest is calculated on the basis of the minimum balance in one’s PPF account between the
5th of the month and the month end. Thus, you should make it a practice to invest before the 5th
of every month.

 Investing in a PPF through a bank that provides the facility of online transfers is a must. This
spells convenience and efficiency for investors and helps facilitate regular contributions.

8. National Pension System (NPS)

The National Pension System (NPS) is another investment plan backed by the government of India. It
falls under the types of investments in India that focuses on saving for the long term, making it the perfect

14
addition to your retirement investment plan. NPS investments can be diversified across 4 key asset classes
– Equities, Government Bonds, Corporate Bonds and alternative investment funds (AIFs). As per current

rules NPS investments are eligible for superannuation after the investor attains the age of 60 years.
However, NPS investors can continue their investments up to the age of 75 years without superannuation.

Investment Tips for NPS

 Make the most of your NPS investment by claiming the applicable tax benefits.

 NPS contributions are investment types that qualify for deduction under sections 80CCD (1),
80CCD (1B), and 80CCD (2).

 You can choose from two different types of investment choices i.e. active choice or auto choice. In
an auto choice investment, the proportion of investment in different asset classes is predetermined.
In active choice, you can determine the asset allocation, as per your preferences. If you are
financially adept, you can go for the active choice types of investment options. If one doesn’t
possess the required financial literacy, auto choice would prove ideal.

9. Senior Citizen’s Savings Scheme

Senior Citizens’ Savings Scheme (SCSS) is one of the types of investments backed by the Government of
India. Indian residents over 60 years of age can open an SCSS account and invest in this scheme for a

15
block of 5 years. Thereafter, the investment can be extended by another 3 years, if needed. You can
deposit up to Rs.15 lakh in your SCSS account in multiples of Rs.1,000 only. Deposits up to Rs.1 lakh

can be made in cash. However, deposits over Rs.1 lakh need to be made using a demand draft or cheque.
Investments in SCSS also qualify for deduction under section 80C, up to a limit of Rs.1.5 lakh.

Investment Tips for SCSS

 While investors do have the option of premature withdrawal, they must bear in mind that a penalty
charge ranging from 1-1.5% of the deposit will be levied.

 While the SCSS provides a high rate of interest as compared to other fixed income instruments,
this interest rate may be subject to change based on a quarterly review. Investors must keep track
of this rate of interest.

16
Objective of the study:

 To study Investment plans or patterns among Gen-z with reference to Wadala region.
 To study the financial goals and aspirations of Gen Z individuals.
 To study the influence of technology and digital platforms on their investment decision.
 To study the level of awareness among Gen-z about different investment options such as stock,
bond, real estate and crypto currency.

17
Scope of study:

The study focuses on Wadala’s Gen-Z individuals investment plans or patterns. The primary goal of the
study is to better understand Gen-Z’s preferred investment portfolio, which includes stocks, real estate,
cryptocurrencies, and socially responsible investments. Also, the study aims to identify the individual’s
level of financial literacy, understanding of investment concepts, and risk awareness, all of which are
crucial factors in their preparedness for making investment decisions. The goal is to identify gaps in Gen-
Z’s financial literacy and education and to develop methods to close these gaps. The study will help to
understand their choices and decisions regarding investment.

18
Significance of the study:

The study on investment plans & patterns among Gen-z can offer valuable insights that benefit various
stakeholders, including financial institutions, policymakers, educators, and the generation itself. It can
drive more tailored services, informed decision- making, and economic growth while addressing the
specific financial challenges and aspirations of Gen-z.

 Investors: Help investors to make informed investment decisions, diversify their portfolio, benefit
from professional management, and enjoy the convenience of investing in different investment
plans.

 Investment Companies: Research can be valuable tool for investment companies to increase
investor participation, enhance their reputation, improve customer service, and comply with
regulatory requirements.

19
Limitation of the study:

 This study will only cover Gen-z individuals investment plans or patterns.
 This study is only limited to the area of Wadala and not to the other areas.
 Convenience sampling is used for data.
 Few respondents are not willing to express their opinion and views on investment.

20
Research Methodology:

 Sampling area

The area of the research is Wadala.

 Sample unit

The respondent who were asked to fill out the questionnaire are the sampling units. It comprises of Gen-z
age group.

 Sample size

The sample size was around 80, which comprised of Gen-z individual investors in diversified area.

 Methods of data collection

The study uses both primary and secondary data.

1. Primary data:

Information is collected by distributing structured questionnaire to 82 Gen-Z individual’s

investors in diversified area. A questionnaire, containing 19 questions was framed with utmost
care to fulfil the objectives of the study. These Gen-z investors are of different age group, different
objective, and different qualifications. (A copy of the questionnaire is given in the last
ANNEXTURE)

2. Secondary data:

This data is collected by using the following means:

21
 a) Investment Magazines, Business Magazines, Financial Chronicles.
b) Expert’s opinion published in various print media.
c) Data available on internet through various websites.

 Tools of analysis:

Various tools are used for the analysis and interpretation of data. Data gathering tool-
Questionnaire. Data representation - chart

22
Review of literature:

 Abhinandan, Aiman Alasbahi, Ebrahim, (2019) concluded that the investment behavior of one
class of people is different from another class of people, it may be in the form of risk perception
level, awareness of various investment. Bank deposits are one of the most popular investment
options for consumers of all income levels.

 V. Dineshkumar (2018) investigated the investment patterns of individual investors, their

investment techniques, and their expectations from their investments. Disha. A. Popat (2018)
Investigated the financial knowledge and perceptions of rural and urban investors in relation to
risk and return when making financial decisions in various investment channels. The study was
based on primary data gathered from 100 rural and 100 urban investors in Gandhinagar via a
questionnaire. The data show that rural investors prefer low-risk, moderate-return opportunities,
whereas urban investors prefer high – risk, high-return opportunities.

 Parimalakanthi & Kumar (2015) observed that education of investors was an important aspect for
investors in the city of Coimbatore as they wanted to gather as much information from sources
like their friends, peers and investment experts as they could before arriving at an investment
decision. Most of the investors invested in savings accounts followed by tangible instruments
like Gold & Silver. They suggested that for many investors investments were last resort rather
than having a plan before hand and investing according to it which was the reason for
investments not doing very well.

 Sonali Patil (2014) studied preferred investment avenues among salaried people with reference
to Pune City, India. A sample size of 40 investors has been taken from the Pune City, India.
The result of finding showed 60% investors were aware about the investment avenues
whereas 40% were unaware.

23
 Dr. Aparna Samudra, Dr.M.A.Burghate (2012) identified the research results bring out the fact
that the saving of the selected households of the middle class are good but they don't want to save
for long term or build a financial.

 Abhijeet Birari & Umesh Patil (2014) studied the spending and savings habit of youth in the city
of Aurangabad. The study finds that significant difference exists in the spending habits of students
belonging to different education levels. The study finds that most of the youth in the sample spend
a large portion of the money on consumable goods and that due to lack of awareness, the amount
of money saved or invested is very little.

 Gina Chowa, Mat Despard & Isaac Osei-Akoto (2012) in their paper ‘Youth saving patterns and
performance in Ghana’ attempted to find whether the youth will participate in savings via formal
financial services if given the opportunity. The study found that most youth in the sample, set
aside money regularly, hold onto their set aside money for short periods of time and use it
mostly for short-term consumptive purposes. The study concluded that, youth of a
developing country have a high propensity to save but, lack of proper knowledge and
information restricted the youth from venturing out into the area formal savings and
investments.

 Patel & Patel (2012) studied the investment perspective of salaried people. The paper aimed at
studying the behavioural pattern & difference in perception of an individual related to various
investment alternatives. The study finds that the youth that was surveyed preferred investments
over savings. The study also discovers that, rather than safe and secure investments, the youth
prefer investments that are high risk but also yield high returns.

 Murithi Suriya, Narayanan and Arivazhagan (2012), in their study reveal that female investors
dominate the investment market in India. According to their survey, majority of the investors are
found to be considering two or more sources of information to make investment decisions. Most
of the investors discuss with their family and friends before making an investment decision.

24
 Shanmugasundaram and Balakrishnan (2011) conducted research to analyze the factors
influencing the behaviour of investors in capital market. They concluded that demographic factors
influence the investors' investment decisions.

 Jaakko and Tikkanen (2011) in their study on “Individuals’ Affect-Based Motivations to Invest in
Stocks: Beyond Expected Financial Returns and Risks” found that most investors had affected
based extra motivation to invest in stock, over and above financial return expectations. The more
positive an individual's attitude towards the company was, the stronger was his extra investment
motivation.

 Suman Chakraborty and Sabat Kumar Digal (2011) found from their work that, saving is
significantly influenced by demographic factors such as age, occupation and income level of
investors. It was found that female investors tend to save more in a disciplined way than the male
investors. Paper attempts to explore whether dichotomy of the popular believes that men are more
pro-risk than women. It was observed that women are risk averse indeed but save more than the
male counterparts as the income level rises.

 Deshpande & Zimmerman (2010) explored the potential of Youth Savings Accounts (YSAs) as a
vital intervention in youth development and financial inclusion The paper finds that the best way
to encourage youth savings and asset accumulation is by offering major financial incentives to
jump start the savings process. The paper found evidence that youth savings may have the
potential to be a high leverage Intervention, with positive effects on youth development and
financial inclusion.

 Kabra, Mishra and Dash (2010) studied the factors which affect individual investment decision
and differences in the perception of investors in the decision of investing on the basis of age and
gender and found that investors' age and gender predominantly decides the risk-taking capacity of
investors. Zoghlami, F. and Matoussi, H (2009) in their study on Tunisian investors in “A Survey

25
 of the Tunisian Investors Behaviors” revealed psychological particularities that are not expected
by financial behavioral literature.

 Manish Mittal and R. K. Vyas (2007) study on “Demographics and Investment Choice among
Indian Investor” shows that based on gender, men prefer Equities as their first choice and
women prefer post office deposits as their first choice. The investor of age group 18-25 first
choice is Equities

and above 45 years first choice is Derivatives. Less income group prefers post office deposit and
high-income group prefers Derivatives as their first choice. Postgraduates prefer Mutual Fund and
Professionals prefer Equity. Service as occupation people prefers Equity whereas housewife
prefers Real estates and Bullions.

 Verma (2008) studied the effect of demographics and personality on investment choice among
Indian investors and found that mutual funds were popular amongst professionals, students and
the self-employed. Retirees displayed their risk aversion by not investing in mutual funds and
equity shares. It was also found that higher the education, higher was the level of understanding of
investment complexities. Graduates and above in qualification preferred to invest in equity shares
as well as mutual funds.

 Gupta and Jain (2008) on the basis of an all-India survey of 1463 households found the
preferences of investors among the major categories of financial assets, such as investment in
shares, indirect investment through various types of mutual fund schemes, other investment types
such as exchange-traded gold fund, bank fixed deposits and government savings schemes. The
study provides interesting information about how the investors’ attitude towards various
investment types are related to their income and age, their portfolio diversification practices, and
the over-all quality of market regulation as viewed by the investors themselves.

26
27
 Chapter – 02
Background Information

28
Historical Information

Investment is “saving”, to be used by another party for productive activity. It can be in the form of an
advance or loan or contributing to the ownership capital or debt capital of a corporate or non-corporate
business unit. Generalized, investment means conversion of cash or money into a monetary asset or a
claim on future money for a return. This return is for saving, particularly financial saving, parting with
liquidity and lastly for taking a risk involving the uncertainty about the actual return, time of waiting and
cost of getting back funds, safety of funds, and risk of the variability of the return. In the current study,
investment refers to financial savings in the form of Shares, Securities, Bonds, Mutual Funds and other
capital market instruments. The cornerstone of any investment strategy is to maximize the return while
maintaining a tolerable risk. The process of allocating assets among several investment categories is a
way of achieving the goal. Younger people can assume greater risk than one who is retired; a highly paid
executive will be less dependent on current portfolio income than will a disabled person on workmen’s
compensation and so forth. The goal of an individual may be current income, capital appreciation or an
acceptable balance. If the investor decides on capital appreciation, the investors should have the
personality to ride out major decline in the market.

Savings and investments are important not only for families but also for the development of the country.
Savings and investments have been an important priority for India as a nation, ever since we got our
independence from colonial era on the 15th August 1947.

The Government of India constituted the National Savings Organization (now the National Savings
Institute) in 1948. This started the history of investment in India. The Post Office Savings Bank is listed
in the Constitution of India. The Government Savings Certificate Act passed in Parliament in 1959 and
the Public Provident Fund Act of 1968 setup the framework of the Government Small Savings Schemes.
The very idea of small savings is that savings and investments should be inclusive, right down to the
village level. Successive Governments continued to build upon the idea of financial inclusion leading up
to the Prime Minister Jan Dhan Yojana announced on our Independence Day in 2014, which has been a
huge success. The success of Jan Dhan Yojana will go a long way in history of investment in India.

29
Financial Markets and mutual funds in history of investments in India

Along with savings, building a strong financial market with broad participation is essential for a
developed economy. Pre-independence, equity markets in India did not have wide public participation.
With the objective of encouraging public participation in the industrial growth of India, the Government
passed the Unit Trust of India (UTI) Act in 1963. This led to the formation of the first mutual fund in
India, a major milestone in the history of mutual funds in India.

A mutual fund is a financial instrument which pools the money of different people and invests them in
different financial securities like stocks, bonds etc. The Government’s stated objective in setting up UTI
was “encouraging saving and investment and participation in the income, profits and gains accruing to the
Corporation from the acquisition, holding, management and disposal of securities”.

As per Unit Trust of India Act of 1963, Unit Trust of India functioned under the regulatory and
administrative control of the Reserve Bank of India (RBI). In 1964, UTI launched Unit Scheme 1964 (US
’64) – this was the first mutual fund scheme to be launched in India. This scheme became very popular
and subsequently, Unit Trust of India launched several other mutual fund schemes. In 1978, the
Government de-linked RBI from the regulatory and administrative control of UTI and the Industrial
Government Bank of India (IDBI), a Public Sector Undertaking (PSU) took over the regulatory and
administrative control of UTI.

In 1987, the Government allowed public sector banks and public financial institutions (e.g. Life Insurance
Corporation of India) to launch their mutual funds. State Bank of India (SBI) mutual fund was the first
non-UTI mutual fund to be established in India. Subsequently, other PSU banks like Canara Bank, Punjab
National Bank, Indian Bank, Bank of Baroda etc also entered the mutual fund industry. LIC entered the
mutual fund industry in 1989.

Economic reforms instituted in 1991 provided further impetus to the financial market in India. Securities
and Exchange Board of India (SEBI) was setup in 1992 to act as the regulator of capital markets in India.
SEBI also became the regulator of mutual funds in India. As part of economic liberalization, the
Government also allowed the participation of private sector asset management companies (AMCs) in
mutual funds. This was the pivotal change in the mutual fund industry. The first private sector mutual
fund was launched in 1993 and subsequently many other AMCs entered the mutual fund industry; there
are currently 43 AMCs in the mutual fund industry.

Subsequent reforms enacted by the Government and SEBI, including setting up of National Stock
Exchange (NSE), introduction of derivative trading, the repealing UTI Act of 1963, abolition of entry
load, introduction of direct mutual fund plans, allowing Employee Provident Fund (EPF) to invest in

30
stocks and numerous other regulations led to further growth of financial markets and mutual funds in
India.

 Mutual fund

A mutual fund is an investment vehicle that pools money from investors and invests the amount in
securities, such as stocks, shares, government bonds, and other money-market instruments. The primary
objective of a mutual fund scheme is to offer optimal returns to the investors. A fund manager manages a
mutual fund scheme and defines the scheme’s objective. However, the fund manager’s role would vary
based on the investment strategy – active and passive investing – more on this later. The Securities and
Exchange Board of India (SEBI), along with the Association of Mutual Funds in India (AMFI), oversees
the working of these fund houses.

How do Mutual fund Work?

A mutual fund scheme has a pre-defined investment objective. For instance, a large-cap mutual fund will
only invest in stocks and equities of top 100 companies listed on the NSE (National Stock Exchange)
having a market capitalisation of more than Rs.20,000 crore. The fund manager then allocates/invests
funds in equities or company stocks based on the scheme’s objective. Since mutual funds are market-
linked instruments, their performance is directly related to the market’s performance.

Point to Note: The primary objective of an actively managed fund is to beat the benchmark index, while
the intention of a passively-managed fund is to track or mirror the underlying index. NSE (Nifty) index is
the most popular index in India followed by BSE index.
When you invest in a mutual fund, the Asset Management Company (AMC) will allot you a certain
number of units as per the investment amount. The price of each unit is based on the fund’s Net Asset
Value (NAV), which is the combined value of all assets held by the fund minus its liabilities. Therefore,
an increase in a fund’s NAV represents how much profit you can make as an investor. Sounds complex?
Let’s understand this with an example.
Consider that you have invested ₹1,000 in a mutual fund scheme with an NAV of ₹10. Based on this, the
AMC will provide you with 100 units of the scheme by simply dividing your investment with the NAV of
your scheme.

Say that the NAV of this scheme increases to ₹12 in the following year. Now, your investment will be
worth ₹1,200 (₹12 x 100). This means that within a year, you have earned a 20% return on your
investment.
31
Features of Mutual funds

a) Convenience

With the popularisation of online investment in mutual funds, you do not need to visit a fund
house physically. You can invest in any fund of your choice using your phone or computer. All
you need to do is visit the portal or app of the AMC and log in here to make a purchase.

b) Flexibility of investment
This is one of the attractive features that mutual funds have to offer. You can opt for any mode
between SIP or lumpsum to invest your money in mutual funds.

c) Liquidity

You can also withdraw or redeem your funds to meet any emergency. Depending on your scheme,
you will receive the amount within 3-4 business days. Liquid funds transfer this amount to your
account in the following business day. Hence, mutual funds carry decent liquidity as investors can
redeem them anytime.

d) Income Tax Benefits

With a long-term investment in mutual funds, you can pay less taxes due to their high tax
efficiency. You can also get income tax deductions by investing in ELSS funds while earning high
returns.

e) Minimal Charges

Mutual funds are also affordable for every earning individual. You need to pay a small amount,
known as the expense ratio, to your fund houses to invest in mutual funds. The expense ratio and
other additional charges might vary between fund houses. However, the costs are less than
other managed funds.

32
 f) Regulated by SEBI

Every fund house must register itself under SEBI before launching a mutual fund scheme. SEBI
overlooks the transparency and accountability of fund houses and protects investors. By doing so,
SEBI prevents any arbitrary use of investors’ money. This makes mutual funds safe from fraud
and malpractices.

g) Operated by professionals

Every fund house employs professionals known as fund managers to operate mutual funds. They
study the market pattern and invest your money in equities or debts according to the scheme’s
objectives.

h) Good for Portfolio Diversification

Mutual fund schemes allow you to avoid placing all your eggs in one basket. They uniformly
invest in high and low-risk mutual investments on your behalf to balance your profit and losses.
This lets you access a diversified portfolio, which can deliver profits even during periods of
economic downturns.

Benefits of investing in Mutual fund

The primary goal of any investor should be to outperform inflation. With other savings instruments
providing low returns, investing in mutual funds has become necessary to keep up with the market. One
can also choose to invest in mutual funds because of the following benefits.

1. Variety

Mutual funds are of numerous types, which have been discussed above. Investors can select a mutual
fund scheme that is in line with their financial objectives. On account of the different available options,
investors can build a diversified investment portfolio in a cost-effective manner.

2. Various modes of Investments

33
You can invest in mutual funds through a one-time or lump sum investment. Or, you can opt for other
options, such as a Systematic Investment Plan (SIP), Systematic Withdrawal plan (SWP), and Systematic
Transfer Plan (STP).

3. Disciplined investing

A mutual fund encourages one to invest over a considerable period of time, which is vital for significant
wealth creation. Moreover, you can opt for a Systematic Investment Plan (SIP) and invest a specific
amount at regular intervals, thereby investing in a disciplined manner.

4. Accessibility

Many fund houses allow individuals to invest as little as Rs.1000 as a lump sum investment in mutual
funds. Besides, one can opt for an SIP and start investing with a nominal sum of Rs.10.

To invest in mutual funds directly, follow these steps:

1. Visit an AMC’s website and open a new account.

2. Select a fund and enter the investment amount.

3. Choose whether you want to invest via lump sum or SIP.

4. Enter payment details and select a payment mode.

5. Complete the KYC verification by entering the required details.

 Fixed Deposit

In a Fixed Deposit, you put lump sum money in your bank account for a fixed time period at a fixed rate
of interest. At the end of the time frame of the fixed deposit, you receive the amount you have invested
along with the compound interest.

34
How Does Fixed Deposit Work?

A fixed deposit is a guaranteed return investment option offered by banks, Non-Banking Financial
Companies and India Post Office. It allows you to make a one-time lump-sum investment for a pre-

determined period of time and earn interest at a higher rate than a bank or post office savings account.

The time period for an FD can range from 7 days to 10 years. Once you make the deposit with your bank,
it starts earning an interest depending on the duration of the deposit.The main rule of a Fixed Deposit is
that the money can be withdrawn before maturity.However, on opting for premature withdrawal of FD,
you will be charged a penalty.

Fixed deposit offers you flexibility in choosing its time period. In other words, it can be opened for as
long as you have idle funds.

Some banks offer a premature withdrawal facility, but this leads toa lower rate of interest.

On the date of maturity, the bank credits the principal amount and interest to the account holder's bank
account.

You must know the type of investment and understand its offerings before investing your money. Hence,
it is important to understand what is a fixed deposit and also calculate the amount to be invested and the
interest you will earn using an FD calculator to help you make a wise decision.

Types of Fixed Deposit

Before you set aside an amount for your Fixed deposit, you must know about the different types of fixed
deposits which are available in the market. Read to know more:

I. Standard fixed deposit

A standard fixed deposit requires a person to invest their money for a fixed period of time at a
predetermined interest rate. The time period of a standard fixed deposit varies between 7 days to 10 years.
This is the most popular FD option chosen by stakeholders.

II. Special Fixed Deposit

Special Fixed Deposits are ''special'’ because they are usually offered for a special time period. A special
time period can be between 290 days and 390 days. Special FDs offer a higher interest rate and are a
popular choice among various stakeholders.

III. Tax saving Fixed Deposit

35
Unlike the Standard Fixed deposits, Tax saving fixed deposits cannot be booked for less than a period of
5 years. The amount invested is exempt from tax under section 80C of Income Tax 1961, but the interest
generated from the FD is liable to be taxed.

IV. Floating Fixed Deposit

In a floating fixed deposit, the rate changes quarterly or yearly and people can avail the benefits of a
changing interest rate.

The change in the rate of interest is determined by the Reserve Bank of India guidelines. For a long time,
Fixed deposits have been an attractive mode of investment for Indians over the years because of the
security of the principal amount and how the money grows beside an assured rate of interest. It also gives
people a regular source of income through interest, which they can either claim or reinvest. With banks
offering better interest rates to their investors, fixed deposits' popularity will increase with time.

Features of Fixed Deposit

In the above section, we have discussed the different types of fixed deposit meanings. Now you should
also be aware of the key features of a fixed deposit to effectively understand what is a fixed deposit and if
it is suitable for you:

 The amount can be deposited only once. If you wish to make additional deposits, you should start
a new Fixed deposit.

 The rate of interest is higher than the savings account.

 The duration ranges anywhere between 7 days and 10 y.

 Fixed deposits can be renewed without any hassle.

 Withdrawals cannot be made before the maturity period. In case of an emergency withdrawal, a
penalty must be paid by the account holder.

36
Benefits of Fixed Deposit

Now that you know the fixed deposit meaning and its features, read along to know the several benefits it
offers:

1. Assured Returns

One of the main advantages of investing in a fixed deposit account is that it assures returns. This means
zero risks in comparison to other forms of investments like mutual funds. On maturity of the FD, you will
receive a fixed interest rate on the money you invested.

2. Easy to open

You can open a Fixed Deposit account in a matter of a few minutes. You can either apply for it online or
walk into your nearest bank branch and ask an executive to open it.

3. Higher rate of interest

Fixed deposits enable people to earn a higher rate of interest in comparison to their savings account or
any other form ofterm deposit.

4. Flexible Tenure

You can choose to open a fixed deposit account for a period of 7 days to 10 years.

5. Multiple FD accounts

You can hold more than one FD account at a given point in time. Whenever you wish to make an
additional investment, you can always open a new FD account.

6. Additional Tax Benefit4

You can claim for a tax exemption under Section 80C of the Income Tax Act of India 1961 for a sum of
up to INR 1,50,000.

How is interest of FD Calculated?

What is a Fixed Deposit? – It is a reliable investment to preserve and grow your savings. The rate of
interest on your fixed deposit depends on the tenure and the frequency of payouts.

37
The interest of FD can be calculated using the following formula: -

A = P(1 + r/n)^n*t

Where,

A: Maturity amount

P: Principal amount

r: rate of interest

n: compound interest frequency

t: Number of years

The interest payout of fixed deposit's maturity depends on the rate prorated by the bank and the frequency
of payouts. The interest of principal amount is calculated either as simple interest or compound interest.
The amount payable at the end of maturity Is higher in the case of compound interest as interest is
calculated on the principal after every compounded.

 Stock Market

The financial market in India is growing rapidly and is expected to emerge as one of the leaders in the
international arena very soon. This boom in financial markets is stimulating the growth of the Indian
share market encouraging the investors to invest in the share market.

The history of the share market of India dates to 1875. The name of the first share trading association in
India was “Native Share and Stock Broker's Association” which later came to be known as Bombay Stock
Exchange (BSE). This association began with 318 members. Today India can boast of 24 share markets in
the various parts of the country, and a number of financial intermediaries that include banks, Non-
Banking Financial Corporations, Insurance companies, Mutual Funds, etc.

About Share Market of India

38
The Indian share market (capital market) is divided into two segments:

 Primary market
 Secondary market

The Primary market is that market where new securities (like shares, debentures, government bonds, CDs,
CPs, etc.) are issued to the public.

Investors can subscribe to IPO of companies to buy new shares directly from the issuer of shares i.e. the
company. The company receives the proceeds from the sale of these shares and uses it to fund its
operations and expand its business. The Primary Market is also known as the New Issues Market.

The Secondary market consists of trading in the shares of listed companies. Once the initial sale of shares
is undertaken, buying and selling shares of companies can be undertaken between the traders and
investors who want to purchase the shares and those share-holders who want to sell their shares. These
operations are undertaken in the Secondary Market. A newly issued IPO will be considered a primary
market trade when the shares are first purchased by investors directly from the underwriting investment
bank; after that any shares traded will be on the secondary market, between investors themselves.

In the primary market, share prices are set by the merchant bankers using valuation methodologies, while
the share prices in the secondary market are determined by the market forces of supply and demand. The
share market of India is regulated by the Securities and Exchanges Board of India (SEBI). The primary
objective of SEBI is to promote healthy and orderly growth of the share market and secure investor
protection. The SEBI also regulates the share transactions done by foreign investors and traders and keeps
check against malpractices in the share market.

The scope of the share market in India has widened tremendously over the past few years, thanks to the
launch of a variety of products and services. Share markets are, by nature, extremely volatile and hence
the risk factor is an important concern for the intermediaries. To reduce this risk, the concept of
derivatives comes into the picture. Derivatives are products whose values are derived from one or more
underlying assets. These assets can be forex, equity, etc. The derivatives market in India is also expanding
immensely with an increased number of market participants using derivatives.

39
Why Does India Need a Derivatives Markets?

The Derivatives Market Performs A Number of Economic Functions:

 They help in channelizing risks from risk-averse people to risk oriented people.

 They help in the discovery of future as well as current prices.

 They boost entrepreneurial activity.
 They increase the volume traded in markets because of participation of risk averse people in
greater numbers.
 They increase savings and investment in the long run.

 Cryptocurrency

A cryptocurrency is a coded string of data representing a currency unit. Peer-to-peer networks called
blockchains monitor and organize cryptocurrency transactions, such as buying, selling, and transferring,
and also serve as secure ledgers of transactions. By utilizing encryption technology, cryptocurrencies can
serve as both a currency and an accounting system.

A cryptocurrency is a digital or virtual currency that is meant to be a medium of exchange. It is quite

similar to real-world currency, except it does not have any physical embodiment, and it uses cryptography
to work.

Because cryptocurrencies operate independently and in a decentralized manner, without a bank or a

central authority, new units can be added only after certain conditions are met. For example, with Bitcoin,
only after a block has been added to the blockchain will the miner be rewarded with bitcoins, and this is
the only way new bitcoins can be generated. The limit for bitcoins is 21 million; after this, no more
bitcoins will be produced.

40
In the evolving landscape of finance and technology, the role of cybersecurity in the realm of
cryptocurrency is paramount. A Cyber security Boot Camp provides an ideal platform for individuals to
delve into the intricacies of securing digital assets and transactions within the cryptocurrency domain. By
gaining expertise in cryptographic principles, blockchain security, and risk management, participants are
better equipped to address the unique challenges posed by digital currencies.

How does cryptocurrency work?

Cryptocurrency is a digital or virtual currency that uses cryptography for security. A cryptocurrency is
difficult to counterfeit because of this security feature. Cryptocurrencies are decentralized and not subject
to government or financial institution control.

 And the decentralized control of each cryptocurrency works through distributed ledger
technology, typically a blockchain, that serves as a public financial transaction database.

 The most famous cryptocurrency is Bitcoin, which was created in 2009.

 Cryptocurrencies are designed through mining, which uses computing power to solve complex
math problems that verify transactions on the blockchain, the public ledger of all
cryptocurrency transactions. And miners are rewarded with cryptocurrency for their efforts.

Cryptocurrency trading is speculative and complex, and it involves significant risks. Prices can fluctuate
on any given day. Given the price volatility, cryptocurrency is only suitable for some investors.

Therefore, cryptocurrency should be considered a high-risk investment. Before investing, understand the
risks involved and consult a financial advisor.

Benefits of Cryptocurrency

With cryptocurrency, the transaction cost is low to nothing at all—unlike, for example, the fee
for transferring money from a digital wallet to a bank account. You can make transactions at any time of
the day or night, and there are no limits on purchases and withdrawals. And anyone is free to use
cryptocurrency, unlike setting up a bank account, which requires documentation and other paperwork.
41
International cryptocurrency transactions are faster than wire transfers too. Wire transfers take about half
a day for the money to be moved from one place to another. With cryptocurrencies, transactions take only
a matter of minutes or even seconds.

How to buy cryptocurrency?

Cryptocurrencies are digital or virtual tokens that use cryptography to secure their transactions and
control the creation of new units. And cryptocurrencies are often bought with "fiat" or traditional
currency like US dollars or euros. However, they can also be bought with cryptocurrencies like Bitcoin
or Ethereum. First, you must set up a digital wallet to store your coins to buy cryptocurrency. You can
then buy coins on a cryptocurrency exchange using your fiat currency or another cryptocurrency.

There are a few different ways to buy cryptocurrency.

 You can use an online cryptocurrency exchange such as Coinbase, Bitstamp, or Kraken to
purchase cryptocurrency with a credit/debit card, bank transfer, or other payment methods.

 You can use a peer-to-peer exchange such as Local Bitcoins or Bisq to purchase
cryptocurrency directly from other users.

 You can trade cryptocurrency for other types of assets, such as stocks, through cryptocurrency
trading platforms.

42
 Chapter – 03
Data Analysis and Interpretation

43
 Data Analysis and Interpretation

1. Gender

Interpretation:

 The Above pie chart shows that out of 82 respondents 57.3% respondents are female and
42.7% respondents are male.

44
 2. Age Group

Interpretation:

 The above graph shows that 65.9% of responses are from age group of 19-22.

 And 23.2%, 9.8% and 1.1% responses are from age group 23-26, 15-18 and 11-14.

45
 3. Occupation

Interpretation:

 The above graphs shows that 52.4% respondents are Employed, and 42.7% respondents are
students, and 4.9% respondents are unemployed.

46
 4. Annual Income

Interpretation:

 The above graph shows that 61% respondents Annual income is below 1,00,000.

 31.7% respondents Annual income between 1,00,001 – 2,50,000.

 4.9% respondents Annual income between 2,50,001 – 450000.

 2.4% respondents Annual income between above 4,50,000.

47
 5. Annual Saving

Interpretation:

 The above graph shows that 76.8% respondents Annual saving is below 40000.

 12.2% respondents Annual saving between 40000 – 70000.

 6.1% respondents Annual saving between 70000 – 110000.

 4.9% respondents annual saving between Above 110000.

48
 6. How would you rate your level of financial literacy on a scale from 1 to 5 ?

Interpretation:

 The above graph shows that 47.6% respondents financial literacy rate is 3.

 17.1% respondents financial literacy rate is 4.

 13.4% respondents financial literacy rate 2.

 12.2% respondents financial literacy rate is 1.

 9.8% respondents financial literacy rate is 5.

49
 7. Are you aware of different investment plan?

Interpretation:

 The above graph shows 85.4% respondents are aware of different investment plan.

 And 14.6% respondents are not aware of different investment plan.

50
 8. How did you learn about investment plan?

Interpretation:

 The above graph shows 57.3% respondents learn about investment plan from their family &
Friends.

 26.8% respondents learn about investment plan from financial advisors.

 42.7% respondents learn about investment plan from online resources.

 31.7% respondents learn about investment plan from School/ University.

51
 9. What percentage of your income do you allocate for investing?

Interpretation:

 The above diagram shows 43.9% respondents are allocate their income for investing between 5% -
10%.

 25.6% respondents are allocate their income for investing between 11% - 20%.

 17.1% respondents are allocate their income for investing between 21% - 30%.

 11% respondents are allocate their income for investing between 31% - 40%.

 2.4% respondents are allocate their income for investing more than 40%.

52
 10.Do you currently have any investment?

Interpretation:

 The above diagram shows that 63.4% respondents have investment.

 And 36.6% respondent does not have any investment.



53
 11.If yes, please specify the type of investment you have?

Interpretation:

 The above diagram shows 36.1% respondents have investment in stocks.

 13.9% respondents have investment in cryptocurrency.

 43.1% respondents have investment in mutual funds.

 31.9% respondents have investment in FD & RD.

 26.4% respondents have other investment.

54
 12.How long would you like to invest in the financial market?

Interpretation:

 The above diagram shows 36.5% respondents like to invest in the financial market less than 1
years.

 36.5% respondents like to invest in the financial market between 1 years – 3 years.

 18.9% respondents like to invest in the financial market between 3 years – 5 years.

 8.1% respondents like to invest in the financial market more than 5 years.

55
 13.How would you describe you risk tolerance when it comes to investments?

Interpretation:

 The above diagram shows that 11.8% respondents are very risk- averse risk tolerance when it
comes to investment.

 22.4% respondents are somewhat risk – averse risk tolerance when it comes to investment.

 52.6% respondents are balanced risk tolerance when it comes to investment.

 13.2% respondents are somewhat risk – tolerant risk tolerance when it comes to investment.

56
 14.What are you primary investment goals?

Interpretation:

 The above diagram shows 30.5% respondents primary investment goals is saving for major
purchase (e.g. House, Car).
 34.1% respondents primary investment goals is Building wealth.
 14.6% respondents primary investment goals is Saving for retirement.
 12.2% respondents primary investment goals is other .

57
 15. How comfortable are you with taking investment risk?

Interpretation:

 The above graph shows 37.8% respondents are Neutral comfortable with taking investment risk.

 20.7% respondents are not at all comfortable with taking investment risk.

 7.3% respondents are very comfortable with taking investment risk.

58
 16.What factors influence your investment decision?

Interpretation:

 The above diagram shows that 40.2% of respondent’s investment decisions influence potential
return on investment.

 32.9% respondent’s investment decisions influence risk involved.

 14.6% respondent’s investment decisions influence social or environmental.

 12.2% respondent’s investment decisions influence recommendations.



59
 17.According to you which is better investment?

Interpretation:

 According to 36.6% respondents mutual fund is better investment.

60
 18.Do you use any App for Investment?

Interpretation:

 The Above diagram shows that 62.2% respondents are using apps for investment.

 37.8% respondents are not using any apps for investment.

61
 19.If yes, Please specify the which app are you using?

Interpretation:

The Above diagram shows 35.4% respondents are using Upstox app.
29.1% respondents are using Angel One.
15.2% respondents are using Motilal oswal.
20.3 % respondents are using other apps.

62
Findings

 Out of 82 respondents 57.3% respondents are female and 42.7% respondents are male.

 65.9% of responses are from age group of 19-22, And 23.2%, 9.8% and 1.1% responses are from
age group 23-26, 15-18 and 11-14.

 52.4% respondents are Employed, and 42.7% respondents are students, and 4.9% respondents are
unemployed.

 61% respondents Annual income is below 1,00,000, and 31.7% respondents Annual income
between 1,00,001 – 2,50,000, and 4.9% respondents Annual income between 2,50,001 – 450000,
and 2.4% respondents Annual income between above 4,50,000.

 76.8% respondents Annual saving is below 40000, and 12.2% respondents Annual saving between
40000 – 70000, and 6.1% respondents Annual saving between 70000 – 110000, and 4.9%
respondents annual saving between Above 110000.

 47.6% respondents financial literacy rate is 3, and 17.1% respondents financial literacy rate is 4,
and 13.4% respondents financial literacy rate 2, and 12.2% respondents financial literacy rate is 1,
and 9.8% respondents financial literacy rate is 5.

 85.4% respondents are aware of different investment plan, And 14.6% respondents are not aware
of different investment plan.

 57.3% respondents learn about investment plan from their family & Friends, and 26.8%
respondents learn about investment plan from financial advisors, and 42.7% respondents learn
about investment plan from online resources, and 31.7% respondents learn about investment plan
from School/ University.

 43.9% respondents are allocating their income for investing between 5% - 10%, and 25.6%
respondents are allocating their income for investing between 11% - 20%, and 17.1% respondents
are allocate their income for investing between 21% - 30%, and 11% respondents are allocate their
income for investing between 31% - 40%, and 2.4% respondents are allocate their income for
investing more than 40%.
 63.4% respondents have investment, and 36.6% respondent does not have any investment.

 36.1% respondents have investment in stocks, 13.9% respondents have investment in

cryptocurrency, 43.1% respondents have investment in mutual funds, and 31.9% respondents have
investment in FD & RD, and 26.4% respondents have other investment.

63
 36.5% respondents like to invest in the financial market less than 1 years, and 36.5% respondents
like to invest in the financial market between 1 years – 3 years, and 18.9% respondents like to
invest in the financial market between 3 years – 5 years, and 8.1% respondents like to invest in the
financial market more than 5 years.

 11.8% respondents are very risk- averse risk tolerance when it comes to investment, 22.4%
respondents are somewhat risk – averse risk tolerance when it comes to investment, 52.6%
respondents are balanced risk tolerance when it comes to investment, and 13.2% respondents are
somewhat risk – tolerant risk tolerance when it comes to investment.

 30.5% respondents primary investment goals is saving for major purchase (e.g. House, Car),
34.1% respondents primary investment goals is Building wealth, 14.6% respondents primary
investment goals is Saving for retirement, and 12.2% respondents primary investment goals is
other.

 37.8% respondents are Neutral comfortable with taking investment risk, and 20.7% respondents
are not at all comfortable with taking investment risk, and 7.3% respondents are very comfortable
with taking investment risk.

 40.2% of respondent’s investment decisions influence potential return on investment, 32.9%

respondent’s investment decisions influence risk involved, 14.6% respondent’s investment
decisions influence social or environmental, and 12.2% respondent’s investment decisions
influence recommendations.

 62.2% respondents are using apps for investment, and 37.8% respondents are not using any apps
for investment.

64
 Chapter – 04
Conclusion and Suggestion

65
CONCLUSION

The present study endeavoured to give a look on behaviour of investors towards investment avenues, the
saving pattern of investors and factors that have an impact on their investment decision making. The
study has important implications for the investment advisors, investment managers, the government and
various financial institutions, as the present research contains interesting facts of individual investors. The
investment avenues such as bank deposits, insurance and gold and silver are the most preferred avenues.
The investors still prefer to invest in financial instruments that provide risk free returns. This helps to
infer that the middle-income investors are conservative investors who prefer to play safe in their
investment activities. The investor’s main motive has been to earn reasonable returns and they prefer to
invest in medium term period. Most of the investors are not completely aware of the investment avenues
such as shares, mutual funds etc., and investments must be encouraged among the younger / Millennials
generation to enable them to save more for the future. investment avenue designers can design financial
products in such a way, as to cater to the investor’s needs and preference of the investors for safety of
principle, diversification, low risk, high steady returns, maturity period or any other factor in their
preferred investment avenues. As far as the socioeconomic variables are concerned, age, income levels
and gender do not have an impact on the investor’s choice of investment. The investors should cultivate
the habit of investing to reduce the impact of the economy on them. The findings of this study have
significant managerial implications that can be used by investment companies in restructuring their
existing practices and innovating new ways of service delivery.

66
SUGGESTION:

1. For further researchers, with this research it is hoped that further research will be able to carry
out research related to financial behaviour because there are still many other factors that can
influence financial behaviour, especially investment decisions. Because this topic really needs to
be discussed to improve good financial behaviour for future generations, especially the millennial
generation.

2. For Generation Z and Millennial Investors, it is important to increase confidence and

confidence in making investment decisions so that all decisions do not depend on the
decisions of others.

67
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 https://www.miraeassetmf.co.in/knowledge-center/history-of-investments-in-india#:~:text=Savings
%20and%20financial%20inclusion&text=The%20Government%20of%20India%20constituted,in
%20the%20Constitution%20of%20India

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ANNEXURE

1. Gender
 Male
 Female
 Other

2. Age Group

 11 – 14
 15 – 18
 19 – 22
 23 – 26

3. Occupation

 Student
 Employed
 Unemployed

4. Annual Income

 Below 100000
 100001 – 250000
 250001 – 450000
 Above 450000

5. Annual saving

 Below 40000
 40000 – 70000
 70000 – 110000
 Above 110000

6. How would you rate your level of financial literacy on a scale from 1 to 5 ?

 Lower 1
 2
 3
 4
 Higher 5

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7. Are you aware of different investment Plans?

 Yes
 No

8. How did you learn about investment Plans?

 Family and friends

 Financial Advisors
 Online Resources
 School/University

9. What percentage of your income do you allocate for investing?

 5% - 10%
 11% - 20%
 21% - 30%
 31% - 40%
 More than 40%

10. Do you currently have any investment?

 Yes
 No

11. If yes, please specify the type of investment you have?

 Stocks
 Cryptocurrency
 Mutual fund
 Fixed Deposit or Recurring Deposit
 Any Other

12. How long would you like to invest in the financial market?

 Less than 1 Years

 1 Years - 3 Years
 3 Years - 5 Years
 More than 5 Years

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13. How would you describe your risk tolerance when it comes to investments?

 Very Risk – Averse

 Somewhat Risk – Averse
 Balanced
 Somewhat Risk – Tolerant
 Very Risk – Tolerant

14. What are your primary investment goals?

 Saving for retirement

 Building wealth
 Saving for major purchases ( e.g. House , Car )
 Supporting your education
 Any other

15. How comfortable are you with taking investment risk?

 1 Not Comfortable at all

 2
 3
 4
 5 Very Comfortable

16. What factors influence your investment decisions?

 Potential return on investment.

 Risk involved.
 Social or environmental impact.
 Recommendation from family/ friends.

17. According to you which is better investment?

 Fixed Deposit & Recurring Deposit

 Stocks
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 Mutual fund
 Cryptocurrency

18. Do you use any App for Investment?

 Yes
 No

19. If yes, Please specify the which app are you using?

 Upstox
 Angel One
 Motilal Oswal
 5paisa
 Others

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