A

SYNOPSIS REPORT

ON

INVESTMENT DECISION

AT

UNION BANK LTD

Submitted

By

KANDRA PRIYANKA
H.T.NO: 130320672158

PROJECT SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

Department of Business Administration

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 Aurora’s PG College ,Peerzadiguda, Uppal
Department of Management

SYNOPSIS

Title of the Project : INVESTMENT DECISION

Student Name : KANDRA PRIYANKA

Hall Ticket Number : 130320672158

Signature of the Student :

Signature of the Guide :

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INTRODUCTION
There are many different definitions of what ‘investment’ and ‘investing’ actually means. One of the
simplest ways of describing it is using your money to try and make more money. This can happen in
many different ways.
All investors are different. The common factor is that you would like to invest money to aim to make
it grow or to receive a regular income from it. We would like to show you that choosing the most
suitable investment for you does not need to be difficult. All you need is the right help along the way.
The act committing money or capital to an endeavor with the expectation of obtaining an additional
income or profit is known as investment. Investing means putting your money to work for you.
Investment has different meanings in finance and economics. Finance investment is putting money
into something with the expectation of gain that upon thorough analysis, has a high degree of security
for the principal amount, as well as security of return, within an expected period of time. In contrast
putting money into something with an expectation of gain without thorough analysis, without security
of principal, and without security of return is speculation or gambling. As such, those shareholders
who fail to thoroughly analyze their stock purchases, such as owners of mutual funds, could well be
called speculators. Indeed, given the efficient market hypothesis, which implies that a thorough
analysis of stock data is irrational, all rational shareholders are, by definition, not investors, but
speculators.
Investment is related to saving or deferring consumption. Investment is involved in many areas of the
economy, such as business management and finance whether for households, firms, or governments.
To avoid speculation an investment must be either directly backed by the pledge of sufficient
collateral or insured by sufficient assets pledged by a third party. A thoroughly analyzed loan of
money backed by collateral with greater immediate value than the loan amount may be considered an
investment. A financial instrument that is insured by the pledge of assets from a third party, such as a
deposit in a financial institution insured by a government agency may be considered an investment.
Examples of these agencies include, in the United States, the Securities Investor Protection
Corporation, Federal Deposit Insurance Corporation, or National Credit Union Administration, or in
Canada, the Canada Deposit Insurance Corporation.
Promoters of and news sources that report on speculative financial transactions such as stocks, mutual
funds, oil and gas leases, commodities, and futures often inaccurately or misleadingly describe
speculative schemes as investment.

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NEED OF THE STUDY
Essentially, Investment Planning involves identifying your financial goals throughout your life, and
prioritizing them. For example, if you want to invest for funding your vacation next year, don't choose
an investment vehicle that has a three-year lock-in. Similarly, if you want to invest for your daughter's
marriage after 10 years, don't invest in 1yr bonds for the next 10 years. Instead, choose an option that
matches your investment horizon.
Investment Planning is important because it helps you to derive the maximum benefit from your
investments. Your success as an investor depends upon your ability to choose the right investment
options. This, in turn, depends on your requirements, needs and goals. The choice of the best
investment options for you will depend on your personal circumstances as well as general market
conditions. For example, a good investment for a long-term retirement plan may not be a good
investment for higher education expenses.

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OBJECTIVES OF THE STUDY

 The primary objective of the project is to make an analysis of various investment

 The aim is to compare the returns given by various investment decisions.

 To cater the different needs of investor, these options are also compared on the basis
of various parameters like safety, liquidity, risk, entry/exit barriers, etc.

 The project work includes knowing about the investment decision like equity, bond,
gold and mutual fund.

 All investment decision are discussed with their types, workings and returns.

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SCOPE OF THE STUDY
The investment decision rules allow you to formalize the process and specify what condition or
conditions need to be met to accept the project.You will take decision only after ensuring that the
required expectations in terms of returns are ensured at any cost. The study is conducted to understand
the functioning of Equities in India Equity market.The choice of location for the study is based on the
responses given by the investors of who are operating the stock market in twin cities.This study will
helpful in understanding the behavior and risk preferences of investors.

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RESEARCH FOR METHODOLOGY

Equities, Bonds, Gold, Mutual Funds and Life Insurance were identified as major types of investment
decision.

The primary data for the project regarding investment and various investment Decisions were
collected through interactions had with the employees in the organization i.e. ICICI.

The secondary date for the project regarding investment and various investment Decisions were
collected from websites, textbooks and magazines.

Primary Source: This method includes the data collected from the personal interaction with authorized
members of Union Bank LTD.

Secondary Source: The secondary data collection method includes:

 The lecturers delivered by the superintendents of respective departments.

 The brochures and material provided by Union Bank LTD.

 The data collected from the magazines of the NSE, economic times, etc.

 Various books relating to the investments, capital market and other related topics.

Then the averages of returns over a period of 5 years are considered for the purpose of
comparison of investment options. Then, critical analysis is made on certain parameters like
returns, safety, liquidity, etc. Giving weightage to the different type of needs of the investors and
then multiplying the same with the values assigned does this.

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LIMITATION

 The study was limited to only six investment options.

 Most of the information collected is secondary data.

 The data is compared and analyzed on the basis of performance of the investment options over
the past five years.

 While considering the returns from mutual funds only top performing schemes were analyzed.

 It was very difficult to obtain the date regarding the returns yielded by real estate and hence
averages were taken.