UNIVERSITY OF MUMBAI

NCRD’S

STERLING COLLEGE OF ARTS, COMMERCE AND SCIENCE

NERUL, NAVI MUMBAI

COLLEGE CODE: 0552

PROJECT REPORT ON

“A STUDY ON INVESTER’S PERCEPCEPTION TOWARDS VARIOUS

INVESTMENT AVENUES IN NAVI MUMBAI CITY”

SUBMITTED BY

“SNEHAL UTTAM PATIL”

PROJECT GUIDANCE

“PROF. PARTH JOSHI”

In Partial Fulfillment of the requirements For the Award of Degree of

Bachelor of Management Studies

B.M.S. (SEMESTER VI)
ACADEMIC YEAR: 2020-2021

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 DECLARATION

I, Snehal Uttam Patil the student of T.Y.B.M.S. Semester VI (2020- 2021) hereby
declare that I have completed the project on

“A STUDY ON INVESTOR’S PERCEPTION TOWARDS VARIOUS

INVESTMENT AVENUES IN NAVI MUMBAI CITY’’

The information submitted is true and original to the best of my knowledge.

___________________
(SNEHAL PATIL)

STERLING COLLEGE OF ARTS, COMMERCE AND SCIENCE

Nerul, Navi Mumbai

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 CERTIFICATE

This is to certify that Ms. SNEHAL UTTAM PATIL, roll no: 1158 of Third Year
B.M.S., Semester VI (2020- 2021) has successfully completed the project on A STUDY
ON INVESTOR’S PERCEPTION TOWARDAS VARIOUS INVESTMENT
AVENUES IN NAVI MUMBAI CITY under the guidance of PROF. PARTH JOSHI

COURSE COORDINATOR PRINCIPAL

(______________________) (______________________)

PROJECT GUIDE/ INTERNAL EXAMINER EXTERNAL EXAMINER

(______________________) (______________________)

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 ACKNOWLEDGEMENT

To list who all have helped me is difficult because they are so numerous and the depth
is so enormous.

I would like to acknowledge the following as being idealistic channels and fresh
dimensions in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance to do
this project.

I would like to thank my Principal, Dr. M.G. Gonda sir for providing the necessary
facilities required for completion of this project.

I take this opportunity to thank our Coordinator Prof Ranjit Thakur sir, for his moral
support and guidance.

I would also like to express my sincere gratitude towards my project guide Prof Parth
Joshi sir whose guidance and care made the project successful.

I would like to thank my College Library, for having provided various reference books
and magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly helped
me in the completion of the project especially my Parents and Peers who supported
me throughout my project.

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 INDEX

Chapter No. Topic Page no.

1. Introduction
1.1 What is Investment
1.2 Objectives of Investment
1.3 Definition and Meaning of investor
1.4 Types of investor
1.5 Types of investment avenues

2. Literature overview

3. Research methodology
3.1 Objective of study
3.2 Scope
3.3 Limitations
3.4 Research Methodology
3.5 Data collection sources
3.6 Sample size
3.7 Sample method
3.8 Data collection method

4. Data analysis and interpretation

5. Conclusion and suggestions

6. Bibliography

Annexure

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 EXECUTIVE SUMMERY

This report summaries the perception of investors towards various investment avenues
from the responds of Navi Mumbai city. Investment is the current commitment of funds
towards any financial or non-financial instruments in order to gain profitable returns at
any future date. When a person has more money than he requires for current
consumption, he would be coined as potential investor. Knowledge about the different
avenues enables the investors to choose investment intelligently. The required level of
return and the risk tolerance decide the choice of the investor. Generally, investment
process starts with an understanding of the investment objectives and then framing out
the investment policy. This will depend upon the investor’s perception. But the
perception of investors differs around on the basis of different factors like age, gender,
occupation, qualification and income levels. The present study investigates the
perceptions towards various investment avenues in Navi Mumbai city.

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 CHAPTER 1: INTRODUCTION

The economic development of any country depends upon the well-organized financial
system. The financial system is a broader term which brings under two-fold the
financial markets and the financial institutions which support the system. The system
main objective is to mobilized the savings in the form of money and monetary assets
and invest them effectively to productive ventures. It promotes investments and savings
which help faster economic development of any country. Economic liberalization and
globalization have brought a fervent environment for medium and small investors.
There are a large number of investors, who have the ability to save and make an
investment. The investment is very important to park the surplus fund of an individual
for the purpose of earning additional income or capital appreciation or both. People
have plethora of investment options (with each option have its own distinct risk-return
characteristic) not only to save money but also to see that it grows over a period of time.
All investment avenues differ from one another and hence all are not equally attractive
or distractive. In addition, investors are facing a problem in choosing the best alternative
from the available investment options in the financial market. It is so because of lack
of necessary information with regard to market fluctuations, time to analyze the market
and expertise in the investment decisions. This has increased the necessity for tailor
made instruments (investment options) that provide safety and security to investors.
There is a galore of options available for investment for those who want to channelize
their savings via different options available suiting well to the requirements of varied
investors on the basis of risk return appetite of investors. The investor has to consider
various factors while making an investment decision, these are as follows: risks
associated with the investment, tax benefits, liquidity, and marketability of the
instruments, corporate earnings, stock affordability, dividend announcements, Price
earnings ratio, Momentum effect, Contrarian effect, Investment behavior of FIIs, firm’s
reputation, socially responsible investing, Current economic indicators, Opinion from
family/friends/colleagues, broker’s recommendation, and other professional advice. In
this study very little research has been done to study the perception of investors towards
the different options of investment.

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 1.1 WHAT IS INVESTMENT

Investment is the employment of funds with the aim of achieving additional income or
growth in value. The essential quality of investment is that, it involves ‘waiting’ for
reward it involves commitment of resources which have been saved or put away from
current consumption in the hope that some benefit will accrued in future. Investment is
allocation of monetary resources to assets that are expected to yield some gain or
positive return over a given period of time. These assets ranged safety investment to
risky investment. Investment in this form also called as financial investment. Most
investment are considered to be transfer of financial assets from one person to another
to the economist investment means the net addition to the economy’s capital stock
which consists of goods and services that are used in production of other goods and
services.

Investments are both important and useful in the context of present-day conditions.
Some factor that are made investment decisions increasingly important are longer life
expectancy or planning for retirement, increasing rates of taxes, high interest rates, and
high return of inflation, larger income and availability of complex number of
investments outlets. Investors have different investment avenues based on his/her risk
tolerance level. They are real and financial assets. Real assts refer to tangible assets,
land and buildings, furniture, gold, silver, diamonds or artifacts. A financial asset is
acclaim represented by securities. These assets are popularly called paper securities
shares, bonds, debentures, bills, loans, lease, derivatives and fixed deposits.

The term investment can be used to refer to any mechanism used for the purpose of
generating future income. In the financial sense, this includes the purchase of bonds,
stocks or real estate property. Additionally, the constructed building or other facility
used to produce goods can be seen as an investment. The production of goods required
to produce other goods may also be seen as investing. Key Elements of investment are
as follow:

 An investment is an asset or item that is purchased with the hope that it will generate
income or appreciate in value at some point in the future.
 An investment always concerns the outlay of some asset today (time, money, effort,
etc.) in hopes of a greater payoff in the future than what was originally put in.

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 An investment can refer to any mechanism used for generating future income, including
bonds, stocks, real estate property, or a business, among other examples.
1.2 OBJECTIVES OF INVESTMENT

Investing is a widespread practice and many have made their fortunes in the process.
The starting point in this process is to determine the characteristics of the various
investments and then matching them with the individuals need and preferences. An
investment is made because it serves some objective for an investor. Depending on the
life stage and risk appetite of the investor, there are three main objectives of investment:
safety, growth, and income. Every investor invests with a specific objective in mind,
and each investment has its own unique set of benefits and risks. Let us understand
these objectives in detail. There are three main objectives of Investment

Safety

Through investors who're threat averse. A few individuals make investments with a
goal of retaining their Even as no investment choice is completely safe, there are
products which might be desired cash secure, no matter the charge or going back they
acquire on their capital. Such close to-secure products encompass constant deposits,
financial savings debts, government bonds, etc.

Growth

While safety is an important objective for many investors, a majority of them invest to
receive capital gains, which means that they want the invested amount to grow. There
are several options in the market that offer this benefit. These include stocks, mutual
funds, gold, property, commodities, etc. It is important to note that capital gains attract
taxes, the percentage of which varies according to the number of years of investment.

Income

Some individuals invest with the objective of generating a second source of income.
Consequently, they invest in products that offer returns regularly like bank fixed
deposits, corporate and government bonds, etc.

Other objectives

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While the aforementioned objectives are the most common ones among investors today,
some other objectives include:

Liquidity

Many investment options are not liquid. This means they cannot be sold and converted
into cash instantly. However, some people prefer investing in options that can be used
during emergencies. Such liquid instruments in include stock, money market
instruments, and exchange-traded funds, to name a few.

Tax exemption

Some people invest their money in various financial products solely for reducing their
tax liability. Some products offer tax exemptions while many offer taxes benefits on
long-term profits

Every investor has common objectives with regard to the investment of their capital.
The importance of each objective varies from investor to investor and depends upon the
age and the amount of capital they have. These objectives are broadly defined as
follows.

Lifestyle – Investors want to ensure that their assets can meet their financial needs over
their lifetimes.

Financial security – Investors want to protect their financial needs against financial
risks at all times.

Return – Investors want a balance of risk and return that is suitable to their personal
risk preferences.

Value for money – Investors want to minimize the costs of managing their assets and
their financial needs.

Peace of mind – Investors do not want to worry about the day-to-day movements of
markets and their present and future financial security.

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1.3 DEFINITION AND MEANING OF INVESTROS

An investor is any person or other entity (such as a firm mutual fund) who commits
capital with the expectation of receiving financial returns. Investors rely on different
financial instruments to earn a rate of return and accomplish important financial
objectives like building retirement savings, funding a college education, or merely
accumulating additional wealth over time. A wide variety of investment vehicles exist
to accomplish goals, including (but not limited to) stocks, bonds, commodities, mutual
funds, exchange-traded funds (ETFs), options, futures, foreign exchange, gold, silver,
retirement plans, and real estate. Investors can analyze opportunities from different
angles, and generally prefer to minimize risk while maximizing returns.

 Investors use different financial instruments to earn a rate of return to

accomplish financial goals and objectives.
 Investment securities include stocks, bonds, mutual funds, derivatives,
commodities, and real estate.
 Investors can be distinguished from traders in that investors take long-term
strategic positions in companies or projects.
 Investors build portfolios either with an active orientation that tries to beat the
benchmark index or a passive strategy that attempts to track an index.
 Investors may also be oriented toward either growth or value strategies.
 An investor is typically distinct from a trader. An investor puts capital to use for
long-term gain, while a trader seeks to generate short-term profits by buying and selling
securities over and over again.

 Investors typically generate returns by deploying capital as either equity or debt

investments. Equity investments entail ownership stakes in the form of company stock
that may pay dividends in addition to generating capital gains. Debt investments may
be as loans extended to other individuals or firms, or in the form of purchasing bonds
issued by governments or corporations which pay interest in the form of coupons.

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 Investors are not a uniform bunch. They have varying risk tolerances, capital,
styles, preferences, and time frames. For instance, some investors may prefer very low-
risk investments that will lead to conservative gains, such as certificates of deposits and
certain bond products. Other investors, however, are more inclined to take on additional
risk in an attempt to make a larger profit. These investors might invest in currencies,
emerging markets, or stocks, all while dealing with a roller coaster of different factors
on a daily basis.

 A distinction can also be made between the term’s "investor" and "trader" in
that investors typically hold positions for years to decades (also called a "position
trader" or "buy and hold investor") while traders generally hold positions for shorter
periods. Scalp traders, for example, hold positions for as little as a few seconds. Swing
traders, on the other hand, seek positions that are held from several days to several
weeks.

 Institutional investors are organizations such as financial firms or mutual funds

that build sizable portfolios in stocks and other financial instruments. Often, they are
able to accumulate and pool money from several smaller investors

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1.4 TYPES OF INVESTROS

Investors also have an indifference point at which his own expectations of return match
with the risk that he can take. Broadly, he should be able to identify whether he is a risk
averter, risk neutral or risk taker. are classified into different group depending on their
attitude towards risk. Each investor

Risk Averse

A risk Averse investor is an investor who prefers lower returns with known risks rather
than higher returns with unknown risks. In other words, among various investments
giving the same return with different level of risks, this investor always prefers the
alternative with least interest. A risk averse investor avoids risks. S/he stays away from
high-risk investments and prefers investments which provide a sure shot return. Such
investors like to invest in government bonds, debentures and index funds.

Risk Neutral

It refers to a mindset where an individual is indifferent to risk when making an

investment decision. This mindset is not derived from calculation or rational deduction,
but rather from an emotional preference. A person with a risk-neutral approach simply
doesn't focus on the risk--regardless of whether or not that is an ill-advised thing to do.
This mindset is often situational and can be dependent on price or other external factors.

Risk neutral is a term used to describe the attitude of an individual who may be
evaluating investment alternatives. If the individual focuses solely on potential gains
regardless of the risk, they are said to be risk neutral. Such behaviour, to evaluate reward
without thought to risk, may seem to be inherently risky.

Risk Taker

Risk taker investors are seeking for greater market uncertainty and market fluctuations,
and they often pursue short-term, growth investments in anticipation of a higher
investment return. Of course, risk-taker investors are often drawn to situations that incur

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a higher risk and, therefore, they often realize huge losses. However, unlike risk-averse
investors, risk takers are going for the higher risk.

1.5 TYPES OF INVESTMENT AVENUES

Different avenues and alternative of investment includes share markets debenture and
bonds, money market instrument, mutual funds, life insurance, real estate, precious
objects, derivates, non-marketable securities. All are differentiated based on their
different features in terms of risk, return, term etc. investment in any of the alternative
depends on the needs and requirements of the investor. Corporate and individuals have
different needs. Before investing, these alternatives of investment need to be analyzed
in terms of their risk, return, term, convenience, liquidity etc.

There are two different types of investment

A) PHYSICAL INVESTMENTS:

Physical investment is the investment in physical or capital goods such as plant and
machinery, motor cars, ships, buildings, etc.

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The major physical investments are as follows;

Real Estate:

Real estate is basically defined as immovable property such as land and everything
permanently attached to it like buildings. Real property as opposed to personal or

Movable property is characterized by the right to transfer the title to the land whereas
title to personal property can be retained. It is true to say that real estate offers a rate of
return which is superior to avenues such as company deposits on a long-term basis. The
investment in real estate essentially depends on the risks associated with it, and the
alternative investment opportunities.

Gold and Silver:

For ages, gold and silver have been considered as a form of investment. They are
considered as best hedge against inflation. This is a form of investment amongst the
rural and semi-urban population. Besides, investors tend to invest in jewelry instead of
pure gold. Gold has been used throughout history as money and has been a relative
standard for currency equivalents specific to economic regions or countries, until recent
times.

Art:

Paintings are the most sought-after form of art. The prices in the art market are rise is
expected to continue. The trend in the art market today is to invest in young upcoming
painters whose prices will soar over the years.

Here some of the physical assets like machinery, equipment etc. are useful for further
production whereas some like gold and silver ornaments, motor cars etc. are not useful
for further production

B) FINANCIAL INVESTMENT:
It means employment of funds in the form of assets with the object of earning
additional income or appreciation in the value of investment in the future. Assets
which are the subject matter of investment may be varying between safe and risky
ones.

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Equity Shares

Equity investment represents ownership in a running company. By ownership, we mean

share in the profits and assets of the company but generally, there are no fixed returns.
It is considered as a risky investment but at the same time, depending upon situation, it
is liquid investment due to the presence of stock markets. These are equity shares for
which there is a regular trading, for those investments’ liquidity is more otherwise for
stocks have less movement, liquidity is not highly attractive. Equity shares of
companies can be classified as follows:

 Blue chip scrip

 Growth scrip
 Income scrip
 Cyclical scrip
 Speculative scrip

Debenture or Bonds
Debenture or bonds are long term investment options with a fixed stream of cash flows
depending on the quoted rate of interest. They are considered relatively less risky. An
amount of risk involved in debentures or bonds is dependent upon who the issuer is.
For example, if the issue is made by a government, the risk is made assumed to be zero.
However, investment in long term debentures or bonds, there are risk and terms of
interest rate risk and price risk. Suppose a person requires an amount to fund his child’s
education after 5 years. He is investing in a debenture having maturity period of 8 years,
with coupon payment annually. In that case there is risk of reinvesting coupon at a lower
interest rate from end of years 1 to end of year 5 and there is a price risk for increase in
rate of interest at the end of fifth year, in which price of security falls. In order to
minimize risk, investment can be made as per duration concept. Following alternatives
are available under debentures or bonds:
 Government securities
 Saving bonds
 Public sector units’ bonds
 Debentures of private sector companies
 Preference shares

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Money Market Instruments
Money market instrument are just like that debenture but the time is very less than 1
year. Corporate entities can utilize their idle working capital by investing in money
market instruments. Some of money market instruments are
 Treasury Bills
 Commercial paper
 Certificate of deposits

Mutual funds

Mutual funds are an easy and tension free way of investment and it automatically
diversifies the investments. A mutual fund is an investment only in debt and only in
equity or mix of debts and equity and ratio depending on the scheme. They provide
with benefits such as professional approach, benefits of scale and convenience. Further
investing in mutual fund will have advantage of getting professional management
services, at a lower cost, which otherwise was not possible at all. In case of open-ended
mutual fund scheme, mutual fund is giving an assurance to investor that mutual fund
will give support of secondary market. There is an absolute transparency about
investment performance to investors. On real time basis, investors are informed about
performance of investment. In mutual fund also, we can select among the following
types of portfolios:

 Equity schemes
 Debt schemes
 Balanced schemes
 Sector specific schemes etc.

Life Insurance and General Insurance

They are one of the important parts of good investment portfolios. Life insurance is an
investment for the security of life. The main objective of other investment avenues is
to earn a return but the primary objective of life insurance is to secure our families agent
unfortunate event of our death. It is popular in individuals. Other kinds of general
insurance are useful for corporate. There are different types of insurance which are as
follows:

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 Endowment insurance policy
 Money back policy
 Whole life policy
 Term insurance policy
 General insurance for any kind of assets.

Derivatives

A derivative means indirect investments in the assets. The derivatives market is

growing at a tremendous speed. The important benefit of investing in derivatives is that
it leverages the investment, manages the risk and helps in doing speculation.
Derivatives include:

 Forwards
 Future
 Potion
 Swaps etc.

Non-Marketable Instruments

These are the financial securities which can’t easily marketable and converted into cash
in short time.

 Bank Deposits:

It is the simplest avenue open for the investors. Investor has to open an account and
deposit money. Banks maintain different type of accounts for receiving deposits from
every class of people. They are;

- Fixed Deposit account

- Current Deposit account
- Saving Deposit account
- Recurring Deposit account
- Home safe Deposit account

 Post office Deposit:

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Like the commercial bank, post office also offers fixed deposit facilities and monthly
income scheme. The deposit has to be in multiples of Rs 50. The rate of interest varies
from 8.20 per cent for one year deposit to 8.50 per cent for five-year deposit. No
withdrawal is allowed before six months. Interest is credited half yearly but paid
annually. These deposits can be pledged as security.

 Public Provident Fund Scheme:

It is a savings-cum-tax-saving instrument in India. It also serves as a retirement

planning tool for many of those do not have any structured pension plan covering them.
A PPF account can be opened at any branch of State Bank of India or its subsidiary
banks or designed branches of other nationalized banks. It is a five-year saving sheep
earns an interest rate of 12 percent per year, which is exempted from the income tax
under sec 88. The individuals and Hindu Undivided Families can participate in this
scheme.

 National Savings Scheme (NSS):

NSS is a scheme has duration of 4 years to be matured offers tax rebate under sec 88 of
the Income Tax Act, 1961. It does not offer any premature withdrawal facility except
in case of the scheme holder’s death. Individuals and Hindu Undivided Families are
eligible to open NSS account in the designed post office.

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 CHAPTER 2: LITRATURE REVIEW

Based on the literature study, it can be concluded that for every individual investor, the
purpose of investing is different, to follow the right strategy to maximize the return on
investment and the last, to allocate investible funds as per the risk profile and financial
goal of individual investors.

 Murithi Suriya, Narayanan and Arivazhagan (2012), in their study reveal that
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.

 Mehta and Aggarwal (2011) observed that there is association of demographic

profiles and personality type of investor with investment choice. The differences
among genders were found to be significant for provident funds, fixed deposits, and
real estate. Females were found more conservative than males. The investors in the
higher age groups preferred post office as an investment option compared to the
investors in the lower age groups. Most of the investors preferred to consult their
family members for making investment.

 Sanjay Kanti Das (2012) summarized that the bank deposits remain the most
popular instrument of investment followed by insurance and small saving scheme
to get benefit of safety and security of their life and investment. It was found that
there is a need for increasing the financial literacy among the middle class
households.

 Lalit Mohan Kathuria & Kanika Singhania (2012) concluded that private sector
banking employees were investing a larger portion of their savings into safe and
risk-free investment avenues, like employee provident fund, public provident fund
and life insurance policy and only forty per cent of the respondents had high level
of awareness regarding various investment avenues.

 Securities and Exchange Board of India (SEBI) and NCEAR (2000) ‘Survey of
Indian Investors’ had been report that Safety and Liquidity were the primary

20
 considerations which determined the choice of an asset. In this paper we are trying
to find out the Factors which influence individual investment decision, the
difference in the perception of Investors in the investing process on the basis of Age
and the difference in perception of the Investors on the basis of Gender. Age and
stage of the population will also affect the fraction of aggregate income spent
(Fisher J, 1952). Both ends of the age distribution, the old and the young tend to
spend a higher proportion of their incomes than those in the middle do. The savings-
income ratio is small for younger groups, high for middle age groups, and again low
among old age groups.

 Kumar: carried out a research to find what plays a vital role in the minds of the
investors before decided on investment. The nine factors namely security, risk
tolerance, lucrative return, investment duration, periodic return, share preference,
long-term investment, futuristic return and investment dynamics influenced the
investor’s perception the author conclude that investors compared their returns and
calculate the inverse proportionality between time and the return. Among these
factors, the futuristic goals of equity investors are very considered as a factor
important for estimating their level of satisfaction.

 G.Velmurugan ,V,N.Abdul Nazar: In 2016 research paper Empirical study on

perception towards different investment avenues studied by G.Velmurugan
,V,N.Abdul Nazar: Selvam state that every investor has different opinion regarding
saving and investment of money according to their age and tastes .some are happy
to invest in post office and some are in other assets

 Dr Apparao and Professor N.Kishore babuin: in their research (2015) states

that people invest on their friends and relatives suggestions and views rather than
newspaper and according to them bank is the safest mode of investment .They also
want capital appreciation, growth of the money.

 Muruganandam: examined the evidence that investors intention of analyzed

investors perception towards risk and return on investment shares in organization
their portfolio constructions and the strategies of portfolio management. Suggested

21
 that successful companies must thorough understanding of psychology of the
investors revealed that proper diversification of portfolio would make sure the
investors to get higher return, higher salary and high liquidity with least risk.

 Selvi: discussed some studies that are available on the investors' attitude towards
investment avenues failed to offer a lot of information the conventional investment
avenues, bank deposits and gold are the most preferred avenues, while insurance
schemes and post office instruments are getting increased attention. She concluded
most of therespondents have not preferred to invest their savings in UT and mutual
funds.

 Ashly Lynn joseph, Dr. M. Prakah 2014: ‘A study of preferred investment

avenues among the people and factors considered for investment’’. This research
aims to analyses the preference of the people regarding different investment
avenues available. It also covers the study of factors considered by people for
investing their money. This study of conducted in Bangalore city. It gives a wider
scope to spread awareness among the people about the new services and scheme
relating to investment.

 Sonali Patil, Dr. Kalpana Nandawar 2014: ‘A study on preferred investment

avenues among salaried people with reference to pune, India’’. This study has been
conducted to know the preferences of salaried people towards various investment
options available. It has specifically covered salaried people as respondents for the
purpose of collecting data. This study was done through a personal interview using
a questionnaire. The area of research is restricted to Pune city.

 Mahalakshmi Kumar, Dr. Rajesh Mankani 2017: ‘A study of level of awareness

regarding investment awareness among educated working women with special
reference to Mumbai city’’. This study specifically highlights working women of
Mumbai city. It has collected primary data through a detailed questionnaire. The
main objectives of this study was to have an in depth study of
all the investment avenues available and also to know the awareness level regarding
investment avenues among educated working women in Mumbai. Its finding

22
 depicts that education makes women more aware of such knowledge and they are
motivated to earn, save and invest their money into valuable and productive sources.

 D. S. Chaiubey and Rajat P.Dimri (2009): in their research article, “Investment

Pattern: A Psychographic Study of Investors of Garhwal Region of Uttrakhand”
identify the investment in their research article, “Investment Pattern: A
Psychographic Study of Investors of Garhwal Region of Uttrakhand” identify the
investment perceptions and their behavior for designing effective investment
policies. Analysis indicates the shifting trend of investors from post office and other
government investment schemes to investments in banks, mutual funds and equity
etc.

 Brahmabhatt, P.S Raghu Kumari, and Dr. Shamira Malekar: In this study they
analysed the investor behavior and their preferences. The objectives for their study
were to understand about various investment avenues available in the market, to
understand the pattern of investors while making the investments, & to find out the
factors that investors consider before investing. Through their study it was revealed
that people like to invest in stock market. The percentages of income they make as
investment depend on their annual income.

 Kumar Singh (2006): analyses the investment pattern of people in Bangalore city
and Bhubaneswar analysis of the study was undertaken with the help of survey
conducted. It is concluded that in Bangalore investors are more aware about various
investment avenues and the risk associated with that. And in Bhubaneswar,
investors are more conservative in nature and they prefer to invest in those avenues
where risk is less like bank deposits, small savings, post office savings etc.

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 CHAPTER 3: RESEARCH METHODOLOGY

3.1 OBJECTIVES OF STUDY

The main objective of the study is to find out the need of the current and future investors
and to study on investors behavior on various financial instruments. The purpose of the
analysis is to determine the investment behavior of investors and investment
preferences for the same. Investor’s perception will provide a way to accurately measure
how the investors think about the products and services provided by the company.

OBJECTIVES:
 To understand in depth about different investment options available in market.
 To understand the pattern of the investors at the time of investing.
 To find out the factors that investors consider before investing.
 To analyse the investors preferences and income wise preferences and age wise
preference for investment avenues.
 To find out the objectives behind the investments.

3.2 SCOPE:
The study conducted in Navi Mumbai. The purpose of the study is to know the
perception of investors towards different investment avenues in Navi Mumbai.The
present study was mainly focuses to understand the awareness level of the people on
various investment opportunities from various financial institutions, factors considered
for investment, and also to understand behaviour of investors in gaining a better
understanding of what an investor look for in investment avenues.

24
3.3 LIMITATIONS:
 The sample size was very limited to 50 investors it may or may not be represented
with the entire population of Navi Mumbai.
 The study have been conducted to analyse some factors effecting investment
perceptions of investors.
 The survey is conducted only in Navi Mumbai city. So, it provides idea of that
particular regions’ investment pattern and their preference only.
 Scope of the study is limited to the selected investment instrument only.
 Time constraint.
 The information can be biased due to use of questionnaire.

25
3.4 RESEARCH METHODOLOGY:

Research is defined as human activity based on intellectual application in the

investigation of matter. The primary purpose for applied research is discovering,
interpreting and the developments of methods and systems for the advancement of
human knowledge on a wide variety of scientific matters of our world and the universe.
The term research is also used to describe an entire collection of information about a
particular subject. Methodology is the method followed while conducting the study on
a particular subject. Through this Methodology a systematic study is conducted on the
basis of which the basis of a report is produced.

3.5 DATA COLLECTION SOURCES:

Primary Data

Primary data is the first hand data which is collected from the number of respondents
of population of Navi Mumbai city. Here structured questionnaire was used to collect
primary data through surveys. The questionnaire was distributed among the
respondents through the Email and Whatsapp. Since the aim of the survey is to allow
every person to list his/her opinion about investment avenues.

Secondary Data:

Secondary data collected from various books, journals, magazines and websites etc.

3.6 SAMPLE SIZE:

The population for the study consisted of investors who invest in various financial
instruments within Navi Mumbai. A sample of 50 respondents was selected on random
basis.

26
3.7 SAMPLE METHOD:

Sample Method:

Random sampling is used for research project

Data representation technique and tools:

Columns charts and pie charts has used for the Representation.

3.8 DATA COLLECTION METHOD:

In this research survey method of data collection is used.

27
CHAPTER 4: DATA ANALYSIS AND INTERPRETATION

DEMOGRAPHIC INFORMATION

The demographic profile of the sample respondent constitutes a significant component

in understanding their social structure. The variables that relate to structural position of
the respondents are age, education, occupation, income, savings and investments. The
age analysis helps in classifying the investors to indicate existing population structure
of the sample area. Education affects employment chances and values of the investors
towards society. Occupation reflects the change from primary to new and traditional
ones. The ever changing scenario with regard to income, expenditure, saving reflects
changes in standard of living of the respondents and quality of life.

Table No. 1: Demographic Profile of the Respondents

Variables Category No.of Percentage%

Respondents
Gender Male 30 60
Female 20 40
Total 50 100
Age ( in years) Less than 25 8 16
25 years- 35years 15 30
36 years- 45 years 12 24
46 years- 60 years 9 18
61 years and above 6 12
Total 50 100
Marital Status Married 38 76
Unmarried 12 24
Total 50 100
Annual Income Below 200000 20 40
200000-500000 16 32
500000-800000 8 16
800000-onwards 6 12
Total 50 100
Occupation Business 22 44
Service 12 24
student 10 20
Other 6 12
Total 50 100
Education Under graduate 12 24
Graduate 20 40
Post graduate 10 20
Other 8 16
Total 50 100

28
Source: Primary data

The above table no.1 indicates that out of total respondents 60 percent are male and 40
percent are female. Majority of the investors are male. 16 percent of the investors are
below 25 years, 30percent of respondents are in the age group of 25-35 years. It is
evident that the above table reveals that majority of the respondents are young and
middle age group investors.24 percent of respondents are in the age group of 36-45
years and 18 percent investors are in the age group of 46-60 years and 12 percent are
above 61 years. 24 percent of respondents are unmarried, 76 percent are married. 40
percent of investors income levels of below Rs.2,00,000 per annum, 32 percent of the
investors have annual income between Rs. 2,00,000- Rs.5,00,000 , 16 percent of
investors have annual income level between Rs.5,00,000-Rs.8,00,000 and 12 percent
of investors have an income above 8,00,000. Out of 50 respondents, nearly 44 percent
of investors are in service, whereas 24 percent of investors are doing their own business,
20 percent are students and 6 percent of others. Educational levels of investors reveal
that, 24 percent of investors have under graduation, 40 percent have graduation, 20
percent are post graduates and 16 percent of them have completed other level of
education like diploma.

29
Table No. 2: Age wise preference For Investment Avenues

Table 2 provides information of respondent’s choice of investment by age, sample

respondents are categorized by five below 25 years, 25-35 years, 35-45 years, 45-60
years and 61 and above years.

INVEST AGE GROUP (IN YEARS)

MENT
AVENUES Less than 25 25-35 35-45 45-60 Above 60

Resp % Resp % Resp % Resp % Resp %

onde onde onde onde onde
nts nts nts nts nts
Equity 0 0 2 13 3 24 1 10 0 0

Debentures/ 0 0 1 7 2 15 1 10 0 0
Bonds

Bank 4 60 4 27 2 15 2 20 3 50
Deposits

Insurance 1 10 4 27 2 24 3 30 2 30

Mutual 1 10 2 13 1 7 1 10 0 0
Funds

Gold and 2 20 2 13 2 15 2 20 1 20
Real estate

Total 8 100 15 100 12 100 9 100 6 100

30
 70

60

50
Equity
40 Debenture/Bonds
Bank Deposits
30
Insurance
20 Mutal Funds
Gold and Real Estate
10

0
Less than 25-35 35-45 45-60 Above 60
25

Interpretation:

The above table reveals that, investors are below 25 age group giving more preference
on investing in bank deposits.The age group between 25- 35 are giving more preference
to bank deposits and insurance, it reveals that majority middle age investors prefer to
invest in bank deposits and insurance whereas the age group between 35- 45 are giving
more preference to equity. Investors between the age group 45-60 are giving preference
to insurance. The age group, which is more than 60 years, gives more preference to
bank deposits.

31
Table No. 3 Income wise preference for Investment Avenues

Table 3 provides information of respondent’s choice of investment by their income

level; sample respondents are categorized by four less than 200000, 200001-500000,
500001-800000, greater than 800000

INVESTM ANNUAL INCOME ( IN LAKHS)

ENT
LESS 200001-500000 500001-800000 GREATER
AVENUES THAN THAN 800000
200000
Respon % Respon % Respon % Respon %
dents dents dents dents

Equity 1 5 3 19 4 50 3 60

Debentures/ 1 5 2 13 2 20 1 10
Bonds

Bank 8 40 5 30 1 15 1 10
Deposits

Insurance 3 15 2 13 0 0 2 20

Mutual 2 10 3 19 1 15 0 0
Funds

Gold And 5 25 1 6 0 0 0 0
Real Estate

Total 20 100 16 100 8 100 6 100

32
 70
60
50
40 Equity
30 Debentures/ Bonds
20 Bank Deposits
10 Insurance
0 Mutal Funds
Gold and Real Estate

Interpretation:

The above table reveals that higher income group gives more preference to investment
in equity whereas lower income group gives more preference to investment in bank
deposit. It implies that the higher income levels can take more risk in investment rather
than lower income levels because the saving ratio of the higher income individuals is
very high so that they can afford to take higher risk by investing in equity and vice
versa.

33
Table No.4 Occupation of sample investor

Occupation No. of respondents Percentage of respondents

Business 22 44%

Service 12 24%

Student 10 20%

Other 8 16%

Total 50 100

Occupation

45
40
35
30
25
No. of rspondents
20
15
10
5
0
Business Service Student Other

Interpretation:

Occupation also influences investment decisions of individual investor. The preferred

investment avenues of business people are differ from service people and preferred
investment avenues of students differed from other person. The above table shows that
occupation of sample investor 44% of investors were business people and 24% of
investors were service people and 20% of investors were student and 16% of investors
were retired person, remaining investors are other occupation like Cooley, agriculture
etc.

34
Table No 5. Rate of Return on investment

Rate of Return No of Respondents Percentage of Respondents

Less than 11% 5 10%

11-20% 20 40%

21-30% 15 30%

More than 30% 10 20%

Total 50 100

Rate of Return

10%
20%

Less than 11%

11-20%
21-30%
40% More than 30%
30%

Interpretation:

The response obtained for the question “Rate of return on investment” has been
presented in above table no.5 from the table it is evident that 10% Respondents prefer
less than 11% Return on their investment, 40% Respondents prefer Rate of Return 11-
20% maximum respondents preferred 11-20% Rate of Return, whereas 30%
respondents preferred 21-30% Rate of Return and 20% people are invested where Rate
of Return on investment is more than 30%.

35
Table No. 6 Sources of investment advice

Sources of investment No. of respondents Percentage of respondents

advice

Self analysis 14 28%

Financial Broker/ CA 19 38%

advice

Family/ Friends/ Relatives 12 24%

Internet 5 10%

Total 50 100%

No. of Respondents
40
35
30
25
20
15
10
5 Sources of investment
0 advice

Interpretation:

The above table reveals that 28% investors self analysis before investing in any kind of
securities, 38% of investor were getting the advice from financial broker , planner
because they don’t want take any risk therefore they go for financial expert. 24% of
investors are getting the investment advice from their family friends and relatives
because of easy availability. 10% of investors are getting investment advice form
internet.

36
Table No. 6 Time Period Preferred To Invest

Time period No. of Respondents Percentage of Respondents

Short Term 10 20

Medium Term 25 50

Long Term 15 30

Total 50 100%

No. of Respondents

20%
30%

Short Term
Medium Term
Long Term

50%

Interpretation:

It’s interesting to know that many of investors prefer o invest their money for medium
term i.e. from 1-5 years, instead of short term or long term. 50% preferred medium
term, 20% preferred short term, and 30% preferred long term.

37
Table No. 7 Factors Considering Before Investing

Factors No. of Respondents Percentage of Respondents

Maturity Period 5 10%

Safety of Principal 15 30%

Risk 10 20%

Return on investment 20 40%

Total 50 100%

No. of Respondents

40
35
30
25
20 No. of Respondents
15
10
5
0
Maturity Safety of Risk Return on
Period Principal investment

Interpretation:

When the investors are asked about the factors considering before investment many of
them have voted for return on investment and safety of investment 40% investors
consider return on investment before investment whereas 30% consider safety of
investment, some investors expect high return at very low risk and it is not possible in
practical Indian investment avenues. Investment believes in provide principal, “higher
the risk higher the return, lower the risk lower the return”. 20% investors consider risk
factor before investing in any kind of security and 10% investors consider maturity
period.

38
Table No. 8 Purpose behind Investment

Purpose of investment No of respondents Percentage of respondents

Wealth creation 15 30

Tax saving 7 14

Earn Return 18 34

Future Expenditure 10 20

Total 50 100%

No. of Respondents

35
30
25
20
15
10
No. of Respondents
5
0

Interpretation:

From the above table and chart I analyze that 30% of respondents were invested for the
purpose of wealth creation and 14% of investors invested their saving for the purpose
of tax saving and 34% of respondents are invested for the purpose of earn return and
20% of respondents were invested for the purpose of future expenditure.

39
Table No. 9 percentage of income invested

Percentage of income No. of Respondents Percentage of Respondents

0 to 15% 15 30

15 to 30% 30 60

30 to 45% 5 10

Total 50 100

No. of Respondents

10%
30%

0 to 15%
15 to 30%
30 to 45%
60%

Interpretation:

As observed in the above diagram, most of the investors invest approximately 15 to

30% of their annual income in different investment option. 30% investors invest 0 to
15% in investment whereas 10% investors prefer to invest 30 to 45% of their annual
income in different investment avenues.

40
Table No. 10 Investors knowledge regarding investment

Options No. of Respondents Percentage of Respondents

Very limited 10 20

Basic knowledge 13 26

Fair knowledge 15 30

Considerable 8 16

Extensive knowledge 4 8

Total 50 100%

No. of Respondents

Extensive knowledge

Considerable

Fair knowledge
No. of Respondents

Basic knowledge

Very limited

0 10 20 30 40

Interpretation:

The above table reveals that 30% of the investors have fair knowledge about the
investment, 26% has basic knowledge, 20% investors have very limited knowledge,
16% has considerable knowledge and 8% has very extensive knowledge.

41
Table No. 11 Frequency of Monitoring the Investment

Frequency No. of Respondents No. of Percentage

Daily 6 12

Monthly 20 40

Occasionally 14 28

Other 10 20

Total 50 100%

No. of Respondents

20% 12%
Daily
28% 40%
Monthly
Occationally
Other

Interpretation:

This graph reveals that 40 percent of investors are investing monthly, 28 percent of
respondents are investing occasionally. 12 percent of investors are investing in a daily
basis whereas 20 percent of investors are investing in other frequency.

42
Table No. 12 Saving Objectives

Saving Objective No. of Respondents No. of percentage

Children’s Education 14 28

Healthcare 11 22

Retirement 7 14

Children’s Marriage 8 16

Other 10 20

Total 50 100%

No. of Respondents
30

25

20

15
No. of Respondents
10

0
Childrens' Healthcare Retirement Children's Other
Education Marriage

Interpretation:

From the table and chart we can analyze that 28% of respondents were invested for the
purpose of education either for themselves or for their children or the family member.
22% of investors invest their saving for the purpose of healthcare. 14% of respondents
were invested for the purpose of retirement planning. 16% of respondents are invested
for the purpose of getting the money at the time of marriage and 20% of respondents
are invested their saving for other purpose.

43
Table No. 13 Awareness regarding instruments options

Instruments options No. of Respondents No. of Percentage

Equity 5 10

Debenture/ Bonds 6 12

Mutual fund 7 14

Real estate and gold 10 20

Bank deposit/ Post office 14 28

Insurance 8 16

Total 50 100%

No. of Respondents

Insurance

Bank deposit/ Post office

Real estate and golg

No. of Respondents
Mutual fund

Debenture/ Bonds

Equity

0 5 10 15 20 25 30

Interpretation:

On the question of investment awareness regarding various investment instruments, the

respondents said that they are mostly aware of the banking investment option 28%
respondents aware of banking option. 16% respondents aware of gold and real estate
option whereas 16% investors are know about insurance and 14% are aware about
mutual fund and respondents are least aware of the investment option of equity and
debenture, bonds etc only 10% and 12% of respondents aware about this options.

44
Table No. 14 Investors preference to various investment avenues

Options No of Respondents Percentage of Respondents

Equity 4 8

Debenture/Bonds 6 12

Mutual fund 8 16

Insurance 7 14

Bank deposit 14 28

Real estate and gold 11 22

Total 50 100%

No. of Respondents

8%
22%
12% Equity
Debenture/Bonds
16% Mutual fund
28% Insurance
14% Bank deposit
Real estate and gold

45
Interpretation:

From the above diagram it is clearly seen that respondents prefer bank deposits. The
risk averse nature of the respondents is depicted as they are more favorable towards
cash and bank savings when compared to investing the cash in instrument like
insurance, mutual funds, shares and debentures and bonds. 8% investors prefer to invest
in equity, 12% respondents prefer to invest in debenture and bond whereas 16% and
14% investors prefer to invest in mutual fund and insurance and maximum 28%
investors invest in bank deposit and after that 22% investors prefer to invest in gold and
real estate.

46
 CHAPTER 5: CONCLUSION AND SUGGESTIONS

CONCLUSION:

As we know now there are various investment options available i.e. small savings, bank
deposits, insurance, mutual funds, equity, real estate, precious metals etc. but the
selection depends upon various factors.

The analysis and interpretation very clearly shows that the investors have different
views like investment pattern by market movement, factors influencing their decision,
frequency of investment, alternatives available and investment preference truly
influence their perception towards different investment options available in the market.

Thus, the study says that the investors in Navi Mumbai has shown much interest in
investing in different financial products available in the market, better performance by
the companies, liberal rules and regulations by the authority like SEBI to protect the
investors interest and this process will grow much more quicker in the future. There
might be a chance that the perceptions of investors of different nature are varied due to
diversity in social life, living pattern, income level etc. that need to be studied further.

The fact with regard to several factors such as relationship between age and risk
tolerance level of individual investors etc. it has important implications for investment
manager as it came out with certain interesting facts of an individual investor. The
individual investors still prefer to invest in financial products which give risk free
returns. Hence the investors in Navi Mumbai even if they are of high income, well
educated, salaried, independent are conservative and prefer to play safe.

This study revealed that bank deposits, real estate and gold are most preferred
investment alternatives among various investment alternatives. Respondents are not
much aware towards post office investment. Lock in period works negatively for
investors because premature withdrawal is not allowed. The investors cannot get the
money during emergency situations. Investors prefer liquidity and risk free return as
important criteria for investment consideration.

FINDINGS:

47
 According to the data that have been collected among the respondents 30 (60%)
were male and the rest 20 (40%) were female, from this it can be seen that investing
is mostly a man’s game although women are doing their investment in some way
or another but they are very less doing it through financial instruments.
 People like to invest in stock market as compared to any other markets, even if they
face huge losses.
 Most of the people whose survey was done mostly were retired persons or the age
group between 35-50; this suggests that youth of the India is unaware about
investment opportunities.
 According to the data that have been collected people give more preference to
saving and safety but at the same time they want higher interest at low risk in shorter
span.
 According to the data that have been collected people having less knowledge 0f
managing their income and assets.
 Most of the investors possess higher education like graduation and above.
 Most investors opt for two or more sources of information to make investment
decision
 Most of the investors discuss with their family and friend before and making
investment decision.
 Percentage of income that they invest depend on their annual income, more the
income more percentage of income they invest.
 The investor’s decisions are based on their own initiative.
 Most of the investors are financial illiterates.
 Increase in age decrease the risk tolerance level.
 Women are attracted towards investing gold than any other investment avenue.

48
SUGGESTIONS:

 Investors should make the investment with proper planning keeping in mind their
investment objectives
 Investors should also consult the brokers or agents to seek information and advice but
their decision should not merely be based on agents advice rather than the decision
should be on their careful investigation.
 The investors should select a particular investment option on basis of their need and
risk tolerance.
 The investors should diversify their investment portfolio in order to reduce the risk.
 The investors should continuously monitor their investments.
 The company should provide all relevant information to the investors.

49
 CHAPTER 6: BIBLIOGRAPHY

BOOKS AND JOURNAL

 Horvath, P. & Zuckerman, M. (1993), “Sensation seeking, risk appraisal, and risky
behavior”, Personality of Individual Differences 14(1), pages 41-52.

 Http://www.investologic.in/various-investment-alternatives/

 Kahneman, Daniel and Amos Tversky (1979), "Prospect Theory: An Analysis of

Decision Making under Risk," Econometrica, pages 69-82.

 Murithi Suriya S, Narayanan B, Arivazhagan M (2012), “Investors Behaviour in

Various Investment Avenues – A Study” International Journal of Marketing and
Technology, Volume 2, Issue July, pages 36-45

 SEBI – NCAER, Survey of Indian Investors, SEBI, Mumbai, 2010

 Shahbaz Nasir and Mahmood Khalid (2004), “Saving-investment Behaviour in

Pakistan: An Empirical Investigation”, The Pakistan Development Review, vol.
Empirical Investigation”, The Pakistan Development Review, vol. 43 issue 4, pages
665-682.

 Shanmuga Sundaram .V and Bala Krishnan .V (2010), “Investment decision-making a

behavioural approach”. International Journal of Business innovation & Research, vol.4,
Nov 6, 2010, pages 432-444.

 Selvi T(2015) Investors Attitude towards investment Avenues International Journal of

Management and Commerce Innovations 3: 717-722 Amudhan S, Poornima J,
Senthikumar (2016) A Study on Individual Investors Satisfaction Level of Existing
Investment Schemes in Salem Districts 2: 1239-1245

50
WEBSITES:
 www.google.com
 www.indiamoney.com
 www.moneymanagementideas.com
 www.savingwala.com
 www.investopedia.com
 http://www.businesstowww.moneycontrol.com
 www.irdaindia.com
 www.amfiindia.comday.in/moneytoday/stocks/realty-stocks-companies-with-low-
or-zero-debt-are-good/story /187467.html
 http://www.saatchiart.com/invest-in-art
 http://timesofindia.indiatimes.com/business/mf-simplified/articles/Determine-
Your-Investment-Objectives-and-UnderstandingYour-Risk-
Profile/articleshowhsbc/22936740.cms

51
 QUESTIONNAIRE

1. Age:-

2. Name:-

3. Gender:-
o Male
o Female

4. Marital Status:-

5. Occupation:-
o Business
o Service
o Student
o Other
6. Education qualification
o Under graduate
o Graduate
o Post graduate
o Other

7. Your annual income

o Below 200000
o 200000-500000
o 500000-800000
o 800000 onwards

8. How much return do you expect ?

o Less than 11%
o 11-20%
o 21-30%

52
o More than 30%

9. From whom do you get your investment advice ?

o Self analysis
o Financial broker/ CA advice
o Family/ Friends/ Relatives

10. When its come to understanding your investment, how would you rate your
investment knowledge ?
o Very limited
o Basic knowledge
o Fair knowledge

o Considerable knowledge

o Extensive knowledge

11. Which factor do you consider before investing in different securities ?

o Maturity period
o Safety of risk
o Risk
o Return on investment

12. What is the purpose behind investment ?

o Wealth creation
o Tax saving
o Earn return
o Future expenses

13. What % of your income do you invest ?

o 0 to 15%
o 15 to 30%
o 30 to 50%

53
14. What is the time period you prefer to invest ?
o Short term (0-1 years)
o Medium term (1-5 years)
o Long term (5-10 years)

15. How often do you monitor your investment ?

o Daily
o Monthly
o Occationally
o Other

16. What are your saving objective ?

o Children’s Education
o Healthcare
o Retirement
o Children’s Marriage
o Other

17. Out of the following, Which type of instrument are you aware of ?
o Equity
o Debenture/ Bonds
o Mutual fund
o Real estate and gold
o Bank deposit/ Post office
o Insurance

18. Your preference to various investment avenues ?

o Equity
o Debenture/ Bonds
o Mutual fund
o Real estate and gold
o Bank deposit/ Post office
o Insurance

54