A PROJECT REPORT ON

“Study of Varied Investment Options based on Investor’s Preference”

SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR

MASTER OF MANAGEMENT STUDIES
TO
UNIVERSITY OF MUMBAI

BY
PUNIT DEEPAK BHANUSHALI
MMS – FINANCE
ROLL NO. 2013187
2013-2015

UNDER THE GUIDANCE OF PROF. ARPITA MEHROTRA

LALA LAJPATRAI INSTITUTE OF MANAGEMENT

MAHALAXMI, MUMBAI – 400 034
 A PROJECT REPORT ON

“Study of Varied Investment Options based on Investor’s Preference”

SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR

MASTER OF MANAGEMENT STUDIES

TO
UNIVERSITY OF MUMBAI

BY
PUNIT DEEPAK BHANUSHALI
ROLL NO. 2013187
2013-2015

UNDER THE GUIDANCE OF PROF. ARPITA MEHROTRA

LALA LAJPATRAI INSTITUTE OF MANAGEMENT

MAHALAXMI, MUMBAI – 400 034
 DECLARATION

I hereby declare that this dissertation submitted in partial fulfillment of the

requirement for the award of MASTER OF MANAGEMENT STUDIES (MMS)
of the University of Mumbai is my original work and has not been submitted for
award of any other degree or diploma fellowship or other similar title or prizes.

I further certify that I have no objection and grant the rights to LLIM to publish any
chapter or project if they deem fit in journals or magazines and newspaper etc.
without my permission.

NAME: PUNIT DEEPAK BHANUSHALI

CLASS: MMS II SEM IV

BATCH: 2013-2015

ROLL NO.: 2013187

DATE: 30th MARCH, 2015

PLACE: MUMBAI

SIGNATURE
PUNIT DEEPAK BHANUSHALI
PROJECT GUIDE CERTIFICATE FORM

I Mr. PUNIT DEEPAK BHANUSHALI, the undersigned Roll No. 2013187 studying
in the Second Year of MMS is doing my project work under the guidance of Prof.
ARPITA MEHROTRA wish to state that I have met my internal guide on the
following dates mentioned below for Project Guidance:-

SR. NO. DATE SIGNATURE OF

THE INTERNAL
GUIDE

______________________ ______________________
Signature of the Candidate Signature of Internal Guide
 Certificate

This is to certify that the dissertation submitted in partial fulfillment of the

requirement for the award of MMS of the University of Mumbai is a result of the
bonafide work carried out by Mr. PUNIT DEEPAK BHANUSHALI under my
supervision and guidance. No part of this report has been submitted for award o f
any other degree, diploma fellowship or other similar titles or prizes. The work has
also not been published in any scientific journals/ magazines.

DATE: 30th MARCH, 2015 NAME: PUNIT DEEPAK BHANUSHALI

PLACE: MUMBAI ROLL NO.: 2013187

------------------------------ ---------------------------
DR. V. B. ANGADI PROF. ARPITA MEHROTRA
(DIRECTOR, LLIM) (PROJECT GUIDE)

ACKNOWLEDGEMENT
This project has been a great learning experience for me. I take this opportunity to
thank Prof. Arpita Mehrotra, my internal project guide whose valuable guidance &
suggestions made this project possible. I am extremely thankful to him/her for his/her
support. She has encouraged me and channelized my enthusiasm effectively.

I express my heart-felt gratitude towards my parents DEEPAK KHIMJI

BHANUSHALI and LILAVATI DEEPAK BHANUSHALI, siblings and all those
friends who have willingly and with utmost commitment helped me during the
course of my project work.

I also express my profound gratitude to Dr. Angadi, Director of Lala Lajpatrai

Institute of Management for giving me the opportunity to work on the project and
broaden my knowledge and experience. My sincere thanks to Dr. Sarika Mahajan
for her valuable guidance and advice in completing this project.

I would like to thank all the professors and the staff of Lala Lajpatrai Institute
especially the Library staff who were very helpful in providing books and articles I
needed for my project.

Last but not the least, I am thankful to all those who indirectly extended their co-
operation and invaluable support to me.
 EXECUTIVE SUMMARY

Savings form an important part of the economy of any nation. With the savings invested in
various options available to the people, the money acts as the driver for growth of the country.
Indian financial scene too presents a plethora of avenues to the investors. Though certainly not the
best or deepest of markets in the world, it has reasonable options for an ordinary man to invest his
savings. One needs to invest and earn return on their idle resources and generate a specified sum of
money for a specific goal in life and make a provision for an uncertain future. One of the important
reasons why one needs to invest wisely is to meet the cost of inflation. Inflation is the rate at
which the cost of living increases. The cost of living is simply what it cost to buy the goods and
services you need to live. Inflation causes money to lose value because it will not buy the same
amount of a good or service in the future as it does now or did in the past. The sooner one starts
investing the better. By investing early you allow your investments more time to grow, whereby
the concept of compounding increases your income, by accumulating the principal and the interest
or dividend earned on it, year after year.

The three golden rules for all investors are:

 Invest early
 Invest regularly
 Invest for long term and not for short

So, keeping this in mind let us move ahead and understand various possible investment options
and analyse the customer preferences accordingly.

"The individual investor should act consistently as an investor and not as a speculator."
- Ben Graham

The Indian Financial Industry is considered to be one of the strongest financial sectors among the
world financial markets. Though, in the year 2013, the picture has not been very rosy due to fed
tapering, rising inflation, dropping GDP (less than 4.5%). But, currently (2014), the industry is
slowly picking back its momentum and there is a positive expectation from the industry.
The financial sector in India is regulated by independent regulators in the field of banking,
insurance, mortgage and capital markets. The Government of India plays an important role in
controlling the financial market in India.

Sr No Contents Page No

1 Introduction and Research Methodology 1

1.1 Objective of the Study 2

1.2 Scope of the Study 3

1.3 Research Methodology 4

1.4 Limitations 5

2 Literature Review 6

3 Industry Profile 7

3.1 Various Investment Avenues in India 9

3.2 Stages of an Investor’s life 10

4 Description of various Investment Avenues 11

5 Data Analysis and Interpretations 34

6 Findings 64

7 Conclusion/Recommendations 65

8 Annexure

9 Bibliography

INDEX