A STUDY ON COMPARATIVE ANALYSIS OF INVESTMENT OPTION AVAILABLE IN THE MARKET ON THE BASIS OF CUSTOMER BUYING PREFERENCE.

At

Devashish Securities Pvt. ltd

Submitted to

Parul Institute of Management & Research

Under the guidance of

Prof. Khyati Shah

Assistant Prof. of MBA

 

PREPARED BY: CHIRAG GADHIYA

MBAENR.NO. 137110592051

GUIDED BY:

General Introduction

• Oldest in Asia• Nearly 200 years ago• 24 stock exchanges

The Indian Equity market depends on three factors:

• Funding into equity from all over the world

• Corporate houses performance

• Monsoons

1) Bombay Stock Exchange (BSE)

2) National Stock Exchange of India Ltd. (NSE)

• Oldest in Asia• Nearly 200 years ago• 24 stock exchanges

The Indian Equity market depends on three factors:

• Funding into equity from all over the world

• Corporate houses performance

• Monsoons

1) Bombay Stock Exchange (BSE)

2) National Stock Exchange of India Ltd. (NSE)

• During June 1996 started• Krishankant Desai and his son Ashish Desai

• BRANCHES: Navsari, Vyara, Surat, Mahuva, Valsad• FRANCHISE: Palsana,Kamrej,Unai,Songadh,Surat,Bharuch,Nandurbar,Dehradun,Chandigadh,

Indore,Chapra,Mumbai,Nasik.

• MISSION

"To create enduring value for customers and stakeholders by providing total quality products & Services at optimum cost, through creation of a strong, responsive and innovative organization and strive constantly to improve ourselves, our team & our services to meet customer expectation“

• PRODUCT SERVICES Broking Share Bank (DEMAT) Fixed Income Postal Schemes Life Insurance Financial Planning KRC Evening KRC SERVICES

COMPANY PROFILE

What is investment? The money you earn is partly spent and the rest

saved for meeting future expenses. Instead of keeping the savings idle, you may like to use savings in order to get return on it in the future is termed as investment.

Investment Objectives The main investment objectives are increasing

the rate of return & reducing the risk, safety, liquidity against inflation.

Introduction about the topic

Where Investors Are

Invest has Money

GOLD AND SILVER

GOVERNMENT SECURITIES

MUTUAL FUND

REAL ESTATE

BONDS AND DEBENTURES

INSURANCE

EQUITY INVESTMENT

FIXED DEPOSIT

Where investors are invest has capital?

NEED FOR THE STUDY:

To educate investors who are risk averse for trade in derivatives Awareness about the various uses of derivatives can help investors to reduce the Risk and minimize the losses.

Better knowledge about how to invest our money when and where?

• Primary objective:

To know the preference of investors for investment in various types of investment avenues.

• Secondary objective:• To know the factors that investor consider while choosing an investment option.• To know the percentage of salary an investor would like to invest.• To know the percentage of return an investor expect from an investment.• To identify the objective of saving of an investor.

• Research Design I have used descriptive research design. Because of it helps me to know the objective of

investors for investment. So using this research design I can achieve my research objective.

• Data Collection Method I have used both primary and secondary data.

• Data Collection Instrument Questionnaire is used for the collection of the data.

Research Methodology

SAMPLING DESIGN

Sampling method:

The convenience non random sampling method is used.

Sampling Area :

Surat city

Sample Size:

100

Data analysis tools:

As it is descriptive research study, the data is of descriptive characteristic and hence percentage method and graphs for representing the nominal scale data are used.

1) Are you an investor?

Particular Frequency Percentage

Yes 100 100%

No - ---

Total 100 ---

Yes No

100%

Percentage

 2) Are you aware about the following investment avenues?

Particular Frequency Percentage

Saving Account25 13.23%

Bank Fixed Deposit48 25.40%

Public provident Fund16 8.47%

National Saving Certificate 14 7.41%Post Office Saving

41 21.69%Government Security

45 23.81%Total

189 100.00% Saving Account

Bank Fixed Deposit

Public provident Fund

National Saving Certificate

Post Office Saving

Government Security

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

2.1 Moderate Risk Investment Avenues:

Particular Frequency Percentage

Mutual Fund 56 33.94%

Life Insurance 39 23.64%

Debenture 38 23.03%

Bonds 32 19.39%

Total 165 100.00%Mutual Fund Life Insurance Debenture Bonds

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%33.94%

23.64% 23.03%19.39%

2.2 High Risk Investment Avenues

38%

40%

22%Equity Market Commodity Market FOREX MarketParticular Frequency Percentage

Equity Market48 37.80%

Commodity Market51 40.16%

FOREX Market28 22.05%

Total127 100.00%

2.3 Traditional Investment Avenues

Particular Frequency Percentage

Real Estate 64 53.78%

Gold/ Silver 44 36.97%

Chit Fund 11 9.24%

Total 119 100.00%

Real Estate Gold/ Silver Chit Fund0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%53.78%

36.97%

9.24%

3) What do you think are the best options for investing your money?

Rank 1 2 3 4 5 Total Rank

Investment avenue11 28 42 14 5 100

Percentage 11% 28% 42% 14% 5% 100%

Score 58 110 126 28 5 327 3

Moderate risk

investment avenue 55 31 9 2 3 100

Percentage 55.00% 31.00% 9.00% 2.00% 3.00% 100%

Score 277 124 27 8 1 437 1

High risk investment

avenue 10 16 22 18 34 100

Percentage 10% 16% 22% 18% 34% 100%

Score 50 62 66 36 34 248 4

Traditional

investment avenue 20 26 24 29 1 100

Percentage 20% 26% 24% 29% 1% 100%

Score 100 106 72 58 1 337 2

Emerging investment

avenue 1 1 3 22 73 100

Percentage 1% 1% 3% 22% 73% 100%

4. What is the investment horizon you preferred?

Particular Frequency Percentage

Short-term investment19 19.00%

Long-term investment30 30.00%

Both51 51.00%

Total100 100.00%

19%

30%

51%

Short-term investment

Long-term investment

Both

5. Which factor do you consider most important while choosing an investment option?

Particular Frequency Percentage

Return 24 24.00%

Diversification 2 2.00%

Safety 61 61.00%

Maturity 1 1.00%

Tax-Benefit 9 9.00%

Progressive Value 3 3.00%

Total 100 100.00% Return

Diversification

Safety

Maturity

Tax-Benefit

Progressive Value

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

6. What is your investment objective?

Particular Frequency Percentage

Long-term growth 12 12.00%

Short-term growth 33 33.00%

Tax-Saving 3 3.00%

Future Expense 11 11.00%

Growth & Income 5 5.00%

Wealth Creation 12 12.00%

Earn Return 9 9.00%

Income & Capital Preservation 15 15.00%

Total 100 100.00% Long-term growth

Short-term

 growth

Tax-Saving

Future Expense

Growth & Income

Wealth Creation

Earn Return

Income & Capital Preservation

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

7. What percentage of income do you invest every year?

Particular Frequency Percentage

0 to 15%33 33.00%

15 to 30%59 59.00%

30 to 45%8 8.00%

Total100 100.00%

0 to 15% 15 to 30% 30 to 45%0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

8. At which rate do you want your investment to grow?

Particular Frequency Percentage

Steadily3 3.00%

At an average rate50 50.00%

Fast47 47.00%

Total100 100.00%

Steadily At an average rate Fast0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

9. Do you have saving & investment target amount you aim for each year?

Particular Frequency Percentage

Yes16 16.00%

No58 58.00%

Total100 100.00%

Yes No0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

10. What is your saving objective?

Particular Frequency Percentage

Children education 26 26.00%

Retirement 15 15.00%

Children marriage 11 11.00%

Health Care 10 10.00%

Home purchase 2 2.00%

Other 36 36.00%

Total 100 100.00% Childre

n educa

tion

Retire

men

t

Childre

n mar

riage

Health

Car

e

Home p

urchas

eOth

er0.00%5.00%

10.00%15.00%20.00%25.00%30.00%35.00%40.00%

11. How much Percentage of return do you expect from investment?

Particular Frequency Percentage

0 to 10%2 2.00%

10 to 20%10 10.00%

20 to 30%36 36.00%

Above 30%52 52.00%

Total100 100.00%

0 to 10% 10 to 20% 20 to 30% Above 30%0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

12. How did you come to know about investment avenues?

Particular Frequency Percentage

News paper 8 8.00%

News channels 52 52.00%

Family & friends 6 6.00%

Internet 10 10.00%

Adviser 15 15.00%

Financial planner & other 9 9.00%

Total 100 100.00%

News paper

News channels

Family & friends

Internet Adviser Financial planner &

other

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

FINDINGS

• Most of the people are aware regarding nine investment avenues namely bank deposits, equity investment, mutual fund, Gold/silver, saving account, insurance, real estate, Government Security.

• Investors get information about the various financial instruments like

8.00% source of investment advice into Newspaper

52% News Channels

6.00% Family And Friend

10% Internet

15.00% Adviser

9.00% Financial Planner.

• Most of people preferred moderate risk Investment Avenue as a best option for investing their money.

• The objective of saving of investors, mainly they select long-term growth, growth and income, Wealth creation.

• Safety and surety of return are together key objective behind investment in Saving Account 13.23%, fixed bank deposits 25.40%, government securities 23.83%, insurance 23.48%, Public provident Fund 8.47% .

• Return, safety, risk and marketability should be given more importance for any investment avenue.

• Investors should invest their funds in Real Estate, Gold/silver, and Mutual Fund for getting high return with safety of funds.

• Broking firms or companies should promote Commodity investment aggressively for short term investment.

RECOMMENDATIONS

• Bank deposits and saving a/c are still dominating the field of investment and gold/silver, real estate investment, insurance and equity investment are growing quickly now days.

• Ratio of awareness to investment is lesser of equity compare to leading Investment Avenue namely bank deposits, mutual fund, gold/silver, real estate and insurance.

• Most of people preferred moderate risk Investment Avenue as a best optionfor investing their money.

• Small group of people are investing their fund in bonds, Debenture, Virtual Real Investment, and Hedge Fund.

CONCLUSION

BOOKS:

• J.K.sachdeva,(lst Ed) "Business research methodology", Himalaya publishing house.

• Cooper, Donald R. & Schindler, Pamela S. Business Research Methods, Eight editions, Tata Mcgraw-Hill publishing Company Ltd.

WEB SITES:

• www.devashish.com

• www.moneycontrol.com

• www.bseindia.com

• www.nseindia.com

• http://beta.bseindia.com/static/about/introduction.aspx?expandabl

• http://beta.bsemdia.com/static/about/heritage.aspx?expandable=0

• http://www.edelweissfa.com/edelweiss/content/ana_mutualfunds.js

• http://www.nseindia.com/global/content/about_us/corporate_struct ure.htm

• http://www.nseindia.com/ global/content/about_us/about_us.htm

• http://www.moneycontrol.com/fixed-income/

• http://www.moneycontrol.com/fixed-income/banks-deposits/

• http://www.scribd.eom/yoursrakeshreddy/d/31128326-An-Analysis of Investors-behaviour-on-various-investment-avenues-in-india

BIBLIOGRAPHY