A Study on

INVESTMENT ANALYSIS
With reference to

(LNT INVESTMENT OFFICE, LNT INDIA PRIVATE LIMITED., KAKINADA)

A project report submitted to ADIKAVI NANNAYA UNIVERSITY

In partial fulfillment for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted By

PALEPU VENKATA DURGA SUBBA RAO

Reg. No: 1784410041

Under The Esteemed Guidance Of

Mr. K. MANIKANTESWARA REDDY

B.Tech, APSET, UGC NET, M.Com, APSET (PGDHE)

Assistant Professor

Department of Management Studies

Adikavi Nannaya University, MSN Campus, Kakinada

DEPARTMENT OF MANAGEMENT STUDIES

ADIKAVI NANNAYA UNIVERSITY, MSN CAMPUS

KAKINADA-533005

2017-2019
DEPARTMENT OF MANAGEMENT STUDIES

ADIKAVI NANNAYA UNIVERSITY, MSN CAMPUS

KAKINADA - 533005

CERTIFICATE

This is to certify that this is a bonafide record of the project work entitled “STUDY ON
INVESTMENT ANALYSIS” with reference to LNT INVESTMENT OFFICE, LNT INDIA
PRIVATE LIMITED., is the work carried out by P.V.D. SUBBARAO with Reg.No:
1784410041 during the project period of academic year 2017-2019 in partial fulfillment of
requirements for the award of the Degree of MASTER OF BUSINESS ADMINISTRATION
in ADIKAVI NANNAYA UNIVERSITY is a record work carried out by him under my
guidance and supervision.

HEAD OF THE DEAPRTMENT PROJECT GUIDE

Dr. N.SRI RAMA RAJU Mr. MANIKANTESWARA REDDY

DEPARTMENT OF MANAGEMENT STUDIES

ADIKAVI NANNAYA UNIVERSITY

KAKINADA-533005

DECLARATION

I hereby declare that the project work entitled “STUDY ON INVESTMENT ANALYSIS” with
reference to lnt investment office, lnt India private limited is a bonafide record work by me in
partial fulfillment of requirements for the award of the Degree of MASTER OF BUSINESS
ADMINISTRATION by ADIKAVI NANNAYA UNIVERSITY.I assure that this project work
is the result of my own effort and that has not been submitted to any other university or
institution for the award of any degree or diploma.

Place: Kakinada Signature of the Candidate

Date: P.V.D.SUBBA RAO

Reg.No: 1784410041
ACKNOWLEDGEMENT

In this endeavor, I would like to express my deep sense of gratitude to all those who helped me
in carrying out this study and resenting this report successfully.

I also wish to thank my company guide Mr. G.V. NAGESWARA RAO, LNT INVESTMENT
OFFICE, LNT INDIA PRIVATE LTD., Kakinada for giving me permission to do my project
work in their organization and helping me meticulously in all the aspects of my project work.

I am thankful to Dr.M.SREERAMA RAJU, Head of the Department, Associate Professor &

Course Coordinator, Adikavi Nannaya MSN Campus, Kakinada, for giving me the opportunity
to take up the project work and helping me out throughout.

I express my thanks to K.MANIKANTESWARA REDDY , Assistant Professor and Project

Guide, Department Of Management Studies, for having encouraged me to undergone this project
and his excellent guidance given to me in completing project successfully.

Finally , I am very earnestly acknowledging my deep sense of gratitude , thankfulness to all other
professors, those have a constant source of help and guidance to me I carrying out this study and
presenting this report successfully.

P.V.D.Subba rao
EXECUTIVE SUMMARY

Investment is the employment of funds with the aim of achieving income or growth in value. The
essential quality of an investment is that it involves ‘waiting’ for a reward. It involves the
commitment of resources which have been saved or put away from current consumption in the
hope that some benefits will accrue in future.

Investment analysis is the process of evaluating an investment for profitability and risk,
ultimately has the purpose of measuring how the given investment is a good fit for a portfolio. It
can range from a single bond in a personal portfolio, to the investment of a startup business, and
even large scale corporate projects.

The analysis of investment options gives the brief idea regarding the various investment options
that are prevailing in the financial markets in India. With lots of investment options like banks,
Fixed deposit, Government bonds, stock market, real estate, gold and mutual funds the common
investor ends up more confused than ever. Each and every investment option has its own merits
and demerits. This project I have discussed about few investment options available.

Investment analysis is a broad term that encompasses many different aspects of investing. It can
include analyzing past returns to make predictions about future returns, selecting the type of
investment vehicle that is best for an investor’s needs or evaluating securities such as stocks and
bonds for valuation and investor specificity. Hence a study has been conducted on the investment
analysis with reference to L&T INVESTMENT OFFICE, Kakinada. The main objective of the
study is to evaluate the investment analysis. Investment analysis is the important tool for
financial management.

The “Analysis of Investment Options” gives the brief idea regarding the various investment
options that are prevailing in the financial markets in India. With lots of investment options like
banks, fixed deposits, government bonds, stock market, real estate, gold and mutual funds the
common investor ends up more confused than ever. Each and every investment option has its
own merits and demerits.
LIST OF FIGURES

FIGURE.NO NAME OF THE FIGURES PAGE

NO

4.1 Educational Qualification of the respondents

4.2 Occupation of the respondents
4.3 Income level of the Respondents
4.4 Idea about types of investments
4.5 By which way they came to know about these investments
4.6 Preference of investment
4.7 Mode of investment
4.8 Preference in investing securities
4.9 Portfolio Idea
4.10 Major Investment
4.11 Preference to invest in mutual fund companies
4.12 Preference to invest in insurance policies
4.13 Preference to invest in deposits
Awareness about all types of investments provided by
4.14
advertisements
4.15
Interest in investing their savings in real estate
CONTENTS
Particulars Page no.

Certificate i
Declaration ii
Acknowledgement iii
Executive summary iv
List of Tables xv
List of Figures xv

CHAPTER-I 1-08

 Introduction

 Need for study

 Objectives of the study

 Methodology of the study

 Limitations of the study

CHAPTER-II 09-25

 Industry Profile
 Company Profile

CHAPTER-III 26-39

 Theoretical Framework

CHAPTER-IV 40-55

 Data Analysis And Interpretation

CHAPTER –V 56-59

 Findings

 Suggestions

 Conclusion

BIBLIOGRAPHY 60

ANNEXURE 61-62
CHAPTER – I
INTRODUCTION
INTRODUCTION

Investment or investing is a term with several closely related meanings of business management,
finance and economics, related to savings or deferring consumption. Investing is the active
redirecting resources from being consumed today so that they may create benefits in the future:
the use of assets to earn income or profit.

An Investment is the choice by the individual to risk his savings with the hope of gain.
Rather than store the good produced, or its money equivalent, the invest or chooses to use that
good either to create a durable consumer or producer good or to lend the original saved good to
another in exchange for either interest or a share of the profits

In the first case the individual creates durable consumer goods, hoping the services from
the good will make his life better. In the second, the individual becomes an entrepreneur using
the resource to produce goods and services for others in the hope of a profitable sale. The third
case describes a lender, and the fourth case describes an investor in a share of the business.

In each case the consumer obtains a durable assets or investment, and accounts for that asset by
recording an equivalent liability. As time passes, both price and interest rates change, the value
of the asset and liability also change.

An asset is usually purchased or equivalently a deposit is made in a bank, in hopes of getting a

future return or interest from it. The word originates in the Latin “vestis” meaning garment, and
refers to the act of putting things (money or other claims to resources) into other pockets. The
basic meaning of the term an asset held to have some recurring or capital gains.

The term “investment is used differently in economics and in finance. Economists refer to a
real investment (such as a machine or a house), while financial economists refer to financial
asset, such as money that is put into a bank or the market, which may then be used to buy a real
asset

Investment analysis is the process of evaluating an investment for profitability and risk,
ultimately has the purpose of measuring how the given investment is a good fit for a portfolio. It
can range from a single bond in a personal portfolio, to the investment of a startup business, and
even large scale corporate projects.
The analysis of investment options gives the brief idea regarding the various investment options
that are prevailing in the financial markets in India. With lots of investment options like banks,
Fixed deposit, Government bonds, stock market, real estate, gold and mutual funds the common
investor ends up more confused than ever. Each and every investment option has its own merits
and demerits. This project I have discussed about few investment options available.

Any investor before investing should take into consideration the safety, liquidity, returns, entry
exit barriers and tax efficiency parameters. We need to evaluate each investment option on the
above mentioned basis and then invest money. Today investor faces too much confusion in
analyzing the various investment options available and then selecting the best suitable one. In the
present project investment options are compared on the basis of returns as well as on the
parameters like safety, liquidity, term holding etc. thus assisting the investor as a guide for
investment purpose.

A study of the potential return on a real estate investment to the owner, without reference to a
potential sales price but strictly limited to the earnings and investment returns on the property.
There are several different methods of analysis, some of which might be appropriate for
particular properties and others not, or some of which are easier to use and favored by investors.
The most common methods include

 Cash-on-cash-return
 Payback period
 Internal rate of return

CASH –ON-CASH RETURN: - A tool for investment analysis, being a comparison of the
cash flows taken from a property over some period usually a year as compared to the original
cash investment. The change in the value of a portfolio over an evaluation period including, any
distributions made from the portfolio during the period.

PAYBACK PERIOD:- The length of time until an investment makes an amount of money
equal to the original amount invested. It does not account for the time value of money. That is
the payback period differs from the break even time, which accounts for inflation, interest, and
so forth.

INTERNAL RATE OF RETURN: - The internal rate of return is a method of calculating rate
of return. The term internal refers to the fact that its calculation does not involve external factors
such as inflation or the cost of capital it is also called the discounted cash flow of return.
1.1 SCOPE OF INVESTMENT ANALYSIS

The subject of Investment analysis is very large. And it cannot be confined or restricted to a
certain level in my project. I have tried my best to study deeply into the subject of investment
analysis. By understanding the nature of the investment decisions made by the people residing in
Kakinada through a survey with a sample of 50 members and I found that everyone is interested
in investment expecting more returns with less risk. In this process I observed that majority of
youth is interested in mutual funds and equities the remaining options are real-estate insurance
etc. In banks as this is a wider subject and the area of the location place of study is a developing
area and it may take few years further in having a complete knowledge of investment analysis.
Hence I feel that in future a lot more study can be done in this area.
1.1.2 IMPORTANCE OF INVESTMENT ANALYSIS: - For those who have some funds and
want those funds into a variety of businesses, there are Things you should do before. Perform
investment analysis is essential before you start Investing. Channel funds into an investment you
will be able to successfully deliver a profit if you make an investment analysis before taking
investment decisions.

1.1.3 THINGS THAT MUST BE ANALYZED: - Before investing, you should be keen in
doing the analysis. Analysis of the right investments can keep you from losses that might
occur. Each investment is certainly not always profitable. There are also disadvantages to be
gained from an investment. But with good analysis, you can reduce the risk of loss and of gain
can be achieved. Before investing, there are important things that you should analyze. The
following is an investment analysis you should do before starting to invest

1.1.4 RISK:-In any investment there were risks to be borne by both large and small. Typically,
the greater the risk is proportional to the amount of investment that can be obtained. Before
investing, you should understand well the risks of loss that may occur on the money you invest.
Knowing the Risks will help you find solutions to minimize risk. Control and limitation of risks
is one of the Investments analysis needs to be done to avoid the endless money you invest.

1.1.5 INVESTMENT PERIOD. :-before you invest, the second thing you need to do in
investment analysis of the investment period is ongoing. You must know whether the type of
investment that you follow the included short-term investments, medium or long. By knowing
the investment period, you will find out how long your refund as a result of these investments.

1.1.6PARTIES INVOLVED IN YOUR INVESTMENT: -

Party that will run the money you would need to know well in the beginning. Make sure that the
parties who will run investment fund you are the party professionals who can be trusted. Thus
you can breathe in peace because your fund is run by a party who can rely on.

1.1.7 POSSIBLE SWELLING OF THE VALUE OF INVESTMENTS: - The next

investment analysis which is equally important knows whether the investment fund that you
enter will not grow in the future. Suppose that when you invest money into a business, Need to
know if someday you need to add more funds to the investment process can work Well. That
way you'll know if you need to get ready to inject additional funds or not. Do not let
your investment running because you run out of funds to be injected in the enterprise. Be observant
And meticulous in an investment is very important. Proper investment analysis will be able to give
Maximum results for your investment funds. The advantage can be gained from an appropriate
Initial step.

1.1.8 OBJECTIVES OF INVESTMENT ANALYSIS

INVESTMENT DECISION PROCESS
Traditionally, the investment decision process has been structured using two steps:
1. Security analysis
2. Portfolio management

1.1.9 SECURITY ANALYSIS

 Security analysis this is the first part of investment decision process
 It involves the analysis and valuation of individual securities
 To analyze securities, it is important to understand the characteristics of the various
securities and the factors that affect them.
 Then valuation model is applied to find out their value or price.
 Value of a security is a function of estimated future earnings from the security and the risk
attached.
 For securities valuation, investors must deal with economy, industry or the individual
company
 Both the expected return and risk must be estimated keeping in view the economic, market
or company related factors.

1.1.10 PORTFOLIO MANAGEMENT

 The second major component of the decision processes is portfolio management
 After securities have been analyzed and valued, portfolio of selected securities is made
 Once a portfolio is made, it is managed with the passage of time.
 For management, there can be two approaches.
 Approaches to portfolio management
 PASSIVE Investment strategy
 ACTIVE Investment strategy
 In passive strategy, investors make few changes in the portfolio so that transactions costs,
time and search costs are minimum
 In active strategy, investors believe that they can earn better returns by actively making
changes in the portfolio
1.2 NEED FOR THE STUDY

The basic need is to complete a project work for the potential fulfillment of my master’s degree
with this need the search started for the topic that was appealing and that would make most of
skills and abilities.
I studied that smart city Kakinada is having a lot of potential for investment and portfolio can be
diversified into various categories banks, mutual funds, insurance, real estate etc.
The project work is carried out be in investment office, Kakinada and the aim of the project is to
analyze the general investment framework and investment alternatives available in market.
1.3 OBJECTIVES OF THE STUDY

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

decisions
 The aim is to compare the returns given by various investment decisions
 To cater the difference 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 was undertaken in order to have a reasonable understanding about the
investment industry.
 The project work includes knowing about the investment DECISIONS like equity bond,
real estate, gold and mutual fund.
 All investment DECISIONS are discussed with their types, workings and returns.
 Equities, Bonds, Real Estate, 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 by conducting the survey with the help of a questionnaire
1.4 METHODOLOGY OF THE STUDY

Methodology is a systematic procedure of collecting information in order to analyze and verify a

phenomenon. The data can be collected through two principle sources. They are as follows.

 Primary data
 Secondary data

PRIMARY DATA;

The primary data for the project regarding investment and various investment DECISIONS were
collected by conducting the survey with the help of a questionnaire

SECONDARY DATA:

The Secondary data for the project regarding investment and various investment decisions were
collected from websites, textbooks and magazines.

1.5 LIMITATIONS OF THE STUDY

 The study was limited to only four investment options.

 Most of the information collected is primary data

 While considering the returns from mutual funds only top performing schemes were
analyzed.
 This project is restricted only to Kakinada city. So there is less scope for more analysis.
 Lack of awareness among people during our survey based on these investment options.
 Financial literacy is very low
CHAPTER – II
INDUSTRY PROFILE & COMPANY PROFILE
INDUSTRY PROFILE

Investment companies in India. For the past three decades, India has been an increasingly good
choice for investment opportunities, particularly among European investors, as the diversity of
its sectors and rapidly growing economy provide for solid investment practices. India is ranked
as having the fifth largest economy in the world, with the third largest GDP in all of Asia.

The Indian government , which oversees much of the investing and banking for the country,
established the foreign investment promotion board(FIPB) with the goal of promoting and
facilitating investment in India through international companies, non- resident Indians, and other
foreign investors. Foreign direct investment in India may occur through collaborations with
financial corporations, joint ventures and technical collaborations, capital markets via Euro
issues, and private placements or preferential allotments.

Foreign direct investment is prohibited in the following industrial sectors arms and ammunition,
atomic energy, railway transport, coal and lignite, and mining of various minerals, foreign
investment in India is prohibited in stock markets and real estate as well. The Indian government
must approve in advance any investment into India from a foreign company as many investments
require prior clearance from the FIPB.

India can be the ideal investment locale for almost any sector, as its enormous workforce and the
diversity of its business sectors yield high prospects for both growth and earning potential. The
country as a whole has warmed up considerably towards foreign investors since its independence
from Britain in 1947.As a whole India encourages foreign groups to bring their investment
activities to India, as the market potential is great.

 Bajaj Allianz
 Equity India
 Indian Investment Centre
 Merc Holding Pvt.Ltd.
 Sarabhai Holding Pvt. Ltd.
 Shah Financial Group
 Stanrose Mafatlal Investment and Finance Ltd.
 Tata Finance services Pvt.Ltd.
 Toss Financial Services Pvt.Ltd.
 Veronica Financial Services Ltd.

2.1ABOUT INVESTMENT COMPANIES: - By an investment company we generally mean a

company which is responsible for issuing securities as well is primarily involved in the
investment business. They normally invest the money received from their investors and every
investor shares the profit or the losses that is proportionate to the interest of the investor in that
company. The performances of such companies are mostly based on the performance of the
different kinds of assets and the securities, which they own.

2.1.2 INFRASTRUCTURE DEVELOPMENT CORPORATION LIMITED: - Commonly

known as I.D.F.C. this company of India is mainly famous for providing high quality
infrastructural services. However, their investment sector includes business of project finance,
investment banking, securities, private equity, mutual funds and many more.

2.1.3 LARSEN &TOUBRO MUTUAL FUND :-This investment company in the republic
of India, popularly called L & T, is a part of the renowned company named Larsen & Toubro
Limited. With their range of different kinds of mutual funds, it is one of the most respected and
biggest private sector investment companies in India.

2.1.4 PEERLESS GENERAL FINANCE& INVESTMENT:-With excellent connectivity

across the nation and strong technological backbone, this finance and investment company
provides a comprehensive guide to your financial investments. Their range of product helps their
customers in gaining benefits in terms of wealth management.

2.1.5 TATA INVESTMENT CORPORATION:-Famously called T.I.C. this non banking

financial organization was earlier known as the investment corporation of India. Mainly involved
in long term investments, the name of this investment company of the renowned Tata Group
even features in Mumbai Stock Exchange’s (M.S.E.) list.
2.1.6 TOSS FINANCIAL SERVICES PRIVATE LIMITED :-This investment organization
was promoted in India by a group of qualified finance professionals as per the regulation of the
Government of India’s Ministry of finance. Dealing with the varied kinds of investment services
like stock brokerage, investment advisory, investment management, portfolio management,
mutual fund and many other foreign investment services, this company is an accredited member
of the National Stock Exchange (N.S.E.) of India Limited.

2.2 MUTUAL FUNDS: - A mutual fund is a kind of investment that uses money from many investors
to invest in stocks, bonds or other types of investment. A fund manager (or "portfolio manager") decides
how to invest the money, and for this he is paid a fee, which comes from the money in the fund.

Mutual funds are usually "open ended", meaning that new investors can join into the fund at any time.
When this happens, new units, which are like shares, are given to the new investors. There are thousands
of different kinds of mutual funds, specializing in investing in different countries, different types of
businesses, and different investment styles. There are even some funds that only invest in other funds.

The first introduction of a mutual fund in India occurred in 1963, when the Government of India
launched Unit Trust of India (UTI).[UTI enjoyed a monopoly in the Indian mutual fund market
until 1987, when a host of other government-controlled Indian financial companies established
their own funds, including State Bank of India , Canara bank and by Punjab National Bank.
A mutual fund is a professionally managed investment fund that pools money from many
investors to purchase securities. These investors may be retail or institutional in nature.

Mutual funds have advantages and disadvantages compared to direct investing in individual
securities. The primary advantages of mutual funds are that they provide economies of scale, a
higher level of diversification, they provide liquidity, and they are managed by professional
investors. On the negative side, investors in a mutual fund must pay various fees and expenses.

Primary structures of mutual funds include open-end funds, unit investment trusts, and closed-
end funds Exchange-traded funds (ETFs) are open-end funds or unit investment trusts that trade
on an exchange. Mutual funds are also classified by their principal investments as money market
funds, bond or fixed income funds, stock or equity funds, hybrid funds or other. Funds may also
be categorized as index funds, which are passively managed funds that match the performance of
an index, or actively managed funds. Hedge funds are not mutual funds; hedge funds cannot be
sold to the general public and are subject to different government regulations.
2.2.1 ADITYA BIRLA SUN LIFE AMC LIMITED:-Birla sun life asset Management
Company limited. (BSLAMC), the Investment managers of Birla sun life mutual fund is a joint
venture between the aditya Birla group and the sun life Financial services Inc. of Canada. The
joint venture brings together the aditya Birla groups experience in the Indian market and sun
life’s global experience.Since its inception in 1994, Birla sun life mutual fund has emerged as
one of the India’s leading mutual funds managing assets of a large investor base. The fund offers
a range of investment options, which include diversified and sector specific equity schemes, fund
of fund schemes, hybrid and monthly income funds a wide range of debt and treasury products
and offshore funds.

BSLAMC follows a long term, fundamental research based approach to investment. The
approach is to identify companies, which have excellent growth prospects and strong
fundamentals. The fundamentals include the quality of the company’s management sustainability
of its business model and its competitive position amongst other factors Birla sun life asset
Management Company has one of the largest team of research analysts in the industry, dedicated
to tracking down the best companies to invest in. Birla sun life AMC strives to provide
transparent ethical and research based investments and wealth management services

COMPANY OBJECTIVE: - With a far reaching network of 150 branches and other
distribution channels, ABSLMF is committed to deepening mutual fund penetration in the
country. The company is ceaselessly working to enhance the appeal of mutual funds across a
wider set of investors and investors and advisers across India.A part of this effort includes
introducing smart solutions, user friendly services, and conveniences which simplify mutual fund
processes with digitization for both – investors as well as distribution partners. ABSLMF
provides sector – specific equity schemes, fund of fund schemes, hybrid and monthly income
funds, debt and treasury products and offshore funds.

2.2.2FRANKLIN TEMPLETON ASSET MANAGEMENT PRIVATE LIMITED:-Franklin

resources, Inc is a global investment management organization known as Franklin Templeton
investments. Its headquarters are located just south of San Mateo, California. They offer
investment products under the Franklin, Templeton, Mutual series and Fiduciary brand names.
In JULY 2002, Franklin Templeton India acquired pioneer ITI, another leading fund house in
India to create an organization with rich investment experience over market cycle, one of the
most comprehensive product portfolios, footprint across the country and an in house shareholder
servicing function. Their investment to philosophy that follows a disciplined approach to
investing with a strong focus towards process orientation is the common thread running through
their schemes.

COMPANY OBJECTIVE: - The investment objective of the scheme is to generate long-term

capital appreciation by actively managing a portfolio of equity and equity related securities. The
scheme will invest in a range companies with a bias towards large cap companies.

2.2.3 PPFAS ASSET MANAGEMENT PVT.LTD:-PPFAS Asset Management (PPFAS

AMC) has been promoted by Parag Parikh Financial Advisory Services Ltd. (PPFAS LTD.) A
boutique investment advisory firm incorporated in 1992. PPFAS LTD is also amongst India’s
earliest SEBI registered portfolio management services (PMS) providers

OBJECTIVES:-PPFAS Asset management private limited provides equal opportunities to all its
employees to develop professionally and contribute towards the growth of the organization. It
has a zero tolerance policy towards sexual harassment. Which hampers employee productivity
mental health and there by damaging the reputation of all the company

PPFAS asset management private limited has a gender neutral policy on sexual harassment. The
policy has been created to redress the grievance of both female and male employee. A complaint
received from any employee will be handled based on the principles of natural justice protecting
the rights of the individual

2.2.4 SBI FUNDS MANAGEMENT PRIVATE LIMITED:-SBI Mutual fund is a joint

venture between the state bank of India and society general asset management, one of the world
leading fund and management companies that manages over US$ 500 billion worldwide.

OBJECTIVE: - The primary investment objective of the scheme is to generate income by

investing in a portfolio of fixed income securities maturing on or before the maturity of the
scheme. The secondary objective is to generate capital appreciation by investing a portion of the
scheme corpus in equity & equity related instruments However there can be no assurance that the
investment objective of the scheme will be realized.
2.2.5 RELIANCE CAPITAL ASSET MANAGEMENT LIMITED:-Reliance mutual fund
schemes are managed by Reliance capital asset management limited (RCAM) a subsidiary of
Reliance capital limited, which holds 93.37% of the paid up capital of RCAM, the balance paid
up capital being held by minority shareholders.

2.2.6 TATA ASSET MANAGEMENT LIMITED: - The Tata asset management philosophy is
centered on seeking consistent, long term results. Tata Asset management aims at overall
excellence within the framework of transparent and rigorous risk controls.

2.3 INSURANCE: - Insurance is a means of protection from financial loss. It is a form of risk
management, primarily used to hedge against the risk of a contingent or uncertain loss. An entity
which provides insurance is known as an insurer, insurance company, insurance carrier or
underwriter. A person or entity who buys insurance is known as an insured or as a policy holder.
The insurance transaction involves the insured assuming a guaranteed and known relatively
small loss in the form of payment to the insurer in exchange for the insurers promise to
compensate the insured in the event of a covered loss. The loss may or may not be financial, but
it must be reducible to financial terms, and usually involves something in which the insured has
an insurable interest established by ownership, possession or preexisting relationship.

The insured receives a contract, called the Insurance policy, which details the conditions and
circumstances under which the insurer will compensate the insured. The amount of money
charged by the insurer to the insured for the coverage set forth in the insurance policy is called
the premium. If the insured experiences a loss which is potentially covered by the insurance
policy, the insured submits a claim to the insurer for processing by a claims adjuster. The insurer
may hedge its own risk by taking out reinsurance, whereby another insurance company agrees to
carry some of the risk, especially if the primary insurer deems the risk too large for it to carry.

PRINCIPLES:-Insurance involves pooling funds from many insured entitles (known as

exposures) to pay for the losses that some may incur. The insured entities are therefore protected
from risk for a fee, with the fee being dependent upon the frequency and severity of the event
occurring.
In order to be an insurance risk, the risk insured against must meet certain characteristics.
Insurance as a financial intermediary is a commercial enterprise and a major part of the financial
services industry, but individual entities can also self-insure through saving money for possible
future losses.Insurance in India refers to the market for insurance in India which covers both the
public and private sector organizations. It is listed in the constitution of India in the seventh
schedule as a union list subject meaning it can only be legislated by the central government.

The insurance sector has gone through a number of phases by allowing private companies to
solicit insurance and also allowing foreign direct investment. India allowed private companies in
insurance sector in 2000, setting a limit on FDI to 26% which was increased to 49% in 2014.
Since the privatization in 2001, the largest life insurance company in India, life insurance
Corporation of India has seen its market share slowly slipping to private giants like HDFC life
Insurance, Exide life insurance, ICICI Prudential Life Insurance and SBI life Insurance
Company.

Insurance companies may be classified into two groups:

1. Life insurance companies, which sell life insurance, annuities and pensions products.

2. Non life or property/casualty/insurance companies, which sell other types of insurance.

General insurance companies can be further divided into these sub categories.

1. Standard lines

2. Excess lines

2.3.1LIFE INSURANCE CORPORATION OF INDIA (LIC):- LIC is the oldest and most
trusted brand amongst the best life insurance companies in India. Established in 1956, this is a
state owned enterprise which offers a huge and diverse variety of life insurance products such as
endowment plans, money back plans term assurance plans, pension plans, unit-linked plans,
children plans, group schemes, special plans and many more. The company is a favored choice
amongst millions of Indians also for its best claim settlement ratio of over 98%.
2.3.2 ICICI PRUDENTIAL LIFE INSURANCE:-The first private player in the insurance
sector of India, ICICI Prudential has a good popularity amongst its clients. The company offers
an array of policies to suit all kinds of needs of insurers and has a good claim settlement ratio of
over 96%. ICICI Prudential Wealth Builder II has been its most appreciated life insurance
product during previous financial year.

2.3.3 SBI LIFE INSURANCE: - Ajoint venture between State Bank of India, the largest bank
of our country and BNP Paribas, a France- based banking and Financial Services Company is the
largest in private segment and third most dependable insurance company of India. Offering a
diverse variety of life insurance products, its customer service mechanism is one of the strongest.
The claim settlement ratio of more than 95% is quite impressive. Two plans namely SBI Life
Saral Pension and SBI life Shubh Nivesh are the most sought after plans offered by the company.

2.3.4 HDFC STANDARD LIFE INSURANCE: - The company stands third in the list of the
top private insurance companies in India with regards to total volume of business. HDFC click 2
invest and HDFC clicks 2 protect plus are the two remarkable and most demanded life insurance
products of HDFC standard life Insurance. It is best known for its healthy claim settlement ratio
and percentage of customer grievances resolved. Also, marketing its products using the HDFC
bank channel, this company has its reach in about 1000 towns and cities of India.

2.3.5 MAX LIFE INSURANCE: - Recognized for solving all of its customer grievances (yes
100% of them), Max Life Insurance was also awarded for settling most claims in the year
2015.Overall, the claim settlement ratio is close to 97% the best among all private insurance
brokers in India. It reaches its customer base through its network of more than 200 branched,
agents and insurance and bancassurance partners. The most popular of all the plans by Max Life
Insurance is the term plan under which it offers Rs.1 crore life cover at Rs.21per day.

2.3.6 BAJAJ ALLIANZ LIFE INSURANCE: - The company lives up to the expectations
people have with the name of Bajaj brand by offering a wide range of customization in products
and transparency in benefits. The plans of Bajaj Allianz have been conceptualized and composed
for all age and income groups. Guided by the principle of customer delight, the insurer manages
to resolve more than 99% of its customer complaints and settle 91%of its claims.
2.3.7 RELIANCE NIPPON LIFE INSURANCE :- With a network of more than 800 branches
and 1 lakh advisors across the country, Reliance Nippon Life Insurance is another well- known
name in the insurance industry of India. The term plan that offers Rs.1cr life cover at Rs. 15 *per
day is quite a unique plan by the company. A claim settlement ratio of around 95%and grievance
redressal ratio of close to 99% also deserve a mention.

2.3.8 TATA AIA LIFE INSURANCE: - TATA AIA Life insurance is a joint venture between
Tata Group, the unmatched name in the world of business and AIA Group, the largest,
independent listed pan-Asia life insurance company in the world. By resolving 100% of its
customer grievances and settling more than 96% claims, the company becomes a sought after
name in the list of best life insurance companies in India.

Life insurance can be further categorized as a pure risk coverage plan purely insurance and the
other which is a combination of insurance and investment component. But we are not sure which
plan to opt for. Or maybe you need to know the different types of life insurance policies
available in the market to make wise choice.

1. Term Plan – pure risk cover

2. Unit linked insurance plan (UPL) – Investment opportunity.
3. Endowment plan – Insurance + savings
4. Money Back – Periodic returns with insurance cover
5. . Whole life Insurance – Life coverage to the life assured for whole life
6. Child’s plan – For fulfilling your child’s life goals like education, marriage etc.
7. . Retirement Plan – Plan your retirement and retire gracefully

2.4 COMMERCIAL BANKS: - The third form of investments which in terms of prospects of
investments have been not only popular but have been growing because of attractive kinds of
investment plans provided by the different programmes of the commercial banks. Commercial
banks provide to the investor security. Commercial bank fixed deposits also qualify as collateral
for loans. While other forms of investments may be avoided by an investor, commercial bank
deposits cannot be eliminated from his portfolio nor can its use be underestimated from the point
of view of liquidity and stability of income. The following kinds of deposits are provided by
banks:
2.4.1 (A)SAVINGS BANK ACCOUNT:-The most liquid form of investment is the
maintenance of a savings bank account. The deposits may be made at any time through the
introduction of a person already having a bank account or through the manager of the bank on
completion of the formalities of filling a form and having it certified, the investor can begin to
operate his account He is supplied with a pass book and a cheque book. Withdrawals can be
made at any time during the year upto a limit of the saving in the account. The advantage of
savings bank account is to receive an element of investment as it provides to the investor some
return in the form of rate of interest after every six months. It also offers to the investor the right
to withdraw any amount at will. The rates of interest of savings bank are normally calculated @
4% per annum.

2.4.2 (B) CURRENT ACCOUNT: - An investor is also given the option of having a current
account in the bank for maintaining liquidity. A current account is usually opened by a business
house. Of this current account, the account holder is permitted to draw according to fixed limit
provided by the banker in agreement with the account opening association. In India, it is not only
prestigious but also convenient to open a current account. This does not carry the benefit of any
interest. In fact, interest is charged by the bank for using this facility.

2.4.3 (C) RECURRING DEPOSITS: - Recurring deposit is a method by which an investor may
at regular intervals deposit a fixed sum of money in a bank. This amount is to be paid for a stated
number of years at the termination of which the investor receives the principal sum with interest.
The recurring deposits are usually for a period ranging from 12 months to 120 months. The
monthly installment of Rs. 5 for 12 gives a maturity value at the rate of 6% per annum.

2.4.4 (D)FIXED DEPOSIT SCHEME:- Each bank has certain special schemes. These
schemes vary from bank to bank but the maturity value is normally the same and the interest at a
fixed deposit is specified from time to time by the Reserve Bank of India. Currently, interest
share fallen to 7.75% per annum
2.5 REAL ESTATE :-Real estate is “ property consisting of land and buildings on it, along with
its natural resources such as crops, minerals or water; Immovable property of this nature; an
interest vested in this also an item of real property more generally buildings or housing in
general. Also the business of real estate the profession of buying, selling or renting land,
buildings or housing. It is a legal term used in jurisdictions whose legal system is derived from
English common law, such as India, the United Kingdom, United States, Canada, Pakistan,
Australia and New Zealand.

It is common practice for an intermediary to provide real estate owners with dedicated sales and
marketing support in exchange for commission. In North America, this intermediary is referred
to as a real estate broker (or realtor), whilst in the United Kingdom, the intermediary would be
referred to as an estate agent. In Australia the intermediary is referred to as a real estate agent or
real estate representative or the agent.

2.5.1 HDIL CREATING VALUE:- Housing Development &Infrastructure Limited (HDIL) has
established itself as one of the India’s premier real estate development companies, with
significant operations in the Mumbai Metropolitan Region. HDIL is a public listed real estate
company in India with shares traded on the BSE &NSE stock exchanges.

2.5.2 SUNTECK: - Sunteck Reality Ltd. (SRL) is a Mumbai based real estate development
company catering to the ultra-luxury and luxury residential segment. SRL boasts of a city centric
development portfolio of about 25 million square feet spread across 24 projects at various stages
of development and four rented assets. Director of the company. Over the past three decades, the
company has built growth and high stature through consistent

2.5.3 SOBHA PASSION AT WORK: - Sobha Developer is the entrepreneurial venture of Mr.
PNC Menon and was started in 1994. Through this company Mr. Menon helped shape the future
of the real estate sector in India with his eye for detail and his determination to persistently
deliver best in class products.

2.5.4 HIRNANDANI: - Hiranandani developers are a part of the hiranandani group, which was
founded in 1978. Mr.Niranjan Hiranandani and Mr Surendra Hiranandani are its present
managing directors and also the co founders. With its foresight to spot the shifting societal
trends. Hiranandani is today a leading real estate group in its flagship business of construction.
2.5.5 JAYPEE GROUP NO DREAM TOO BIG: Started in 1958 by founder and chairman,
Shri Jaiprakash Gaur, the Jaypee group is the third largest cement producer in the country.
Currently, the Jaypee group functions through its 18 subsidiaries which are present in 14 states
all over the country, in addition to a hydropower project and an additional contract in the
neighbouring country

2.5.6 SUPERTECH: - Supertech Limited was founded in 1988 in the National Capital Region
(NCR) by Mr. RK Arora. The company develops projects in different verticals of real estate such
as residential townships, commercial, retail, office spaces and hospitality.

2.5.7 UNITECH: - Established in 1972 by a group of technocrats. Unitech Lted is one of India’s
leading real estate players. It began as a consultancy firm for soil and foundation engineering and
has grown to have the most diversified product mix in real estate, comprising of world class
commercial complexes. IT/Tes parks SEZ’s integrated residential developments

2.5.8 GODREJ PROPERTIES: - Established in 1990, Godrej Properties is one of the leading
real estate development companies in India. The Mumbai based organization is the first real
estate company to receive ISO certification.

The real estate sector in India is projected to reach a market size of $180bn by 2020, a sharp rise
from $126bn in 2015, according to a report titled Traversing through the Epic, Predicting The
Curve by JLL India released at the CREDAI Conclave 2018.Over 20 billion worth of REIT-able
office stock in India with potential rental yield up to 7.5 per cent is expected to make Indian real
estate very attractive, the report said. The housing sector’s contribution to the Indian GDP is
expected to almost double to more than 11 per cent by 2020 up from estimated 5 per cent to 6 per
cent. Regulatory reforms, steady demand generated through rapid urbanization, rising household
income and the emergence of affordable housing and nuclear housing is some of the key drivers
of growth for the sector, it says.

According to the report, the ‘architects of changes’ in the form of various revolutionary policies
and reforms have paved the way for a highly conducive environment for industry stakeholders
which has weaved a new and improved environment for Indian realty, with certain policy based
implications expected in the f It delves into seven trends that will change the way real estate
business will be transacted in the future in India.
2.5.9 REAL ESTATE REGULATORY ACT (RERA) :- RERA is expected to consolidate
the Indian real estate sector with unscrupulous developers to be shunted out. Smaller developers
in Tier 2 and 3 cities could tap into institutional funding, if they follow higher disclosure norms
and efficient financial management. Sales figures are projected to improve with RERA bound to
rebuild the trust deficit between buyers and developers.

2.5.10 GOODS AND SERVICES TAX (GST) :- The cost savings on account of GST is
expected to between 3 per cent to 4 per cent in the near future as estimated by development
community. Prices will continue to remain dependent on demand and supply dynamics within
micro-markets.
The report identifies select cities (other than the top eight cities) and evaluated their potential to
become the next growth centre of logistics post GST Implementation. Some of them include
Nagpur, Kochi, Chandigarh, Patna, amongst others.

2.5.11 FDI POLICY:- The recent relaxation in the FDI Policy by the Government of India has
also provided a huge boost to the industry in the past, with the report revealing the following
findings: Private equity and debt investments in real estate increased by 12 per cent year-on-year
across 79 transactions in 2017.Investments in retail projects in Tier 1 & 2 cities reached $6.19 bn
in the period of 2006-17. Investment inflows in the residential sector since 2014 have been Rs
59,000 crore; approximately 47% of the total invested money in real estate over the same
periodPrivate equity inflows in office & IT /ITeS segment for 2014-2017 YTD are 150% higher
than the previous seven years’ inflows combined. Key FDI trends that are likely to dominate the
future of Indian realty include: Affordable housing is a major theme among investors. With
ample policy support, numerous projects are being launched in this sector and FDI will find its
way here. Warehousing and logistics destinations in the country will also be attractive to foreign
investors as post GST the sector is getting more organized. The office segment is likely to
remain active in terms of attracting investments.

2.5.12 AFFORDABLE HOUSING :- To create an avenue for developers to make strong

presence in real estate as demand for this segment. Being granted infrastructure status, allows
developers to borrow capital at preferred rates as well as utilized secured funding routes for
growth.
2.5.13 REAL ESTATE INVESTMENT TRUST (REITS):- Over 20 billion worth of REIT-
able office stock in India with potential rental yield up to 7.5 per cent to make Indian real estate
very attractive. Office REITs may pave the way for retail asset REITs in the second phase.
Higher private equity investment interest in alternative assets such as senior living, student
housing. Create a long-term strategy to strengthen development portfolios in those asset classes.

2.5.14 TECHNOLOGY AND USE OF PROP – TECH: - Tech- enablement of the sector is
expected to increase efficiency in building construction, sales and marketing management and
property management aspects. Four big technological revolution that will have lasting change
include – Big Data Analytics, Artificial Intelligence (AI) and Internet of Things (IoT) and Block
Chain

2.5.15 ALTERNATIVE ASSET CLASSES:-The real estate sector will benefit greatly from
specializations that are seeing the dawn now. These are expected to pick pace in the next decade
High growth asset classes for the next decade will be Senior Living, Student Housing and
Healthcare.“The time for change in now, this is evident in the recent developments. Game
changing developments like RERA and GST have created a strong base for the sector to grow,
which coupled with India’s strong economic advancement have provided a perfect spring board.
Our report ‘Traversing through the epic, predicting the curve’ is focused on providing a sneak
peek at the future of the sector, identifying 7 trends as mentioned,” says Ramesh Nair, CEO and
Country Head, JLL India.

CREDAI National has consistently maintained its stance of looking ahead into the future and we
continue this trend with the unveiling of the CREDAI – JLL report titled ‘Traversing through the
epic, predicting the curve’. The report looks forward in regards to the revolutionary reforms and
policy changes that have and will still continue to have a substantial bearing on proceedings. The
report reveals some exciting findings pertaining to the growth of the real estate sector which is
ought to encourage all industry stakeholders,” said CREDAI Chairman Get amber Anand.“As a
leading industry body, CREDAI National fully comprehends the prevalent and upcoming
industry trends which are bound to have significant implications for Indian realty. Having
displayed extreme resilience throughout the course of the past 18 months, the Indian real estate
sector is now quite evidently on an upward trajectory backed by the efforts of industry
stakeholders and the Government of India,” said CREDAI president Jaxay Shah.uture, it noted.
COMPANY PROFILE

Iam doing my project work on the topic of investment analysis. I choosed one investment office
to complete my project based on my topic of investment analysis. I am doing my project on one
investment office named as “LNT INVESTMENT OFFICE, LNT INDIA PRIVATE LIMITED”
.This investment office is started in the year 1983.This investment office is maintained by
individual financial advisor named GRANDHI VENKATA NAGESWARARAO IFA, WPA.

Individual financial advisor. This investment office is running since 35 years in this investment
office he is the only person to check all the works based on his investment office. This
investment office has branch in Vishakhapatnam also. Both Kakinada and Vishakhapatnam
branches he is to check all his works based on his investment office.

This investment office is expert in providing some services to customers through present
ongoing activities may be:-

1. REAL ESTATES.

2. MUTUAL FUNDS.

3. BANKING.

4. INSURANCE.

2.6.1 REAL ESTATES: - LNT LAND’S BANK :- Real estate’s they may provide through
[VUDA] Vishakhapatnam Urban Development Authority approved lands they may sell those
lands with high appreciation in the span of 5 years they are giving expected maximum growth.
Upto12% fixed profit service facility is available here. Mainly high returns of investments in real
estates.

2.6.2 MUTUAL FUNDS: - PORTFOLIO MANAGEMENT :- In this mutual funds they are
providing services are as follows PORTFOLIO MANAGEMENT, large cap, small cap, midcap,
multicar, products debt funds, short term, long term, investment basis, investment options,
through lump sum (SIP)SYSTEMATIC INVESTMENT PLAN (STP)SYSTEMATIC
TRANSFER PLAN, (SWP) SYSTEMATIC WITHDRAWL PLAN, (DIP) DAILY
INVESTMENT PLANS, Returns depend on market basis.
2.6.3 BANKING: - DEPOSITS &LOANS: - In banking related service provided by
this investment office are as follows. Deposit loans, under NHB (NATIONAL HOUSING
BANK), housing loans, loans may be like mortgage loans, term loans, deposits may like short
term, long term, monthly interest basis or monthly income plans etc.

2.6.4 INSURANCE: - LIFE INSURANCE CORPORATION OF INDIA: - In

Insurance related benefits provided by this investment office are as follows. Life risk coverage,
family financial wealth protection, tax benefits, 80c deduction, retirement pension benefits plans
etc. All these facilities provided in this insurance option by this investment office.

2.6.5 MAINLY OBSERVATIONS:-

 High security.
 High safety.
 High returns.
 Easy liquidity.
 Tax benefits.
 Family financial buildup service.
CHAPTER – III
THEORETICAL FRAME WORK
THEORETICAL FRAME WORK
Investment is the employment of funds with the aim of achieving income or growth in value. The
essential quality of an investment is that it involves ‘waiting’ for a reward. It involves the
commitment of resources which have been saved or put away from current consumption in the
hope that some benefits will accrue in future.

Investment is the allocation of monetary resources to assets that are expected to yield some gain
or positive return over a given period of time. These assets range from safe investments to risky
investments. Investments in this form are also called ‘Financial Investments”.

From the point of view of people who invest their funds, they are the suppliers of ‘Capital’ and in
their view, investment is a commitment of a person’s funds to derive future income in the form of
interest, dividends, rent ,premiums, pension benefits or the appreciation of the value of their
principal capital. To the financial investor, it is not important whether money is invested for a
productive use or for the purchase of secondhand instruments such as existing shares and stocks
listed on the stock exchanges. Most investments are considered to be transfers of financial assets
form one person to another
.
Investment or investing is a term with several closely related meanings of business management,
finance and economics, related to savings or deferring consumption. Investing is the active
redirecting resources from being consumed today so that they may create benefits in the future: the
use of assets to earn income or profit.

Investment analysis is the process of evaluating an investment for profitability and risk, ultimately
has the purpose of measuring how the given investment is a good fit for a portfolio. It can range
from a single bond in a personal portfolio, to the investment of a startup business, and even large
scale corporate projects.

The analysis of investment options gives the brief idea regarding the various investment options
that are prevailing in the financial markets in India. With lots of investment options like banks,
Fixed deposit, Government bonds, stock market, real estate, gold and mutual funds the common
investor ends up more confused than ever. Each and every investment option has its own merits
and demerits. This project I have discussed about few investment options available.
3.1 INVESTMENT OBJECTIVES: - The main objective are increasing the rate of return and
reducing the risk. Other objectives like safety, liquidity and hedge against inflation can be
considered as subsidiary objectives.

3.1.2RETURN: Investors always expected a good rate of return from their investment. Rate of
return could be defined as the total income the investor receives during the holding period stated as
the percentage of the purchasing price at the beginning of the holding period.

3.1.3RISK: - Risk of holding securities is related with the probability of actual return becoming
less the expected return. The word risk is synonymous with the phrase variability of return.
Investment risk is just as important as measuring its expected rate of return because minimizing
risk and maximizing the rate of return are inter related objectives in the investment management.
An investment whose return that does not change much.

3.1.4 LIQUIDITY:-Marketability of the investment provides liquidity to the investment. The

liquidity depends upon the marketing and trading facility. If a portion of the investment could be
converted into cash without much loss of time, it would help investor meet the emergencies.
Stocks are liquid only if the command good market by providing adequate return through
dividends and capital appreciation.

3.1.5 HEDGE AGAINST INFLATION: -Since there is inflation is almost all the economy, the
rate of should ensure a cover against the inflation. The rate should be higher than the rate of
inflation; otherwise the investor will have loss in real terms. Growth stocks would appreciate in
their values overtime and provide a protection against inflation. The return thus earned should
assure the safety of the principal amount, regular flow of income and be a hedge against inflation.

3.1.6 SAFETY: -The selected investment avenue should be under the legal framework, it is
difficult to represent the grievances, if any. Approval of law itself adds a flour of society. Even
though approved by law, the safety of the principal differs from one mode of investment to
another. Investments done with the government assure more safety then the private party.

3.1.7 INVESTMENT PROCESS:-The investment process is generally described in four stages.

These stages are investment policy, investment analysis, valuation of securities and portfolio
construction.
3.1.8 INVESTMENT POLICY:-The first stage determines and involves personal financial
affairs and objectives before making investments. It may also be called preparation of the
investment policy stage. The investor has to see that he should be able to create an emergency
fund, an element of liquidity and quick convertibility of securities into cash. This stage may,
therefore, be considered appropriate for identifying investment assets and considering the various
features of investments.

3.1.9 INVESTMENT ANALYSIS: - When an individual has arranged a logical order of the
types of investments that he requires on his portfolio, the next step is to analyze the securities
available for investment. He must make a comparative analysis of the type of industry, kind of
security and fixed vs./variable securities. The primary concern at this stage would be to form
beliefs regarding future behavior or prices and stocks, the expected returns and associated risk.

3.1.10 VALUATION OF SECURITIES:-The third step is perhaps the most important

consideration of the valuation of investments. Investment value in general is taken to be the
present worth to the owners of future benefits from investments. The investor has to bear in mind
the value of these investments. An appropriate set of weights have to be applied with the use of
forecasted benefits to estimate the value of the investment assets. Comparison of the value with
the current market price of the asset allows a determination of the relative attractiveness of the
asset. Each asset must be valued on its individual merit. Finally, the portfolio should be
constructed.

3.1.11 PORTFOLIO CONSTRUCTION: - As discussed earlier under features of an

investment programme, portfolio construction requires knowledge of the different aspects of
securities. These are briefly recapitulated here, consisting of safety and growth of principal,
liquidity of assets after taking into account the stage involving investment timing, selection of
investment, and allocation of savings to different investments and feedback of portfolio While
evaluating securities, the investor should realize that investments are made under conditions of
uncertainty.

There cannot be a magic formula which will always work. The investor should be concerned
with concepts and applications that will satisfy his investment objectives and constantly evaluate
the performance of his investments. If need be, the investor may consider switching over to
alternate proposals.
3.1.12 NEED TO INVESTMENT: One needs to invest to:

 Earn return on your idle resources

 Generate a specified sum of money for a specific goal in life
 Make a provision for an uncertain future
 One of the important reasons why one needs to invest wisely is to meet the cover of
inflation. Inflation is the rate at which the cost of living increases. The cost of living is
simply what it costs to buy the goods and services you need to live.

3.1.13 TIME TO INVEST:

The sooner one starts investing the better. By investing early you allow your investments more
time to grow, whereby the concept of compounding (as we shall see later) 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 short term

Care to be taken while investing before making any investment, one must ensure to:

1. Obtain return documents explaining the investment

2. Read and understand such documents
3. Verify the legitimacy of the investment
4. Find out the costs and benefit
5. Assess the risk- return profile of the investment

3.1.14 INTEREST: - When we borrow money, we are expected to pay for using it – this is
known as interest. Interest is an amount charged to the borrower for the privilege of using
lender’s money. Interest is usually calculated as a percentage of the principal balance (the
amount of money borrowed). The percentage rate may be fixed for the life of the loan, or it may
be variable, depending on the terms of the loan.

\
3.1.15 FACTORS DETERMINE INTEREST RATE:- When we talk of interest rates, there
are different types of interest rates-rates that banks offer to their depositors, rates that they lend
to their borrowers, that rate at which the government borrows in the bond/ government securities
market, rates offered to investors in small savings schemes like NSC, PPF rates at which
companies issue fixed deposits etc.,

The factors, which govern these interest rates are mostly economy related and are commonly,
referred to as macroeconomic factor. Some of these factors are:

 Demand for money

 Level of government borrowings
 Supply of money
 Inflation rate
The reserve bank of India and the government policies which determine some of the
variables mention above.

3.1.16 OPTIONS AVAILABLE FOR INVESTMENT:- One may invest in: Physical assets
like real estate, gold/ jewellery, commodities etc., and / or financial assets such as fixed deposits
with banks small saving instruments with post offices, insurance / provident/ pension fund etc.,
or securities market related instruments like shares, bonds, debentures etc.

3.1.17 SHORT-TERM FINANCIAL OPTIONS AVAILABLE FOR INVESTMENT:-

Broadly speaking, savings bank account, money market/ liquid funds and fixed deposits’ with
banks may be considered as short term financial investment options. Savings Bank Account is
often the first banking product people use, which offers low interest (4% - 5% p.a.), making them
only marginally better than fixed deposits. Money market or liquid funds are a specialized form
of mutual funds that invest in extremely short-term income instruments and thereby provide easy
liquidity. Unlike most mutual funds, money market funds are primarily oriented towards
protecting your capital and then, aim to maximize returns. Money market funds usually yield
better returns then savings account, but lower then bank fixed deposits.Fixed deposits with banks
are also referred to as term deposits and minimum investment period for bank FD’s is 30 days.
Fixed deposits with banks are for investors with low risk appetite, and may be considered for 6-
12 months investment period as normally interest on less than 6 months bank FD’s is likely to be
lower than money market fund returns.
3.1.18 LONG-TERM FINANCIAL OPTIONS AVAILABLE FOR INVESTMENT:- Post
office savings schemes, public provident fund, company fixed deposits, bonds and debentures,
mutual funds etc.

3.1.19 POST OFFICE SAVINGS:- Post office monthly income scheme is a low risk saving
instrument, which can be availed through any post office. It provides an interest rate of 8% per
annum, which is paid monthly. Minimum amount which can be invested, is Rs.1000/- and
additional investment in multiples of 1000/- Maximum amount is Rs. 3, 00000/- (if single) or Rs,
6, 00,000/- (if held jointly) during a year. It has a maturity period of 6 years.

Premature withdrawal is permitted if deposit is more than one year old. A deduction of 5 % is
levied from the principal amount if withdrawn prematurely. Pubic provident fund: a long term
savings instruments with a maturity of 15 years and interest payable at 8% per annum
compounded annually. A PPF account can be opened through a nationalized bank at any time
during the year and is open all through the year for depositing money. Tax benefits can be
availed for the amount invested and interest accrued is tax-free. A withdrawal is possible every
year for the seventh financial year of the date of opening of the account and the amount of
withdrawal will be limited to 50% of the balance at credit at the end of the 4 th year immediately
preceding the year in which the amount withdrawn or at the end of the proceeding year which
every is lower of the amount of loan if any

3.1.20 COMPANY FIXED DEPOSITS:- These are short term (6 months) to medium term (3-5
years) borrowing by any companies at a fixed rate of interest which is payable amount, quarterly,
semi –annually, annually. They can also be cumulative fixed deposits where the entire principal
along with the interest at the end of the loan period. The rate of interest varies between 6-9% per
annum for company FDS.T he interest received is after deduction of taxes.

Bonds: It is a fixed income (debt) instrument issued for a period of more than 1 year with the
purpose of raising capital. The central or state government, corporations and similar institutions
sell bonds. A bond is generally to repay the principal along with a fixed rate of interest on a
specified date, called the maturity date.
3.2 MUTUAL FUNDS:- These are funds operated by an investments company which raises
money for the public and invests in a group of assets (shares, debentures, etc,), in accordance
with a stated set of objectives. It is a substitute for those who are unable to invest directly in
equities or debt because of resources, time pr knowledge constraints. Benefits include
professional money management, being in small amounts and diversification. Mutual funds units
are issued redeemed by the fund management company based on the fund’s net asset value
(NAV) , which is determined at the end of each trading season. NAV is calculated as the value of
the entire shareholder by the fund, minus expenses divided by the number of units issued. Mutual
funds are usually long term investments vehicle though there some categories of mutual funds,
such as money markets which are short-term investments

3.2.1 FEATURES OF AN INVESTMENT PROGRAMME :-The features of an investment

program me consist of safety of principal, liquidity, income stability adequate income,
purchasing power stability, appreciation, freedom from management of investments, legality and
transferability.

3.2.2 SAFETY OF PRINCIPAL:-The investor, to be certain of the safety of principal, should

carefully review the economic and industry trends before choosing the types of investment.
Errors are unavoidable and, therefore, to ensure safety of principal, the investor should consider
diversification of assets. Adequate diversification involves mixing investment commitments by
industry, geographically by management, by financial type and by maturities. A proper
combination of these factors would reduce losses. Diversification to a great extent helps in
proper investment programmes but it must be reasonably accomplished and should not be carried
out to extremes.

3.2.3 LIQUIDITY:-Every investor requires a minimum liquidity in his investments to meet

emergencies. Liquidity will be ensured if the investor buys a proportion of readily saleable
securities out of his total portfolio. He may, therefore, keep a small proportion of cash, fixed
deposits and units which can be immediately made liquid. Investments like stocks and property
or real estate cannot ensure immediate liquidity.
3.2.4 INCOME STABILITY:- Regularity of income at a consistent rate is necessary in any
investment patter. Not only stability, it is also important to see that income is adequate after
taxes. It is possible to find out some good securities which pay practically all their earnings in
dividends.

3.2.5 APPRECIATION AND PURCHASING POWER STABILITY:-Investors should

balance their portfolios to fight against any purchasing power instability. Investors should judge
price level inflation, explore the possibility of gain and loss in the investments available to them,
limitations of personal and family considerations. The investors should also try and forecast
which securities will possibly appreciate. A purchase of property at the right time will lead to
appreciation in time. Growth stock will also appreciate over time. These however should be done
thoughtfully and not in a manner of speculation or gamble.

3.2.6 LEGALITY AND FREEDOM FROM CARE:- All investments should be approved by
law. Law relating to minors, estates, trusts, shares and insurance should be studied. Illegal
securities will bring out many problems for the investor. One way of being free from care is to
invest in securities like Unit Trust of India, Life Insurance Corporation or Savings Certificates.
The management of securities is then left to the care of the Trust who diversifies the investments
according to safety, stability and liquidity with the consideration of their investment policy. The
identify of legal securities and investments in such securities will also help the investor in
avoiding many problems.

3.2.7 TANGIBILITY:-Intangible securities have many times lost their value due to price level
inflation, confiscatory laws or social collapse. Some investor’s presser to keep a part of their
wealth invested in tangible properties like building, machinery and land. It may, however, be
considered that tangible property does not yield an income apart from the direct satisfaction of
possession or property.

3.3 SECURITIES:- The definition of securities as per the securities contract regulation act
(SCRA), 1956 includes instruments such as a shares, bonds, scripts, stocks are other marketable
securities of similar nature inn or of any incorporative company or body corporate, government
securities, derivatives of securities, units of collective investments so declared by the central
government.
3.3.1 FUNCTIONS OF SECURITEIS MARKET:- Securities markets is a place where buyers
and sellers of securities can enter into transaction to purchase and sell shares, bonds, debentures
etc., it performs an important role of enabling corporate, entrepreneurs to raise resources for their
companies and business ventures through public issues. Transfer of resources from those having
ideal resources to others who have a need for them is most efficiently achieved through the
securities market. Stated formally, securities markets provide channels for reallocation of savings
to investments and entrepreneurship. Savings are linked to investments by a variety of
intermediaries through a range of financial products called ‘securities’.

3.3.2 TYPES OF SECURITIES

 Shares
 Government securities
 Derivative products
 Units of mutual funds etc., are some of the securities investors in the securities market
can invest in.

3.3.3 NEED OF REGULATION IN SECURITIES MARKET:- The absence of conditions of

perfect competition in the securities market makes the role of the regulator extremely important.
The regulator ensures that the market participants behave in a desired manner so that securities
market continues to be a major source of finance for corporate and government and the interest
of investors are protected.

3.3.4REGULATORS OF THE SECURITIES MARKET: - The responsibility for regulating

securities market is shared by department of economic affairs (DEA), department of company
affairs (DCA), reserve bank of India (RBI) and securities and exchange board of India (SEBI)

3.3.5 ROLE OF SEBI:-The SEBI is the regulatory authority in India established under sec of
SEBI act, 1992. SEBI act, 1992 provides for establishment of SEBI with statutory powers for
protecting the interests of investors in securities

(a)Promoting the development of the securities market and

(b)Regulating the securities market.

Its regulatory jurisdiction extends over corporate in the issuance of capital and transfer of
securities in addition to all intermediate raise and persons associated with securities market.
SEBI has been obligated to perform the aforesaid functions by such measure as it thinks fit. In
particular, it has powers for:

 Regulating the business in stock exchanges and any other securities markets
 Registering and regulating the working of stock brokers, sub – brokers etc.,
 Promoting and regulating self- regulatory organizations
 Prohibiting fraudulent and unfair trade practices
 Calling for information from , undertaking inspection, conducting inquires and audits of
the stock exchanges, intermediaries
 Regulatory organizations, mutual funds and other persons associated with the securities
market.

3.3.6 PARTICIPANTS IN THE SECURITIES MARKET:- The securities market essentially

has categories of participants, namely, the issuers of securities, investors in securities and the
intermediaries, such as merchant bankers, brokers etc., while the corporate and government raise
resources from the securities’ market to meet their obligations , it is households that invest their
savings in the securities market.

3.3.7 STOCK EXCHANGE:-The securities contract (regulation) act, (SCRA) defines ‘stock
exchange’ as anybody of individuals whether incorporated or not, constituted for the purpose of
assisting, regulating or controlling the business of buying, selling or dealing in securities. Stock
exchange could be a regional stock exchange whose area of operation / jurisdiction is specified at
the time of its recognition or national exchanges, which are permitted to have nationwide trading
since inspection. NSE was incorporated as a national stock exchange.

3.3.8 FUNCTIONS OF STOCK EXCHANGE:-Although the stock exchange market has

multiple functions, its main activities are two:
 To promote the savings and for them to be canalized towards of carrying through
investments projects that otherwise wouldn’t be possible you need that the issuing
institution of the securities to be admitted for quoting. The negotiations will be done on
the primary market.
 To provide liquidity to the investors. The investors can recuperate the money invested
when needed. For it, he has to go to the stock exchange market to sell the securities
previously acquired. This function of the stock market is done on the secondary market.
 Other functions of the stock exchange market as an organization are:
 To guarantee the legal and economic security of the agreed contracts
 To provide official information about the quantities that are negotiated and of the quoted
prices
 To fix the prices of the securities according to the fundamental law of the offer and the
demand
 Specifying a bit more and centering on the two main agents that intervenes in the market,
investors and companies, we would do the classifications:
 It permits him the access to the profitable activities of the big companies.
 It offers liquidity to the security investments, through a place in which to sell or buy
securities.
 It permits for the investor to have a political power in the companies in which the invests
its savings due that the acquisition for ordinary shares gives the right to vote in the
general share holders meetings of the company in question
 It offers the possibility of diversifying your portfolio by enlarging the field of strategy of
investments due to alternative options, as could be the derived market, the money market,
etc., With respect to the function done by the stock exchange market in favor of the
companies
 It supplies them with the obtaining of long term funds that permits the company to make
profitable activities or to do determine projects that otherwise would not be possible to
develop for lack of financing. Also, this funding signifies a less cost than if obtain at
other channels.
 The securities quoted at the stock exchange market usually have more fiscal purpose
advantages for the companies.
 It offers to the company’s free publicity which in other way would suppose considerable
expenses. The institution is objecting of attention of the media (television, radio, etc..,) in
case any important change in its owners (the share holders).
 There also exists a constant following (newspapers) of the quotations. Therefore we can
the stock exchange market supposes a great advantage to the companies that apply can
do it
 Issuing of shares may suppose a loss of power for the founders of the company. Anyway,
this is very relative because it will depend on the grade of atomization on the
participations of the new shareholders and of the percentage of shares that the founders
keep over the total capital of the company.
 If for example a 49% of the share capital is in hands of the founders this could lose the
control of in case the other 51% would be in hands of one main share holders. However,
this rarely happens, due that the share capital that usually goes to the stock market tends
to be distributed between a great numbers of shareholders that acquire modest
participations in respect to that of the capital of the company the founders may still keep
control with share capital distributed between a great numbers of participants.
 Now then, the property of these shares employs the possession of certain rights over the
company in which you participate.
 These are political rights, among which appears the possibility of participating in the
general share holders meetings and in the administration of the company by means of the
execution of your rights to vote and the economic right which embraces the possibility of
receiving dividends, preferential rights of subscriptions, the transmission of shares
(selling) and the right to the liquidity value the last implies that at the moment in which
the company is liquidated, what remains is proportionally divided between the
shareholders.
 The possession of all these rights is what reduced the power the founders.
 The shares may pass to be property of unknown people to the founders. At the moment in
which they are object of quotations at the stock exchange markets any supplier of capital
may have them. If it’s a company that previously knew all its shareholders, considering
this as an asset of value to the company. The stock market quotation may generate an
important change that will not always be positive
 The companies that are quoted at the stock market offer a better transparency, in a way
that the general public ways have access to any information related to their evaluation
and activities.
3.3.9 RISK:

Most investors are risk averse and attempt to maximize their wealth at the minimum risk. Risk, it
is established, can be reduced to a minimum but cannot be completely erased or eliminated. Risk
and return are related. The higher the risk a person is willing to accept, the better the returns he is
able to achieve.

Risks are of many kinds. They can be classified as systematic or unsystematic. Systematic risks
cover the risks of market, interest rate risk and purchasing power risk and unsystematic risk
consists of business and financial risk. The systematic risk is therefore affecting the total
environment and is outside the control of any one firm or individual. Unsystematic risk is
inherent to the system. It may be due bad financial planning or wrong management decisions.
These risks are internal and can be avoided or controlled.

Risk is fundamental to the process of investment. Every investor should have an understanding
of the various pitfalls of investments. For the convenience of the investors , analysts measure
risks to be able to combine securities and to reach that portfolio distribution and finer statistical
techniques like standard deviation, regression analysis measured through alpha and beta tests and
though correlation or Rho.

This risk also gives an array of investment alternatives form which to choose from the risks
associated with it. It indicates which risk is high, moderate, or low with each investment. Within
the framework of the analytical discussion on return and risk is presented the different kinds of
investments with their special features in the next chapter after which we will take a closer look
at the different approaches – fundamental, technical and modern portfolio theory.
CHAPTER –IV
DATA ANALYSIS AND INTERPRETATION
4.1. What is your qualification?

PARTICULARS NUMBER OF PERCENTAGE%

RESPONDENTS

Graduation 0
0%

Under graduation 31 62%

Post Graduation 18 36%

Others 1 2%

QUALIFICATION PERCENTAGE

2% 0%

1
36%
2
3
62%
4

Figure: 4.1

INTERPRETATION:-Out of 50 respondents in my survey mainly 62% respondents completed

their under graduation.36% respondents completed their post graduation. 2% respondents
completed their SSC.
4.2 What is your occupation?

PARTICULARS NUMBER OF PERCENTAGE%

RESPONDENTS

Government 1 2%

Private 39 78%

Business 20%
10

Others 0 0%

OCCUPATION PERCENTAGE
0% 2%

20%

1
2
3
4

78%

Figure: 4.2

INTERPRETATION: - Out of total 50 respondents in my survey 78% people are working in

private companies. 20% respondents are doing business. 2% respondents are working in
government organizations.
4.3 What is your monthly family income?

PARTICULAR NUMBER OF PERCENTAGE%

RESPONDENTS

10,000 0 0%

10,000-20000 8 16%

20,000-30000 26 52%

30,000-40000 16 32%

MONTHLY FAMILY INCOME PERCENTAGE

0%

16%

32%
10000
10-20000
20-30000
30-40000

52%

Figure: 4.3
INTERPRETATION: - Out of total 50 respondents in my survey 52% respondents are
earning 20,000-30,000 as their monthly salary. 32% respondents are earning 30,000-40,000
as their salary. 16% respondents are earning 10,000-20000 as their salary.
4.4 DO YOU HAVE ANY IDEA ABOUT THESE INVESTMENTS?

PARTICULAR NUMBER OF PERCENTAGE%

RESPONDENTS

Mutual fund 13 25%

Insurance 11 22%

Real estate 8 16%

Banks 19 37%

INDIVIDUAL IDEAS ABOUT INVESTMENT

25%

37% 1
2
3
4

22%

16%

Figure: 4.4
INTERPRETATION: - Out of total 50 respondents 37% respondents known about
investments in banking. 25% respondents known about investment in mutual funds. 22%
respondents known about insurance policies.16% respondents known about real estates.
4.5 FROM WHERE YOU CAME TO KNOW ABOUT THESE INVESTMENTS?

PARTICULARS NUMBER OF PERCENTAGE%

RESPONDETS

Advertisement 20 40%

Peer group 2 4%

Banks 18 36%

Financial Advisors 10 20%

ABOUT INVESTMENTS

20%
1
40%
2
3
4
36%

4%

Figure: 4.5

INTERPRETATION: - Out of total 50 respondents in my survey 40% respondents know from

advertisements about all types of investments. 36% respondents know from banks about uses of
investments. 20% respondents known about these investments by financial advisors. 4%
respondents known from peer group about these investments.
4.6 WHERE YOU WILL PREFER TO INVEST?

PARTICULARS NUMBER OF PERCENTAGE%

RESPONDANTS

Savings 17 34%

Gold 6 12%

Insurance 13 26%

Real estate 5 10%

Mutual funds 9 18%

Shares 0 0%

WHERE WILL YOU PREFER TO INVEST

10%
SAVINGS
34% GOLD
18%
SHARES
INSURANCE
MUTUAL FUND

26% 12% REAL ESTATE

0%

Figure: 4.6
INTERPRETATION: - Out of total 50 respondents 34% respondents prefer to invest in
savings. 26% respondents prefer to invest in insurance. 18% respondents prefer to invest in
mutual funds. 12% respondents prefer to invest in gold. 10% respondents prefer to invest in real
estate.
4.7 WHICH MODE OF INVESTMENT WILL YOU PREFER?

PARTICULARS NUMBER OF PERCENTAGE%

RESPONDENSTS

Long term 15 30%

Short term 35 70%

MODE OF INVESTMENT PERCENTAGE

30%

1
2

70%

Figure: 4.7

INTERPRETATION: - Out of 50 respondents 70% respondents prefer to invest their savings in

short term mode of investment for the future purpose of financial planning. 30% respondents
prefer to invest their savings in long term mode of investment.
4.8 WHICH IS YOUR PREFERENCE WHILE INVESTING?

PARTICULARS NUMBER OF PERCENTAGE%

RESPONDENTS

Low return/Low risk 9 18%

High return/Moderate risk 5 10%

Liquidity 6 12%

High risk/ High return 30 60%

PREFERENCE % IN INVESTMENT OPTIONS

18%

1
10% 2
3
60% 4
12%

Figure: 4.8

INTERPRETATION: - Out of 50 respondents 60% respondents prefer high risk /high return in
their investment.12% respondents prefer liquidity in their investment. 10% respondents prefer
high return with moderate risk in their investment.18% respondents prefer low return/ low risk in
their investment.
4.9. PORTFOLIO IDEA?

PARTICUALRS NUMBER OF PERCENTAGE%

RESPONDENTS

YES 14 28%

NO 36 72%

PORTFOLIO IDEA

28%

1
2

72%

Figure: 4.9

INTERPRETATION: - Out of 50 respondents 28% respondents known about what is portfolio,

and uses of portfolio based on their investment invested in different securities.72% respondents
didn’t know about portfolio idea.
4.10 MAJOR INVESTMENT?

PARTICULARS NUMBER OF PERCENTAGE%

RESPONDENTS

Mutual funds 13 26%

Banks 19 38%

Insurance 11 22%

Real estate 7 14%

MAJOR INVESTMENT

22%
26%

1
2
3
14%
4

38%

Figure: 4.10

INTERPRETATION: - Out of 50 respondents 38% respondents prefer their major investment

in banks. 26% respondents preferring their investment majorly in mutual funds.22% respondents
preferring insurance as their major investment. 14% respondents are preferring real estate as their
major investment
4.11 WHICH MUTUAL FUND COMPANY YOU WILL PREFER TO INVEST?

PARTICULARS NUMBER OF PERCENTAGE%

RESPONDENTS

Reliance 3 6%

SBI 7 14%

UTI 4 8%

HDFC 3 6%

Others 33 66%

MUTUAL FUND PREFERENCE

6%

14%
REL
SBI
8% UTI
HDFC
6%
66% OTHERS

Figure: 4.11
INTERPRETATION: - Out of total 50 respondents in my survey 66% respondents prefer other
mutual fund companies and some respondents not having any mutual fund account. 14%
respondents prefer SBI mutual fund.8% respondents prefer UTI mutual fund. 6% respondents
prefer reliance mutual funds. 6% respondents prefer HDFC mutual fund.
4.12 WHICH TYPES OF INSURANCE YOU WILL PREFER TO INVEST?

PARTICULAR NUMBER OF PERCENTAGE%

RESPONDENTS

Life insurance 7 14%

4%
Health insurance 2

Vehicle insurance 5 10%

Others 36 72%

INSURANCE PREFERANCE

14%
4%

LF

10% HI
VI
OTHERS
72%

Figure: 4.12

INTERPRETATION:- Out of total 50 respondents 72% respondents prefer other means some
of the respondents not even invested in any insurance policy and some other respondents prefer
education insurance like this etc. 14% respondents prefer life insurance. 10% respondents prefer
vehicle insurance.4% respondents prefer health insurance.
4.13WHICH TYPE OF DEPOSIT YOU WILL PREFER TO INVEST?

PARTICULARS NUMBER OF PERCENTAGE%

RESPONDENTS

Fixed deposits 19 38%

Recurring deposits 4 8%

Others 3 6%

None of these 24 48%

PREFERENCE IN DEPOSITS

38% 1
48% 2
3
4

8%
6%

Figure: 4.13

INTERPRETATION:- Out of total 50 respondents 48% respondents prefers not having any
deposit in banks means they are depositing their savings in other investments.38% respondents
prefers fixed deposits in banks.8% respondents prefers recurring deposits. 6% prefer other
savings deposits and current deposits in banks.
4.14 ARE YOU AWARE ABOUT ALL THESE INVESTMENTS LIKE REAL ESTATE,
INSURANCE, MUTUAL FUNDS PROVIDED BY ADVERTISEMENTS?

NUMBER OF PERCENTAGE%
PARTICULARS RESPONDENTS

YES 15 30%

NO 35 70%

AWARENESS ABOUT INVESTMENTS

30%

1
2

70%

Figure: 4.14

INTERPRETATION: - Out of total 50 respondents 70% respondents did not known about all
these types of investments awareness created by advertisements. 30% respondents are aware
about real estate, mutual fund, insurance provided by advertisements.
4.15 ARE YOU INTERESTED IN INVESTING YOUR SAVINGS IN REAL ESTATE
FOR YOUR HOUSEHOLD PURPOSE?

PARTICULARS NUMBER OF PERCENTAGE%

RESPONDENTS

YES 17 34%

NO 33 66%

REAL ESTATE INVESTMENT

34%

1
2

66%

Figure: 4.15

INTERPRETATION: - Out of total 50 respondents 66% respondents are not interested in

investing their savings in real estate for their household purpose.34% respondents are interested
in investing their savings in real estate for their family household purpose.
CHAPTER – V
FINDINGS, SUGGESTIONS AND CONCLUSION
FINDINGS

 I n my project I have surveyed some days in some apartments go and explaining about
what is mutual fund, its uses, I have explained in this survey I observed every people
have to get awareness about mutual funds then they get one idea about mutual funds after
surely they may open mutual funds iam giving the conformation

 In Kakinada near 20% of people investing in mutual funds other 80% people not
interested in mutual funds because the effect of demonetization, and g.s.t they are
worrying about savings in banks also then how they will interested in mutual funds this is
the main problem

 In present outside situations not only in Kakinada every all over AP, money based
problems are increased so many as much as more, in this not only in mutual funds in real
estate’s also they are not interested to invest in any place.

 .Investments in real estate’s they are thinking about their future then only they are ready
to investment in real estate’s to gain profit by land giving rents, leases, selling lands.

 In present days everyone lower, middle, high class people they are not ready to invest in
any places like, banks, real estates, mutual funds, shares etc. everyone one is thinking
about their future and their children studies.

In Kakinada is growing city, so there is scope for: Mutual Fund

Insurance

Real Estate

Banks
SUGGESTIONS

 In Kakinada 80% of people they don’t have any idea on mutual funds, so investment
offices may put some awareness programs about mutual funds its useful to all people to
the present situations and problems based on wasting their investment on some other
purposes.

 In Kakinada there are low land, if lands are available means high rates, based on the
present market rate and the range of the area. If somebody provides easy loans and easy
installment’s every one try to know about particular details to invest on lands.

 In Kakinada those who are having lands for sale, lands for rent, lands for lease those who
are having lands means they have to put stalls on weekends on retail stores, and also
nearer to banks they may put flexes with their facilities because this is one important
suggestion to that real estate persons.

 Insurance companies also have to create awareness about the insurance premiums and
policies to the people.

 But also financial advisors who are providing real estates, mutual funds, banking,
insurance services to their customers if they have to create awareness on service provided
by him by putting stalls and doing sales marketing in stores, apartments etc.
CONCLUSION

 Investment analysis is the process of evaluating an investment for profitability and risk,
ultimately has the purpose of measuring how the given investment is a good fit for a
portfolio. It can range from a single bond in a personal portfolio, to the investment of a
startup business, and even large scale corporate projects.

 The analysis of investment options gives the brief idea regarding the various investment
options that are prevailing in the financial markets in India. With lots of investment
options like banks, Fixed deposit, Government bonds, stock market, real estate, gold and
mutual funds the common investor ends up more confused than ever. Each and every
investment option has its own merits and demerits.

 According to survey made by me I found that the mutual funds industry is growing
enormously and in knowledge of investment. Particularly in the mutual funds people are
interested in investing young employee are mostly interested in investing in mutual
funds. And middle age employees are mostly interested in investing in insurance. Mostly
senior citizens are interested to invest in real estates. But serious interest is created in
youth relating to real estate.

 Finally I conclude by stating that smart city Kakinada is having a lot of potential for
investments and portfolio can be diversified into various categories etc.

 But I found through my survey that there is a need for creating lot of awareness among
people relating to each investment opportunities which can be taken up by public and
private authorities. By conducting workshops, seminars etc.
BIBLIOGRAPHY & ANNEXURE
BIBLIOGRAPHY

1. Dr. PREETHI SINGH, Investment management, 6th edition, Himalaya publishing house.

2. Dr. K.RAVICHANDRAN, Merchant Banking, and Financial Services, Himalaya

publishing house.

3. Dr. V.K. BHALLA, Investment management, Security analysis and Portfolio

Management, 12th edition, S.CHAND.

WEBSITES

1. www.Investment analysis.com
2. www.Investment management.com

ANNEXURE
QUESTIONNAIRE

NAME: - …………………….. AGE:-………………. MOBILE: - ……………

1. What is your qualification?

A. Under graduation B. Graduation C. Post Graduation D. Others

2. What is your occupation?

A. Government B. Private C. Business D. Others

3. What is your monthly family income?

A. 10,000 B. 10,000-20000 C.20, 000-30000 D.30, 000-40000

4. Do you have any idea about these investments?

A. Mutual Fund B. Insurance C. Real Estate D. Banks

5. From where you came to know about these investments?

A. Advertisement B. Peer Group C. Banks D. Financial advisor

6. Where you will you prefer to invest?

A. Savings B. Gold C. Shares D. Insurance E. Mutual fund

F. Real Estate

7. Which mode of investment will you prefer?

A. Long term B. Short term

8. Which is your preference while investing?

A. Low return /Low risk B. High return/moderate risk C. High risk/High returns
D. Liquidity

9. Portfolio Idea?

A. YES B.NO

10. Major investment?

A. Mutual Funds B. Banks C. Real Estates D. Insurance.

11. Which mutual fund company you will prefer to invest?

A. Reliance B. SBI C. UTI D.HDFC E. Others

12. Which type of Insurance you will prefer to invest?

A. Life Insurance B. Health Insurance C. Vehicle Insurance D. Others

13. Which type of deposit you will prefer to invest?

A. Fixed deposits B. Recurring deposits C. Others D. None of these

14. Are you aware about Real estate & Insurance, mutual funds provided by advertisements?

A. YES B. NO

15 Are you interested in investing your savings in real estate for your house purpose?

A.YES B. NO