RISK AND RETURNS FROM VARIOUS INVESTMENT
Submitted by: Gaurav Swati Ripanu Megha Mukul
INVESTMENT OPTIONS IN INDIA1.Bank Fixed Deposits (FD) 2.Insurance policies 3.National Saving Certificate (NSC) 4.Public Provident Fund (PPF) 5.Stock Market 6.Mutual Funds 7.Gold Deposit Scheme 8.Real Estate
PURPOSE OF THE RESEARCHTo find out the investment pattern of different class of investor. To find out how investors get information about the various financial instruments. The type of financial instruments, they would prefer to invest. The duration for which they would prefer to keep their money invested. The rate of return they would likely to earn from the investment.
Information Collection FrameworkSelecting Method of data : Primary sources-getting respondent to answer the questionnaire.
Scaling Techniques : Quantitative Sample Selection : Salaried/Self Employed/Professional/Retired. Sample Size : 250
Type of Sampling : Simple
Analyses and Interpretation of DataGENDER AGE GROUP
27.60%Male Female
21.60%
16.80%18-25 25-35 35-45
72.40%
28.40%
33.20%
45 Above
EDUCATIONAL QUALIFICATION
Graduate
18.80% 18.80% 25.20%Post Graduate Professional Others
OCCUPATION
37.20%
11.60%
7.20%Salaried
34.00%47.20%
Self Employed Professional Retired
What is your frequency of investments?
FREQUENCY OF INVESTMENTS12.65%
26.13%22.04% 24.08% 15.10%
Weekly Monthly Quarterly Half Yearly Yearly
Respondents prefer weekly investments followed by half yearly.
What is the most preferred investment type?
6.12% 6.53%
8.16%
PREFERRED INVESTMENT TYPEBank Fixed Deposits
30.20%
10.20%3.67% 16.35% 17.14% 1.63%
National Service Schemes Insurance Policies Stock Market Commodities Real Estate
Bank Fixed Deposits are most preferred investment type.
DID YOU GET ADEQUATE RETURNS FROM YOUR INVESTMENTS? ADEQUATE RETURNS13.06%
Yes
No
86.94%
Most of the respondents feels that they are getting adequate returns.
YOUR DECISION TO INVEST DEPENDS UPON?0.43% 14.69% 18.77%
DECISION DEPENDENCYPast Performance Economic Scenario Industry Analysis Advice
21.22% 44.89%
Others
Most of the investment decisions are taken according to economic scenario followed by industry analysis
ARE YOU CURRENTLY SATISFIED WITH YOUR INVESTMENTS?
SATISFIED WITH INVESTMENT
19.18%
Yes No80.82%
Most of the respondents are satisfied by their investments
WHAT IS YOUR OBJECTIVE OF INVESTMENT?OBJECTIVE OF INVESTMENT
42.44%
36.73%
Return Tax Saving Savings
20.83%
Savings is the main objective of the investment
INVESTMENTS PRIORITIESAs per the respondents the ranks for the investments are as follows
1.Bank Fixed Deposits 2.Insurance Policies 3.Real Estate 4.Stock Market 5.Mutual Funds 6.Public Provident Funds 7.Commodities 8.National Saving Certificates
INVESTMENT DECISION5 4.5 4
3.5
3
RATING
2.5
2
1.5
1
0.5
0
Research Reports Rating
2.8
Family/ friends Opinion 4.6
Newspaper/ News Channel 3.9
Stock Broker Advice 3.2
Co Worker Opinion 4.4
WHAT TYPE OF INVESTMENT YOU OPT FOR?DEGREE OF RISK OF THE INVESTMENT6.12%
47.75% 46.13%
Less Risky Moderately Risky Highly Risky
Less Risky and Moderate Risky is highly preferable.
AVERAGE RATE OF RETURN YOU EXPECT?AVERAGE RATE OF RETURN EXPECTED
7.75% 21.23%
Up to 10% 30.61%More than 10% Up to 15% More than 15% up to 20% More than 20% 40.41%
Most respondent expect More than 15% up to 20%
WHICH INVESTMENT HAS GENERATED YOU THE MOST REVENUE?INVESTMENT WHICH HAS GENERATED MOST REVENUE TO THE RESPONDENT Bank Fixed Deposits5.71% 5.71% 18.36% 3.65% National Service Schemes Insurance Policies Stock Market 4.90% 22.49% 15.51% Commodities Real Estate Mutual Funds 7.35% 16.32% Public Provident Funds Others
Real Estate has generated highest profit to the respondents.
ACCORDING TO YOU WHICH INVESTMENT IS MOST RISKY?2.86% 2.86%
RISK FACTOR OF THE INVESMENT0.82% 0.40% 1.22%
0.82%
Bank Fixed Deposits7.35%
National Service Schemes Insurance Policies Stock Market
21.63%
Commodities Real Estate62.04%
Mutual Funds Public Provident Funds Others
Investing in Stock Market in most risky according to respondents
What is your investment horizon?INVESTMENT HORIZON
41.23% 58.77%
Short Term (0-3 Yrs.) Long Term (3 yrs. above)
Long term investment is mostly preferred by respondents
How do you overcome the risk existing in financial market?
HOW DO RESPONDENTS OVERCOME THE RISK2.04% Financial Expert 24.49% 29.80% 43.67% News Paper Friends / Co-workers Others
Most of the respondents seek the advice of financial experts
COMPARISON B/W SALARIED, SELF EMPLOYED PROFESSIONAL & RETIRED ON FOLLOWING BASIS:1. INVESTMENTS OPTIONS2. FREQUENCY OF INVESTMENT 3. OBJECTIVE OF INVESTMENT
INVESTMENT OPTIONS35
3025 20
1510 5 BANK MUTUA COMM INSURA DEPOSI L ODITIES NCE TS FUNDS SALARIED 30 2 11 3 SELF EMPLOYED 25 7 22 9 PROFESSIONAL 13 0 6 2 RETIRED 6 0 3 2 Series5 0 0 REAL STOCK ESTATE MARKE S T 10 11 12 26 3 1 0 2 OTHER S 11 6 2 1
PPF 5 5 2 3
NSC 0 4 0 0
FREQUENCY OF INVESTMENT35 30 25 20 15 10
50 SALARIED SELF EMPLOYED PROFESSIONAL RETIRED WEEKLY 2 28 1 0 MONTHLY 24 17 6 7 HALF YEARLY 15 28 9 7 QUATERLY 13 20 4 0 YEARLY 29 23 9 3
OBJECTIVE OF INVESTMENTS60 50
4030 20 10 0 RETURNS TAX SAVINGS SAVINGS
SALARIED 13 43 27
SELF EMPLOYED 48 30 38
PROFESSIONAL 24 12 27
RETIRED 3 2 2
CONCLUSION:1. According to the survey done the most preferred investment options are Stock Markets, Fixed Deposits and Insurance. Most of the people said that this is because they incur greater returns and less risk. Fixed Deposits stands on the top position amongst the investing options followed by Insurance Policies and stock Market. Most of the people get information regarding these through Newspapers as well as magazines according to the analysis. Friends and relatives provide almost equivalent information and helps in making decisions. The major factor that the investors keep in mind is- Savings. Mostly people invest to maximize their savings while other majorities invest for returns and tax savings. Majority of the investors like to invest for a short duration of 1-3 years. Salaried, professionals and retired prefer to invest in fixed deposits whereas self employed prefer to invest in stock markets. Main objective for investment for salaried is tax savings whereas for self employed is returns.
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Limitations of Research: The study was limited to only eight investment options. The area of survey is limited (only Delhi, NCR, Mumbai, Allahabad) due to time constraint. Some people do not provide true information by questionnaire survey.
ITS NEVER TOO EARLY OR LATE TO START TO INVEST, BUT NEVER DO IT BLINDLY