A study on investors preference regarding investments avenues in india

1. “A Study on Investor’s Preference
Regarding Investment Avenues in India”
BY:
NAME : Mohammed Ali L B
USN: 20CQCMD073
SEMESTER : 3rd Sem

2. INTRODUCTION
 People first started doing business, they began to earn money or other forms of compensation, which fueled
their desire to engage in more economic operations.
 People grasped the concept of profiting from a business. They came to the decision that in order to maintain
the firm running effectively, they needed to reinvest their profits.
 The process of selecting a specific alternative from a variety of options is known as decision-making. Making
decisions is a difficult task. Decisions can never be made in the heat of the moment.
 There are number of financial assets or investments avenues available in India. Each has its own strengths and
weaknesses.
 Savings form an important part of the economy of any nation. with the savings invested in various options
available to the people, the money acts as the driver for growth of the country.

3. Scope Of The Study
 The poll, which is being conducted to learn about investors' preferences for investment avenues in India,
will be analyzed as part of the study's scope. The investing field is so wide that an in-depth investigation
is difficult due to its size.
OBJECTIVE
 To investigate investor knowledge of investment opportunities.
 To learn about the investors' preferences for investment avenues.
 To have a thorough understanding of the many investing options available in the industry.
 To learn about the variables that investors examine before making an investment.

4. RESEARCH METHODOLOGY
 Method of Data Collection
Data collecting can be divided into two categories.
• Method of secondary data collection.
• Method of primary data collection.
Individual investors collected or analyzed data during the primary stage. Secondary data was gathered from
a variety of sources, including journals, websites, periodicals, and research papers.
 A "QUESTIONNAIRE" was used as a research tool in this study. which comprises questions about
investment patterns, general awareness, investment criteria, and The questions are usually closed-ended to
make it easier for the investors toprovide information.
 Each question is classified and charted, then, at that point, assessed and investigated. The instrument is
picked in view of the kind of information, and just the apparatus that is best fitting for that sort of
information is picked.

5. INVESTMENT AVNENUES

6.  BONDS OR FIXED INCOME SECURITIES
• This is normally made up of periodic interest payments over the life of the instrument and a principal payment
at the time of redemption (s).
• Fixed income instruments like as government securities, RBI savings bonds, private sector debentures, public
sector bonds, and preference shares are discussed in this section.
 MUTUAL FUND
• It is a trust that pools the savings of a group of investors who all have the same financial goal. The funds raised
are then invested in capital market instruments such as shares, debentures, and other securities.
• The income generated by these assets, as well as the capital gains gained, are distributed to unit holders in
proportion to the number of units possessed by them.
Shares
• A share is a document issued by a corporation that grants the holder the right to own the company.
• The all out value capital of a company is partitioned into equivalent bits of little sections, each called an offer.
For instance, an organization's complete value capital of Rs. 20000000 is partitioned into 2000000 units of Rs.
10 each. An offer is characterized as a unit of Rs. 10 in esteem.

7.  LIFE INSURANCE
• Extra security items serve two primary client needs: assurance and investment funds.
• Assurance benefits approaches are expected to defend the policyholder (or his wards)against the
monetary outcomes of unfortunate events like demise or long haulailment/handicap.
 REAL ESTATE
• Property management is an important part of real estate.
• This investments require a hefty initial investment.
• This is a great way to diversify your investment portfolio.
 PRECIOUS OBJECTS
• Precious objects are items that are generally small in size but highly valuable in monetary terms.
• The important precious objects are:
Gold and silver
Precious stones
Art objects

8. DATA ANALYSIS
Test Size : 110
 The examples were gathered from an aggregate of 110 substantial respondents. There were a few
reactions which were invalid they were dismissed and were supplanted by right and substantial reactions.
 According to our study of 110 investors, around 80% of those polled have a collegeeducation. As a result,
they are well-versed in many investing options.
 Only 46 respondents earn less than Rs. 5 lakh every year. Around 8% of respondents had an annual
income of more than Rs. 15 lakhs, allowing them to invest more.
 Savings increase investment, and approximately 20% of investors have more than Rs. 20000 in monthly
savings. Approximately half of those polled have a monthly savingsplan.
 Only 21 investors have monthly savings is between Rs.20000 and Rs.30000.

9. General Findings
 People invest, but not in a wise manner.
 Some people are aware of investment opportunities, but the majority of respondents do not have sufficient
knowledge.
 Investing objectives and instrument selection are not aligned.
 Understanding of financial management and planning is required.
 People do not have a comprehensive understanding of the market's investment potential.
 Inability to create a balanced portfolio management strategy due to a lack of expertise
 Respondents believe that the administered rate of return on investment is insufficient.
 The inflated rate of return on investment has put investors in a bind.
 Awareness of a certain investment alternative for investment allows investors to continue as they are.
 Financial literacy is required on investment and financial institution routes.

10. SUGGESTIONS
 Financial institutions should raise awareness about potential investment opportunitiesand explain what
risk is and how it may be avoided.
 The government should encourage financial institutions to hold investor educationworkshops on various
investment opportunities.
 There is a need for financial awareness and to create confidence in investors.
 Industry groups and non-governmental organizations (NGOs) to educate investors about the importance
of saving and saving properly.
 They should also educate the Indian public on how to fulfil their financial goals through financial security
and wealth creation.

11. CONCLUSION
 Following a study of a variety of investment options, it was determined that while people who are
investing their money are aware of the various investment options available in the present market in
India, they still prefer bank deposits to other investments. According to a research of investors, the safety
and high return of money are important factors for individuals when it comes to safeguarding their money
in any investment, therefore alternative options for investing money are less desired.
 Rather than the significant risk of earning a bigger sum in return, people usually refer to regular interest
rates. Following the analysis, people began investing large sums of money in the stock market in order to
increase their profits by taking a significant risk.

12. THANK YOU