1. ANNAMALAI UNIVERSITY
PROFORMA FOR APPROVAL OF
PROJECT PROPOSAL
(Strike out whichever is not applicable)
Enrolment Number : 2491700002
1. Name and Address of the
Student
: Abhinav Agarwal
Ramaiah Institute of Management Sciences (RIMS)
#15, New B.E.L Road, MSR Nagar, MSRIT Post, Bangalore
Karnataka 560054
2. Subject Area of the Project : Finance
3. Title of the Project
(In capital letters)
: AN ANALYSIS OF INVESTOR’S PREFERENCE ON
DIFFERENT INVESTMENT AVENUES IN INDIAN
FINANCIAL MARKET
4. Name and Official Address of
the Research Supervisor.
(Bio-Data should be enclosed)
: PROF. K V SRIDHAR
Ramaiah Institute of Management Sciences (RIMS)
#15, New B.E.L Road, MSR Nagar, MSRIT Post, Bangalore
Karnataka 560054
Signature of the Student :
Date :
Signature of the Research Supervisor:
Name: PROF. K V SRIDHAR
Academic Year : 2018-19
Number of Candidates : … … … … … …
(Number of candidates should not exceed Five for a
Research supervisor in an academic year)
Encl : 1. Synopsis
2. Bio- Data of the Research Supervisor
(for office use only)
Scrutinised by Approved / To Resubmitted
Head – Management Wing

2. PROJECT REPORT ON
AN ANALYSIS OF INVESTOR’S PREFERENCE ON
DIFFERENT INVESTMENT AVENUES IN INDIAN
FINANCIAL MARKET
By
ABHINAV AGARWAL
ENROLLMENT NO 2491700002
For partial fulfillment of the requirements of final year MBA curriculum of
Two years Full time MBA (Industry Integrated) Programme.
Submitted to:
Through

3. CONTENTS
S.NO. CHAPTER SCHEME PAGE NO.
1. INTRODUCTION 1-2
2. REVIEW OF LITERATURE 3
3.
RESEARCH
METHODOLOGY
4-5
4.
PROPOSED PLAN OF
WORK
6
5. EXPECTATIONS 7
6. REFRENCES 8

4. INTRODUCTION
In finance, an investment is a monetary asset purchased with the idea that the asset will provide
income in the future or appreciate and be sold at a higher price. Mere earning will not help one
to secure the future, so it becomes important to invest.
One of the important reasons why one needs to invest wisely is to meet the cost of Inflation.
Inflation is the rate at which the cost of living increases. The cost of living is simply what it
costs to buy the goods and services you need to live. Inflation causes money to lose value
because it will not buy the same amount of a good or a service in the future, as it does now or
did in the past. The sooner one starts investing the better. By investing early one, allow one’s
investments more time to grow, whereby the concept of compounding increases one’s income,
by accumulating the principal and the interest or dividend earned on it, year after year. The
dictionary meaning of investment is to commit money in order to earn a financial return or to
make use of the money for future benefits or advantages. People commit money to investments
with expectations to increase their future wealth by investing money to spend in future years.
Before making any investment, one must ensure to:-
 Obtain written documents explaining the investment.
 Read and understand such documents.
 Verify the legitimacy of the investment.
 Find out the costs and benefits associated with the investment.
 Assess the risk-return profile of the investment.
 Know the liquidity and safety aspects of the investment.
 Ascertain if it is appropriate for your specific goals.
 Compare these details with other investment opportunities available.
 Examine if it fits in with other investments you are considering or you have already
made.
 Deal only through an authorized intermediary.
 Seek all clarifications about the intermediary and the investment.
 Explore the options available to you if something were to go wrong, and then,
If satisfied, make the investment.

5. Investing money is a stepping-stone to manage spending habits and prepare for the future
expenses. Most people recognize the need to put their money away for events or circumstances
that may occur in future. People invest money to manage their personal finances some of them
invest to plan for retirement, while others invest to accumulate wealth.
Most investors have five common needs from their investments:
1. Security of original capital.
2. Wealth accumulation.
3. Tax Advantages.
4. Life cover.
5. Income.
STATEMENT OF THE PROBLEM
This study on investor’s behaviour is an attempt to know the profile and the characteristics of
the investors so as to understand their preference with respect to their investments. The focus
of the study is to discover the influence of demographic factors like gender and age on risk
tolerance level of the investor. The study mainly concentrates on the factors that influence an
individual investor before making an investment. It also studies the various patterns in which
investors like to invest their money based on their risk tolerance level and other demographic
factors like income level, occupation etc.

6. REVIEW OF LITERATURE
Chalapati Rao K.S., Murthy M.R. and Ranganathan K.V.K (1999) in their research article
“Some aspects of the Indian Stock Market in the post liberalization period” evaluates that as a
part of the process of economic liberalization, the stock market has been assign an important
place in financing the Indian corporate sector. Besides enabling mobilizing resources for
investment, directly from the investors, providing liquidity for the investors and monitoring
and disciplining company management are the principal functions of the stock market.
Ramasamy T and Vinayakamoorthy S (2000) had concluded the study on “Investment – a
development factor on savings”. The study reveals that, both savings and investment had
equality. It means that an individual wants to have more investment, first he has to save that
extent, savings and investment decisions are taken separated by an investor with different
motives. The savings and investments are brought about by the changes in income.
Rajarajan V (2000) had conducted a study on the title of “Investors life styles and investment
character”. The study reveals that active investors are dominated by the age group below 35
years, individuals group by above 50 years and passive investors by the age group of 35 to 50
years. Active investors group and passive investors group have short-term perspective while
making their investment decision. Most of the investors read two or more sources of
information to make investment decisions and most of them tend to make investment decisions
on their own.
Anjan Chakarabarti and Harsh Rungta (2000) stressed the importance of brand effect in
determining the competitive position of the AMCs. Their study reveals that brand image factor,
though cannot be easily captured by computable performance measures, influences the
investor’s perception and hence his fund/scheme selection.
Rajeswari T.R and Ramamoorthy V.E (2001) have conducted a study to understand the
factors influencing the fund selection behaviour of 350 MF investors in order to provide some
meaningful inferences for Asset Management Companies (AMC) to innovatively design the
products. The analysis was done on the basis of product qualities, fund sponsor qualities and
investor services using questions framed on a five point Likert scale.

7. RESEARCH METHODOLOGY
The logic behind considering research methodology is that one can have knowledge about the
method and procedure adopted for achievement of objective of the project.
1. OBJECTIVES:
 To study the investment characteristics of investors.
 To study the objectives of investment plan of an investors.
 To know the preferred investment avenues of investors.
 To identify the preferred sources of information influencing investment decisions.
 To understand the risk tolerance level of the investors and suggest a suitable portfolio.
 To study the dependence or independences of the factors like Gender, Age, income
level of the investor and tolerance level.
2. HYPOTHESIS:
I. H0: Gender and Risk Tolerance of Respondents are not dependent.
H1: Gender and Risk Tolerance of Respondents are dependent.
II. H0: Age and Preferred Investment Avenues by investors are not dependent.
H1: Age and Preferred Investment Avenues by investors are dependent.
III. H0: There is no significant relationship between Income and Investment Avenues
preferred by investors.
H1: There is significant relationship between Income and Investment Avenues
preferred by investors.
IV. H0: Age and Risk Tolerance of the investors is not dependent.
H1: Age and Risk Tolerance of the investors is dependent.

8. 3. SAMPLING PLAN AND METHODOLOGY:
 Sample size: This refers to number of respondents to select from the different regions
of India to constitute a sample. The sample size of minimum 100 investors is taken.
 Sampling technique: Many Investors will be reluctant to reveal the data about the
Investments details especially the amount of money invested.
So, Referral Sampling Method is used for this study.
 Data collection: Information has been collected from both primary and secondary data.
o Primary data: Primary data are those, which are fresh and are collected for the
first time, and thus happen to be original in character. The primary data will be
collected through direct personal interviews (open ended and close-ended
questionnaire).
o Secondary data: Secondary data are those which have already been collected by
someone else and which already had been passed through the statistical process.
The secondary data will be taken through web sites, books, journals, newspapers
and magazines.
4. PROPOSED TOOLS TO BE USED AND ANALYSIS:
Descriptive research involves collecting numerical through self-reports collected, through
questionnaires or interviews (person or phone), or through observation.
For present study, the Research was descriptive and conclusion oriented.
To analyse the data with the help of questionnaire, following tools will be used
o Likert scale: These consist of a number of statements which express either a
favourable or unfavourable attitude towards the given to which the respondents are
asked to react. The respondents responds to in terms of several degrees of
satisfaction or dissatisfaction.
o Percentage and pie charts: Those tools will be used for analysis of data.
STATISTICAL TECHNIQUE, Chi Square Test to test the Hypothesis Statement of the
research i.e., dependency / independency of various factors

9. PROPOSED PLAN OF WORK
TIME PERIOD WORK TO BE DONE
1ST
– 2ND
WEEK INTRODUCTION
3RD
-5TH
WEEK LITERATURE REVIEW
6TH
-7TH
WEEK
PREPARATION OF
QUESTIONNAIRE AND
COLLECTING THE RESPONSE
8TH
-9TH
WEEK ANALYSIS OF DATA COLLECTED
10TH
-11TH
WEEK
FINDINGS OF THE RESEARCH
AND SUBMISSION

10. EXPECTATION
The main reason to conduct this research is that WHAT ARE DIFFERENT INVESTMENT
AVENUES IN INDIAN FINANCIAL MARKET WHERE INVESTORS MAKE
INVESTMENT AND TO STUDY ABOUT THE VARIOUS FACTORS BETWEEN
INTERDEPENDENCY WITH AGE, RISK AND GENDER. There are numerous types of
investment by many companies in NSE and BSE in which an investor can look to invest. As a
current scenario, what are the factors according to investors show interest in investments, what
is the Moto of their investment? On what Basis they prefer One Investment Over the other.
In this research I will have a sample size of investors and will be asking some of the question
of investment preference before investing or at the time of investing or if any previous
investment made, through the help of questionnaire and will get to know the current preference
of the investor.
The outcome of this research report will help in developing the areas for the organization in
which the investors’ preference are more favorable, Investments are influenced by income
level, age and Gender of the investors.

11. REFERENCES
1. Rao Chalapati K.S., M.R. Murthy and K.V.K Ranganathan, (1999), “Some aspects
of the Indian Stock Market in the post liberalization period‟, Journal of Indian School
of Political Economy.
2. Ramasamy T and Vinayakamoorthy S (2000), “Investment – a development factor
on savings”, unpublished thesis.
3. Rajarajan V (2000), “Investors life styles and investment character”, unpublished
thesis.
4. Anjan Chakrabarti and Harsh Rungta (2000), “Mutual Funds Industry in India: An
in depth look into the problems of credibility, Risk and Brand”, The ICFAI Journal of
Applied Finance, Vol.6, No.2, April, 27-45.
5. Rajeswari, T.R., and Ramamoorthy V.E. (2001), “An Empirical Study on Factors
Influencing the Mutual Fund/Scheme Selection by S mall Investors”. Retrieved from:
http://www.utiicm .com/Cmc/PDFs/ 2001/rajeswari.pdf. (Accessed on 12 May 2009).