Assignment Report

Tushar upadhyay Roll no. 311140 MIT SCHOOL OF BUSINESS

Table of CONTENTS
Chapter No. I 1.1 1.2 1.3 1.4 II 2.1 2.2 2.3 III Title Executive summary Introduction Background of the study Need of the study Theoretical background Objectives of the study Research Methodology Research design Data collection Drafting of a questionnaire Data Processing and Analysis Findings Conclusions References Appendices / annexure

Executive summary
This assignment report is about analyzing the investment patterns of various category of working people of India. Using data analysis and random sampling I found that today investors are risk averse. Work hours have increase. The common man who is involved in his day to day affairs cannot invest in complicated options like equity, hence he is happy and content with the ever increasing returns of gold and F.D. PPF and Insurance are essentials, the proverb should be changed to food, water, shelter, PPF and Insurance. Banker who are obviously sound in financial knowledge are what can be termed as smart investors. They spread their investments and do not rely on one shot heavy high risk high return investment.

I
INTRODUCTION

1.1

Background to the study We do research in order to make progress in a field. My view of why we are doing the assignment is that analyzing the investment patterns of different types of people will help the financial investments firms, common people and society as a whole in order to determine the investment habits and make policies, schemes and offers accordingly. Need of the study The study will help in determining the investment habits of common people, if results are accurately derived will help in setting of target audience by the investments firms. Theoretical background Investments are done by common people, firms, companies, corporations and even the government for one common objective of increasing wealth; not money but wealth. The size and spread of investment keeps on increasing with the size of the investor body.

1.2

1.3

Types of investors: Individuals: individuals invest in stocks, bonds and shares in order to use their ideal money and savings Venture capital funds: Pension plans and provident funds and gratuity are form of venture capital funds. They are collected on behalf of employer by the employee. Investment in banks: in the form of Fixed deposits. Real estate investors: Mutual fund investors: some people like to keep it safe, and invest in mutual funds which are called hedge funds, they are intended to protect the less finance savvy investors from risks of share market. Risk is diminished by spreading the investment in different less risky stocks such as blue chip stocks.

Investment means and opportunities: Fixed deposits: safe form of investment Post office saving schemes popular in villages and where banks cannot reach NSC and government bonds- even secure than a bank FD Provident fund: every man or woman trust it because of tax savings and definite returns Debentures, equity and mutual funds: high risk with high returns, preferred by finance savvy people. 1.4 Objective of the study

To ascertain demand of various investment options and try to find trend and relationship between age and investment habits of people belonging to different occupations.

II
RESEARCH METHODOLOGY

2.1 i)

Research design Sample unit: A-teaching professionals, B-Self Employed, C-IT professionals, D- Class1 Employees, E- Bankers, F-Hospitality Professionals Sample size: 10 of each category, total sample size: 60 Sample plan: Random sampling Data collection Only primary data is mainly used. Primary data was collected using questionnaires only. Interviewing was not possible as respondents were located out of state

ii) iii) 2.2

2.3

Questionnaire I believe questionnaire should be as short as possible to keep away the frown on respondents face. My questionnaire looked like below:

QUESTIONNAIRE

Dear Sir/ Madam, The purpose of this questionnaire is to analyze the investment patterns of different working class people. This questionnaire will help me in completing my important assignment at my college MIT-SOB, Pune. Further this study will help you and investment firms who is investing what and where. Its beneficial to all. Kindly do the necessary. 1) Name: 2) Age ___ 3) Occupation ( please select one) Teacher Hospitality IT professional class 1 Banking professional Self employed

Professional

employee

4) Gender:

male

female

5) What is your annual income ______________ 6) Where do you invest, please tick the options where you invest:Fixed deposits Provident funds Equity and debentures (share market in simple words) Life insurance Mutual funds Real estate Gold Life insurance Post office

III
Data analysis, interpretation, findings and conclusion

The following charts gives the depiction of the data collected. Instead of writing long stories about the data, graph is the most direct and concrete way of analyzing data

Age groups
30 25 20 NUMBER 15 10 5 0 18-30 30-45 AGE 45-55 55&above 9 6 17 28

Occupation numbers
25 20 15 10 5 0 Teacher self employed IT professionals class 1 employee Banking Hospitality professionals professionals

People and Investment

60 50 40 30 20 10 0

Investment proportion

Findings and Conclusion: On the basis of above charts and data collected we find that majority of the people play it safe. They like to keep it safe and invest in safer options by government and big institutions such as LIC India, State bank of India. It was an interesting trend which was observed in postal service investment option, most of the inventors belonged to the class 1 employee category, this was may be due to additional benefits offered to a government officer by the postal department. Secondly most of the heavy investors are in the age group of 30-45 and are IT professionals, although in my survey the sample size of IT professionals was the highest, this would have contributed to their being the heavy investors but in general people gain financial stability and IT professionals especially, that is why they are the heavy investors. People still are risk averse and do not heavily invest in mutual funds, equity and debentures mainly because investment in this instruments are risky, involves a lot of hassle and also share and stock market of India is highly volatile in todays time. People are a bit old fashioned and orthodox in terms of investment, they still love their gold instead of knowing buying gold increase the fiscal deficit, but gold is safe and sure investment hence gold comes third after PPF in terms of most invested method. PPF is almost as if necessary to live in this world, therefore any sane employee uses it. We conclude that although our findings are a bit conventional and usual but one important thing that came out as a conclusion was that different people doing different kind of work prefer different types of investment. Being financially better equipped a banker uses all possible sources of investment and diversifies as much as possible, An IT professionals who is in his late 20s to early 30s look for making quick money and are willing to take the risk of mutual funds. Class 1 employees who are also knows as gazetted officers are in their late 40s, they want security of investment and relatively less hassle, hence they invest in gold, F.D for securing their life after retirement and life insurance for their future generations. Time to time all the groups do invest in real estate and gold when they see the opportune moment. References http://theglobaljournals.com/paripex/file.php?val=MTU2Ng%3D%3D http://www.investopedia.com/university/beginner/beginner5.asp