I

II

Students Declaration


We Jay Patel & Karan Shah hereby declare that the report for Comprehensive
Project Report entitled A Study on Investors Behavior towards the Investment
Alternatives with Special Reference to major towns of Kheda District. is a result of our
own work & our indebtedness to other work publications, references, if any have been duly
acknowledged.


Place: - Kapadwanj Signature:-
Date: -
Jay M Patel
(127240592006)

Karan A Shah
(127240592015)











III


Preface


Experience is the best teacher. This saying has played a guiding role in
including as a part of the curriculum of the M.B.A Programs of the Gujarat
Technological University. Quite frequently these days people talk of practical
knowledge, both in academic institutions and outside. At each and every aspect in life we
require some sort of theoretical and practical knowledge. It means only classroom lecture
may not be enough to get the proper knowledge either in the business field or social life.
This comprehensive study report on the topic in Semester - 4 would allow us to know the
various environmental and personal factors that are main for the less knowledge of the
students regarding finance and how to interpret the study in our countries context, and it
allow the student study real practical of the research.

The main objective behind comprehensive project in management study is to
have exposure to the modern practices in management. To be successful, one need to be a
good learner and being a MBA student helps one to develop a relational thinking and thereby
oneself from a normal human being into a disciplined and dedicated professional. A learning
attitude will sharpen your knowledge and skills in a particular field, which in turn help to
achieve and attain the desired goals and heights in ones career.

We know that Project is for the development and enhancement of the
knowledge in this particular field. It can never be possible to make a mark in todays
competitive era only with theoretical knowledge when industries are developing at
global level, practical knowledge of administration and management of business is
very important. Hence, such kind of platform is of great importance for a student and full
efforts should be made to capitalize on it.

With a view to expand the boundaries of thinking, we have and will have
undergone Comprehensive Study Project Report in second year of MBA (sem-3 & 4) .We
have made & will made deliberate efforts to collect the required information and fulfill
project objective.




IV

Acknowledgement


Any work accomplishment is seldom on person achievement there are usually
many people behind it who contribute to its goodness in form or the other. To
acknowledge is very great way to show your gratitude towards the people who have
contributed in your success in one or other way.

We find words inadequate to express our gratitude to Ms Disha Bhagat.(Asst.
Prof.) for providing us an opportunity to carry out our Comprehensive study (CPR) for
his continuous guidance and supervision and support during the project. We sincerely
thank him, despite his tight schedule spared time for discussions and gave basic ground
rules and directions, without which completion of this project would have been impossible.

We are highly grateful to the management of K. P. PATEL SCHOOL OF
MANAGEMENT for giving us the opportunity to work on this Project and in the process
enriches ourselves with immense learning on all aspects.

At last but not the least we also express our feeling of gratefulness to all those who
directly or indirectly have inspired us and helped us to prepare this report.












V

Executive Summary

This project will be undertaken with by us for conducting the comprehensive
study behavior of investors towards the various investment alternatives with special
reference to major towns of Kheda District. The main objective of this report is to know
which is the best investment alternative in the eye of the investors in present senario.

Ideally, the focus of the report will be on investors. Furthermore, our definition of
investors will not be a limited as much as possible to only those persons who are
investment in any investment alternatives and taken a decision relating to investment in the
market. Investment behavior refers to the attitudes, perception and willingness of the
individuals and institutions in placing their savings in various types of financial assets, more
commonly known as securities.

A current national concern is the less investment in economy. Investors are
not receiving the financial knowledge necessary to be successful in todays fast paced
economy. Due to an increasingly complex marketplace, investor need greater knowledge
about their personal finances and the economy. The financial decisions made early in life
create habits difficult to break and affect investors ability to become financially secure
adults. Most recent studies show average personal financial scores declining with average
scores close to a failing grade.


The investor would create to collect data specifically for this study. The
purpose of this descriptive, cross-sectional, study is three fold. First, we will investigate
the personal financial knowledge, attitudes and behavior of a sample of investors using
the personal characteristics of gender, class rank, and socioeconomic status (SES). Second,
we will examined investment alternative they are selected for investment purpose.
Finally, we will examine how investors financial knowledge and attitudes correlated with
their financial decision for investment.






VI

Table of Content
Sr. No. Content Page No.
A Declaration II
B Preface III
C Acknowledgement IV
D Executive Summary V
1 Introduction:- 1-25
Overview of investment in India 3
INDUSTRY PROFILE 4
Description on various investment avenues 6
Things to Consider Before You Make Investing Decisions 20
Basic Investment Objectives 22
Thumb rule of investment 25
2 Literature Review 26-30
3 Research Methodology 31-35
Problem of the Study 32
Objective of the Study 32
Research Design 33
Sample Design 33
Sources of Data 34
Hypothesis Defined 35
Scope of the Study 35
VII

Limitations of the Study 35
4 Data Analysis 36-49
5 Hypothesis Calculation 50-54
6 Findings & Recommendations 55-58
7 Conclusion 59-60
E BIBILIOGRAPHY

IX
F Annexure X
















VIII

List of Graphs & Table
Sr. No. Content Page No.
1 DEMOGRAPHICS OF THE SAMPLE INVESTOR 38
2 TIME PERIOD PREFERED TO INVEST 41
3 FREQUENCY OF MONITORING THE INVESTMENT 42
4 INVESTMENT TARGET 43
5 FINANCIAL ADVISOR 44
6 MULTIPLE SAVING OBJECTIVES OF RESPONDENTS 45
7 MULTIPAL PURPOSE BEHIND INVESTMENT 46
8 FACTORS CONSIDERING BEFORE INVESTING 47
9 RIVISING PORTFOLIO 48
10 INVESTMENT OBJECTIVE 49
11 HYPOTHESIS CALCULATION 1 51
12 HYPOTHESIS CALCULATION 2 53









IX

BIBILIOGRAPHY

BOOKS

The Mindful Investor, by Maria Gonzalez and Graham Bayron.
Understanding Indian Investors, by Jawahar Lal.
Security Analysis and Portfolio Management by Punithavathi Pandian.
Investment Analysis and Portfolio Management, by Prasanna Chandra.

RESEARCH PAPERS

An Empirical study on Indian individual investor s behaviour, by Syed Tabassum Sultana.

WEB SITES

www.tax4India.com
www.economictimes.Indiatimes.com
www.business-standard.com
www.Indiamoney.com
www.moneymanagementideas.com
www.savingwala.com

















X

ANNEXTURE

QUESTIONNAIRE ON INVESTORS PERCEPTION ABOUT INVESTMENT AVENUES

Dear Respondent,

We are student of KSMCS doing research project on A Study on Investors Behavior towards the
Investment Alternatives with Special Reference to major towns of Kheda District. Your information will
help us to reach the conclusion. Please help us for the same. We assure you the data will be kept confidential
and will be used only for research purpose.

1. Name: ____________________________ Gender Male ( ) Female ( )

2. Designation: ___________________Organization: _____________________


3. Age Group: Below 20 ( ) Between 21-30 ( ) Between 31-40 ( ) Above 41 ( )

4. Qualification: Under Graduate ( ) Graduate ( ) Post Graduate ( ) Other:___________________


5. Occupation Salaried ( ) Student ( ) Business ( ) Professional ( ) Retired ( ) Housewife ( )
Other: _________________________

6. Annual income: Below Rs. 2,00,000 ( ) Rs. 2,00,001- Rs 4,00,000 ( )
Rs. 4,00,001-Rs 6,00,000 ( ) Above Rs. 6,00,001 ( )

7. Do you have a financial advisor? Yes ( ) No ( )

8. What best describes your investment experience?
Beginning (no investment experience) ( )
Moderate (comfortable with fixed deposits, chit funds, post office) ( )
Knowledgeable (has bought or sold individual shares of stock or bonds) ( )
Experienced (frequently trade in stocks, commodities, options and futures) ( )
9. Are you aware about investment avenues? Yes ( ) No ( )

10. Are you aware of the following investment avenues? (Tick which ever applicable in the boxes).

1.


Safe/Low Risk Investment Avenues:
Savings Account. ( ) Bank Fixed Deposits. ( ) Public Provident Fund. ( )
National Savings Certificates. ( ) Post Office Savings. ( ) Government Securities. ( )
2.

Moderate Risk Investment Avenues:
Mutual Funds. ( ) Life Insurance. ( ) Debentures. ( ) Bonds. ( )
3.

High Risk Investment Avenues:
Equity Share Market. ( ) Commodity Market. ( ) FOREX Market. ( )
4.

Traditional Investment Avenues:
Real Estate (property). ( ) Gold/Silver. ( ) Chit Funds. ( )
5.


Emerging Investment Avenues:
Virtual Real Estate. ( ) Hedge Funds. ( ) Private Equity Investments. ( ) Art and Passion. ( )


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11. What do you think are the best options for investing your money? (choose from above list)
(Rank in the order of preference)
1._________________________ 2._________________________ 3.______________________
4._________________________ 5._________________________ 6._______________________

12. Reasons for selecting these options :
1_________________________________________________________________________________
2_________________________________________________________________________________

13. In the past, you have invested mostly in (write as many as applicable)
_______________________________________________________________________________________
______________________________________________________________________________________

14. In which sector do you prefer to invest your money? Why?
Private Sector ( ) Government Sector ( ) Public Sector ( ) Foreign Sector ( )
__________________________________________________________________________________

15. What are your savings objectives?

Children s Education ( ) Retirement ( ) Home Purchase ( ) Children s Marriage ( )
Healthcare ( ) others______________________________________

16. What is your investment objective?

Income and Capital Preservation ( ) Growth and Income ( ) Long-term Growth ( )
short-term Growth ( ) Other____________________________________________________

17. What is the purpose behind investment?

Wealth Creation ( ) Tax Saving ( ) Earn Returns ( ) Future Expenses ( ) Other____________

18. Do you have a savings and investment target amount you aim for each year?

Yes ( ) No ( ) if yes: Amount____________________________________________________

19. At which rate do you want your investment to grow?
Steadily ( ) At an Average Rate ( ) Fast ( )

20. 1 Which factor do you consider before investing? ( Give the proper Numbers )

Strongly agree Agree Nautral Disagree Strongly Disagree
Safety of principal
Low risk
High return
Maturity period

21. How often do you monitor your investment?
Daily ( ) Monthly ( ) Occasionally ( )

22. What percentage of your income do you invest?
0-15% ( ) 15-30% ( ) 31-50% ( )

23. What is the time period you prefer to invest?
Short-term (0-1yrs) ( ) Medium-term (1-5yrs) ( ) Long-term (>5yrs) ( )
XII


24. Are you revising your portfolio? Yes ( ) No ( )

25. What is your source of investment advice?
Newspapers ( ) Books ( ) News Channels ( ) Internet ( ) Family or Friends ( ) Magazines ( )
Advisors ( ) Certified Market Professional/Financial Planners ( )







Thank you !