a survey of investors for analyzing the various aspects of fixed deposit market for mmfsl

TITLE

Industry Internship Project Report Submitted in Partial Fulfillment

For The Degree Of Post Graduate Diploma in Management Programme

Submitted ByName:- Satyendra Singh

Roll No:- 59 Batch:- 2012-14

Under the guidance ofDr. Gurpreet Singh Arora Mr. Alpesh AjagiyaDean Releationship Manager FDSt. Kabir Institute of Professional Studies Mahindra & Mahindra

Finanacial Services LTD.

Submitted ToSt.Kabir Institute of Professional Studies

June 2013

St.Kabir Institute of Professional Studies Ahmedabad

Declaration

I hereby state that the Project Report titled, “A survey of investors for analyzing the

various aspects of Fixed Deposit market for MMFSL At Amreli” submitted by me to St.Kabir

Institute of Professional Studies, Ahmadabad, is a bonafide work undertaken by me as a

part of Industry Internship Program and is not submitted to any other University or

Institution for the award of any degree/diploma or published any time before.

Date: 15th July, 2013

Name: Satyendra Singh

(PGDM Batch 2012-14)


Certificate

This is to certify that the IIP project titled, “A survey of investors for analyzing the

various aspects of Fixed Deposit market for MMFSL At Amreli ” is submitted by

Satyendra Singh in partial fulfillment of the requirements for the degree of Post Graduate

Diploma in Management Program of St. Kabir Institute of Professional Studies, Ahmedabad.

Date: 15th July, 2013

Signature: __________

Gurpreet Singh Arora

(Faculty Guide)

\


ACKNOWLEDGEMENT

"Gratitude is not a thing of expression; it is more a matter of feeling."

There is always a sense of gratitude which one express towards others for their help and

supervision in achieving one’s goals. This formal piece of acknowledgement is an attempt to

express the feeling of gratitude towards people who helped me in successful completion of my

training.

I express my sincere gratitude to my corporate mentor Mr.Alpesh Ajagiya, Relationship

Manager FD, Mahindra Finance, Regional office Rajkot for his able guidance, continuous

support and cooperation throughout my project, without which the present work would not have

been possible. I would also like to thank Mr. Shivraj Wala branch Manager Mahindra Finance

at Amreli branch for giving me an opportunity to be a part of the team and learn a lot from the

same.

The entire team of Mahindra Finance also deserves a special mention for their constant support

and help throughout the tenure of the internship which helped me in learning new things and

processes at every step.

Special thanks to Mr. Suketu Shah & Mr. Gurpreet Singh Arora who guided me to work

honestly and gave valuable suggestions for improving my work. Last but not least I would also

like to place appreciation to all the respondents whose responses were of utmost importance for

the project.

Above all no words can express my feelings to my parents, friends and all those persons who

supported me during my project. I am also thankful to all the respondents whose cooperation &

support has helped me a lot in collecting necessary information.

I would also thank almighty God for his blessings showered on me during the completion of

project report.


Abstract

Investment is the employment of funds on assets with the aim of earning income or capital

appreciation. Investment is the most important things today. People are earning more, but they

do not know where, when and how to invest it. A proper understanding of money, its value, the

available avenues for investment, various financial institutions, the rate of return/risk etc., are

essential to successfully manage one’s finance for achieving life’s goal. Through this study, an

analysis has been made into preferred investment avenues among peoples in Amreli, Gujarat,

India. The results highlight that certain factors like education level, awareness about the current

financial system, age of investors etc… make significant impact while deciding the investment

avenues. The study is based on personal interviews with people, using a structured questionnaire.

Actually, the present study identifies the preferred investment avenues among the individual

investors using self assessment test. The study is based on primary sources of data which are

collected by distribution of a close ended questionnaire.

The data has been analyzed using percentage and chart with the help of statistical software.

There are large numbers of investment opportunities available today but there people are more

prefer fixed deposits for their investment. In this study is going to briefly analyzing the various

aspects of Fixed Deposit market for MMFSL at Amreli”


Table of content

Chapter: 1 Introduction.

1.1 Introduction of the topic/ study………………………………………………………9

1.2 Purpose of the study………………………………………………………………….9

1.3 statement of the problem……………………………………………………………..9

1.4 Objectives of the study……………………………………………………………...10

1.5 Scope of the study………………………………………………………………….10

Chapter: 2 Industry/Company overview.

2.1 Mahindra & Mahindra overview…………………………………………………..11

2.2 Mahindra & Mahindra Vision& Mission statement……………………………….13

2.3 SWOT analysis of Mahindra & Mahindra…………………………………………14

2.4 MMFSL overview…………………………………………………………………15

2.5 The Board of Directors…………………………………………………………….16

2.6 Milestones of MMFSL ……………………………………………………………17

2.7 Mahindra Insurance Brokers………………………………………………………19

2.8 Mahindra Home Finance…………………………………………………………..21

2.9 Products of MMFSL……………………………………………………………….22

2.10 Competitors of MMFSL………………………………………………………….23

2.11 S.W.O.T. analysis of MAHINDRA FINANCE………………………………….25

2.12 Marketing strategies of MMFSL…………………………………………………26

Chapter: 3 Reviews of Literature/ Theoretical Background………………………………..27

Chapter: 4 Research Methodologies.

4.1 Methodology………………………………………………………………………31

4.2 Questionnaire constituents………………………………………………………...31

4.3 Data collection method……………………………………………………………31

4.4 Sample size………………………………………………………………………..31

4.5 Sampling technique……………………………………………………………….31

4.6 Research design…………………………………………………………………...31

4.7 Statistical tool……………………………………………………………………..31

Chapter: 5 Data analysis & Interpretation…………………………………………………...32

Chapter: 6 Findings &recommendation………………………………………………………50

6.1 conclusion…………………………………………………………………………52


Bibliography……………………………………………………………………………………53

Appendix………………………………………………………………………………………..55

List of Tables

T.No Title Page. No.

1 Awareness about Mahindra Finance 32

2 Product will prefer for investment 33

3 Invested in any Company Fixed deposit before 34

4 They are aware of following FDs 35

5 Would you like to know about Mahindra finance FD 36

6 Age 37

7 Occupation 38

8 Income 39

9 knowledge about Financial market 40

10 Percentage of your income which generally invest 41

11 In which segment they generally invest 42

12 Objective of the investment 43

13 MMFSL product is liked or not 44

14 Preferences for the investment instrument 45

15 Income * percentage of your income which generally invest Cross tabulation 46

16 Income*investments Cross tabulation 47

17 Occupation*$investments Cross tabulation 48

18 Age*Investments Cross tabulation 49


List of Figures

F.No Title Page. No.

1 Awareness about Mahindra Finance 32

2 Product will prefer for investment 33

3 Invested in any Company Fixed deposit before 34

4 They are aware of following FDs 35

5 Would you like to know about Mahindra finance FD 36

6 Age 37

7 Occupation 38

8 Income 39

9 knowledge about Financial market 40

10 Percentage of your income which generally invest 41

11 In which segment they generally invest 42

12 Objective of the investment 43

13 MMFSL product is liked or not 44

14 Preferences for the investment instrument 45

15 Income * percentage of your income which generally invest Cross tabulation 46

16 Income*investments Cross tabulation 47

17 Occupation*$investments Cross tabulation 48

18 Age*Investments Cross tabulation 49


Chapter: 1 Introduction

INTRODUCTION

An investment is a sacrifice of current money or other resources for future benefits. A sacrifice takes place now and it is certain but the benefit are expected in the future and tends to be uncertain. In the investment the risk elements and the time elements places a major role.Investment avenues are classified many investment avenue like non marketable financial assets, Bonds, Real estate, Mutual funds, Equity shares, Life insurance policies and Fixed deposits etc.

Almost everyone has a portfolio of investments; the portfolio is likely to comprise financial assets and real assets. This project mainly focuses on the fixed deposits.

Purpose of the Study:-

A study of the investors for analyzing the various aspects of Fixed Deposit market for MMFSL.

Statement of problem:-

Based on the definition of problem, it is clearly understandable that a problem does not necessarily mean that something is seriously wrong with a current situation that needs to be rectified immediately. But a “Problem” could simply indicate an interest in an issue where findings the right answers might help to improve an existing situation.

In this scenario the investment portfolio should be mainly focused on availability of right amount of money at the right time to the right person can be called as an efficient portfolio.“Here the problem of the study is mainly focused on finding out analyzing the various aspects of Fixed Deposit market for MMFSL at Amreli”.


Objectives:-

1. To identify the level of general awareness about Mahindra & Mahindra Financial services Ltd. And MMFSL Fixed Deposit.

2. To analyze the role of different demographic variables of the investors (Age, Gender, income & occupation) on the preference for Fixed Deposits? 3. To find out relative preference of investors among the various financial instruments (FD/Equities/MF/Other). 4. To find out the preference of investors among the alternative FD products available in the market.

5. To analyze the response of investors towards the MMFSL fixed deposits.

SCOPE OF THE STUDY:-

The Scope of the study is to probe among the investor of Amreli. The study was conducted for the period of eight weeks carrying various places in Amreli district. And in study we did many activities with colleges professors & pensioners for MMFSL FD.


Chapter: 2 Industry/Company Overview

Founded in 1945 as a steel trading company, they entered automotive manufacturing in 1947 to bring the iconic Willys Jeep onto Indian roads. Over the years, they have diversified into many new businesses in order to better meet the needs of our customers. They follow a unique business model of creating empowered companies that enjoy the best of entrepreneurial independence and Group-wide synergies. This principle has led our growth into a US $16.2 billion multinational group with more than 155,000 employees in over 100 countries across the globe.Today, their operations span 18 key industries that form the foundation of every modern economy: aerospace, aftermarket, agribusiness, automotive, components, construction equipment, consulting services, defense, energy, farm equipment, finance and insurance, industrial equipment, information technology, leisure and hospitality, logistics, real estate, retail, and two wheelers. Their federated structure enables each business to chart its own future and simultaneously leverage synergies across the entire Group’s competencies. In this way, the diversity of their expertise allows us to bring their customers the best in many fields.

Their Brand

Since 1945, they have built Their Company around the core idea that people will succeed if they are just given the opportunity. Employees across the Group constantly challenge conventional thinking to create solutions that make a significant difference in the lives of their customers. That’s why everything they build—be it a tractor, financial service, solar-powered lamp, or software—is designed to empower you to reach your potential.

Internally, they follow three basic tenets—accepting no limits, thinking alternatively, and driving positive change in everything we do. These brand pillars guide all their actions and business decisions from deciding whether or not to enter a new field or planning a portfolio of services.


Purpose & Values:-

Their motivation to give their best every day comes from their core purpose: they will challenge conventional thinking and innovatively use all their resources to drive positive change in the lives of their stakeholders and communities across the world, to enable them to Rise.

Their products and services support their customers’ ambitions to improve their living standards; their responsible business practices positively engage the communities they join through employment, education, and outreach; and their commitment to sustainable business is bringing green technology and awareness into the mainstream through their products, services, and light-footprint manufacturing processes.

This commitment to sustainability—social, economic, and environmental—rests upon a set of core values. They are an amalgamation of what we have been, what we are, and what we want to be. These values are the compass that guides their actions, both personal and corporate. They are:

Good corporate citizenship

They will continue to seek long term success in alignment with the needs of the communities they serve. They will do this without compromising on ethical business standards.

Professionalism

They have always sought the best people for the job and given them the freedom and the opportunity to grow. They will continue to do so. They will support innovation and well reasoned risk taking, but will demand performance.

Customer first

They exist and prosper only because of the customer. They will respond to the changing needs and expectations of our customers speedily, courteously and effectively.

Quality focus

Quality is the key to delivering value for money to their customers. They will make quality a driving value in our work, in their products and in their interactions with others. They will do it 'First Time Right.'

Dignity of the individual


They will value individual dignity, uphold the right to express disagreement and respect the time and efforts of others. Through their actions, they will nurture fairness, trust, and transparency.

Mahindra and Mahindra vision and mission statement

Vision:To create a fully collaborative environment in which suppliers can deliver exactly what the company needs, when it needs it, and at a competitive cost.

Mission: To create India's largest automobile and automobile-related products distribution network by providing dealers and customers with the largest choice of unique world-class products and services.


SWOT Analysis of Mahindra & Mahindra

Strength: 1. Mahindra has been one of the strongest brands in the Indian automobile market2. Mahindra group give employment to over 110,000 employees3. Excellent branding and advertising, and low after sales service cost4. Sturdy SUV’s good for Indian roads and off-road terrain

Weakness:1. Mahindra’s partnership with Renault did not live up to international quality standards through their brand Logan

Opportunity:1. Developing hybrid cars and fuel efficient cars for the future2.Tapping emerging markets across the world and building a global brand3.Fast growing automobile market4.Growing in the market through electric car Reva (controlling stake) and entry into two-wheeler segments

Threats:1. Government policies for the automobile sector across the world2. Ever increasing fuel prices3. Intense competition from global automobile brands4. Substitute modes of public transport like buses, metro trains etc.


MAHINDRA & MAHINDRA FINANCIAL SEVICES LIMITED

Empowering potential. Transforming lives.

Two decades ago, Mahindra and Mahindra Financial Services Limited (MMFSL) commenced its journey in the rural non-banking finance industry. And with that was born a vision to transform rural and semi-urban India into a self-reliant, flourishing landscape. Since then, they have come a long way, empowering millions of ambitious individuals with personalized finance for a wide range of vehicles, home development requirements and many other diverse endeavors’ – all to help them live their dreams and Rise in life.

At Mahindra Finance, they are guided by a firm belief in people, their dreams, and their potential to achieve those dreams. Hence, their socially inclusive business model facilitates loans to customers based not on their current financial status, but their future earning capacity. This philosophy has instilled a sense of confidence in the minds of rural and semi-urban India – a confidence that allows them to believe that no dream is too big. Today, as one of the leading non-banking finance companies, they are proud to have touched over 2 million such lives.

During the course of their journey, apart from emerging as the top tractor financer in India, they have constantly strived towards developing skill sets of the local population. Which is why, they provide employment to over 13,000 people at over 650 branches across India. This not only ensures equal growth opportunity for all, but also enables us to serve our customers better through local understanding and expertise.

So is it a humble farmer or a budding entrepreneur – they are committed to empower every individual with resources to help their dreams see the light of day.

Our Mission

“To transform rural lives and drive positive change in the communities.”

Our Vision

“To be a leading financial services provider in semi-urban and rural India.”


The board consists of six noted directors vested with the charge of general supervision, direction and management of the operations of their company. The primary responsibilities of the Board of Directors include:

Overseeing high standards of corporate governance and compliance with various laws Overseeing our financial management and approving various lines of business Shaping our policies and procedures Monitoring our performance and evolving the growth strategy Setting up counter-party and other prudential risk management limits

The Board of Directors:

Mr. Bharat N. Doshi Mr. Uday Y Phadke Chairman Director

Dr. Pawan Kumar Goenka Mr. Ramesh Iyer Director Managing Director


Mr. Dhananjay Mungale Mrs. Rama BijapurkarIndependent Director Independent Director

Milestones of MMFSL

1991 - Incorporated as Maxi Motors Financial Services Limited Received certificate of commencement of business

1992:- Name changed to Mahindra & Mahindra Financial Services Limited

1993:- They commence financing of M&M Utility Vehicles

1995:- With an aim to expand our business, they establish their first branch outside Mumbai, at Jaipur.

1996:- They start financing M&M dealers for purchase of tractors

1999:- They introduce tractor retail financing in rural and semi-urban areas

2001:- A decade of good work results in our total assets crossing the 10 billion mark

2002:- They get into financing of non-M&M vehicles and International Finance Corporation grants us Tier II debt

2004:- Listing of non-convertible debentures on BSE on the wholesale debt market segment

2005:- Mahindra Insurance Brokers Ltd. becomes our wholly owned subsidiary

2006:- Issued our IPO

Collaboration with Maruti Udyog Limited

2007:- Mahindra Finance was issued certificate by the RBI under section 45-IA of the Reserve Bank of India Act, 1934 classifying it as an ‘Asset Finance Company – Deposit Taking’

2008:- They enter the home loan business through our subsidiary, Mahindra Rural Housing Finance Limited (MRHFL)


2009:- NHB provides 12.5% equity participation for our subsidiary, MRHFL

2010:-Introduction of finance for Commercial Vehicles and Construction Equipments

2011:- Total Assets crosses the Rs. 100 billion benchmark Maiden QIP Issue

Joint Venture with Rabobank subsidiary for tractor financing in USA

2012:- They cross the benchmark of financing more than 2 million customers through more than 600 branches

Maintenance of an 18% Capital Adequacy, complying with the minimum requirement of 15% set by the RBI


Subsidiaries of MMFSL

MAHINDRA INSURANCE BROKERS

They live in a day and age where staying protected against the uncertainties of tomorrow is of paramount importance. Understanding this very requirement, Mahindra Insurance Brokers Ltd. (MIBL), our subsidiary, provides 360o insurance solutions, tailor-made for the diverse needs and risk profiles of our varied consumer base. While providing direct insurance broking for the retail customer base of around 1.3 million and catering to a large number of corporate customers, the company also offers a range of plans for the Life as well as Non-life insurance segments.

MIBL is committed to provide value to its customers by understanding their insurance needs and risk profile in a highly detailed and systematic manner. This helps in chalking out more innovative, cost-effective and customized insurance solutions. And its uncompromising adherence to the highest standards of quality is evident from the fact that it is one of the few insurance broking companies in India to have been awarded the prestigious ISO 9001:2008 Certification for Quality Management Systems.

MIBL was granted a Direct Broker's License by the Insurance Regulatory and Development Authority (IRDA) in May 2004, enabling it to undertake direct insurance broking in Life and Non-life businesses. In addition, MIBL has empanelled itself with various public and private insurance companies to fulfill its promise of delivering customized solutions to customers. In September 2011, MIBL was granted a Composite Broker license by the IRDA, thus foraying into the Reinsurance Broking business along with Direct Broking. As a Total Insurance Risk Solutions provider, MIBL also plays an integral role in the Risk Management portfolio of customers.

Our Vision:

"To be India's no.1 Insurance Broker in revenue by 2015."


Strategic Partnership

During the year under review, Mahindra Insurance Brokers Limited (MIBL) has entered into Definitive Agreements with Inclusion Resources Private Limited (IRPL), a subsidiary of Leapfrog Inclusion Fund (LFIF), incorporated in Singapore and Mahindra & Mahindra Financial Services Limited (MMFSL), its parent company to expand the Company's services to consumers in rural and semi-urban areas of India, by bringing in IRPL's international knowledge and experience, especially in using low cost technology solutions to provide insurance in mass markets. In addition, given IRPL's expertise and association in reinsurance globally, IRPL would help the Company to connect with various global reinsurers to assist in the Company's reinsurance broking business.

LFIF is the world's first and largest investor in companies that insure under-served people in Asia and Africa, and has International Finance Corporation (IFC), European Investment Bank (EIB), KfW Development Bank, Germany, FMO Development Bank of The Netherlands, etc. as its investors. LFIF has a specialist focus on mass market insurance and invests in companies that provide insurance to the "Next Billion" emerging market consumers. LFIF is unusual in two respects, first its focus on social impact and secondly, its focus on insurance.

Your Company has received the necessary approvals from the Insurance Regulatory and Development Authority and the Foreign Investment Promotion Board as well as the Reserve Bank of India for the aforesaid transaction.

Consequent to the above, MIBL is now an 85% subsidiary of MMFSL. IRPL has acquired a stake of 15% in MIBL

In short, MIBL's role encompasses everything from risk profiling to claims administration for customers, all the while empowering customers with innovative solutions, superior services and professionalism at every level.


MAHINDRA HOME FINANCE

It could take a lifetime to create a place you can call home. At Mahindra Rural Housing Finance Ltd. (MRHFL), the intent is to make the journey to your dream home a little shorter.

MRHFL, India's largest rural housing finance company, was incorporated with an objective to transform the rural and semi-urban landscape by providing cost-effective and flexible home loans. So be it home construction, purchase, extension or improvement, MRHFL provides loans for most home finance requirements. Today, it successfully serves over 1 laky customer and operates in more than 17,500 villages across states like Maharashtra, Madhya Pradesh, Rajasthan, Gujarat, Bihar, Andhra Pradesh, Tamil Nadu, Karnataka and Kerala.

In fact, MRHFL has been responsible for some major transformations in rural India. People in the remote villages have very little chance of getting loans from established financial institutions due to lack of documents. And local money lenders prove too expensive. This is where MRHFL comes into the picture and provides affordable home loans with minimum documentation.

It has facilitated the up gradation of many 'Kuccha' and unstable structures made of mud to 'Pucca' houses made of bricks and mortar, changing the flooring of houses from rough cement base to tiles. In short, huts have turned into homes, and dreams into realities.

A subsidiary of MMFSL, Mahindra Rural Housing Finance was incorporated on April 9, 2007 and obtained a certificate of registration to commence the business of a Housing Finance Institution from the National Housing Bank on August 13, 2007. Mahindra & Mahindra Financial Services Limited (MMFSL) holds 87.5% of the equity of MRHFL and the National Housing Bank (NHB) holds the remaining 12.5%. NHB, in turn, is a fully owned subsidiary of the Reserve Bank of India (RBI).

Our Mission:

"Transforming rural lives. Together"


P roduct s of MMFSL

LoansLoans go a long way in helping you achieve your goals and ambitions. Your dreams are unique and may require specialized assistance on the path to fulfillment. Thankfully, we at Mahindra Finance offer you a wide array of loan options. Be it for purchasing a vehicle, property or for your child's education – you can choose from our variety of Vehicle, Personal, and Home and SME loan. We are confident that the trust we place in you will lead to a successful and fruitful relationship

Vehicle Loans:-

Tractor Loans

Utility Vehicle Loans

Car Loans

Three Wheeler Loans

Commercial Vehicle Loans

Two Wheeler Loans

Used Vehicle Loans

Personal Loans:-

Personal Loans Gold Loans

Home loans


SME Loans:-

We understand that some business dreams need that extra push to see the light of day. Our SME Loans are here for just that. Catering to the funding needs of small and medium enterprises, our quick and hassle-free SME Loans are tailor-made for your varied business requirements. So be it expanding a small business or accumulating funds for new purchases – rest assured, there's Mahindra Finance by your side

Project Finance

Equipment Finance

Corporate Loans

Secured Business Loans

Working Capital Loans

Bill Discounting

Lease Rental Discounting

Financial Advisory

Insurance Solutions

Investments:-

Fixed DepositsAt Mahindra Finance, we help you get the most out of your hard-earned money. Invest in our wide range of fixed deposit schemes, mutual funds or bonds to help your money grow over a period of time. In addition, our team of skilled professionals will assist you in selecting a plan to perfectly match your current financial requirement. This way, you can guard yourself from rising inflation rates and gain maximum returns on your savings.

Mutual FundsIn today's time, we all realize the need to move from just 'saving' to 'investing' our money in the right areas. It's only then that we help our money to achieve its potential for growth. And mutual funds are where your money can really flourish and easily beat the inflation. At Mahindra Finance, we recognize this opportunity and have designed various schemes to help you invest


your money and gain the most from it.

Competitors of MMFSL

1. Shriram Trans. Finance

2. L&T Finance Holdings

3. Reliance Capital

4. Bajaj Finance

5. Sundaram Finance

6. Muthoot Finance

7. Manappuram Finance

8. PTC India Fin. Service

Major Competitor MMFSL FDs

HDFC LTD

Sri Ram Finance

LIC Home Finance

Post office (K.V.P)

Mass Finance

SBI

Bajaj Finance


S.W.O.T. ANALYSIS OF MAHINDRA FINANCE

STRENGTHS

Mahindra Finance has advantage of brand name of Mahindra &Mahindra Group.

Mahindra Finance has large asset base of Rs.5000 crores.It has large distribution channels with 350 branches all over the nation.

Company has large financial base as its IPO was subscribed 26.88 times.

WEAKNESSES

Mahindra Finance provides advisory service and they do not have share broking facility which their competitors have.

Mahindra Finance is not known to the people.

Mahindra Finance does not make advertisement of its product.

Opportunities

Mahindra Finance has entered into mutual fund distribution which is growing as per Indian market development

Automobile sector in India is growing as foreign companies entering in India which is useful for Mahindra Finance as it provides vehicle loans

Mahindra Finance helps individuals in making financial planning which is most profitable in as investment trend is changing in India.

Threats

the biggest threat for Mahindra Finance in the market is new entry of foreign non-banking financial institutions.


In case of vehicle financing company has tough competition from large banks like State Bank of India, ICICI etc.

Marketing strategies of MMFSL

1. Grow in rural and semi urban markets for vehicle and automobile Financing

2. Expand Branch Network

3. Leverage existing customers’ base through Direct Marketing Initiatives

4. Diversify Product Portfolio

5. Broad base Liability Mix

6. Continuing to attract, train and retain talented employees

7. Effective use of technology to improve productivity

8. Leverage the “Mahindra” Ecosystem


Chapter: 3 Reviews of Literature/ Theoretical Background

LITERATURE REVIEW

Theoretical framework:

Melainie Powell, David Ansie, July (1997) This paper studies whether gender differences in risk propensity and strategy in financial decision making can be viewed as general traits or whether they arise because of contextual factors. The results of this study tells that females are less risky seeking than males irrespective of familiarity and framing of , costs or ambiguity. It also says that males and females adopt different strategies in financial decision environments but these strategies have no significant impact on their ability to perform.

Manish Mittal and R K Vyas, (2007). In this paper, it is investigated on how investment choice gets affected by the demographics of the investor. Mutual funds, followed by equity were the most preferred choices for investment and derivatives were least preferred. The results revealed that the differences are not significant for mutual funds, debentures/bonds, real estate/bullions and derivatives between male and female. However male’s preferred equities and females preferred post office deposits. Young aged investors (26-35) invest in mutual fund, while middle-aged investors (36-45) invest in debentures/bond. People with income less than Rs.1 lakh per annum invest in low-risk investments like post office deposits, while investors with income between Rs.1 lakh-2.5 lakhs invest in mutual funds and people with income between Rs. 2.5-4 lakhs invest in equities. Investors with less education prefer high-risk investments, such as, equity and derivatives. Undergraduate investors invest in high-risk, high-return investments, such as, derivatives and real estate/bullion. Graduates prefer moderate risk and moderate return investments like debentures/bonds, while postgraduates and professionals invest in mutual funds and equity. The propensity to take risk decreases with increase in education level. Service class people like to invest in equities and mutual funds while business class have shown an inclination to invest in debentures/bonds and real estate/bullions. Housewives prefer safe investments like real estate/bullions, while professionals invest their money in post office deposits and derivatives and students prefer high investments like derivatives and equities. The study provided evidence that the investment choice depends on and is affected by the demographic variables such as gender, age, income, education and occupation.


Meenu Verma (2008) the author has observed that demographic profile and investor personality can be the two determinants for making perception about the investor psychology. The study revealed that real estate, followed by mutual funds are the most preferred choices for investment among the investors. It was noted males prefer real estate, PPF and equity shares as attractive avenues for investment, females prefer bank FD, insurance and bullions. Young investors find investing in equity shares/derivatives more comfortable, while old investors prefer PPF as their first choice. Middle aged investors prefer investing in mutual funds and NSC. Thus it clearly shown that as age increases, the ability to take risks decreases and people go towards safer investments. People with low income prefer investments in low risk investments like NSC. People with high income like to invest in real estate. Middle income groups prefer investing in bank FD and mutual funds. The study provides the evidence that the investment choice depends on and is affected by the demographic variables such as gender, age, income, education, occupation as well as various personality types such as conservative, medium moderate and aggressive.

Syed Tabassum Sultana (2010) concludes that the individual investor still prefers to invest in financial products which give risk free returns. This confirms that Indian investors even if they are of high income, well educated, salaried, independent are conservative investors prefer to play safe. The investment product designers can design products which can cater to the investors who are low risk tolerant and use TV as a marketing media as they seem to spend long time watching TVs.

Giridhari Mohanta & Dr. Sathya Swaroop Debasish (2011) studied that investors invest in different investment avenues for fulfilling financial, social and psychological need. While selecting any financial avenue they also expect other type of benefits like, safety and security, getting periodic return or dividends, high capital gain, secured future, liquidity, easy purchase, tax benefit, meeting future contingency etc.

Hannan and Berger (1991), provide a stylized model of monopolistic competition that illustrates how firms with market power not necessarily change prices when there is a change in costs. This theoretical model shows how firms decide to change prices or not by comparing costs and benefits of such decisions; moreover, they allow for differences between down-pricing and up-pricing decisions. For the U.S. banking industry they found that there is greater price rigidity in more concentrated markets, and the stickiness was higher when there was a stimulus to increase deposit rates.


Sushant Nagpal and B S Bodla, (2009). The author in his study observes that the individuals may be equal in all aspects, but their financial planning needs are very different. Demographics alone no longer suffice as the basis of segmentation of individual investors. It is by using lifestyles or psychographics along with demographics that synergism between investors can be generated. It was studied that the modern investor is a mature and adequately groomed person. The individual investors prefer less risky investments. Blind investments are scarce, as a majority of investors are found to be using some source and reference groups for taking decisions. Brokers who are in direct touch with investors play a vital role in keeping the capital market lively by providing various services to investors. Investors have made media as a part of their investment life. Psychographics play an important role in determining investment behavior and preferences of individual investors. The study concludes that investors’ lifestyle predominantly decides the risk taking capacity of investors. William E. Warren, Robert E. Stevens and C. William McConkey, (1990). In this study, it is found that Demographics characteristics are a good predictor of whether investors will be light or heavy investors. None of the lifestyle characteristics proved to be a predictor of stock and bond ownership. But demographics were found to be a strong predictor of whether investors would have heavy or light concentrations in stocks and bonds. Not only do life style dimensions help differentiate between investor behavior types (active/ passive); they may also be useful in differentiating between light and heavy investors in particular investments (stock and bonds). Avinash Kumar Singh (2006) The study entitled "Investment Pattern of People" has been undertaken with the objective, to analyze the investment pattern of people in Bangalore city and Bhubaneswar analysis of the study was undertaken with the help of survey conducted .After analysis and interpretation of data it is concluded that in Bangalore investors are more aware about various investment avenues & the risk associated with that. All the age groups give more important to invest in equity & except people those who are above 50 give important to insurance, fixed deposits and tax saving benefits. Generally those investors who are invested in equity, are personally follow the stock market frequently i.e. in daily basis. But those who are invested in mutual funds are watch stock market weekly or fortnightly. In Bangalore, investors are more aware about various investment avenues and the risk associated with that. But in Bhubaneswar, investors are more conservative in nature and they prefer to invest in those avenues where risk is less like bank deposits, small savings, post office savings etc.Sudalaimuthu and senthil kumar (2008) Mutual fund is the one of investment avenues the researcher research in this area about investors perception towards mutual fund investments has been analyzed effectively taking into account the investors reference towards the mutual fund sector, scheme type, purchase of mutual fund units, level of risks undertaken by investors, source of information about the market value of the units, investors opinion on factors influenced to invest in mutual funds, the investors satisfaction level towards various motivating factors, source of awareness of mutual fund schemes, types of plan held by the investors, awareness of risk category by investors, problems faced by mutual fund investors. Running a successful mutual


fund requires complete understanding of the peculiarities of the Indian Stock Market and also the awareness of the small investor. The study has made an attempt to understand the financial behavior of mutual fund investors in connection with the scheme preference and selection. An important element in the success of a marketing strategy is the ability to fulfill investor expectation. The result of these studies through satisfactory on the investor’s perception about the mutual funds and the factors determining their investment decisions and preferences. The study will be useful to the mutual fund industry to understand the investor’s perception towards mutual funds investments and the study would also be informative to the investors.

Sunil Gupta (2008) the investment pattern among different groups in Shimla had revealed a clear as well as a complex picture. The complex picture means that the people are not aware about the different investment avenues and they did not respond positively, probably it was difficult for them to understand the different avenues. The study showed that the more investors in the city prefer to deposit their surplus in banks, post offices, fixed deposits, saving accounts and different UTI schemes, etc. The attitude of the investors towards the securities in general was bleak, though service and professional class is going in for investment in shares, debentures and in different mutual fund schemes. As far as the investments are concerned, people put their surplus in banks, past offices and other government agencies. Most of the horticulturists in Shimla city who belong to Apple belt though being rich have a tendency of investing then surpluses in fixed deposits of banks, provident funds, Post Office savings, real estates, etc. for want of safety and suitability of returns.


Chapter: 4 Research MethodologiesResearch Methodology

Methodology:The research design is descriptive in nature. Questionnaire method is used for primary data collection. Each respondent (investor) is given a questionnaire to be filled up. Secondary data was gathered from books, journals and websites for review of literature. The sample size is restricted to 750 respondents.

QUESTIONNAIRE CONSTITUENTS:The questionnaire was divided into three parts:In the first part, the factors of the investors were recorded primarily for their awareness about Mahindra finance and fixed deposits plans. The second part of the questionnaire was related to the demographic factors of the investors were recorded primarily for their classification. The various avenues the investor had invested in and details regarding investment in market. The final part of the questionnaire was related to the behavioral details, which recorded the investors’ reaction to the various financial market information.

Data collection methodQuestionnaire method is used for primary data collection. Each respondent (investor) is given a questionnaire to be filled up. Secondary data was gathered from books, journals and websites for review of literature.

Sample sizeThe sample size is restricted to 750 respondents.

Sampling techniqueSample design supported with convenience sampling was used for collecting data.For data analysis and correlation testing different charts and graphs are used.

Research designThe research design for the study is descriptive in nature.


Statistical tool SPSS, MS Excel 2007.

Chapter: 5 Data analysis & Interpretation

Data analysis & Interpretation

Figure 1

76%

24%

Awareness about Mahindra Finance

Yes No

Figure1. Shows that the study of 600 respondents we found that out of 600 respondent’s majority

(76%) of respondents are aware about Mahindra finance and only 24% respondents are not


Table 1. Awareness about Mahindra Finance

Frequency Percent Valid Percent Cumulative

Percent

Valid

Yes 454 75.7 75.7 75.7

No 146 24.3 24.3 100.0

Total 600 100.0 100.0

aware.

Figure 1

80%

16%4%

Product will prefer for investment

Fixed Return productHigh risk. High return SharesModarate risk,Modrate return Matual fund

According to survey out of 600 respondents, we found that 80% people are prefer Fixed Deposit

product for investment, and 16% people are prefer Shares and very less no of people are prefer

mutual fund for investment so we can say that the majority of the respondents are prefer Fixed

deposit products.


Table2. Product will prefer for investment


Percent

Valid

fixed Return product 480 80.0 80.0 80.0

High risk. High return Shares 98 16.3 16.3 96.3

Moderate risk, Moderate return

mutual fund22 3.7 3.7 100.0

Total 600 100.0 100.0

Figure 1

37%

63%

Invested in any Company Fixed deposit before

Yes No

Figure3. From the analysis of data that has been collected from local people from Amreli, we can

see that the majority of respondents are not invested their money in Fixed deposit of any

company before.


Table3. Invested in any Company Fixed deposit before


Percent

Valid

Yes 221 36.8 36.8 36.8

No 379 63.2 63.2 100.0

Total 600 100.0 100.0

Table4. They are aware of following FDs


Percent

Valid

Sri Ram Finance 7 1.2 3.2 3.2

HDFC LTD 49 8.2 22.2 25.3

Mahindra Finance 10 1.7 4.5 29.9

LIC Home Finance 137 22.8 62.0 91.9

Others 18 3.0 8.1 100.0

Total 221 36.8 100.0

Total 600 100.0

Figure 1

3%22%

5%

62%

8%

They are aware of following FDs

Sri Ram Finance HDFC LTD Mahindra FinanceLIC home Finance Others

From the survey we found that the large numbers 62% of respondents are more aware about LIC Home Finance and 22% are aware about HDFC Ltd. And few numbers of the respondents are aware about Mahindra Finance & Sri Ram Finance.


Figure 1

45%

55%

Would you like to know about Mahindra finance FD

Yes No

In figure 5. According to survey out of 600 respondents 45% respondents are like to know about

Mahindra Finance fixed deposits and 55% are not like to know about MMFSL fixed deposits, so

we can say that in figure 4. We found that only 8% people are aware about MMFSL FD but now

45% people want to know about MMFSL FDs.


Table 5. Would you like to know about Mahindra finance FD


Percent

Valid

yes 272 45.3 45.3 45.3

no 328 54.7 54.7 100.0

Total 600 100.0 100.0

Table.6 Age


Percent

Valid

10-20years 1 .7 .7 .7

21-35years 92 61.3 61.3 62.0

36-55years 53 35.3 35.3 97.3

56 and above 4 2.7 2.7 100.0

Total 150 100.0 100.0

Figure 6.

1%

61%

35%

3%

Age

10-20years 21-35years 36-55years 56 and above

It is understood from the chart that 61 percent of the respondents are belonging to the age group of 21-35 years, 35 percent of the respondents are in the age group of 36-55 years, 3 percent of the respondents are in the age group of 56 above years.


Figure. 7

44%

11%

40%

5%

Occupation

Business Profession Service Govt. job

According to survey we found that the out of 600 respondents, 44% respondent have their own

business and 40% respondents do services and11% belong to professions and very less numbers

of respondents do work in govt. sectors.


Table. 7 Occupation


Percent

Valid

Business 66 44.0 44.0 44.0

Profession 17 11.3 11.3 55.3

Service 60 40.0 40.0 95.3

Govt. job 7 4.7 4.7 100.0

Total 150 100.0 100.0

Table. 8 Income


Percent

Valid

Less than 10000 22 14.7 14.7 14.7

11000-20000 72 48.0 48.0 62.7

21000-35000 53 35.3 35.3 98.0

36000 and above 3 2.0 2.0 100.0

Total 150 100.0 100.0

Figure.8

15%

48%

35%

2%

Income

Less than 10000 11000-20000 21000-35000 36000 and above

From the analysis of data that has been collected from local people from Amreli, we can see that

the majority of respondents 48% are belong to 11000-20000 income group and 35% respondents

are belong to 21000-35000 income group and 15% respondents from less than 10000 and very

less numbers of respondents are belong to 36000 and above income group.


Figure.9

12%

40%

22%

18%8%

knowledge about Financial market

Excellent Good Average Limited None

Form the survey we found that out of 150 respodents 40% respodent have good knowledge about

financial market and 22% have average, 18% have limited knowledge and 12% have excellent

knowledge and very few number of respodents have no idea about financial maket.


Table. 9 knowledge about Financial market


Percent

Valid

Excellent 18 12.0 12.0 12.0

Good 60 40.0 40.0 52.0

Average 33 22.0 22.0 74.0

limited 27 18.0 18.0 92.0

None 12 8.0 8.0 100.0

Total 150 100.0 100.0

Table 10. Percentage of your income which generally invest


Percent

Valid

less than 10% 70 46.7 46.7 46.7

10%-25% 65 43.3 43.3 90.0

25%-50% 7 4.7 4.7 94.7

None 8 5.3 5.3 100.0

Total 150 100.0 100.0

Figure. 10

47%

43%

5% 5%

Percentage of income which they are generally invest

Less than 10% 10-25% 25-50%above 50% none

From the survey we found that the large numbers of 47% respondents are generally invested

their income less than 10% and 43% are 10-25% their income they are generally invested and

only 5% respondents are not invested their income.


Table 11.In which segment they generally invest


Percent

Valid

Organized 113 75.3 75.3 75.3

Unorganized 3 2.0 2.0 77.3

Both 34 22.7 22.7 100.0

Total 150 100.0 100.0

Figure 11.

75%

2%

23%

In which segment they generelly invest

Organized Unorganized Both

Accourding this chart we can say that the 75% respodent are generelly invested in the oganized

sector and very less numbers of people are like to invest their money in the unorganized

segment.


Table 12.objective of the investment


Percent

Valid

Earn a rate of return 58 38.7 38.7 38.7

Capital gain 14 9.3 9.3 48.0

Tax saving 5 3.3 3.3 51.3

All of the above 73 48.7 48.7 100.0

Total 150 100.0 100.0

Figure 12

39%

9%

3%

49%

Objective of the investment

Earn a rate of return Capial gain Tax saving All of the above

Accourding to this chart we found that the 49% respodents objectives are multiple objective of

the investment and 39% respodents main objective of the investment is to Earn a rate of return

and few number of respodents main objectives are gain capital gain and tax savings.


Table 13. product is liked or not


Percent

Valid

Yes 118 78.7 78.7 78.7

No 32 21.3 21.3 100.0

Total 150 100.0 100.0

Figure 13.

79%

21%

Product is liked or not

Yes No

From the analysis of the data that has been collected from local people, we can see that majority of the

respondents are liked the MMFSL FD product.

The respondent who like the product are 79%. And only 21% respondent they are not like the MMFSL

fixed deposits product.


Figure 14

8% 1%

68%

7%

3%1%

13%

Preferences for the investment instrument

Equity market Govt. Sec. Fixed Deposits Matual FundsInsurance Billion (Gold,silver Real estate

Accourding to this chart and table we found that out of 150 respodents 67% respodents

preferences for the investment instrument is fixed deposits, and 13% preference for Equity


Table 14. Preferences for the investment instrument

Responses Percent of Cases

N Percent

1a

Equity market 12 7.9% 8.0%

Govt. Sec. 2 1.3% 1.3%

Fixed Deposits 102 67.5% 68.0%

Mutual Funds 10 6.6% 6.7%

Insurance 4 2.6% 2.7%

Billion (Gold & silver) 1 0.7% 0.7%

Real estate 20 13.2% 13.3%

Total 151 100.0% 100.7%

market and rest of the respodents preference for the investment instrument are 1% Govt. sec &

billion, 7% matual fund, 3% insurance.

Figure 15,

>10% 10-25% 25-50% none percentage of your income which generally invest Total

0

10

20

30

40

50

60

70

80

income less than 10000income 11000-20000income 21000-35000income 36000 and above

Accourding to this analysis we found that the income 11000-20000 group are generally invest

their income less than 10% and income 21000-35000 group are generally invest their income in

10-25%, and very few people who invest 25-50% income in any kind of investment.


Table 15.income * percentage of your income which generally invest Cross tabulation

percentage of your income which generally invest Total

>10% 10-25% 25-50% None

Income less than 10000 11 3 0 8 22

11000-20000 54 17 1 0 72

21000-35000 5 44 4 0 53

36000 and above 0 1 2 0 3

Total 70 65 7 8 150

Table 16. income*investments Cross tabulation

1a

Equity market

Govt. Sec.

Fixed Deposits

Mutual Funds

Insurance BillionReal

Estateincome less than

10000Count 2 1 15 1 2 0 1

11000-20000 Count 3 0 60 3 1 1 4

21000-35000 Count 4 1 27 6 1 0 14

36000 and above

Count 3 0 0 0 0 0 1

Total Count 12 2 102 10 4 1 20

Figure 16.

According to this chat we can see that the every income group of respodents they all are prefer

fixed deposits for the investment instrument and only income group 21000-35000 is prfer Equity

market,matual fund and real estate and only few people who prefer billion for investment and

only resaon behind the investment in billion is family use.


Table 17. occupation*$investments Cross tabulation

investments

Equity market

Govt. Sec. Fixed Deposits

Mutual Funds

Insurance Billion Real Estate

occupation business Count 4 0 53 2 2 0 6

Profession Count 3 0 8 0 0 0 6

service Count 5 2 36 6 2 1 8

Govt. job Count 0 0 5 2 0 0 0

Total Count 12 2 102 10 2 1 20

Figure 17.

According to this table and Chart we can say that the highest numbers of business man they

invest their money in the fixed deposits and very few business holders invest their money in the

equity market, mutual fund ,insurance and real estate and the analysis also show that the

respodents who have profession they a invest their money in the fixed deposits as well as in the

real etate and very few numbers of service holder respodents invest their money in the Govt.

sec.,


Table 18. Age*Investments Cross tabulation

Investments

Equity market

Govt. Sec.

Fixed Deposits

Mutual Funds

insurance Billion Real Estate

Age 10-20 years

Count 0 0 0 0 1 0 0

21-35 years

Count 4 2 66 7 3 0 10

36-55 years

Count 6 0 35 2 0 1 10

56 and above

Count 2 0 1 1 0 0 0

Total Count 12 2 102 10 4 1 20

Figure 18.

According to table we can see that the large numbers of the respodents who belongs to 21-35

years age group they are invest 72 percent of their money in fixed deposits and to 35-55 years

age group they are invest 64 percent of their money in fixed deposits, so we can say that the age

group 21-35 year respodents are invested in FD more than age group 36-55 years.


Findings & recommendation

After conducting a survey and analyzing the participant’s response from investors. We first identify the various aspects of Fixed Deposit market& awareness about MMFSL and after that through quantitative research we can finally see the relative importance and rating of each of these factors. This information helped us to identify which factors are most important and identify which are the major aspects of the fixed deposits market.

1:- According to analysis of data that has been collected from local people from Amreli, we found that out of 600 respondent’s majority (76%) of respondents are aware about Mahindra finance and only 24% respondents are not aware.

2:- According to survey out of 600 respondents, we found that 80% people are prefer Fixed Deposit product for investment, and 16% people are prefer Shares and very less no of people are prefer mutual fund for investment so we can say that the majority of the respondents are prefer Fixed deposit products.

3:- From the analysis of data that has been collected from local people from Amreli, we found that the majority of respondents are not invested their money in Fixed deposit of any company before .only 37% people are invested their money in the Fixed deposits because of the most of people are belong to villages and they have small business and agriculture background. So we can say that they cannot prefer any kind of investments.

4:- From the survey we found that the large numbers 62% of respondents are more aware about LIC Home Finance and 22% are aware about HDFC Ltd. And few numbers of the respondents are aware about Mahindra Finance & Sri Ram Finance.

5:- According to survey out of 600 respondents, 45% respondents are like to know about Mahindra Finance fixed deposits and 55% are not like to know about MMFSL fixed deposits, so we can say that in figure 4. We found that only 8% people are aware about MMFSL FD but now 45% people want to know about MMFSL FDs.

6:- Accourding to survey we found that out of 150 respodents 67% respodents preferences for the investment instrument is fixed deposits, and 13% preference for Equity market and rest of the respodents preference for the investment instrument are 1% Govt. sec & billion, 7% matual fund, 3% insurance.

7:- Accourding to analysis of the data we found that the 49% respodents objectives are multiple objective(rate of return capital gain and tax savings) of the investment and 39% respodents main


objective of the investment is to Earn a rate of return and few number of respodents main objectives are gain capital gain and tax savings.so we can say that when investors invest their money for investment they consider first rate of return.

8:- Form the survey we found that out of 150 respodents 40% respodents have good knowledge about financial market and 22% respodents have average knowledge, 18% respodents have limited knowledge and 12% respodents have excellent knowledge and very few number of respodents have no idea about financial maket. So we can say that the allmost people have knowledge about financial markets.conclusion from this findings we can say that the financial litreracy is high in Amreli.

9:- From the analysis of data we found that the income 11000-20000 group are generally invest their income less than 10% and income group 21000-35000 are generally invest their income in 10-25%, and very few people who invest their income in 25-50% in any kind of investment.and we also found that the nobudy invest 50% money from their income. from this finding in conclusion. As the level of income increases the people are wiling to invest more proportion of their income, but only upto a certain limit.

10:- From the analysis the data we found that the every income group of respodents they all are prefer fixed deposits for the investment instrument and only income group 21000-35000 is prfer Equity market,matual fund and real estate and only few people who prefer billion for investment and only resaon behind the investment in billion is family use.

11:- From the analysis of the data that has been collected from local people, we found that majority of the respondents are liked the MMFSL FD product.The respondents who like the product are 79%. And only21% respondent they are not liked the MMFSL fixed deposits product

12:- According to survey we found that the highest numbers of business man they invest their money in the fixed deposits and very few business holders invest their money in the equity market, mutual fund ,insurance and real estate and the analysis also show that the respodents who have profession they a invest their money in the fixed deposits as well as in the real etate and very few numbers of service holder respodents invest their money in the Govt. sec.,

13:- According to this study we can say that the large numbers of the respodents who belongs to

21-35 & 36-35 years age group they are genrelly invest their money in fixed depodits and they

also invest their money in the real estate and equity market.


Recommendation

1. Company should have to motivate their brokers to promote the brand.

2. PR events like fairs, exhibition should organize on regular occasion to boast sales of broker.

3. Marketing activities like Pamphlets, News paper ads should be encouraged to increase sale of

broker.

4. Mahindra Finance does not have any product for SIP program, compared to their competitor

HDFC bank have number of SIP program.

Conclusion:

The study on preferred investment choices has been undertaken with the Objective, to analyze the investment choice and the various aspects of Fixed Deposit market of local people in Amreli district. Analysis of the study was undertaken with the help of survey conducted.After analysis and interpretation of data it is concluded that in Amreli district, Gujarat respondents are medium aware about various investment choices but they do not aware about stock market, equity, bond and debentures. The study is conducted by taking a limited number of sample sizes which is stated earlier. And this study reflects the perceptions of those respondents, who are residing in Amreli. This study brings out the several aspects of s of investing in Fixed Deposits through the factors that influence the decision making of an active respondent in this sector. This sector has the great ebbs and flows and can be synonymously coded as the marketplace. The factors influencing the investors of Amreli district has been analyzed. After analyzing the data we can conclude that the majority of people are the aware about Mahindra Finance and response about MMFSL FD the analysis of the data that majority of the respondents are liked the MMFSL FD product. The respondent who like the product are 79%. The findings of the present study indicate that as per the age-wise classification, the investors in the age group of above 35 years are actively participating in the investment in fixed deposits .business class and the govt. job people are more interested to invest their money in the fixed deposits Investing in the fixed deposit has been activity confined to the govt. job person, senior citizen and household class in the past. But today. The results conclude that in today’s era the person must think about future life. Even the individuals must leave with planning of finance for make their life become comfortable, relax able and luxuries today’s man is also good investor because market gives him a lot of opportunities of investment. It is also evident that investment strategies of people keep changing as well as the factors that influence the decision making keeps changing. The study reveals that there exists an independency between the demographics and majority of the factors.


Bibliography

https://www.google.co.in/search?q=mahindra&ie=utf-8&oe=utf-

8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a&gws_rd=cr

http://www.mahindrafinance.com/default.aspx

http://www.moneycontrol.com/fixed-income/company-deposits/mahindra-finance-rates-

MF01.html

“Global Structured Finance Research – CDO Research” in Structured Finance CDO

Handbook.

J.P. Morgan Securities, Inc. (New York, February 19, 2004). Available at

http://db.riskwaters.com/global/events/im_cdotraining2005/precourse_cdos/SF%20CDO

%20Handbook.pdf

H.R. 1852—Expanding American Homeownership Act, available at

<http://www.fha.gov/about/index.cfm#history>

“Increasing Tri-Party Repo and Securitization Transparency: A Roundtable Discussion.”

The Bank of New York Mellon. 2008.

OMB Bulletin No. 03-04, released June 6, 2003. Available at

http://www.whitehouse.gov/omb/bulletins/b03-04.html

Amos Tversky, Daniel Kahnehan, October 1986 “Rational Choice and Framing of

Decisions.” Journal of Business, Volume 59, issue 4, part 2, Pages 251-278.


http://www.mahindrafinance.com/default.aspx

https://www.google.co.in/search?q=mahindra&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a&gws_rd=cr

https://www.google.co.in/search?q=mahindra&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a&gws_rd=cr

Brad M. Barber & Terrance Odean, July 1999, “The Courage of Misguided Convictions:

The Trading Behavior of Individual Investors” Journal of Finance, 53, 1887-1934.

Brian Arthur W., John H. Holland, Blake LeBaron, Richard Palmer, and Paul Tayler ,

December 1996, “Asset Pricing Under Endogenous Expectations in an Artificial Stock

Market”, Working paper series, Santa Fe Institute Paper 92-07-038.

Crombez, J. "Momentum,2001 Rational Agents and Efficient Markets." The Journal of

Psychology and Financial Markets,Vol 2.

Chandra, Abhijeet, March 2009, “Individual Investors' Trading Behavior and the

Competence Effect” The Icfai University Journal of Behavioral Finance, Vol. 6, No. 1,

pp. 56-70.

Daniel, K., D. Hirschleifer, and A. Subrahmanyam. 1998 “A Theory of Overconfidence,

Self-Attribution, and Security Market under and Over-reactions.” Journal of Finance 53.

David Ansie, Melanie Powell, July 1997, “Gender difference in risk behavior in financial

markets: An experimental analysis.” Journal of Economic Psychology, Volume 18, Pages

605-628.


Appendix

Market surveyName:_________________________________________Address:_______________________________________________________________________________________________________________________________________________________________________Contact No: __________________Occupation:____________________E-mail____________________________________________________

1) Are you aware about Mahindra Finance? a. Yes b. No

2) Which product you will prefer for investment? a. Fixed Return product b. High risk, High return Shares c. Moderate risk, Moderate returns Mutual Fund

3) Have you ever invested in Company Fixed Deposit before? a. Yes b. No

4) Which of the following FDs you are aware of? a. Sri Ram Finance b. HDFC LTD. c. Mahindra Finance d. LIC Home Finance e. Others

5) Would you like to know about Mahindra Finance FD? a. Yes b. No


Market survey

1. Name _____________________________________

2. Gender Male Female

3. Age 10-20 years

21-35 years36-55 years56 and above

4. OccupationBusinessProfessionServiceGovt. Job

5. Monthly income Less than 10000

11000-20000 21000-35000 36000 and above

6. How would you rate your knowledge about the financial markets?Excellent Good Average Limited None

7. What percentage of your income do you generally invest?Less than10% 10% - 25% 25%-50% Above50% none

8. In which segment do you generally invest in?Organized Unorganized Both


9. Rank your preference for the following instruments from 1 to7 and allocate your investments.

Financial Instruments Ranka. Equity Market (Share Market)b. Government Securitiesc. Fixed Depositsd. Mutual Fundse. Insurancef. Bullion (Gold, Silver, Diamonds)g. Real estate

10. What is the objective of your investments? a. Earn a rate of return b. Capital Gain d. Tax savingse. All of the above

11. The MMFSL fixed deposit like by you or not? Yes No

12. If yes, then why?________________________________________________________________________________________________________________________________ 13. If no, then why?______________________________________________________________________________________________________________________________

THANK YOU


a survey of investors for analyzing the various aspects of fixed deposit market for mmfsl

Education