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SUMMER TRAINING PROJECT 2008-2010

RISK MANAGEMENT

IN

INVESTMENT TRENDS

ININDIA

Under the Guidance of Project Submitted by

Mr. BHUPESH HARJAI CHANDRAKANT SHARMA

Asst. Manager, Roll No. 108210

Standard Chartered Bank PGDM (A-2),

Phase II, Gurgaon BATCH - 2008-10

M.E.R.I, JANAKPURI


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ACKNOWLEDGEMENT

This project comes out to be a great source of learning and

experience. A lot of efforts have been put by various people to make

this project a success. This has greatly enhanced my knowledge about

the vast field of Investment avenues that an individual prefers in

todays scenario.

I gratefully acknowledge my indebtedness to Mr.BHUPESH HARJAI

(Asstt. Manager Standard Chartered Bank, Dlf phase II, Gurgaon) for

allowing me to undergo a training session in his branch and gather an

in depth knowledge about the vast investment options available in the

market and the investment strategies preferred by an individual

investors.

Last but not the least; I am extremely thankful to the all staff

members of Standard Chartered Bank branch for their constantsupport and valuable guidance.

I hope I can build upon the experience and knowledge that I have

gained here and make a valuable contribution towards this industry in

the coming future.

CHANDRAKANT SHARMA

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Table of Contents

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Contents Page No.

EXECUTIVE SUMMARY 4

INTRODUCTION

Banking sector in India

About Standard Charted Bank

About Project

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9

INVESTMENT STRATEGY

Investment Strategy: Various Factors

Investment Strategy: A Snapshot

Investment Strategy in India

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10

12

14

PRODUCTS STUDIED/OFFERED BY STANDARD CHARTERED

Savings Account

Term Deposits

Life Insurance

Mutual Fund

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2224

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TAXATION 36

INVESTMENT STRATEGIES AND PORTFOLIO MANAGEMENT

Selecting the right investment option

Deciding your method of Investment Investment Planning

Investment Process

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41

434446

THE RESEARCH REPORT

Objective of the study

Research Methodology

Scope

Questionnaire & Analysis

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5354

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BIBLIOGRAPHY

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ANNEXURE

EXECUTIVE SUMMARY

The project 'RISK MANAGEMENT IN INVESTMENT TRENDS ' was

undertaken as a part of the learning process during the summer

internship at Standard Chartered Bank.

The objective of the project was to know about peoples preference in

investing their money based on several factors like age, occupation

and annual income etc., i.e. where the people invest and what

investment strategies they undertake to maintain a profitable

investment portfolio. The scope of the project was to understand

peoples preference in investing their money based on age, occupation

and income.

The reportprovides investment strategies adopted by customers while

investing their earnings in different areas depending upon their age,

income and occupation.

Also a detailed analysis of the questionnaire was done on the basis of

three parameters age, occupation and income. Conclusions were

arrived at on the basis of the investment analysis done and few

investment strategies are suggested to investors.

The key learning from the project was the knowledge of different

financial products of the bank and the strategies an investor

undertakes in investing his earnings. Learning from the project was

the psychology of the customers regarding investments based on

factors such as age, income and occupation.

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INTRODUCTION

Banking sector in India

Indias banking sector is growing at a fast pace. India has become one

of the most preferred banking destinations in the world. The

reasons are numerous: the economy is growing at a rate of 8%,

Bank credit is growing at 30% per annum and there is an ever-

expanding middle class of between 250 and 300 million people

(larger than the population of the US) in need of financial

services. All this enables double-digit returns on most asset

classes which is not so in a majority of other countries. Foreign

banks in India achieving a return on assets (ROA) of 3%, their

keen interest in expanding their businesses is understandable.

Indian markets provide growth opportunities, which are unlikely

to be matched by the mature banking markets around the world.

Some of the high growth potential areas to be looked at are: the

market for consumer finance stands at about 2%-3% of GDP,

compared with 25% in some European markets, the real estate

market in India is growing at 30% annually and is projected to

touch $ 80 billion by end 2009, the retail credit is expected to

cross Rs 5,70,000 crore by 2010 from the current level of Rs

2,89,000 crore in 2008-09 and huge SME sector which contributes

significantly to Indias GDP.

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In order to gain further access to the global trade, the government is

expanding the Free Trade Agreements (FTAs) with many

countries (like Singapore, Thailand, and other ASEAN members).

After the Comprehensive Economic Co-Operation Agreement

(CECA) with Singapore, the government is now planning a similar

deal with the 25-member European Union. The EU is also likely to

ask India to liberalize its financial sector on the lines of the India-

Singapore CECA.

About Standard Chartered Bank

The Standard Chartered Group was formed in 1969 through a merger

of two banks: The Standard Bank of British South Africa founded in

1863 and the Chartered Bank of India, Australia and China, founded in

1853. Both companies insisted on the huge expansion of trade and to

earn the handsome profits to be made from financing the movement of

goods from Europe to the East and to Africa.

The Standard Bank was founded in the Cape Province of South Africa

in 1862 by John Paterson. The Chartered Bank was founded by James

Wilson following the grant of a Royal Charter by Queen Victoria in

1853.Chartered opened its first branches in Mumbai (Bombay),

Calcutta and Shanghai in 1858, followed by Hong Kong and Singapore

in 1859.

In 1969, the decision was made by Chartered and by Standard to

undergo a friendly merger. All was going well until 1986, when a

hostile takeover bid was made for the Group by Lloyds Bank of the

United Kingdom. From the early 1990s, Standard Chartered has

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focused on developing its strong franchises in Asia, the Middle East

and Africa using its operations in the United Kingdom and North

America to provide customers with a bridge between these markets.

Secondly, it would focus on consumer, corporate and institutional

banking and on the provision of treasury services - areas in which the

Group had particular strength and expertise.

Business & strategy

Standard Chartered operates in many of the world's fastest

growing markets, and derives over 90 per cent of its profits from

the emerging trade corridors of Asia, Africa and the Middle East.

Listed on both the London Stock Exchange and the Hong Kong Stock

Exchange, Standard Chartered PLC is consistently ranked in the top 25

FTSE 100 companies by market capitalization.

Principles & Values

Success is built on teamwork, partnership and the diversity of

the people.

It employs 73,000 people, representing 115 nationalities, and

one can find 61 nationalities among our 500 most senior leaders

Diversity helps to fuel creativity and innovation, supporting the

development of exciting new products and services for its

customers worldwide.

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Known and trusted for the high standards of corporate

responsibility, it is committed to building a sustainable business

through social inclusion, environmental protection and good

governance.

Personal Banking

Through the global network of over 1,700 branches and outlets,

Standard Chartered offers personal financial solutions to meet

the needs of more than 14 million customers across Asia, Africa

and the Middle East.

SME Banking

The SME Banking division offers a wide range of products and

services to help small and medium-sized enterprises manage the

demands of a growing business.

Islamic Banking

Standard Chartered Saadiq's dedicated Islamic Banking team

provides comprehensive international banking services and a

wide range of Shariah compliant financial products that are

based on Islamic values.

Wholesale Banking

Headquartered in Singapore and London, with on-the-ground

expertise that spans their global network, their Wholesale

Banking division provides corporate and institutional clients with

innovative solutions in trade finance, cash management,

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securities services, foreign exchange and risk management,

capital rising, and corporate finance.

Private Banking

Our Private Bank advisors and investment specialists provide

customized solutions to meet the unique needs and aspirations of

high net worth clients. Standard Chartered is one of the world's

most international banks, with employees representing 80

nationalities. Standard Chartered customizes Client Solutions for

risk management, yield enhancement, liquidity management and

debt financing. The key businesses of Standard Chartered Bank in

India include consumer banking - primarily credit cards, mortgages,

personal loans and wealth management - and - wholesale banking,

where the Bank specializes in the provision of cash management,

trade, finance, treasury and custody services.

About The Project

The project RISK MANAGEMENT IN INVESTMENT TRENDS was

undertaken with Standard Chartered Bank, New Delhi with the main

aim of analyzing and studying the various investment options available

in the market and devising investment strategies for the investors.

It intends to meet the needs of the investors who are keen oninvestment options like Bonds, Mutual Funds, and Insurance. It is

meant to be highly practical with Indian bias but incorporates the

theoretical inputs necessary to satisfy the components herein.

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The training required great knowledge and understanding of financial

concepts. To advise an investor it is essential to be aware of all the

possible options available and daily up gradation of ones knowledge.

Therefore it was challenging and a great experience.

The objective is not to profile individual funds and tell what to buy. No

one knows which funds are going to perform best over the next

one, five or ten years. The financial world is simply unpredictable.

Rather it is an effort to help investors make better choices, which

should lead to improved results.

INVESTMENT STRATEGY

Investment is a term with meanings in business management,

finance andeconomics,related tosavingor deferringconsumption. An

assetis usually purchased, or equivalently a deposit is made in a bank,

in hopes of getting a future return. Investment is the currentcommitment of money for a period of time in order to derive future

payments that will compensate the investor for the time the funds are

committed, the expected rate of inflation and the uncertainty of future

payments.

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http://en.wikipedia.org/wiki/Business_managementhttp://en.wikipedia.org/wiki/Financehttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Saving_(money)http://en.wikipedia.org/wiki/Consumption_(economics)http://en.wikipedia.org/wiki/Assethttp://en.wikipedia.org/wiki/Business_managementhttp://en.wikipedia.org/wiki/Financehttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Saving_(money)http://en.wikipedia.org/wiki/Consumption_(economics)http://en.wikipedia.org/wiki/Asset


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The investor can be an individual, a government, a pension fund or a

corporation. Investment is buying securities or assets in the money

market, capital market or in liquid assets. Investments can be done in

fixed income investments like savings account, in ULIP, in pension

funds, in real estate, in stocks, bonds, funds, commodities and other

collective investment schemes.

Needs of an Investor:

By and large, most investors have these common needs from

their investments:

Tax efficiency: Legitimate reduction in the amount of tax

payable is an important part of the Indian psyche. Every rupee

saved in taxes goes towards wealth accumulation.

Growth of earnings: This is largely a factor of investment

performance, including both short-term performance of an

investment and long-term performance of a portfolio. Wealth

accumulation is the ultimate measure of the success of an

investment decision.

Security of original capital: The chance of losing some capital

has been a primary need. This is perhaps the strongest need

among investors in India, who have suffered regularly due to

failures of the financial system.

Life Cover: Many investors look for investments that offer good

return with adequate life cover to manage the situations in case

of any eventualities.

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Income: This refers to money distributed at intervals by an

investment, which are usually used by the investor for meeting

regular expenses. Income needs tend to be fairly constant

because they are related to lifestyle and are well understood by

investors.

Simplicity: Investment instruments are complex, but investors

need to understand what is being done with their money. A

planner should also deliver simplicity to investors.

Comfort factor: This refers to the peace of mind associated

with an investment. Avoiding discomfort is probably a greater

need than receiving comfort. Reputation plays an important part

in delivering the comfort factor.

Communication: This refers to informing and educating

investors about the purpose and progress of their investments.

The need to communicate increases when investments are

threatened.

Ease of withdrawal: This refers to the ability to invest long term but

withdraw funds when desired. This is strongly linked to a sense of

ownership. It is normally triggered by a need to spend capital, change

investments or cater to changes in other needs. Access to a long-term

investment at short notice can only be had at a substantial cost.

Investment Strategies A Snapshot

To understand the investment pattern and the various strategies thatcould be used by the individual and to know how they can maximizetheir returns, we need to understand the importance of the following

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questions. By answering to these questions we get a step by stepstructure which finely helps us in planning an investment strategywhich is best suited to the need of the individual investor.

What is Investment?

The money you earn is partly spent and the rest saved formeeting future expenses. Instead of keeping the savings idle youmay like to use savings in order to get return on it in the future.This is called Investment.

Why should one invest?

One needs to invest to:

Earn return on your idle resources.

Generate a specified sum of money for a specific goal in life.

Make a provision for an uncertain future.

To meet the cost ofInflation.

How much to invest?

It depends upon two factors:

1. Quantum to investment

Saving rate as %age of income

Expenditure structure/ needs

Inheritance (if any)

2. Ability constrains

Age

Level of income Family stage (number of dependents)

Ability to take risk

High risk: shares, commodity, bullion.

Moderate risk: mutual funds, real estate etc.

Low risk: government bonds and securities, T-bills.

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Where to invest (investment avenues)?

One can invest ones fund in different avenues:

Stock/Debt market Commodities market (gold etc.)

Real estate

Money market

Forex market

How long one investment (term)?

Investment plan also depends upon the willingness of theinvestor for how long he/she wants to depart from the funds.

Short term: current account, saving account, shares

Medium term: mutual fund, fixed deposit, postal deposits.

Long term: real estate, insurance policy.

What is the preference of investor from investment plan?

Profitability: shares, real estate

Liquidity: bank current account, open mutual fund, shares.

Security: govt. Bonds, fixed deposits, secured loans.

A tradeoff between these 3 factors takes place in every investmentproduct. An array of products is available with different mix of these

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factors which caters the need of the investor according to itspreference.

Investment Strategies in India

Conventionally, Indian investors were investing in the following

avenues:

Fixed Deposits

They cover the fixed deposits of varied tenors offered by the

commercial banks and other non-banking financial institutions.

These are generally a low risk prepositions as the commercial banks

are believed to return the amount due without default. By and large

these FDs are the preferred choice of risk-averse Indian investors who

rate safety of capital & ease of investment above all parameters.

Largely, these investments earn a marginal rate of return of 6-8% per

annum.

Government Bonds

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The Central and State Governments raise money from the

market through a variety of Small Saving Schemes like national

saving certificates, Kinan Vikas Patra, Post Office Deposits,

Provident Funds, etc. These schemes are risk free as the

government does not default in payments. But the interest rates

offered by them are in the range of 7% - 9%.

Money-back insurance

Insurance in India is mostly sold and bought as investment

products. They are preferred because of their add-on benefits

like financial life-cover, tax-savings and satisfactory returns.

Even if one does not manage to save money and invest regularly

in financial instruments, with insurance, the policyholder has no

choice. If he does not pay his premiums on time, his insurance

cover will lapse. Money-back Insurance schemes are used as

investment avenues as they offer partial cash-back at certain

intervals. This money can be utilized for childrens education,

marriage, etc.

Endowment Insurance

These policies are term policies. Investors have to pay the

premiums for a particular term, and at maturity the accrued

bonus and other benefits are returned to the policyholder if he

survives at maturity.

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Bullion Market

Precious metals like gold and silver had been a safe heaven for

Indian investors since ages. Besides jewellery these metals are

used for investment purposes also. Since last 1 year, both Gold

and Silver have highly appreciated in value both in the domestic

as well as the international markets. In addition to its attributes

as a store of value, the case for investing in gold revolves

around the role it can play as a portfolio diversifier.

Stock Market

Indian stock markets particularly the BSE and the NSE, had been

a preferred destination not only for the Indian investors but also

for the Foreign investors. This is evident from the fact that FIs

are buying huge stakes on the Indian bourses. Although Indian

Markets had been through tough times due to various scams,

but history shows that they recovered very fast. Many scripts

had been value creators for the investors. People have earned

fortunes from the stock markets, but there are people who have

lost everything due to incorrect timings or selection of

fundamentally weak companies.

Real Estate

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Approximately one fourth of all homes sold in 2008 have been

purchased as an investment. Returns are almost guaranteed

because property values are always on the rise due to a growing

world population. Residential real estate is more than just an

investment. There are more ways than ever before to profit from

real estate investment.

Mutual Funds

There is a collection of investors in Mutual funds that have

professional fund managers that invest in the stock market

collectively on behalf of investors. Mutual funds offer a better

route to investing in equities for lay investors. A mutual fund

acts like a professional fund manager, investing the money and

passing the returns to its investors. All it deducts is a

management fee and its expenses, which are declared in its offer

document.

Unit Linked Insurance Plans

ULIPs are remarkably alike to mutual funds in terms of their

structure and functioning; premium payments made are

converted into units and a net asset value (NAV) is declared for

the same. In traditional insurance products, the sum assured is

the corner stone; in ULIPs premium payments is the key

component.

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Products offered by the Standard Chartered Bank

The scope of this project is the detailed study of these products offered

at the Standard Chartered Bank. They are as follows:

Savings Account

Term Deposits

Unit Linked Insurance Plan (ULIPs)

Savings Account

As savings accounts are meant to encourage savings habit,

organizations whose purpose is profit are not allowed to open such

accounts. Interest is paid on a half-yearly basis in these accounts. A

minimum balance is stipulated by each bank. A balance amount above

the stipulated amount is eligible for a 3.5 % interest rate in India at

present.

Standard Chartered savings account:

Standard Chartered banks aXcessPlus is a revolutionary savings

account that provides you with unstinted access to your money:

Get instant cash at over 20,000 ATMs across India and over 10

lacs ATMs across the world through the visa network.

Get a globally valid debit card that lets you shop at over 326,000

outlets in India and over 14 million outlets across the world.

Free unlimited visa transactions.

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Free Standard Chartered bank branch access across the country.

Free door step banking

Free demand Draft/ pay orders (drew at SCB locations).

Free payable at par cheque book.

International debit card, phone banking, net banking and

extended banking hours.

The Standard Chartered aXcessPlus Account comes with a globally

valid debit - cum - ATM card which allows customers to access all

Standard Chartered Bank ATMs and provides instant cash at all Visa

Network ATMs in India and abroad. AXcessPlus customers get FREE

access to cash withdrawals at over 13000 Visa ATMs in India up to four

free transactions per month. This is over and above unlimited free

access to all Standard Chartered Bank ATMs. The Debit Card can be

used to make purchases at over 55,000 merchant outlets in India. The

globally valid Standard Chartered Debit Card is the easiest way of

accessing your branch account. A debit card allows you to purchase

goods at Visa Electron merchant establishments and withdraw cash

from any Visa Electron ATM in India and abroad using funds from your

bank account. A debit card is a 'buy now - pay now' option; the

payment to a merchant gets debited to the customer's account the

same day as the purchase is made.

Standard Chartered bank offers 4 types of Savings account matching

different needs of customers namely:

aXcess Plus

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Super Value

Parivaar account

aaSaan Account

AXcess Plus Saving Account

The Standard Chartered Bank have launched the aXcess Plus saving

account as a premium product placed in the market with maintenance

of minimum quarterly balance of 10,000/- The product in supposed tobe targeted to a specific group elite of customers. This will help to

increase the volume and as such the profitability of the company. The

name aXcess plus means that the account is accessible anywhere

anytime, as well as it will be an innovative and convenient service for

the customers needs.

Following are the main features ofaXcess Plus account:

FREE Unlimited Visa ATM transactions

FREE Doorstep Banking

International Debit Card

Phone Banking

Online Banking

Averaged quarterly balance Rs 10000

Super Value Saving Account

Super Value Account offers a host of value added services free of

cost, such as Free Bill Pay, Free Inter Bank Funds Transfer.

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Super Value Saving Account offers the following main features:

Free Bill Pay

Free Inter Bank Funds Transfer

Free Foreign Inward Remittance Certificates

Free Payable at Par cheque book/ account statements /

DDs

Average quarterly balance Rs 50000

Parivaar account

This family account allows you to maintain your individual

identity while allowing you to tap your family's financial

strength.

ParivaarAccountoffers the following main features:

Maintain individual savings accounts with the benefit of

clubbing balances in grouped accounts

Option of Systematic Investment Plan (SIP) that allows

you to invest a fixed amount of money every month in

specific mutual funds

Globally valid ATM-cum-debit card Phone Banking

Online Banking

Average quarterly balance Rs 25000

AaSaan Saving Account

AaSaan is a basic, no maintenance, hassle free savings account.

AaSaan Saving Account offers the following main features:

No Minimum Balance requirement

Unlimited Free access to Standard Chartered Bank ATM's

International Debit Card

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Phone Banking

Online Banking

Average quarterly balance Rs o(zero)

Common Product features (Saving Accounts)

Account can be in sole name or in joint names

Minimum balance: Minimum Quarterly balance of a specific

amount is to be maintained failing to which a specific fees

per quarter has to be maintained.

Account can be operated at any branch across the country.

Standard chartered debit card

The joining fee is Rs. 200 and there is a nominal fee of Rs. 200/-

from the 2nd year onwards.

You have free access to all Standard Chartered Bank and are

entitled to free cash withdrawals at Visa ATMs (up to four free

cash withdrawals per account per month).

There are no transaction charges for the purchases made at the

Merchant establishments except at railway stations and petrol

pumps (as per industry practice).

The Standard Chartered Debit Card is welcome at all merchant

establishments and ATMs that accept Visa Electron in India and

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Abroad.

The card can be used at 55,000 establishments in India and at

over 12 million outlets worldwide displaying the Visa Electron

sign.

It can also be used across 13000 ATMs in India and at over

810,000 ATMs worldwide.

Term Deposits

Standard Chartered Term Deposits can help earn a higher rate of

interest on the money. Standard Charted offers a wide variety of

options to suit different needs. With a wide variety of options to

suit different needs, including Short Term Deposit, Reinvestment

Deposit, Simple Fixed Deposit and Monthly Income Plan, they

can be opened by individuals, proprietors, partnership andlimited companies, societies, clubs, associations and HUFs.

In case you need to withdraw amounts in excess of what is

available in investors transaction account, Standard charted will

break investors deposit for the exact amount as required by the

investor. The rest of the deposit continues earning the original

high interest.

Special Features

Tenor ranges from 15 days to 5 years (For deposits of Rs.

15 Lacs and above, minimum tenor is 7 days)

Options of simple interest and compound interest

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Auto renewal facility

Overdraft facility available against deposit

Preferential rates given for large value deposits of Rs.15

Lacs and above

Interest Rates applicable on Term Deposit

Following table is showing the rate of interest payable by

Standard Charted bank for the month of June and rates

applicable from the day 31st July 2008 on term deposits.

Tenor Current Rate Effective 23-Jun-08 Revised

15-29 days 5.70%

30-45 days 5.85%46-59 days 5.85%

60-89 days 6.50%

90-179 days 6.90%

180 days - 197 days 7.10%

198 days* 7.50%

199 days - 297 days 7.10%

298 days* 9.25%

299 days =18 Months < 2 years 6.70%

2 years < 3 years 6.75%

3 years < 4 years 6.80%

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AN INSIGHT TO LIFE INSURANCELife Insurance Cover is a plan in which the insured person gives

periodic premiums to the Insurer for a particular period, and in case of

any eventuality before the lapse of the policy, the insurer pays the

sum assured and the accrued bonus to the nominee of the insured

person. Now based on term of premium payment and the term of life

coverage, the Life Insurance covers are broadly classified into four

categories:

Whole Life Policy

Money-Back Policy

Endowment Policy

Unit Linked Plans

In the Whole Life Policies, the insured person is provided a life cover

till he attains an age of 65 irrespective of the age at which he

subscribes to the policy. In this case, the person just has to pay the

insurance premiums for a particular period.

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In case of Money-Back Policies, the insured person is provided a life

cover for a particular term that is predetermined and the premiums

are decided on the basis of the term of policy.

The Endowment Policies are given for a particular term for which the

life cover is provided and the insured person has to pay periodic

premiums to the insurer. At successful completion of the policy term,

the insured person is given back all the survival benefits and accrued

benefits.

Unit Linked Insurance Plans are similar to Endowment schemes, but

here the returns are not guaranteed as the part of the annual

premiums is invested in stock markets, debts and other market linked

securities. The life cover is provided to the insured person for

particular term and amount. In traditional insurance products, the sum

assured is the corner stone; in ULIPs premium payments is the key

component.

Other benefits:

Gainful Investment:

With the advent of ULIPs, insurance products graduated from being a

protection device to an investment vehicle.

Inculcates discipline in savings:

Even if one does not manage to save money and invest regularly in

financial instruments, with insurance, the policyholder has no choice.

Beats the Market fluctuations:

Long term investments are the sure fire way to beat the stock market

fluctuations.

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Tax benefits:

Insurance has always been the first choice as a tax saving device. The

premiums that an investor pays and all the benefits payable to him

under the plan are eligible for tax benefits under section 80 C and

10(10D) of the Income Tax Act of 1961.

Bajaj Allianz Life Insurance Co Ltd

Is a joint venture between two leading conglomerates- Allianz AG,

one of the world's largest insurance companies, and Bajaj Auto, one

of the biggest two and three wheeler manufacturers in the world.

Allianz Group is one of the world's leading insurers and financial

service providers. Founded in 1890 in Berlin, Allianz is now present in

over 70 countries with almost 174,000 employees. Allianz Group

provides its more than 60 million customers worldwide with a

comprehensive range of services in the areas of Property and Casualty

Insurance, Life and Health Insurance, & Asset Management and

Banking.

Bajaj Auto Ltd, the flagship company of the Rs. 80 billion Bajaj Group

is the largest manufacturer of two-wheelers and three-wheelers in

India and one of the largest in the world. Bajaj Auto has a strong

brand image & brand loyalty synonymous with quality & customer

focus in India

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Allianz AG with over 110 years of experience in over 70 countries and

Bajaj Auto, trusted for over 55 years in the Indian market, together

are committed to offer Insurance solutions that provide all the security

needed for a family.

Mutual Funds

A mutual fund is a professionally-managed firm of collective

investments that collects money from many investors and puts it in

stocks, bonds, short-term money market instruments, and/or other

securities. After realizing capital gains or losses, the investment

proceeds are then passed along to the individual investors annually,

through you can think of a mutual fund as a company that brings

together a group of people and invests their money in stocks, bonds,

and other securities. Each investor owns shares fund manager, also

known as the portfolio manager. The value of the mutual fund, known

as the net asset value per share (NAV), is calculated daily based on

the total value of the fund divided by the number of shares currently

outstanding.

You can make money from a mutual fund in three ways:

Income is earned from dividends on stocks and interest on

bonds. A fund pays out nearly all income it receives over the

year to fund owners in the form of a distribution.

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If the fund sells securities that have increased in price, the fund

has a capital gain. Most funds also pass on these gains to

investors in a distribution.

If fund holdings increase in price but are not sold by the fund

manager, the fund's shares increase in price. You can then sell

your mutual fund shares for a profit.

Mutual funds can invest in many different kinds ofsecurities. The most

common are cash instruments, stock, and bonds, but there are

hundreds of sub-categories. Stock funds, for instance, can invest

primarily in the shares of a particular industry, such as technologyor

utilities. These are known as sector funds.

Bond funds can vary according to risk (e.g., high-yieldjunk bonds or

investment-grade corporate bonds), type ofissuers (e.g., government

agencies, corporations, or municipalities), or maturity of the bonds

(short- or long-term). Both stock and bond funds can invest in

primarily U.S. securities (domestic funds), both U.S. and foreign

securities (global funds), or primarily foreign securities (international

funds).

Most mutual funds' investment portfolios are continually adjusted

under the supervision of a professional manager, who forecasts the

future performance of investments appropriate for the fund and

chooses those which he or she believes will most closely match the

fund's stated investment objective. A mutual fund is administered

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through a parent management company, which may hire or fire fund

managers.

Advantages of Mutual Funds:

Professional Management

The primary advantage of funds (at least theoretically) is the

professional management of your money. Investors purchase

funds because they do not have the time or the expertise to

manage their own portfolio. A mutual fund is a relatively

inexpensive way for a small investor to get a full-time manager

to make and monitor investments.

Diversification

By owning shares in a mutual fund instead of owning individual

stocks or bonds, your risk is spread out. The idea behind

diversification is to invest in a large number of assets so that a

loss in any particular investment is minimized by gains in others.

In other words, the more stocks and bonds you own, the less

any one of them can hurt you (think about Enron). Large mutual

funds typically own hundreds of different stocks in many

different industries. It wouldn't be possible for an investor to

build this kind of a portfolio with a small amount of money.

Economies of Scale

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Because a mutual fund buys and sells large amounts of

securities at a time, its transaction costs are lower than you as

an individual would pay.

Liquidity

Just like an individual stock, a mutual fund allows you to request

that your shares be converted into cash at any time.

Simplicity

Buying a mutual fund is easy! Pretty well any bank has its own

line of mutual funds, and the minimum investment is small. Most

companies also have automatic purchase plans whereby as little

as $100 can be invested on a monthly basis.

Disadvantages of Mutual Funds:

Professional Management-

Did you notice how we qualified the advantage of professional

management with the word "theoretically"? Many investors

debate over whether or not the so-called professionals are any

better than you or I at picking stocks. Management is by no

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means infallible, and, even if the fund loses money, the manager

still takes his/her cut. We'll talk about this in detail in a later

section.

Costs

Mutual funds don't exist solely to make your life easier--all funds

are in it for a profit. The mutual fund industry is masterful at

burying costs under layers of jargon. These costs are so

complicated that in this tutorial we have devoted an entire

section to the subject.

Dilution

It's possible to have too much diversification (this is explained in

our article entitled "Are You Over-Diversified?"). Because funds

have small holdings in so many different companies, high returns

from a few investments often don't make much difference on the

overall return. Dilution is also the result of a successful fund

getting too big. When money pours into funds that have had

strong success, the manager often has trouble finding a good

investment for all the new money.

Taxes

When making decisions about your money, fund managers don't

consider your personal tax situation. For example, when a fund

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manager sells a security, a capital-gain tax is triggered, which affects

how profitable the individual is from the sale. It might have been more

advantageous for the individual to defer the capital gains liability.

Different Types of Funds:

No matter what type of investor you are there is bound to be a mutual

fund that fits your style. According to the last count there are over

10,000 mutual funds in North America! That means there are more

mutual funds than stocks. It's important to understand that each

mutual fund has different risks and rewards .In general, the higher the

potential return, the higher the risk of loss. Although some funds are

less risky than others, all funds have some level of risk--it's never

possible to diversify away all risk. This is a fact for all investments.

Each fund has a predetermined investment objective that tailors the

fund's assets, regions of investments, and investment strategies.

At the fundamental level, there are three varieties of mutual funds:

Equity funds (stocks)

Fixed-income funds (bonds)

Money market funds

All mutual funds are variations of these three asset classes. For example,

while equity funds that invest in fast-growing companies are known as

growth funds, equity funds that invest only in companies of the same

sector or region are known as specialty funds. Let's go over the many

different flavors of funds.

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Latest in mutual funds

The number of mutual fund offerings is increasing and this has led to

the introduction of a lot of new schemes in the market like:

Fund of funds:

A fund of funds collects money from investors and then invests the

money in other mutual fund schemes. This fund seeks to create a

mutual fund portfolio for the investor based upon specific requirements

rather than the investor trying to create this on their own. This allows

for a situation where the fund will be able to provide the investor with

specific investment solutions by selecting the best funds from the wide

choice present.

Feeder funds:

A feeder fund invests its entire corpus into some other fund. This

might seem like a fund of funds structure but the difference is that

there is no specific bouquet that will be chosen. It is mostly a case

where investors are not able to invest in a particular fund abroad and

hence they are choosing to invest in a feeder fund that will route their

investment accordingly. Such funds have made their way to India.

Real estate mutual funds:

Real estate mutual funds will now be available for investment

These will provide an additional asset class for investment

Liquidity will be present through listing on the stock exchange

Daily net asset value will have to be declared

There are also limits for min. and max. investments in specific areas

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The Standard Chartered Mutual Fund way

Standard Chartered Mutual Fund is well-established fund house and is

sponsored by the Standard Chartered Group.

They were among the first to launch an active management debt fund-

the Dynamic Bond Fund - that had the capability to mimic a cash fund

or an income fund depending on market situations. The Short term

and Medium term funds that were uniquely positioned at various

points along the interest rate curve with the sole objective of

maximizing value to investors with different investment time horizons.

Lately this innovation was again brought to the fore with the launch of

the Standard Chartered Enterprise Equity Fund, a close-ended fund

that sought to invest a portion in Equity IPOs. The fund also launched

the Standard Chartered Premier Equity fund an equity fund that seeks

to generate wealth by investing in relatively smaller companies.

SCMF also pioneered several service initiatives that helped increase

transactional ease. It was the first mutual fund to initiate

Across the counter redemptions for all classes of investors in

liquid funds,

Toll Free No accessible in 976 cities

Phone transact service wherein investors can redeem without

having any Personal Identification Number

Standard Chartered Mutual Fund currently manages assets in

excess of Rs 15801.53Cr as on 5th February 2008 and has

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touched the lives of more than lacs of investors residing in more

than 1000 Indian towns.

Standard Chartered Mutual fund offers a very convenient way of

SIP (Systematic Investment Plan)

Advantages-

No post dated cheques and no specific dates either.

Investors are required to tell- Amount he needs to save

Investors are free to choose any amount (minimum Rs 500 and

in multiples of Re 1/-) and any date as per his convenience.

The bank will intimate the debit instruction 2-3 business days

before the actual debit will happen so that investors can be

ensured that his account is funded with the requisite amount.

Charges:

The Asset Management Companies (AMCs) managing the Mutual Funds

levy a load as a percentage of NAV at the time of entry into the

Schemes or at the time of exiting from the Schemes.

Entry Load

It is the load charged by the fund when an investor invests into the

fund. It increases the price of the units to more than the NAV and is

expressed as a percentage of NAV.

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Exit Load

It is the load charged by the fund when an investor redeems the units

from the fund. It reduces the price of the units to less than the NAV

and is expressed as a percentage of NAV.

Cost of Churning/Turnover cost

It refers to the costs associated with the churning (or changes made to

the holdings) of the portfolio. Portfolio changes have associated costs

of brokerage, custody fees, transaction fees and registration fees,

which lower the returns. The quantum depends on the management

style of the fund manager.

Expense Ratio

The Expenses of a mutual fund include management fees and all the

fees associated with the fund's daily operations. Expense Ratio refers

to the annual percentage of fund's assets that is paid out in expenses.

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TAXATION

Income tax

Understanding taxes and meeting our taxation obligations can save us

money. By paying the right amount we can avoid late payment

penalties. We may also be entitled to exemptions. Income Tax is all

income other than agricultural income levied and collected by the

central government and shared with the states. According to Income

Tax Act 1961, every person, who are accesses and whose total income

exceeds the maximum exemption limit, shall be chargeable to the

income tax at the rate or rates prescribed in the finance act. Such

income tax shall be paid on the total income of the previous year in

the relevant assessment year. The total income of an individual is

determined on the basis of his residential status in India.

The fifth consecutive budget presented by the FM, Mr. P.

Chidambaram, was also a dream one for the salaried class. With the

higher tax limits on the income tax slabs, the increased basic

exemption limit for senior citizens, women and individuals in general,

etc. the budget gives much relief to the middle class as it aims at

reducing their overall tax liability by a good measure. Here we cantake a look at the direct tax proposals and the impact they will have

on our finances.

As per Assessment Year 2008-09:

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Deduction of up to Rs 1 lacs on investments in specified

instruments is available.

All sector caps (except PPF) have been removed.

The EET, if implemented, could impact small savings.

ELSS provides the best hedge against inflation, besides tax

breaks.

PPF isn't a strain on the pocket - invest as little as Rs 100 to

keep your account alive.

Life insurance is fine for risk cover, but is no great shakes as

an investment option.

Eligibility for Tax Saving through Investment

Only individuals or HUF were eligible.

Only those investments, contributions and payments made

from the income of the relevant financial year were

considered.

The income should have been taxable in India.

Monetary limits set for each type of investment, contribution,

payments had to be adhered.

For individual and HUF, the entitled deduction is up to Rs. 1 lacs for

investments, contributions and payments made towards life insurance,

housing loans, PPF, infrastructure bonds, etc. There are no other sub-

limits, except for PPF. It is restricted to Rs. 70,000.

The Popular Investment Options

PPF (with post offices/banks), statutory provident fund

(deducted and paid by the employees).

Life insurance premium (with the LIC or other private insurers).

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Unit-linked insurance (UTI & mutual funds).

Equity-linked saving schemes.

National Saving Certificates.

Infrastructure bonds.

Home loans.

Life Insurance

Maximum Limit - Rs. 1 lac.

Premium paid in any year should not exceed 20% of the sum

incurred (issued after 1 April 2003).

The sum paid in excess of 20% will not be allowed for any

deductions.

The tax-free status is limited to direct taxes and not to the service tax

payable on insurance maturity.

ULIP (Unit Link Insurance Plan)

It is the combination of investment fund and insurance policy.

Minimum Limit - Rs. 15,000 with annual contribution of Rs.

1,000.

Maximum Limit - Rs. 2 lacs with annual contribution of Rs.

20,000.

Age of the investor - 12 - 55 years 6 months.

It is also exempt from wealth tax.

Service tax may be charged since insurance cover is taken

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Personal tax rates

Income tax slabs: For individuals, Hindu Undivided Family (HUF),

Association of Persons (AOP) and Body of individuals (BOI):

For the Assessment Year 2008-09 (for females)

Taxable income slab (Rs.) Rate (%)

Up to 1,80,000 NIL

1,80,001 3,00,000 10

3,00,001 5,00,000 20

5,000,001 upwards 30*

For the Assessment Year 2008-09 (for males)Taxable income slab (Rs.) Rate (%)

Up to 1,50,000 NIL

1,50,001 3,00,000 10

3,00,001 5,00,000 20

5,000,001 upwards 30*

For the Assessment Year 2008-09 (for resident

individual of 65 years or above)

Taxable income slab (Rs.) Rate (%)

Up to 2,25,000 NIL

2,25,001 3,00,000 10

3,00,001 5,00,000 20

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5,000,001 upwards 30*

*A surcharge of 10 per cent of the total tax liability is applicable where

the total income exceeds Rs 1,000,000.

Note: -

Education cess is applicable @ 3 per cent on income tax,

inclusive of surcharge if there is any.

A marginal relief may be provided to ensure that the additional

IT payable, including surcharge, on excess of income over Rs

1,000,000 is limited to an amount by which the income is morethan this mentioned amount.

Agricultural income is exempt from income-tax.

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INVESTMENT STRATEGIES

A detailed study of the various investment options available in the

market was done and finally a few important strategies were laid down

to help an individual investor to better utilize his funds.

I. Selecting the right investment option

Investment options change every day in terms of their performance.

This makes it difficult to predict their future performance. Thus to have

a general idea as to how your investments will perform in the long run

requires a plan in terms of the future steps that will be taken for the

selection of the investments.

Belief in the beat performing investment:

The easiest selection for a person is to look at the best

performing investment in the past and then put the money into

this instrument be it a mutual fund or even a stock.

The investor must understand that the instrument has already

performed and this need not continue in the future because

several other factors would also have contributed to this

particular position and these can change with time.

Potential

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The actual condition that needs to be monitored is the potential

of the rise that can be seen in the instrument. This will involve

looking at the current scenario plus all the factors that will

influence the performance going forward.

This will insure that the investor is able to select that investment that

has a good potential in the future even though in current terms it is not

the best performing investment.

Change in position

Many factors impact investments. This can change the market

conditions and this impacts the overall position of theinvestment. A good performing investment might fall back after

sometime in the limelight and a poor investment might zoom

ahead.

This kind of change has to be expected and the investor also has

to insure that they invest after considering this factor.

Conviction

The best thing to happen to the investors is for them to have

some conviction in the investment that they are making. There

has to be some reason why a particular investment is selected

and then even if it does not perform as per expectation the

investor will know what is going on.

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This is far better than investing without knowing anything

whereby wrong decisions can be taken at a later stage.

II. Deciding your method of investment

Whether to take a systematic investment plan or get done with

investments in one go is a question faced by most investors. Before

going for any one of these methods, it is necessary to know what each

of these is and the fundamental difference between the two.

One-time investment

A onetime investment is when the investor puts all the money

available with him or her at one going. This will mean that they will

invest the entire sum at a specific point of time and the cost of their

investment at that time becomes their base. Many investors who are

sure about their investment goals and position use this method of

investment.

Systematic investment plan

Under a systematic investment plan the investor regularly puts a fixed

sum of money each month into a particular investment. This will mean

that cost for the investor will average out over a period of time, as the

purchases will take place through both good and bad times. People

who are not sure about the way in which the market will swing and

hence want to reduce the risk adopt this route.

Surveys

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Some studies will show that on time investment yields a higher return

and this is especially true when the markets are rising. Some other

studies will point to the fact that a systematic approach gives a better

result. This leaves the investor confused about the method that they

have to adopt which will give them a higher success ratio.

Knowledge

If one is sure that the markets are going to rise then putting the entire

amount in investment at one go is the most natural thing to do. However this

is never the case because sudden change in event can also lead to a fallunder which case the loss can be as large. Thus a systematic approach is

adopted to lay the groundwork for making the investment. Investors need to

be alert about the risk involved because this can lead to a loss that might eat

away a large part of their capital.

III.Investment Planning

Investment Planning involves identifying your financial goals

throughout your life, and prioritizing them. Investment Planning is

important because it helps in deriving the maximum benefit from the

investments.

Success as an investor depends upon ability to choose the right

investment options. This, in turn, depends on the requirements, needs

and goals. For most investors, however, the three prime criteria of

evaluating any investment option are liquidity, safety and return.

Investment Planning also helps to decide upon the right investment

strategy. Besides individual requirement, investment strategy would

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also depend upon age, personal circumstances and risk appetite.

These aspects are typically taken care of during investment planning.

Investment Planning also helps in striking a balance between risk and

returns. By prudent planning, it is possible to arrive at an optimal mix

of risk and returns that suits particular needs and requirements.

Investment means putting the money to work to earn more money.

Done wisely, it can help you meet financial goals like buying a new

house, paying for college education of children, of enjoying a

comfortable retirement etc. Investing even a small amount can

produce considerable rewards over the long-term, especially if you do

it regularly. But one needs to decide about how much he / she wants

to invest and where to invest.

Choosing the Right Investment Options

The choice of the best investment options will depend on personal

circumstances as well as general market conditions. For example, a

good investment for a long-term retirement plan may not be a good

investment for higher education expenses.

Liquidity -

It means how easily an investment can be converted to cash, since

part of invested money must be available to cover financial

emergencies.

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Safety -

The biggest risk is the risk of losing the money that has been invested.

Another equally important risk is that investments may not provide

enough growth or income to offset the impact of inflation, which could

lead to a gradual increase in the cost of living. There are additional

risks as well (like decline in economic growth). But the biggest risk of

all is not investing at all.

Return

Investments are made for the purpose of generating returns. Safe

investments often promise a specific, though limited return. Those that

involve more risk offer the opportunity to make - or lose - a lot of

money.

The Investment Process

As investors, we would all like to beat the market handily, and we

would all like to pick "great" investments on instinct. However, while

intuition is undoubtedly a part of the process of investing, it is just

part of the process. As investors, it is not surprising that we focus so

much of our energy and efforts on investment philosophies and

strategies, and so little on the investment process. It is far more

interesting to read about how Peter Lynch picks stocks and what

makes Warren Buffet a valuable investor, than it is to talk about the

steps involved in creating a portfolio or in executing trades. Though it

does not get sufficient attention, understanding the investment

process is critical for every investor for several reasons:

The investment process outlines the steps in creating a portfolio, and

emphasizes the sequence of actions involved from understanding the

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investors risk preferences to asset allocation and selection to

performance evaluation. By emphasizing the sequence, it provides for

an orderly way in which an investor can create his or her own portfolio

or a portfolio for someone else.

Whats right for you?

A onetime investment results in a single cost for the entire

investment.

A systematic investment averages out the cost for investors.

Investors adopt different routes at various points of time.

Studies give different results for various time frames.

When the market is rising a one-time investment shows better

results.

Smart options to pay for investment

Investments in the mutual funds are becoming simpler by the day.

While the route in the investment is familiar, new options for investors

are being introduced. While these techniques make the job of an

investor easier, those who are not familiar with it may find it tough to

adjust to the overall situation. One such are is the mode of payment

for investment in the mutual fund.

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Net transfer

It is no longer essential for an investor to draw a cheque to invest in

the mutual funds. There are options available, and the manner their

use has to be understood. An investor can now use the internet to

transfer funds. Some mutual funds have started offering the facility

whereby the investors can use net-banking to fund the investment. In

this process, the moment the investor clicks on the payment option,

the fund is transferred as per his specification.

Mobile transfer

Another option that s likely to come soon is the use of mobile phones

to transfer money. There has been rapid increase in the mobile phones

usage and is witnessing intense development is the money payment

section. In this method, specific software and a tie-up with the fund

house enables the investor to make payments through his mobile

phone. The money is drawn from the balance that the investor

maintains. This offers convenient mode of payment to an investor.

Credit cards

Another option is the use of credit cards to pay the investment. Here

the credit card is used and the amount is charged on the card for the

investor. This does not require immediate payment and the investor

will pay the amount when the credit card bill becomes due.

Paying convenience

Investment in the mutual fund is becoming simpler by the day.

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New modes of payments are emerging for investors.

Payments by mobile phones are likely to make entry soon.

Another option could be credit card payment being made

possible.

Understand your portfolio composition

Most investors tend to go by the nature of the fund while looking at

their investments. However, most of the times they forget that

monitoring the performance of the fund is an essential part of

investment and this can lead to some disastrous consequences.

Nature of the scheme

Taking the nature of the scheme into consideration is a very

important factor for a good mutual fund Investment. Several

benefits including tax benefits are associated with the nature

of the scheme. An equity oriented scheme has the benefit of

the zero percent tax rate on the long term capital gains and

15% on the short term capital gains.

To get this benefit the scheme needs to maintain an average

of 65% of the assets in Indian equities during the year.

Importance of portfolio

It is vital to take a close look at the portfolio. It is not just

important to see what is the composition of the portfolio and

which area have different amounts invested. This only gives an

idea of the about the quality of the portfolio.

An investor must also check the percentage composition because

this will give a clear idea about the kind of category that the

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scheme falls under and the overall risk that is being generated

by the portfolio.

Change in the nature of the investment

This has happened where a scheme has been classified as a debt

investment scheme because the portfolio composition fell below

the specified percentage rate.

In case the scheme is classified as an equity-oriented one, there

will also be securities transaction tax (STT) levied when the units

are sold.

If there is no STT, then the scheme will be classified as a debt-oriented

scheme.

The perfect mix

It is important to monitor the position of the investment even

afterwards.

A shift in the nature of the scheme from equity to debt hasseveral consequences.

The composition of the portfolio determines the position.

Look at the right investment factors

Investment opportunities abound in India. But choosing the right

investment to fulfill a certain financial goal from a number of options

can become a taxing exercise for the investor.

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Many investors decide their investments by lining up the options

available and then take an option after eliminating the others after

considering the pros and cons, features and returns of each option.

However, this method can be erroneous and hence it is necessary to

follow a more methodical approach to zeroing in on the right

investment.

Compare similar area

One of the biggest mistakes that an investor can make is to bring

together several areas that are actually not comparable in nature.

If you compare an investment in a public provident fund with an

investment in a systematic investment plan of an equality-oriented

mutual fund, there is bound to be a disconnect which might leave you

opting for the wrong kind of investment. While the former concerns a

debt area, the latter is an equity investment.

It is not possible to compare the returns in these areas because the

risk element involved is also not the same. Thus one first needs to

compare similar areas of investment.

Investment restrictions

The presence of investment restrictions is an important factor in the

entire scheme of things. This will limit the number and the kind of

investments that a person is able to make in a particular instrument.

However, there are no restrictions in some areas, which results in

investment being made as and when the required amounts of funds

are available. The restrictions can be either in terms of the amount to

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be invested or in terms of the number of times that the investment

can be made within a particular time period.

Payout

Just earning a return is not enough for the investor. It is important

that they are also able to enjoy the benefit of the earnings. This can

be done when there is a payout or the mode is specified, ensuring that

the investor knows when the money is coming to them to help them

plan the use of that money. Again selecting an investment option

where the payout does not match the needs can result in a position

where the investor is not able to achieve their target.

CHOOSE THE RIGHT OPTION

Investment comparison involves looking at several areas

carefully

Always compare similar asset, and not different ones, to get

proper evaluation result

Debt and equity returns have to be considered keeping the risk

element in mind

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Restrictions can be either in terms of the amount to be invested

or in terms of the number of times that the investment can be

made.

A payout is also necessary otherwise everything else becomes an

entry that cannot be used

A mismatch in payout and the investors need could result in the

investor not achieving his target return.

Objective of the study

The objective of this project is to effectively manage the investment

portfolio of individual investors on the basis of their preference in

investing their money based on the following factors:

Age

Occupation

Annual income

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Gender

Risk Perception

More specifically the project was focused on the following factors so as

to derive a feasible observation:-

To find the most popular investment avenue among

sample of investors.

To find the importance of various investments based on

parameters among sample of investors.

To identify the potential customers across income, age-

groups, profession.

To find out what investment strategies they undertake

based on the above observation of investments.

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Research Methodology

For the purpose of collection of data & analysis for the project, various

primary & secondary sources of data have been used.

I. Primary data

Discussion with the Organization at Standard Chartered Bank to

have a deep understanding of the system.

Data collected through questionnaire survey and personal

interview. A sample size of 50 persons was taken in the Delhi

NCR region to conduct our survey.

II. Secondary data

Literature Survey on various investment avenues like ULIPs,

Mutual funds etc to gain an initial understanding of the system &

its structure.

Data collected through internet search, journals, magazines,

company reports etc.

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Scope

The survey for the project was conducted in Delhi NCR area. The focus

was on various age groups falling under the various income classes

especially HNIs. The objective of the study is to study the pattern of

the investment in different avenues of investment & their frequency of

the investment.

This study will help in finding the pattern and behavior of different

investors. The study also includes the risk taking capacity of various

investors. With this we can divide the investors in three different

categories and we can design different investment portfolios according

to the needs of investors.

QUESTIONNAIRE

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Instructions:

Please tick [] the appropriate option(s)

Q.1. Do you invest in market?

a. Yes

b. No

[If Yes go to Q. 2]

[If No go to Q.12]

ANALYSIS:

AS PER THE RESEARCH CONDUCTED, FROM THESAMPLE TAKEN WE COULD FIND OUT THAT OUT OF APOPULATION OF 100 PEOPLE THERE ARE ALMOST 96PEOPLE WHO INVEST THEIR MONEY INTO MARKET INONE OR THE OTHER SOURCE OF INVESTMENT AS PER

THEIR CONVIENIENCE, CHOICE AND KNOWLEDGE i.e.96% OF THE POPULATION INVEST THEIR MONEY INTHE MARKET.

Q.2. If yes, what actually is investment?

a. Speculationsb. Risky investmentc. Market of uncertainty

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d. Higher profitabilitye. All of the above

ANALYSIS:

AS PER THE ANALYSIS DRAWN FOR THEPOPULATION WHICH INVESTS THEIR MONEYINTO MARKET IT WAS FOUND THAT:

10% OF THE POPULATION TREATSINVESTMENT AS A SPECULATION

17% TREAT INVESTMENT AS RISK FACTOR 22% AS MARKET OF UNCERTAINITY

26% AS HIGHER PROFITIBILITY 25% AS ALL OF THE ABOVE

Q.3. When you make an investment, your purpose is to make it for?

a. Long termb. Short term

ANALYSIS:

AS PER THE ANALYSIS DRAWN IT WAS FOUND OUT THAT84% OF THE POPULATION MAKES AN INVESTMENT FORLONG TERM AS COMPARED TO ONLY 16% OF THEMMAKING IT FOR SHORT TERM

Q.4. Which investment options do you generally prefer to invest in?

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a. Goldb. Propertyc. Insuranced. Mutual fundse. Others (plz. specify)

ANALYSIS:

AS PER THE ANALYSIS DRAWN THESE ARE THEFOLLOWING PROPORTIONS IN WHICH PEOPLE INVESTTHEIR MONEY IN VARIOUS INVESTMENT OPTIONSLIKE GOLD , MUTUAL FUNDS etc. :

24% OF THE POPULATION PREFER TO INVEST INGOLD

46% OF THE POPULATION PREFER TO INVEST INPROPERTY

ONLY 18% OF THE POPULATION PREFER TOINVEST IN INSURANCE

38% OF THE POPULATION PREFER TO INVEST INMUTUAL FUNDS

AND ONLY 5% OF THE POPULATION PREFER TOINVEST IN OTHER OPTIONS

Q.5.Do you prefer to invest in that option(s) because of:

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a. Dividendsb. High growth ratec. Higher returnsd. Long term investmente. Short term investmentf. Safety of assets

ANALYSIS:

AS PER THE ANALYSIS IT WAS FOUND OUT THAT:

14% OF THE POPULATION INVESTS FOR THE PURPOSEOF GETTING REGULAR DIVIDENDS FROM THEIR

INVESTMENTS. 27% OF THE POPULATION INVESTS BECAUSE OF THE

HIGHER GROWTH RATE OF THEIR INVESTMENTS

47% OF THEM INVEST BECAUSE OF HIGHER RETURNSON THEIR INVESTMENTS

72% OF THE POPULATION INVESTS IN THE MARKETBECAUSE INVESTMENT FOR THEM IS FOR A LONGER

TERM.

18% OF THEM INVEST BECAUSE OF SHORT TERMINVESTMENT

AND APPROX.68% INVESTS BECAUSE OF SAFETY OFASSETS.

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Q.6. From where do you get information about investment in market?

a. Internetb. Relatives(mouth publicity)c. Mediad. Brokerse. Any other source

ANALYSIS:

AS PER THE ANALYSIS IT WAS FOUND OUT THAT:

AROUND 49% OF THE POPULATION NOWADAYS GETINFORMATION ABOUT INVESTMENTS THROUGHINTERNET

42% OF THE POPULATION GET INFORMATIONTHROUGH MOUTH PUBLICITY OF RELATIVES &FRIENDS

8% OF THEM GET INFORMATION REGARDINGINVESTMENT FROM MEDIA SOURCES

3-4% GET THE INFORMATION THROUGH BROKERS

AND APPROX. 2-3% PEOPLE GET INFORMATIONREGARDING INVESTMENT FROM ANY OTHERSOURCES.

Q.7. How would you like to trade for your investment?

a. Online b. Brokers

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c. Self

ANALYSIS:

AS PER THE ANALYSIS IT WAS FOUND OUT THAT

22% OF THE POPULATION LIKE TO TRADE FOR THEIRINVESTMENTS ONLINE i.e. THROUGH INTERNET

4-5% PREFER TRADING THROUGH BROKERS

74% POPULATION PREFER TRADING THROUGH THEMSELVES.

Q.8. From how long are you investing in market?

a. Less than 6 monthsb. 6 12 monthsc. 1 2 yeard. 2 3 yeare. More than 3 year

ANALYSIS:

AS PER THE ANALYSIS IT WAS CONCLUDED THAT:

THE POPULATION WHICH HAD INVESTED FOR LESS THAN 6MONTHS IS 18%

THE POPULATION WHICH HAD INVESTED FOR 6 12MONTHS IS 25%

THE POPULATION WHICH HAD INVESTED FOR 1 2 YEARS IS22%

THE POPULATION WHICH HAD INVESTED FOR 2 3 YEARS IS14%

POPULATION INVESTING FOR MORE THAN 3 YEARS IS 41%

Q.9. On an average how much amount do you invest in market in a year?

a. Less than Rs. 50000

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b. Rs.50000-100000c. Rs. 100000-200000d. Rs.200000-300000e. More than Rs.300000

ANALYSIS:

AFTER ANALYSING THE CURRENT QUESTION IT WASRECORDED THAT:

15% OF THE POPULATION INVESTED LESS THAN Rs.50000.

14% OF THE POPULATION INVESTED Rs.50000 100000 .



38% OF THE POPULATION INVESTED MORE THAN Rs.300000.

Q.10. For you investment in market is making profit in ---

a. Long term

b. Short termc. Both

ANALYSIS:

AS PER THE ANALYSIS IT IS CONCLUDED THAT:

72% OF THE POPULATION INVEST FOR LONG TERM.

11% FOR SHORT TERM.

REST 17% FOR BOTH SHORT TERM & LONG TERM.

Q.11. What you think, the decline in the other investment markets outsideIndia affect the Indian investment markets?

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a. Yesb. Noc. Up to some extent

ANALYSIS:

AS PER THE ANALYSIS IT IS RECORDED THAT:

59% PEOPLE AGREE TO SAY THAT DECLINE IN OTHERINVESTMENT MARKETS OUTSIDE INDIA AFFECT THEINDIAN INVESTMENT MARKETS.

26% PEOPLE SAY THAT DECLINE IN OTHER INVESTMENTMARKETS OUTSIDE INDIA DOES NOT AFFECT THE INDIANINVESTMENT MARKETS.

15% PEOPLE SAY THAT DECLINE IN OTHER INVESTMENTMARKETS OUTSIDE INDIA AFFECT UPTO SOME EXTENT THEINDIAN INVESTMENT MARKETS.

Q.12. Do you know how you can make profits even in the economicslowdown market trend?

a. Yes

b. No

ANALYSIS:

AS PER THE ANALYSIS:

APPROX. 89% PEOPLE KNOW HOW TO MAKE PROFITS EVENIN THE ECONOMIC SLOWDOWN MARKET TREND.

AROUND 11% PEOPLE DOESNT KNOW HOW TO MAKEPROFITS EVEN IN THE ECONOMIC SLOWDOWN MARKETTREND.

Q.13 Do you advice any one else to invest in market?

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a. Yesb. No

ANALYSIS:


60% PEOPLE ADVICE OTHERS TO INVEST IN MARKET

40% PEOPLE DONOT ADVICE OTHERS TO INVEST INMARKET

Q.14. Why do you not invest in market?

a. It is risky

b. Do not have any knowledge of the market trendsc. Relatives advised against itd. All of the abovee. Any other (plz. specify)..

ANALYSIS:


PEOPLE DO NOT INVEST IN MARKET BECAUSE THEYCONSIDER ALL OF THE ABOVE MENTIONED FACTORSRESPONSIBLE FOR IT.

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Q.15. Will you be interested in investing in market if further educationregarding the same is provided to you?

a. Yesb. Noc. Cant say

ANALYSIS:


ALL THE PEOPLE WHO DO NOT INVEST IN MARKET

WOULD BE INTERESTED IN INVESTING THEIR MONEY INTHE MARKET IF EDUCATION REGARDING THE SAMEWILL BE PROVIDED TO THEM.

Name :

Occupation:

a. Business Manb. Doctorc. Engineer

d Teacher

ck project stan chart

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