Chapter -1 Introduction

INTRODUCTION
INVESTMENT
Investment relates to the commitment of funds to gain profitable returns in form of interest, income, or appreciation of the value of the instrument. It is related to saving by substituting investment. Various financial instrument such as property, commodity, stock, bond, financial derivatives, or the foreign asset denominated in foreign currency, that has certain level of risk and provides the possibility of generating returns over a period of time. The India is growing at a healthy rate and has been attracting a very good amount of foreign investments ever since economic reforms commenced in the early 1990s .the rapid changes taking place in the financial markets due to financial sector reform, the proliferation and complexity of investment products, and the number of financial scams reported during the last decade and half calls for more information on personal finance. Lack of financial knowledge may result in households saving too little and too late in life to reach their various life cycle goals in general and their retirement goals in particular. This will result in their inability to achieve the desired balance between consumption while working and consumption on retirement. Many financial assets are available in the form of bank deposits, government and corporate fixed income securities, mutual funds units, common stocks, provident and pension funds, insurance, home, real estate, gold; etc.each asset has a different rate of return, risk and liquidity. Many individuals find investments to be fascinating because they can participate in the decision making process and see the results of their choices. Not all investments will be profitable, as investor wills not always make the correct investment decisions over the period of years; however, you should earn a positive return on a diversified portfolio. Investing is not a game but a serious subject that can have a major impact on investor's future wellbeing. Virtually everyone makes investments. Even if the individual does not select specific assets such as stock, investments are still made through participation in pension plan, and employee Saving programme or through purchase of life insurance or a home or by some other mode of investment like investing in real estate (property) or in banks or in saving schemes of post offices. Each of this investment has common characteristics such as

potential return and the risk you must bear. The future is uncertain, and you must determine how much risk you are willing to bear since higher return is associated with accepting more risk. (lopes, 1987)the individual should start by specifying investment goals. Once these goals are established, the individual should be aware of the mechanics of investing and the environment in which investment decisions are made. These include the process by which securities are issued and subsequently bought and sold, the regulations and tax laws that have been enacted by various levels of government, and the sources of information concerning investment that are available to the individual. Today the field of investment is even more dynamic than it was only a decade ago. World event rapidly events that alter the values of specific assets the individual has so many assets to choose from, and the amount of information available to the investors is staggering and continually growing. The key to a successful financial plan is to keep apart a larger amount of savings and invest it intelligently, by using a longer period of time. The turnover rate in investments should exceed the inflation rate and cover taxes as well as allow you to earn an amount that compensates the risks taken. Savings accounts, money at low interest rates and market accounts do not contribute significantly to future rate accumulation. While the highest rate come from stocks, bonds and other types of investments in assets such as real estate. Nevertheless, these investments are not totally safe from risks, so one should try to understand what kind of risks are related to them before taking action. The lack of understanding as how stocks work makes the myopic point of view of investing in the stock market ( buying when the tendency to increase or selling when it tends to decrease) perpetuate. To understand the characteristics of each one of the different types of investment you must have enough financial knowledge. Furthermore, inflation has served to increased awareness of the importance of financial planning and wise investing. More inflation is a worry for each and every individual. Due to inflation value of your money in future will decrease. To cope up this, investors wants to invest their money and earn certain rate of return which is more then rate of inflation. Having clear reasons or purposes for investing is critical to investing successfully. Like training in a gym, investing can become difficult, tedious and even dangerous if you are not working toward a goal and monitoring your progress The classical theory of portfolio choice rests on strong assumptions: no transaction costs, investors awareness of the full menu of assets available and knowledge of their

risk and return, no uninsurable risks, such as human capital. If all investors face the same distribution of returns and have the same information set, in equilibrium they select the same menu of risky assets. Differences in attitudes to risk affect the allocation of wealth between safe and risky assets, but not the particular asset selected. And if the utility function has constant relative risk aversion, asset shares are independent of wealth. Under these assumptions, the rich mans portfolio is simply a scaled-aup version of that of poor mans. However recent empirical studies have shown that household portfolios exhibit far too much heterogeneity to be consistent with this sort of uniformity. In particular, many individuals simply do not invest in stocks, a feature that has come to be known as the stockholding puzzle. Fixed entry costs have been the main thesis in the literature to resolve the puzzle. With entry costs, investors benefit from stock market participation only if the (certainty equivalent) expected excess return from participation exceeds the fixed cost. Since the gain increases with wealth, entry costs make strong predictions about the relation between wealth and the probability of investing in stocks. In particular, investors with wealth below a certain threshold do not enter the stock market, those above it do. Empirical evidence in guise, halass and jappelli (2003) documents a strong positive correlation between stock market participation and household financial wealth in many industrialized countries, supporting the entry costs thesis.1 but there is also the international evidence that many affluent households do not invest in stocks which suggests that other forces than entry costs alone may be at work. Furthermore, the entry cost literature does not explain the origin and nature of these costs. Yet understanding what inhibits stock market participation is crucial for policies aimed at encouraging portfolio diversification and spreading the equity culture. We argued in the introduction that awareness of the existence of stocks (or, for that matter, any financial asset) is exogenous to the investors choice set. But then, how is it that some investors are aware of a wide menu of financial assets, others only a small set of investment opportunities? And how do individuals come to know about financial assets? Here we address these questions, singling out some of the key determinants of awareness and obtaining predictions that can be tested empirically. Before you make any decision, consider these areas of importance: 1. Evaluate your current financial roadmap.

Before you make any investing decision, sit down and take a fresh look at your entire financial situation. An important step to successful investing knows your current goals and risk tolerance. These factors may have changed with the current economy. 2. Evaluate your comfort zone in taking on risk.

Traditionally, if you have a financial goal with a long time horizon, you are likely to make more money by carefully investing in asset categories with greater risk, like stocks or bonds, rather than restricting your investments to assets with less risk, like cash equivalents. On the other hand, investing solely in cash investments may be appropriate for short-term financial goals. The principal concern for individuals investing in cash equivalents is inflation risk, which is the risk that inflation will outpace and erode returns over time. With todays market volatility, investors must evaluate their acceptance and comfort zone for risk. Can you stomach the current upand-down market for longer term goals? 3. Consider an appropriate mix of investments.

Historically, the returns of the three major asset categories stocks, bonds, and cash have not moved up and down at the same time. Market conditions that cause one asset category to do well often cause another asset category to have average or poor returns. By investing in more than one asset category, you'll reduce the risk that you'll lose money and your portfolio's overall investment returns will have a smoother ride. If one asset category's investment return falls, you'll be in a position to counteract your losses in that asset category with better investment returns in another asset category. One of the most important ways to lessen the risks of investing is to diversify your investments both among asset categories and within asset categories. Its common sense: don't put all your eggs in one basket. By picking the right group of investments, you may be able to limit your losses and reduce the fluctuations of investment returns without sacrificing too much potential gain. Youll be exposed to significant investment risk if you invest heavily in shares of your employers stock. If that stock does poorly or the company goes bankrupt, youll probably lose a lot of money (and perhaps your job). 4. Create and maintain an emergency fund.

Most smart investors put enough money in a savings product to cover an emergency, like sudden unemployment. Some make sure they have up to six months of their income in savings so that they know it will absolutely be there for them when they need it. During a downturn of the economy, this is particularly important. 5. Consider dollar cost averaging.

Through the investment strategy known as dollar cost averaging, you can protect yourself from the risk of investing all of your money at the wrong time by following a consistent pattern of adding new money to your investment over a long period of time. By making regular investments with the same amount of money each time, you will buy more of an investment when its price is low and less of the investment when its price is high. Individuals that typically make a lump-sum contribution to an individual retirement account either at the end of the calendar year or in early April may want to consider dollar cost averaging as an investment strategy, especially in today's volatile market. 6. Consider rebalancing portfolio occasionally.

Rebalancing is bringing your portfolio back to your original asset allocation mix. By rebalancing, you'll ensure that your portfolio does not overemphasize one or more asset categories, and you'll return your portfolio to a comfortable level of risk. You can rebalance your portfolio based either on the calendar or on your investments. Many financial experts recommend that investors rebalance their portfolios on a regular time interval, such as every six or twelve months. The advantage of this method is that the calendar is a reminder of when you should consider rebalancing. Others recommend rebalancing only when the relative weight of an asset class increases or decreases more than a certain percentage that you've identified in advance. The advantage of this method is that your investments tell you when to rebalance. In either case, rebalancing tends to work best when done on a relatively infrequent basis. 7. Avoid circumstances that can lead to fraud.

Scam artists read the headlines, too. Often, theyll use a highly publicized news item to lure potential investors and make their opportunity sound more legitimate. This can be particularly true during troubled economic times when investors are frustrated. The sec recommends that you ask questions and check out the answers with an unbiased source before you invest. Always take your time and talk to trusted friends and family members before investing.

INVESTMENT OBJECTIVES
Various investment objectives such as safety,returns,liquidity and tax benefits are those objectives which an investor keep in mind while making investment. These investment objectives are broadly categorized as follows: 1. 2. 3. Safety Returns Liquidity

4.

Tax Benefit These are explained in detail:-

Safety of Investments:
The safety aspects of equity investments need to be understood. They are subject to risk. The successful investor is one who has conquered greed and overcome the fear of loss. All investments carry an element of risk, but the amount of risk one takes, directly affects any potential returns and losses

Different types of risks: Each type of asset is subject to a different combination of risks and enjoys a different combination of benefits.

Market Risk: If your investment is bought and sold in the stock market, you are exposed to market risk as market prices may fall as well as rise. Default Risk: If you are entitled to a regular payment (as with fixed interest securities), there is the risk that the issuer may not be able to keep up these payments or repay at redemption. This is known as default risk.

Credit Risk: The issuer may not actually default, but the perception that they mightthe credit rating-may change, and this could lower the market value of bonds. This risk is called credit risk.

Currency Risk: If the investment is overseas in a foreign currency or a company does business overseas, its value in sterling will be affected by exchange rates. This is called currency risk.

Inflation Risk: Inflation reduces the future purchasing power of your investments, and the interest you earn may not compensate for this. Inflation risk can therefore affect both your investment objectives and other investment risks. Avoidance of risk safety:

Risk can never be eliminated but it is possible to manage it successfully. The principal weapon is "diversification" - spreading your risk.

Different investments behave in different ways and are subject to different risks. Saving the money in a range of assets helps reduce the loss, should one of the investments suffer a downturn.

Risk is a very personal thing - what may be a small amount of risk to one person may be huge to another. When considering how much risk to take one need to weigh up whether or not they are willing to see a short term loss of capital in order to make long term gains.

If at any time there is any confusion about the suitability of the investments, then the investor should contact a qualified financial adviser.

RETURNS ON INVESTMENT
Return on Investment (ROI) is defined as the ratio of money gained or lost relative to the amount of money invested on a project. The amount gained or lost is called the interest or profit whereas the investment is referred to as capital, asset or principal. More technically, it is found by dividing the Net Profit by Net Worth as is usually expressed as a percentage Arithmetically, the rate of return is symbolized as: Vf/Vi 1 Where Vf denotes final investment value and Vi is the initial investment value. (Vf and Vi should be noted as subscripts)

LIQUIDITY
Liquidity is a concept that many investors fail to take into account or understand and as a result their financial plans fail to come through in such critical times as retirement or college funding for a dependant. People either lose money, which they needed in the short term because of improper investments or they find they have insufficient funds upon retirement because of years of investing in short term investments for a long-term goal. An example of this is when someone refers to a stock as lacking liquidity.

TAX BENEFIT
The last few budgets have thrown open a variety of investment options to invest to save tax. The most important question is which area of investment to choose. Three most

important investments which as far as possible should be taken advantage of by all individual tax payers in particular are: (a) (b) Investment in a residential house property; Investment up to a maximum of Rs 1 lakh so as to enjoy the tax deduction u/s 80C / 80CCC; (c) Investment up to Rs.10,000/- in a mediclaim medical insurance policy, popularly known as Mediclaim Policy. Good news of making investment for the purposes of section 80C is investment in bank fixed deposit of any scheduled bank having a maturity period of minimum five years. Thus, your investment in bank fixed deposit during the current year for five years or more will entitle you to tax deduction in terms of section 80C of the Income Tax Act, 1961.

FACTORS AFFECTING INVESTMENT

Investment involves staking capital in an enterprise, with the expectation of profit. There are certain guidelines to be followed to avoid major mistakes. 1.

Price of the Company: It refers to the price of all outstanding shares of a

company multiplied by the quoted price per share, at any given point of time.

2.

Buying Back Shares: It is very important for investors to observe the per-share
growth of a company. A company may not show considerable growth in sales, profit and revenue for a few consecutive years, but could generate large returns for investors by dropping the total number of outstanding shares.

3.

Investment Policy of the Investor: Investment decisions should be solely based

on the authenticity of a company. Its management, profits earned, market cap and other such fundamentals, related to economics and finance.

4.

Long Term Goals of the Investor: An investor needs to select a good company
that requires him to pay the minimum possible amount initially. He should consider the Dollar-cost Averaging Program.

5.

Dollar Cost Averaging Program: Investor can invest a little every month in the
same stock. Since an investor puts in the same amount of money, he can purchase more shares when the prices are lower.

TYPES OF INVESTMENTS Types of Investors

There are also three types of investors: conservative, moderate, and aggressive. The different types of investments also cater to the two levels of risk tolerance: high risk and low risk. Conservative investors often invest in cash. This means that they put their money in interest bearing savings accounts, money market accounts, mutual funds, US Treasury bills, and Certificates of Deposit.. These are also low risk investments. Moderate investors often invest in cash and bonds, and may dabble in the stock market. Moderate investing may be low or moderate risks. Moderate investors often also invest in real estate, providing that it is low risk real estate. Aggressive investors commonly do most of their investing in the stock market, which is higher risk. They also tend to invest in business ventures as well as higher risk real estate. .

BANK DEPOSITS
Bank fixed deposits are one of the most common savings scheme open to an average investor. Fixed deposits also give a higher rate of interest than a savings bank account. The facilities vary from bank to bank. Some of the facilities offered by banks are overdraft (loan) facility on the amount deposited, premature withdrawal before maturity period (which involves a loss of interest) etc. Bank deposits are fairly safer because banks are subject to control of the Reserve Bank of India.

The minimum deposit amount varies with each bank. It can range from as low as Rs. 100 to an unlimited amount with some banks. Deposits can be made in multiples of Rs. 100/-.

POST OFFICE SAVINGS

National Savings Certificate (NSC) is the certificate issued by Department of post, Government of India and are available at all post office counters in the country. It is a long term safe savings option for the investor. The scheme combines growth in money with reductions in tax liability as per the provisions of the Income Tax Act, 1961. The duration of a NSC scheme is 6 years. Features NSCs are issued in denominations of Rs 100, Rs 500, Rs 1,000, Rs 5,000 and Rs 10,000 for a maturity period of 6 years. There is no prescribed upper limit on investment. Individuals, singly or jointly or on behalf of minors and trust can purchase a NSC by applying to the Post Office through a representative or an agent. One person can be nominated for certificates of denomination of Rs. 100- and more than one person can be nominated for higher denominations. The certificates are easily transferable from one person to another through the post office. There is a nominal fee for registering the transfer. They can also be transferred from one post office to another. One can take a loan against the NSC by pledging it to the RBI or a scheduled bank or a co-operative society, a corporation or a government company, a housing finance company approved by the National Housing Bank etc with the permission of the concerned post master. Though premature encashment is not possible under normal course, under sub-rule (1) of rule 16 it is possible after the expiry of three years from the date of purchase of certificate. Tax benefits are available on amounts invested in NSC under section 88C, and exemption can be claimed under section 80L for interest accrued on the NSC. Interest

accrued for any year can be treated as fresh investment in NSC for that year and tax benefits can be claimed under section 88C.

Mutual fund
A mutual fund is professionally manage form of collective investment that whole money from many investor and invest it in stock, bonds & other securities. The investment proceed are than passed along to the individual investors. A mutual fund is set up in the form of a trust, which has sponsor, trustees, Asset Management Company (AMC) and custodian. The trust is established by a sponsor or more than one sponsor who is like promoter of a company. The trustees of the mutual fund hold its property for the benefit of the unit holders. Asset Management Company (AMC) approved by SEBI manages the funds by making investments in various types of securities. Custodian, who is registered with SEBI, holds the securities of various schemes of the fund in its custody. The trustees are vested with the general power of superintendence and direction over AMC. They monitor the performance and compliance of SEBI Regulations by the mutual fund. Types of mutual funds are: Growth stock Income stock Stock market sector Real estate Balanced funds Closed end

LIFE INSURANCE
Life Insurance is provided for the payment of a sum of money on the death of the insured person due to natural causes such as disease, old age etc. or on the expiry of a certain number of years if the insured person is then alive, whichever is earlier. Life Insurance consists of the following types:

1.

Unit Linked Insurance Plans (ULIPs) ULIP is a policy which provides for life insurance where the policy value at any time varies according to the value of the underlying assets at the time. The investment is denoted as units and is represented by the value that it has attained called as Net Asset Value (NAV).

Traditional Plans -Term Plans: Term Insurance is the simplest form of life insurance. It pays only if death occurs during the term of the policy, which is usually from one to 30 years. . There are two basic types of term life insurance policieslevel term and decreasing term. The level term means that the death benefit stays the same throughout the duration of the policy. While the decreasing term means that the death benefit drops, usually in one-year increments, over the course of the policys term.

Whole Life Plan: These are the simplest policies to understand: Whole life insurance policies are valuable because they provide permanent protection and accumulate cash values that can be used for emergencies or to meet specific objectives.

Endowment Plan: Endowment life insurance pays the face value of the policy either at the insured's death or at a certain age or after a number of years of premium payment.

DIRECT EQUITY
Equity is a share in the ownership of a company. It represents a claim on the company's assets and earnings. As one acquires more stock, their ownership stake in the company goes on increasing.

COMMODITIES
Commodity means rice, wheat, sugar; gold etc. one can buy or sell these commodities without owning a piece of the commodity trading in. The various kinds of commodities being traded are: Agriculturebased commodities such as rice, wheat, sugar etc.

Mineralbased commodities such as gold, platinum, aluminum, copper, zinc etc. Energybased commodities such as Crude oil etc. Commodities are traded on different exchanges throughout the world. In India, three of the most prominent commodities Exchanges are:

The Multi Commodity Exchange (MCX). The National Commodity and Derivative Exchange (NCDEX) The National Multi Commodity Exchange of India (NMCE).

REAL ESTATE
Every year there is some kind of development taking place in India whether that development is in science and technology, economic growth and even in real estate. There is a certain boom in Indian real estate market and this is the reason why many people are going for real estate investment property in India .

FOREX
Forex is the commonly used term for foreign exchange. Foreign exchange is the buying and the selling of foreign exchange in pairs of currencies. No commissions or fees are required to be paid. Also one can trade 24-hours a day.

WHAT IS IMPACT INVESTING?

Impact investments are investments made into companies, organizations, and funds with the intention to generate measurable social and environmental impact alongside a financial return. Impact investments can be made in both emerging and developed markets, and target a range of returns from below market to market rate, depending upon the circumstances. Impact investors actively seek to place capital in businesses and funds that can harness the positive power of enterprise. A rapidly growing supply of capital is seeking placement in impact investments across geographies, sectors, and asset classes, with a wide range of return expectations. The glue that binds those who operate in the impact investing industry is the shared conviction that creative investments can play a crucial part in addressing social and environmental challenges. This investment interest is sparking the emergence of a new industry that operates in the largely uncharted area between philanthropy and a singular focus on profit-maximization.

Despite the challenging economic environment, the impact investing industry continues to manifest itself in a wide range of innovations and entrepreneurial activities around the world:

Private equity funds that aim to provide growth capital profitably to businesses that provide social services are proliferating and expanding access, for example, to education, better healthcare, and decent housing for poor people around the world.

Clients of leading private banks and pension funds are calling on their investment managers to offer impact investment options. Prominent family offices are actively seeking investment partnerships that can help them source, vet, and execute impact investment deals in sectors ranging from sustainable agriculture to healthcare to urban infrastructure.

Private foundations are seeking to partner with investment banks and development finance institutions to make impact investments in areas related to their social missions. The impact investing industry has the potential to steer significant sums of money to market-based solutions to the world's most pressing challenges, including sustainable agriculture, affordable housing, affordable and accessible healthcare, clean technology, and financial services for the poor. The Role of the Global Impact Investing Network Despite this momentum, the weakness of market mechanisms (such as rating agencies, market clearinghouses, syndication facilities, investment consultants) creates debilitating inefficiency that hampers investment. The nascent industry remains beset by inefficiencies and distortions that currently limit its impact and threaten its future trajectory:

Investors are largely unable to work together effectively given a general confusion of terminology. This limits investors' ability to share knowledge and coinvest, which perpetuates inefficiency and fragmentation in the field.

The absence of basic market infrastructure, like standards for measuring and benchmarking performance, constrains impact and capital flows. These problems are exacerbated by the weakness of market mechanisms such as rating agencies, market clearinghouses, syndicated facilities, and investment consultants.

The combination of these factors - barriers to information flows and collaboration, a lack of infrastructure, and an underdeveloped ecosystem of intermediaries and services providers - threatens the evolution of the impact investing industry and, ultimately, its ability to realize its potential for social and environmental impact. Individual investors and service providers lack the capacity and mandate to solve these challenges alone. The Global Impact Investing Network (GIIN) is a not-for-profit organization dedicated to increasing the effectiveness of impact investing. The GIIN's programmatic agenda will be rooted in the challenges faced by investors, and it will serve as a forum for identifying and addressing the systemic barriers that hinder the impact investing industry's efficiency and effectiveness.

Chapter -2 Review of Literature

REVIEW OF LITERATURE
Lu et al. (2012) extended the periods and use the full study sample of ten years of data to examine the relationship between news information and different investors trading behaviors. With the consideration of the characteristics of Taiwans stock market, we adjust the definition of bull and bear markets to split the sample. The bull market is defined by a 15 percent rise from the previous low and a bear market is defined by a 15 percent decline from the previous high.

Peress J.,(2008) studied that this question using media coverage as a proxy for investor attention. We compare announcements made by the same firm in the same year and generating the same earnings surprise (as measured by the gap between the median analyst forecast and reported earnings), when one announcement receives more media coverage than the other (as measure by the number of Wall Street Journal articles covering the announcement). We find that announcements with more media coverage generate a stronger price and trading volume reaction at the announcement and less subsequent drift. Moreover, this effect is less pronounced for more visible firms (as proxied by age and market-tobook), on high-distraction days (as proxied by the number of firms in the media at the time of the announcement) and for sophisticated investors (as proxied by trade size or the fraction of individual shareholders). These results are both economically and statistically strong. Our results lend support to the notion that limited attention is an important source of friction in financial markets. Hirshleifer et. al. (2003) examines the influence of attention on firms accounting disclosure policies and correlations in stock return. Private information diffuses gradually across a population of news watchers to explain short run under reaction and long run reversals. Gabaix et al. (2006) presented and test in an experimental setting a tractable model of attention allocation. Empirically, attention has been shown to influence a number of trade and return patterns. These include momentum and reversals in stock returns. Hirshleifer et al. (2006) reported that the post-earnings announcement drift increases while the announcement-event return and trading volume decrease when the

announcement is made on a Friday. They also show that managers take advantage of investors distraction by releasing worse news on Fridays. A similar return and volume pattern for announcements made on days when there are numerous news releases by other firms. They further show that the pattern is reversed if competing announcements are made by firms operating in the same industry as the announcing firm, indicating that these related announcements attract rather than distract attention to the announcing firm. Hou et al. (2006) found that earnings momentum is reduced for stocks with high trading volume and in up markets, which proxy for attention investors are more attentive in up markets and increased attention leads to more trading. In contrast to earnings momentum profits, price momentum profits reverse in the long run, and increase with trading volume. This indicates that enhanced attention can also induce overreaction. Several studies use media coverage as a proxy for attention, albeit not to study earnings announcements. Huberman and Regev (2001) reported that in 1998 an article in the Sunday New York Times on a new drug triggered a large market reaction though the news had already been reported in the journal Nature and various popular newspapers several months ago. Klibanoff, Lamont and Wizman (1998) measured the elasticity of closed-end country fund prices to asset value. They document that its magnitude is larger and closer to one when country news appears on the front page of The New York Times. Meschke (2002) analyzed price and volume reactions to CEO interviews broadcast on CNBC. He documents positive abnormal returns and trading volume before and during the interview though it does not convey any new information. Barber and Odean (2007) showed that individual investors are net buyers of stocks mentioned on the Dow Jones newswire.

Nofsinger (2001) compared the trading behavior of institutional and individual investors around news releases in the Wall Street Journal. He finds that longer articles induce individuals, but not institutions, to trade more. Vega (2011) investigated that the information content of news and the proxy variables are measured by the media coverage (MEDIA) and sentiment ratio (SR). The empirical results show that media coverage prior to the announcement has a positive impact on the price change initiated by foreigners especially when the earnings are announced on the trading day and the findings are consistent in both the bull and bear markets. As for the domestic institutions, the media coverage may give rise to a negative (positive) impact on the price change initiated by corporations (mutual funds) especially during a bull (bear) market. We find that there is a negative relationship between the media coverage and price changes in the bear for individuals. However, the sentiment ratio of news reports has less of an impact on the trading behavior even if the market scenarios are divided into bull/bear markets or trading/non-trading periods. The exposure of the company to the media surely has an impression on the investors. Chan (2003) adopted the database containing the title of the respective firms news to examine whether news information is related to the monthly return of firms. Moreover, she compares the companies in the database with firms without news and finds the same returns as for the experimental group. The empirical results indicate that investors may react with delay to the news information, resulting in post announcement drift after the news is released.

Tetlock et al. (2008) used a unique way that could simply quantify the words of the news information to predict the earnings and returns of the respective companies. They found that some specific words could predict the future situation of the company and that investors would respond to the news they received in relation to the price immediately. Carroll et. al.(2012) effected that news media on peoples attention to, comprehension of, and opinions about topics in the news primarily have been studied in political communication settings, the central theoretical idea the transfer of salience from the media agenda to the public agenda fits equally well in the world of

business communication. In the case of corporate reputations, only the operational definitions of the objects and attributes on these agendas are changed here to frame five key theoretical propositions about the influence of news coverage on corporate reputations among the public. This presentation of five basic propositions about first and second-level agenda setting eects as well as intermedia agenda-setting eects offers a theoretical roadmap for systematic empirical research into the influence of the mass media on corporate reputations. Kerl et. al. (2013) analyzed the impact of Financial Times Deutschland (FTD) news on stock prices and trading volumes. Based on a sample of all news on German DAX, MDAX and SDAX companies published within the news section of the FTD between 2006 and 2010, our results show that articles that contain positive (negative) information are associated with significantly positive (negative) abnormal returns and abnormal trading volumes around their publication. Furthermore, our results show an initial underreaction to these articles and a subsequent post publication drift. Based on the inattention hypothesis, we show that high-attention stocks (proxied by abnormal trading volume) almost instantaneously reach their new valuation levels, whereas the price adjustment process takes much longer for low-attention stocks. Our results also hold within multivariate regressions where we additionally control for stock-specific characteristics (e.g., free float, size and price-to-book ratio) as well as other attention grabbing events (as measured by ad-hoc announcements and cover page news articles). Barber et. al. (2006) investigated that individual investors are net buyers of attentiongrabbing stocks, e.g., stocks in the news, stocks experiencing high abnormal trading volume, and stocks with extreme one-day returns. Attention-driven buying results from the difficulty that investors have searching the thousands of stocks they can potentially buy. Individual investors do not face the same search problem when selling because they tend to sell only stocks they already own. We hypothesize that many investors consider purchasing only stocks that have first caught their attention. Thus, preferences determine choices after attention has determined the choice set. Wei et. al. (2011) investigated that whether the news release prior to the earnings announcement would influence different investors trading behavior during the earnings announcement periods. We bridge the gaps between this study and the

previous analyses that the technology of text mining is applied to extract the Chinese news, the proxies of the news information are constructed and the comprehensive tick data is used to categorize trader types including dealers, mutual funds, foreigners, individuals and corporations. The empirical results show that individuals may have significant reactions to the news report prior to the earnings announcement. However the news report may have less effect to institutions trading behavior. The findings confirm that institutions are more rational than individuals. Engelberg (2009) investigated that disentangle the causal impact of media reporting from the impact of the events being reported. We solve this problem by comparing the behaviors of investors with access to different media coverage of the same information event. We use zip codes to identify 19 mutually exclusive trading regions, corresponding to 19 large U.S. cities and local newspapers (e.g., the Houston Chronicle). For all earnings announcements of S&P 500 Index firms, we find that local media coverage strongly predicts local trading, after controlling for characteristics of the earnings surprise, firm, local investors, and reporting newspaper(s). Moreover, the local trading-local coverage effect: 1) depends precisely on the specific timing of local reporting (e.g., one day after the earnings announcement, two days afterward, etc.) and 2) disappears entirely during extreme weather events, which leaves media content unchanged, but disrupts transmission to investors.

Chapter -3 Objective of the Study

OBJECTIVES OF THE STUDY

To identify the level of awareness created by media among the investors. To analyze investors level of responsiveness towards business news. To study the impact of business news on investment decision.

Chapter -4 Research Methodology

RESEARCH METHODOLOGY
RESEARCH DESIGN This project is based on exploratory study as well as descriptive study. It was an exploratory study when the customer satisfaction level was studied to gain information about impact of business news on investors investment decision was descriptive study when detailed study was made for comparison of the features as told by the investors. SAMPLING UNIT Sampling unit implies that who are the respondents. In this sample all those who are invest their money in any financial instruments.

SAMPLE SIZE Sampling size is taken to be 120 for convenience i.e. 120 people were asked to fill the questionnaire for the survey. SAMPLING TECHNIQUE Sampling technique was the technique used to select the sample size. For Customer: Convenient sampling technique was used. In this, customers were taken according to the convenience of the research study. SAMPLING DESIGN Since the information was to be taken from consumers, a questionnaire was prepared for studying the customers perception towards Investment Schemes and other reasons that effect the buying decision. DATA COLLECTION SOURCE The study is based on both secondary and primary data. The secondary information is collected from different published materials vis. Books, Journals, magazines & websites etc. And primary data collected by communicating with respondents through a structured questionnaire.

ANALYSIS TECHNIQUE TO BE USED

Diagrams and Tables: Various graphs and tables are used to describe the performance of different financial instruments. Pie chart and percentage: Pie charts and percentage are also used as a tool for analysis.

LIMITATIONS OF THE STUDY

The project is based upon various financial instruments that are available in India. For which there will be the need of information from the customers about their knowledge of these financial products. The various limitations of the study are: Total number of financial instrument in the market is so large that it needs a lot of resources to analyze them all. There are various companies providing these financial instruments to the public. Handling and analyzing such a varied and diversified data needs a lot of time and resources. Reluctance of the people to provide complete information about themselves can affect the validity of responses. Due to time and cost constraint study will be conducted in only selected area of Ludhiana. The information can be biased due to use of questionnaires.

Chapter -5 Data Analysis and Interpretation

1.

Do you make investment?

Table No. 5.1 Options Yes No Total No. of Investors 120 0 120 No. of Percentage 100% 0% 100%

Figure No. 5.1 Interpretation The above figure shows that 100% investors are making investments. They prefer investment due to safety and good returns.

2.

What is your Income Level? Table No. 5.2 Income Level 1 lac to 3 lac 3 lac to 5 lac 5 lac to 10 lac More than 10 lac Total No. of Investors 82 12 18 8 120 No. of Percentage 68.34% 10.00% 15.00% 6.66% 100%

Figure No. 5.2 Interpretation Out the total academician around 68.34% were belong to the income group of 1 3lacs, while 15.00% in the 5-10 lacs group, 10% belong to 3to5lac and rest 6.66% investors were belong to more than 10 lacs income group.

3.

How much of your money you invest in any Financial Instrument? Table No. 5.3 Percentage of Investing Money 10% to 20% 20% to 30% 30% to 50% More than 50% Total 32 65 17 6 120 26.66% 54.17% 14.17% 5.00% 100% No. of Investors No. of Percentage

Figure No. 5.3 Interpretation The above figure shows that mostly those people who invest 20% to 30 % of their money in these instruments i.e. 54.17%, whereas 26.66% invest 10% to 20%, 14.17% invest 30% to 50% and remaining 5.00% investors investing more than 50% money in financial instrument. 4. How long you prefer to keep your money in any Financial Instrument? Table No. 5.4

Time Period for Invest Money Less than 6 months 6 months to 1 year 1 year to 3 year More than 3 years Total

No. of Investors 11 10 36 63 120

No. of Percentage 9.16% 8.34% 30.00% 52.50% 100%

Figure No. 5.4 Interpretation Out of the 120 investors mostly were of the people that they invested there for money at least for a period of More than 3 years i.e. 52.50%, while 30.00% keep 1 to 2 years, 9.16% keep less than 6 months and least 8.34% investors prefer to keep their money in financial instruments.

5.

Do you know about the following Financial Instrument? Table No. 5.5 Financial Instrument Mutual Fund Bond No. of Investors 32 9 No. of Percentage 26.66% 7.50%

Insurance Equity Shares Fixed Deposits IPO Real Estate If any other please specify Total

18 24 12 11 10 4 120

15.00% 20.00% 10.00% 9.16% 8.34% 3.34% 100%

Figure No. 5.5 Interpretation The sample size consists of 120 investors and out of which almost all the people are fully aware about investment avenues like IPO, Insurance, Bond, Real Estate and fixed deposits, almost 26.66% are aware about Mutual funds.

6.

What are the factors which you consider while investing in any Financial Instrument? Table No. 5.6 Information Source Return (capital appreciation) Tax Saving Liquidity Regular income flow Safety Any Other Total No. of Investors 29 34 13 18 24 2 120 No. of Percentage 24.16% 28.34% 10.84% 15.00% 20.00% 1.66% 100%

Figure No. 5.6 Interpretation Out of the 100 investors about 28.34% investors think that Tax saving is the main factor to investing in financial instruments, while 24.16% expecting return, 20% Safety & rest 2% any other factor for investing their money in financial instruments.

7.

How do you get information regarding these financial instruments? Table No. 5.7

Information Source Advertisement on Television Company Sales Force Friends/Relatives Magazines/Newspaper Any Other Total

No. of Investors 62 16 6 26 10 120

No. of Percentage 51.66% 13.34% 5.00% 21.66% 8.34% 100%

Figure No. 5.7 Interpretation Out of the 120 investors about 51.66% of them get the information from advertisements on the television and the rest from the magazines, company sales force and friends and relatives.

8.

Please rate the Financial Instruments as per your Preference. Table No. 5.8 Rating of Financial Instruments Mutual fund Insurance Equity Shares Bonds Fixed Deposits Real estate IPOs More Preferred (3) 40 34 40 32 79 39 10 (2) 61 64 59 47 37 57 46 Moderate Less Preferred (1) 19 22 21 41 4 24 64 261 252 259 231 315 255 186 Total Weighted Average 2.17 2.10 2.15 1.92 2.62 2.12 1.55

Figure No. 5.8 Interpretation Out of the 100 investors asked the most preferred financial instrument is fixed deposits and the then the rest like Insurance and equity shares and least preference of investor is IPOs. 9. On what basis you will invest in any particular Financial Instrument? Table No. 5.9 Information Source No. of Investors No. of Percentage

Past Performance Portfolio Fund Manager Fundamental/Technical Analysis Market Sentiment Any Other Total

14 47 14 32 11 2 100

11.66% 39.18% 11.66% 26.66% 9.18% 1.66% 100%

Figure No. 5.9 Interpretation The investors were mostly of the opinion that portfolio is the most important factor before investing and then fundamental analysis done by them or by the financial advisor and then the other factors.

10.

How will you invest your money in any Financial Instrument? Table No. 5.10 Information Source Through business news Through any stock broking company. Sub broker/ Agents No. of Investors 62 9 33 No. of Percentage 51.66% 7.50% 27.50%

Through Banks Any Other Total

15 1 120

12.50% 0.84% 100%

Figure No. 5.10 Interpretation The above chart shows that they mostly invest their money through business news and then through sub brokers and agents and least 0.84% investor through any other parameters.

11.

In what type of Financial Instrument you like to invest? Table No. 5.11 Information Source Equity based Debt based Balanced Fund Hybrid Fund ELSS (equity linked saving scheme) If any other please specify Total No. of Investors 24 31 39 16 7 3 120 No. of Percentage 20.00% 25.83% 32.50% 13.34% 5.83% 2.50% 100%

Figure No. 5.11 Interpretation The above chart shows that they mostly invest their money in balanced fund as compared to other funds.

12.

Will you invest your money for saving the Tax in any Financial Instrument? Table No. 5.12 Options No. of Investors No. of Percentage

Yes No Total

79 41 120

65.83% 34.17% 100%

Figure No. 5.12 Interpretation The above chart shows that mostly investors are in favour of investing money for Tax saving.

13.

Does business news influence your investment decisions? Table No. 5.13 Options Strongly Agree Agree Neutral Disagree Strongly Disagree Total No. of Investors 31 47 22 16 4 120 No. of Percentage 25.83% 39.16% 18.34% 13.33% 3.33% 100%

Figure No. 5.13 Interpretation The above chart shows that mostly investors agree with statement that business news influence their investment decision, whereas 25.83% strongly agree, 18.34% neutral, 13.34% disagree and least 3.33% investors strongly disagree with opinion. Business news creates impact on investors mind.

14.

The news information is used to categorize trader types including mutual funds, foreigners, individuals and corporations. Table No. 5.14 Options Strongly Agree Agree Neutral Disagree Strongly Disagree Total No. of Investors 27 59 14 11 9 120 No. of Percentage 22.50% 49.17% 11.67% 9.16% 7.50% 100%

Figure No. 5.14 Interpretation The above chart shows that mostly investors agree with statement that news information is used to categorize trader types including mutual funds, foreigners, individuals and corporations and remaining 7.50% investors strongly disagree with fact.

15.

Do you agree that business news fluctuate your investment decision? Table No. 5.15

Options Strongly Agree Agree Neutral Disagree Strongly Disagree Total

No. of Investors 63 36 14 7 0 120

No. of Percentage 52.50% 30.00% 11.66% 5.84% 0.0% 100%

Figure No. 5.15 Interpretation The above chart shows that 52.50% investors strongly agree that business news fluctuate their investment decision, whereas 30.00% agree, 11.66% neutral and rest 5.84% investors disagree with opinion.

16.

Business news affects the timing of investors' purchase of investment aveneues. Table No. 5.16 Options Strongly Agree Agree Neutral Disagree Strongly Disagree Total No. of Investors 37 49 22 8 4 120 No. of Percentage 30.83% 40.83% 18.34% 6.66% 3.34% 100%

Figure No. 5.16 Interpretation The above chart shows that 40.83% investors agree that business news affects timing of investors' purchase of investment aveneues, while 30.83% strongly agree, 18.34% neutral, 6.66% disagree and rest 3.34% investors strongly disagree with statement.

17.

Business news can negatively impact on investment Decisions. Table No. 5.17 Options Strongly Agree Agree Neutral Disagree Strongly Disagree Total No. of Investors 27 62 21 7 3 120 No. of Percentage 22.50% 51.66% 17.50% 5.84% 2.50% 100%

Figure No. 5.17 Interpretation The above chart shows that 51.66% investors agree that business news can negatively impact on investment Decisions, while 22.50% strongly agree, 17.50% neutral, 5.84% disagree and remaining 2.50% investors strongly disagree with fact.

18.

Are you satisfied with your investment decision, Please rate? (Highly Satisfied 5, Satisfied 4, Neutral 3, Dissatisfied 2, Highly Dissatisfied 1) Table No. 5.18 Options Highly satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied Total No. of Investors 18 27 34 17 4 100 Score 90 108 102 34 4

Figure No. 5.18 Interpretation The above chart shows that mostly investors are satisfied with investment decision, whereas few number of investor are highly dissatisfied with their investment decision.

Chapter -6 Findings, Conclusion and Suggestions

FINDINGS
From the data analyzed, we can conclude that: All respondents are making investments through various financial instruments. Mostly respondents around were in the income group of 3- 5 lakhs Mostly people invest 20% to 30 % of their money in these financial schemes. Mostly respondents are invested there for money at least for a period of More than 3 years. Almost all the people are fully aware about investment avenues like IPO, Insurance, Bond, Real Estate and fixed deposits. Safety is the main factor to investing in financial instruments. A large number of proportions get the information about various financial schemes through advertisements on the television. Fixed deposits are the first preference of respondent to invest their money. Portfolio is the most important factor before investing in financial instruments. Mostly respondents are investing their money through sub brokers and agents. Mostly respondents invest their money in balanced fund as compared to other funds. A large number of respondents are in favour of investing money for Tax saving. A large numbers of Proportions are expected 30% to 50% return from any financial instruments Mostly respondents are satisfied with their investment decision.

SUGGESTIONS
Investment avenues- investment avenues provided by Public sector banks to its clients are less as compared to the avenues provided by private institutions. Demat account- Public Banks should provide its clients with the Demat account facility. Although this was not part of the study but during the survey it was found to be the most common complaints from the investors. The no of branches should be increased do that it becomes easy for the clients to approach the bank Most of the people in Ludhiana are not even aware of the additional services provided by the banks; to promote this, banks should aggressive marketing strategy.

CONCLUSION
The Present study has important implications for investment managers as it has come out with certain interesting facets of an individual investor. 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, 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 various sources of media. In present era the behavior of investment is changed as past. Previously, the investor looks for the safest or very low risk instruments. As there mean to just keep their money along with the some returns which they thought as the premium what they could not get if they keep it in homes. So they look for the schemes like fixed deposits, post office schemes, and very nominal looks towards insurance. But now there behavior is getting changed. Now they want high returns on their savings which they can get only if they take high or moderate risk, so now they prefer more investment in equity, mutual funds, real estate, forex, insurance etc. which provides more returns in comparison to FDs, and post office schemes. As it could be seen from the above factors that investors are having low saving potential, growth of capital acts as a primary objective behind investments, investors taking financial decisions independently, which depicts that there is a need of financial planners to approach these investors in a proper manner so as to provide value additions to the saving potential and portfolio.

BIBLIOGRAPHY

BIBLIOGRAPHY
Akwimbi, W.,(2007), A Critical Literature Review on Financing of Social Security Schemes, University of Nairobi. Baron R.,(2007), Green Investment Schemes: Options & Issues, Organization study. Chan, W. S. (2003), Stock Price Reaction to News and No-News Drift and Reversal after Headlines, Journal of Financial Economics, Vol. 70, pp.223-260. Cowling M, Bates P, Jagger N, Murray G,(2008), Study of the Impact of Enterprise Investment Scheme (EIS) and Venture Capital Trusts (VCT) on Company Performance, SOBE, University of Exeter, Research Report HMRC 44, HM Revenue & Customs. Demers, E.A. and C. Vega., (2011), Linguistic Tone in Earnings Announcements: News or Noise? FRB International Finance Discussion Paper No. 951. Dr. Chander Subhash, Dr. Singh Jaspal, (2004), Performance of Mutual Fund in IndiaAn Empiricial Evidence, The ICFAI Journal of APPLIED FINANCE. Gupta, S.K.,(2003), Financial Management: Theory & Practices, Kalyani Publishers. Hamadu Dallah,(2009), Attitudes of nigerians towards insurance Services: an empirical study, Journal of Accounting, Economies & Finance, Vol. 4, No. 4. Kean FR,(2007)Financial Markets, Corporate Finance, Black well publishers, pp2537. Kerl, Alexander Gabriel, Schrg, Carolin Victoria and Walter, Andreas, The Impact of Financial Times Deutschland News on Stock Prices Post Announcement Drifts and Inattention of Investors (January 3, 2013). Available at SSRN: http://ssrn.com/abstract=2195964 or http://dx.doi.org/10.2139/ssrn.2195964 Khan M Y and Jain P K,(2006), Financial Management, pp. 14.6. Tata McGraw Hill, New Delhi, India. Kothari C.R, (2004), Research Methodology: Methods & Techniques, New Age International Publishers, Second Edition. . Kumar S., Karoli V., Singh P., Chopra A., (2010),International Finance, Thakur Publishers, First Edition.
Lu, Yang-Cheng, Yu-Chen Wei and Chien-Wei Chang (2009), Stealth Trading, Aggressiveness of Trades and Investor Types: Evidence from the Emerging Taiwan Equity

Market, in the 4th International Conference on Asia-Pacific Financial Markets, Seoul, Korea, December, 2009.

Lu, Yang-Cheng, Yu-Chen Wei and Chien-Wei Chang, (2010) Stealth Trading, Price Manipulation and Investor Types in the Emerging Taiwan Equity Market, in the 23rd Annual Australasian Finance and Banking Conference (AFBC), Sydney, Australia, December.

Lu, Yang-Cheng, Yu-Chen Wei and Jyun-Ming Ke (2012) The News Impact around Earnings Announcement with the Incorporation of Investor Types and Market Trends, in European Financial Management Association 21st Annual Meeting, Barcelona, Spain, June, 2012.

Murugan M.S.,(2002), Financial and operating performance of IT enabled industries. Mgmt Acctt 37: 899-903. Singh, H.K. Singh, Meera,(2001),Mutual funds and Indian capital market Performance and Profitability.
Tetlock, P. C., M. Saar-Tsechansky, and S. Macskassy. (2008), More than Words: Quantifying Language to Measure Firms Fundamentals, Journal of Finance, 63(3), 14371467.

Vega, C. (2006) Stock Price Reaction to Public and Private Information, Journal of Financial Economics, Vol.82, pp. 103-133. Walia, N. (2009), An Analysis of Investors Risk Perception towards Mutual Fund services, International Journal of Business and Management, Vol.4, No. 5. Wei, Yu-Chen and Lu, Yang-Cheng, The News Impact Around the Earnings Announcement with the Incorporation of Investor Types (August 26, 2011). Available at SSRN: http://ssrn.com/abstract=1917373 or http://dx.doi.org/10.2139/ssrn.1917373

http://www.researchandmarkets.com/reports/c53236 http://kalpataru-balanceofpayment.blogspot.com/2008/12/study-on-customerperception-and_13.html

ANNEXURE

QUESTIONNAIRE
I Sumit Chugh, a student of MBA 4th sem. of Punjab Technical University, Jalandhar conducting a survey on the Impact of Business news on Investors investment decision. I request you to answer the following questions for the same purpose. I assure you that the information collected hereby will be used only for academic purposes. Dear respondents please fill in the questionnaire to the best of your knowledge. 1. 2. 3. Do you make Investments? Yes What is your annual income? 1lac to 3 lac 5lacto 10lac 3lac to 5lac More than 10 lacs No

How much of your money you invest in any Financial Instrument? 10% to 20% 30% to 50% If any other please specify 20% to 30% More than 50%

4. 5.

How long you prefer to keep your money in any Financial Instrument? Less than 6 months 1 year to 3 year 6 months to 1 year More than 3 years

Do you know about the following Financial Instrument? Mutual Fund Insurance Fixed Deposits IPO Bond Equity Shares Real Estate

If any other please specify.

6.

How do you get information regarding this Financial Instrument? Advertisement Friends / Relatives If any other please specify Financial Business news Agents/Sub brokers

7.

Please rate the Financial Instruments as per your Preference. Rating of Financial Instruments More Preferred (3) Mutual fund Insurance Equity Shares Bonds Fixed Deposits Real estate IPOs (2) (1) Moderate Less Preferred

8. 9.

What are the factors which you consider while investing in any Financial Instrument? Return (capital appreciation) Liquidity Safety Tax Saving Regular income flow Risk

If any other please specify On what basis you will invest in any particular Financial Instrument? Past Performance Fund Manager Portfolio Market Sentiment

Fundamental/Technical Analysis If any other please specify

10.

In what type of Financial Instrument you like to invest? Equity based Balanced Fund Debt based Hybrid Fund

ELSS (equity linked saving scheme) If any other please specify

12. 13.

Will you invest your money for saving the Tax in any Financial Instrument? Yes No

Does financial news influence your investment decisions? Strongly Agree Neutral Strongly Disagree Agree Disagree

14.

The news information is used to categorize trader types including mutual funds, foreigners, individuals and corporations. Strongly Agree Neutral Strongly Disagree Agree Disagree

15.

Do you agree that business news change your investment decision? Strongly Agree Neutral Strongly Disagree Agree Disagree

16.

Business news affects the timing of investors' purchase of investment aveneues. Strongly Agree Neutral Strongly Disagree Agree Disagree

17.

Do you think that business news can negatively impact on investment Decisions? Strongly Agree Neutral Strongly Disagree Agree Disagree

18.

Are you satisfied with your investment decision, Please rate? (Highly Satisfied 5, Satisfied 4, Neutral 3, Dissatisfied 2, Highly Dissatisfied 1)

Highly satisfied

Satisfied

 19.

Neutral Highly Dissatisfied Any Suggestions?

Dissatisfied

Name Occupation Phone No. Gender : : : : Male Female

Thank you for your valuable inputs

AN ANALYTICAL STUDY ON INVESTORS PERCEPTION REGARDING DIFFERENT INVESTMENT SCHEMES

SUBMITTED TO PUNJAB TECHNICAL UNIVERSITY, JALANDHAR

IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF DEGREE OF MASTERS OF BUSINESS ADMINISTRATION

SUBMITTED BY HARVEEN KAUR UNIV. ROLL NO. 1175239

REGIONAL INSTITUTE OF MANAGEMENT & TECHNOLOGY, (RIMT) MANDI GOBINDGARH CERTIFICATE

This is to certify that this project report entitled AN ANALYTICAL STUDY ON CUSTOMERS PERCEPTION REGARDING DIFFERENT INVESTMENT SCHEMES, submitted in the partial fulfillment of requirement of the award of Master of Business Administration (MBA) at Regional Institute of Management & Technology, affiliated to Punjab Technical University is a bonafide research carried by Harveen Kaur, University Roll No. 1175239 under my supervision and no part of this project has been submitted for any other degree.

Advisor Mr. Nitin Thapar

DECLARATION
I hereby declare that this project titled AN ANALYTICAL STUDY ON CUSTOMERS PERCEPTION REGARDING DIFFERENT INVESTMENT SCHEMES submitted to Department of Management, Regional Institute of Management and Technology, in partial fulfillment of requirements of Master of Business Administration programme is a bonafide work carried out by me under the guidance of Mr. Nitin Thapar. This has not been submitted earlier to any other University or Institution for the award of any degree diploma/ certificate or published any time before.

Harveen Kaur

ACKNOWLEDGEMENT
Knowledge is the end based on Acknowledgement
Acknowledging any one in mere words is a very difficult job. I would like to pay my sincere thanks to all those persons who have helped me during this project work with their able guidance and invaluable advice. I would like to thank Dr. D.S. Bhatia (Director of RIMT) for giving me an

opportunity. I would like to take this opportunity to express my sincere accolade to my faculty guide Mr. Nitin Thapar (Assistant Lecturer of RIMT), for facilitating me at various phases of the project. Despite her demanding schedule, she bestowed every possible support to me, so as to carry on the project work without any hindrance. Last but not the least, My Parents & Institute staff for bringing me up in a successful environment and teaching me all the basic etiquettes and ethics required for my growth in an organization.

Harveen Kaur Roll No. 1175239

TABLE OF CONTENTS:
Chapter No. 1. 2. INTRODUCTION REVIEW OF LITERATURE CONTENTS Page No. 1 10 11 15

3. 4. 5. 6.

OBJECTIVES OF THE STUDY RESEARCH METHODOLOGY DATA ANALYSIS & INTERPRETATION FINDINGS, RECOMMENDATIONS & SUGGESTIONS BIBLIOGRAPHY ANNEXURE

16 17 18 20 21 35 36 39 40 42 43 46

LIST OF TABLES
Table No. 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 Do you make investment? How much of your money you invest in any Financial Instrument? What is your Income Level? How long you prefer to keep your money in any Financial Instrument? Do you know about the following Financial Instrument. What are the factors which you consider while investing in any Financial Instrument? How do you get information regarding these financial instruments? Please rate the Financial Instruments as per your Preference. On what basis you will invest in any particular Financial Instrument? How will you invest your money in any Financial Instrument? In what type of Financial Instrument you like to invest? Will you invest your money for saving the Tax in any Financial Instrument? How much return you expect from any Financial Instrument? Are you satisfied with your investment decision, Please rate? Table Name Page No. 22 23 24 25 26 27 28 29 30 31 32 33 34 35

LIST OF FIGURES
Figure No. 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 Do you make investment? How much of your money you invest in any Financial Instrument? What is your Income Level? How long you prefer to keep your money in any Financial Instrument? Do you know about the following Financial Instrument. What are the factors which you consider while investing in any Financial Instrument? How do you get information regarding these financial instruments? Please rate the Financial Instruments as per your Preference. On what basis you will invest in any particular Financial Instrument? How will you invest your money in any Financial Instrument? In what type of Financial Instrument you like to invest? Will you invest your money for saving the Tax in any Financial Instrument? How much return you expect from any Financial Instrument? Are you satisfied with your investment decision, Please rate? Figure Name Page No. 22 23 24 25 26 27 28 29 30 31 32 33 34 35