A PROJECT REPORT

ON

Investment Analysis-A study conducted to analyze the investment

decisions of the investors at IIFL, Guwahati

(A project report submitted in partial fulfillment of the requirement of the

Degree of Master of Business Administration (MBA), in NERIM Group of
Institution under Dibrugarh University and approved by AICTE)

Submitted by:

Name: Rupshikha Deka

MBA 3rd Semester

Area of Specialization: MBA Finance

Under the Guidance of:

Organizational Guide
Institutional Guide
Mr. Puspak Sharma
Dr Ankita Baruah
Branch Manager, IIFL Gold Loan
Assistant Professor
Fancy Bazaar Branch, Guwahati
NERIM group of Institution, Guwahati

NERIM GROUP OF INSTITUTION

Padma Nath Sarmah Bhawan

Jayanagar, Khanapara, Guwahati-781022

DECLARATION

I , Rupshikha Deka , hereby declare that the project report entitled “Investment Analysis-A
study conducted to analyze the investment decisions of investor at IIFL, Guwahati” has
been prepared by me during the time period 2021 and is submitted in partial fulfilment of the
requirement for the award of degree in Master of Business Administration (MBA) of
Dibrugarh University .

It is my original work and neither the whole nor any part of this report has been submitted to
any other institutions and University related to a similar requirement.

Place: Signature
Date: Rupshikha Deka

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 NERIM GROUP OF INSTITUTIONS
Affiliated to Dibrugarh University & Guwahati University
Approved by NCTE, BCI &AICTE, MHRD, Govt of India Est.1992

TO WHOM IT MAY CONCERN

This is to certify that Rupshikha Deka , a 3rd Semester student of two years full time Masters of Business
Administration (BBA) program, session 2020-22, bearing the Roll No 131/20 of NERIM Group of Institutions
(Affiliated to Dibrugarh University and approved by AICTE) has prepared his project tilled “Investment
Analysis-A study conducted to analyze the investment decisions of investor at IIFL, Guwahati” under my
guidance.

She has fulfilled all the requirements for the completion of the project report.

I wish her all success in life

Date:

(Dr. Ankita Baruah)

Asst Professor
Department of Business Administration

NERIM Group of Institutions, Guwahati

Padma Nath Sarmah Bhawan, Jayanagar, Khanapara, Guwahati–781022

Phone9864150000/9954190758.Website: nerimindia.org, Email id:nerimindia@gmail.com

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4|Page
ACKNOWLEDGEMENT
Behind every study there stands myriad of people whose help and contribution make it
successful.

I wish to express my sincere thanks to respected Dr. Zoii Nath Sarmah, Chairman of
NERIM and Dr. Sangeeta Tripathi, Director of NERIM of giving me opportunity to carry
out the project work.

It has been a remarkable experience of satisfaction and pleasure for me to work out my
project under the supervision of Dr Ankita Baruah Ma’am and Sagar Saikia Sir. I am really
thankful to them for their valuable guidance and cooperation during my project work.

I had also benefitted from the discussions and would also take the opportunity to thank the
Branch Manager of the Organisation Mr. Puspak Sharma for the valuable support and
assistance wherever and whenever needed. A cordial and encouraging environment made it
very easier for me to complete the project.

So, this acknowledgement is a humble attempt to earnestly thank them and all those who are
directly or indirectly involved in preparation of this project.

Sincerely,

Rupshikha Deka
3rd Semester, Roll No-131/20
Department of Business Administration (MBA)
NERIM, Guwahati

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EXECUTIVE SUMMARY

TITLE OF THE PROJECT Investment Analysis- A study conducted to analyse the

investment decisions of the investors at IIFL, Guwahati

NAME OF THE INDIA INFOLINE LIMITED (IIFL), GOLD LOAN,

ORGANISATION GUWAHATI

NAME OF THE North Eastern Regional Institute of Management (NERIM)

INSTITUTION
ORGANIZATIONAL GUIDE Mr. Puspak Sharma (Branch Manager, IIFL)

INSTITUTIONAL GUIDE Dr. Ankita Baruah

OBJECTIVES 1. To study the investors perception on investment

decision and knowledge about investment among
the investors of IIFL
2. To study the different investment avenues available
for investment at IIFL
3. To bring out the different needs of investors of
IIFL on the basis of parameters like safety,
liquidity, risk etc.

DATA APPROACH Through Questionnaire

RESEARCH APPROACH Descriptive cum exploratory research

SOURCE OF INFORMATION Both Primary and Secondary Data

SAMPLE SIZE 71 Population

DURATION OF INTERNSHIP 2 Months, (2nd November 2021 to 1st January 2022)

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TABLE OF CONTENT

Sl no Title or Heading of chapters Page numbers

1. List of tables 8

2. List of Graphs 9 & 10

3 Chapter1-Introduction 11-51

4. Chapter 2- Research Methodology 52-58

5. Chapter 3- Data analysis and Interpretation 59-86

6. Chapter 4- Summary of findings 87-92

7. Chapter 5- suggestions and conclusion 93-96

8. Bibliography/ References 97-98

9. Annexure 99-109

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LIST OF TABLES
Tables Page number

Table 1-Showing the classification of gender among the respondents 60

Table 2-Martial status of respondents recorded in tabular form 61

Table 3- Classification of Age group among the respondents of IIFL are recorded in the 62
tabular form
Table 4- Occupation of respondents are represented graphically 63

Table 5- Monthly income readings of the respondents of IIFL recorded in the tabular form 64

Table 6- Educational qualification of respondents are recorded in the tabular form 65

Table 7-knowledge of Respondents on investment, readings are recorded in the tabular form 66

Table 8- pie chart showing opinion of individuals on availability of various options of 67

investment

Table 9- Readings recorded for respondents’ preferences on various types of investment 68

Table 10- Showing choices of investment sector among the respondents of IIFL recorded the 69
readings in the tabular form
Table 11-: Factors considered while making investment decisions among investors responses 70
are recorded in tabular form

Table 12-Showing the ranking of various investment options based on profitability 72

Table 13-Preference of investment time period among investors are recorded in tabular form 73

Table 14- Demat account holders as responded by respondents are recorded in tabular form 74

Table 15-: Challenges faced by number of investors are shown in tabular form 76

Table 16- Awareness among respondents about IIFL are recorded in the tabular form 77

Table 17- Table showing the respondents percent of awareness of investment alternatives of 78
IIFL

Table 18-Table showing the number of respondent’s opinions regarding choosing of 79

investment alternative of IIFL

Table 19-Showing the number of respondents prefer the percentage of income to invest in 80
various ways
Table 20-Ranking of various investment options based on risk among the respondents are 82
recorded in ratio form.
Table 21- Table showing the number of respondents choosing their own investment decisions 83

Table 22- Table showing respondents choices of two investment product among them 84

Table 23- Table showing the respondents decision regarding gains and losses 85

LIST OF GRAPHS
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Sl no Graphs Page no
1. Figure 1-Pie chart Showing classification of Male and 60
Female

2. Figure 2: Pie chart showing ratio of marital status of 61

respondents

3. Figure 3- The pie chart shows the age group of IIFL 62

respondents
4. Figure 4- Occupation of respondent’s readings are 63
recorded in tabular form
5. Figure 5- Monthly income readings of the respondents of 64
IIFL recorded in the tabular form
6. Figure 6- Pie chart showing the respondents educational 65
qualification
7. Figure 7- Graph showing the investment knowledge of 66
individuals

8. Figure 8- Pie chart showing opinion of individuals on 67

availability of various options of investment

9. Figure 9- Graph showing the values of respondent’s 68

preferences of various type of investment
10. Figure 10- Individuals choices of sectors for investing 69
shown in the form of pie chart
11. Figure 11- Graph showing number of respondents, follows 70
factors responsible for investment decision making
12. Figure 12-: Showing the ranking of various investment 72
options based on profitability
13. Figure 13- Pie-chart showing the number of respondent’s 73
opinion regarding investment time period

14. Figure 14- Pie chart showing the number of individuals 74

holding a Demat Account

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15. Figure 15- Challenges faced by number of investors are 75
shown in tabular form
16. Figure 16- Awareness among respondents about IIFL are 77
recorded in the tabular form
17. Figure 17- Pie-chart showing the respondents percent of 78
awareness of investment alternatives of IIFL

18. Figure 18- Pie chart showing the number of respondent’s 79

opinions regarding choosing of investment alternative of
IIFL

19. Figure 19-: Pie chart showing the number of respondents 80

prefer the percentage of income to invest in various ways

20. Figure 20- Ranking of various investment options based 82

on risk among respondents
21. Figure 21-: Pie chart showing the number of respondents 83
choosing their own investment decisions

22. Figure 22- Table showing respondents choices of two 84

investment product among them
23. Figure 23- Pie chart showing the respondents decision 85
regarding gains and losses

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CHAPTER -1

INTRODUCTION

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1.1. PART A: THE INDUSTRY

About NBFC’s in India

A Non-Banking Financial Company (NBFC) is a company registered under the Companies

Act, 1956 engaged in the business of loans and advances, acquisition of shares, stocks, bonds,
debentures, securities issued by Government or local authority or other marketable securities
of a like nature, leasing, hire-purchase, insurance business, chit business but does not include
any institution whose principal business is that of agriculture activity, industrial activity,
purchase or sale of any goods (other than securities) or providing any services and sale,
purchase, construction of immovable property. A non-banking institution which is a company
and has principal business of receiving deposits under any scheme or arrangement in one
lump sum or in instalments by way of contributions or in any other manner, is also a non-
banking financial company (Residuary non-banking company).

Financial activity as principal business is when a company’s financial assets constitute more
than 50 per cent of the total assets and income from financial assets constitute more than 50
per cent of the gross income. A company which fulfils both these criteria will be registered as
NBFC by RBI. The term 'principal business' is not defined by the Reserve Bank of India
Act. The Reserve Bank has defined it so as to ensure that only companies predominantly
engaged in financial activity get registered with it and are regulated and supervised by it.
Hence if there are companies engaged in agricultural operations, industrial activity, purchase
and sale of goods, providing services or purchase, sale or construction of immovable property
as their principal business and are doing some financial business in a small way, they will not
be regulated by the Reserve Bank. Interestingly, this test is popularly known as 50-50 test and
is applied to determine whether or not a company is into financial business.

In Indian history, NBFCs have been a vital cornerstone of the Indian financial ecosystem as
important financial intermediaries channelizing savings and investments, especially for small-
scale and retail sectors as well as underserved areas and unbanked sectors of the Indian
economy.
Additionally, NBFCs have gradually become important mechanisms to fuel growth and
entrepreneurship due to the launch of government-backed schemes including Pradhan Mantri
Jan-Dhan Yojana which has contributed to a significant increase in the number of bank
accounts.

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These NBFCs have also been key in being able to mitigate and manage the spread of risks
during times of financial duress and have increasingly become recognized as complementary
services to banks.
NBFCs have become integral for all business services, including loans and credit facilities,
retirement planning, money markets, underwriting and merger activities. As such these
companies play an important role in providing credit to the unorganized sector and for small
borrowers at local level. Additionally, hire purchase finance is also the largest activity of
NBFCs and the rapid growth of NBFCs has gradually blurred the lines between banks and
NBFCs although commercial banks have retained importance. These NBFCs facilitate long
term investment and financing, which is challenging for banking sector, and the growth of
NBFCs widens range of products available for individuals or institutions with resources to
invest.
NBFC’s are categorized

a) in terms of the type of liabilities into deposit and non-deposit accepting NBFC’s

b) Non-deposit taking NBFC’s by their size into systematically important and other non-
deposit holding companies (NBFC-NDSI and NBFC-ND) and

c) by the kind of activity, they conduct. NBFC whose asset size is of Rs 500 crore more as
per the last audited balance sheet are considered as systematically important NBFC’s. The
rationale for such classification is that the activities of such NBFC’s will have a bearing on
financial stability of the overall economy.

Within this broad categorization the different types of NBFC’s are given below

Asset Finance company (AFC): An AFC is a company which is a financial institution

carrying on as its principal business the financing of physical assets supporting
productive/ economic activity, such as automobiles, tractors, lathe machine, Generator
sets, earth moving and material handling equipment, moving on own power

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1.2. PART B: ABOUT THE ORGANISATION

A Short Glimpse of the Company: - India Infoline Finance Limited (IIFL)

IIFL Finance limited is previously known as the IIFL holdings Limited is one of the leading
players in the financial services spaces in India, together with its subsidiaries – IIFL Home
Finance Limited and Samasta Microfinance Limited, it provides a diverse range of loans and
mortgages. These company covers home loans, gold loans, business loans including loans
against property and medium & small enterprise financing, micro finance, developer &
construction finance and capital market finance; catering to both retail and corporate clients.
The company has a nationwide presence with a thriving network of 2,563 branches across
500+ cities.

IIFL is one of the leading NBFC’s serving its customers through a network of branches
spread across the length and breadth of India and the state-of-the-art digital platforms

The main motive of the brand believes in being a partner through the customer’s life journey,
and help them achieve their dreams providing solutions in the most uncomplicated way. It is
not about brand salience but also being relevant in our customers lives. Their aim is to be the
first name that their customers thinks of and the one they completely trust upon.

HISTORY OF IIFL GROUP

IIFL was founded on Oct 17, 1995 by Nirmal Jain, a 1986 graduate from University of
Mumbai and an alumnus of Indian Institute of Management, Ahmedabad. Jain is among the
few successful entrepreneurs post the economic liberalisation era in India ushered by PV
Narasimha Rao. Jain was previously employed with Hindustan Lever Limited. The company
was founded as Probity Research and Services Private Limited which provided research on
the Indian economy, businesses and corporates. The name was later changed to India Infoline
Limited.

A few years into the business, the organisation found itself with clients which included
research organisations, banks and corporates. They then began launching their research
products to become more noticeable in the market. In the meanwhile, the dotcom revolution
was beginning to take place in India. The website was created in 1999.

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Taking the business one step ahead this group of consultants opened a trading portal – 5paisa
–in 2000 thus moved into the business of being a full-service broking agency. During this
time, they widened their distribution network.

In 2001, the Indian dotcom industry saw a downfall. During this time, sustaining became
tough. The organisation then decided to tie-up with leading Life Insurance company ICICI
Prudential, thus putting to use its distribution network and becoming India's first corporate
agent for insurance.

Today, IIFL Holdings Limited (Bloomberg Code: IIFL IN, NSE: IIFL, BSE: 532636]) is
India’s leading integrated financial services group with diverse operating businesses, mainly
Non-Banking and Housing Finance, Wealth and Asset Management, Broking, Financial
Product Distribution, Investment Banking, Institutional Equities, Realty and Property
Advisory Services.

IIFL Holdings has a consolidated net-worth of over Rs 45 billion; global presence in Canada,
United States, UK, Singapore, Hong Kong, Switzerland, Mauritius, and UAE; An employee
workforce of over 10,500, a strong network of over 2,250 service locations spread across
India, over Rs 233 billion loan assets under management; over Rs 1,250 billion wealth assets
under advice, management and distribution; over 500 stocks under research and more than
300 of the world’s top institutional investors relying on IIFL's research.

Group reorganisation

The Board of Directors of IIFL Finance Limited at its meeting held on January 31, 2018, had
approved the reorganization of IIFL Group, which resulted into three listed entities – IIFL
Finance, IIFL Wealth and IIFL Securities. The merger of India Infoline Finance Limited with
IIFL Finance Limited became effective from 30th March 2020.

As the core businesses of IIFL group have acquired a critical mass, the Company took the
decision to reorganise the corporate structure and create independent entities focused on their
niche verticals. This move is aimed at enabling each business to grow faster, attract the right
talent and become more innovative and efficient. In addition, the shift from close-knit
conglomerate to separate entities will ensure simpler regulatory compliance, enhanced value
for stakeholders along with more synergistic benefits.

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 IIFL Finance Limited IIFL Wealth Management IIFL Security Management

IIFLHomeFinance IIFL Asset Management IIFL Capital Inc.

Saamasta International Subsidiaries IIFL Insurance

Microfinance limited Brokers

IIFL Facilities
Service

There are 10 branches of IIFL in Guwahati, and overall 1750+ branches of IIFL across the
major cities of INDIA, there are 15549 employees across the India which is also a strength of
IIFL, and the 364 Billion Assets under management.

In today’s world, a brand is considered as the most valuable asset of an organization. It serves
as the medium that connects our numerous offerings to customers adding value to their lives.
It is an intangible voice that speaks volumes about the company.

With a product class that fulfils customer expectations and often exceeds them, we have
created a diverse portfolio, a broad spectrum of offerings with a business model that
shareholders and investors have come to trust.

We are a brand that is not afraid to dream big and see those dreams to fruition. Our single-
minded focus in providing investment advice while ensuring the highest standards of ethics
and compliance, transparency while transacting business and staying ahead of the curve in
technological innovations has helped us build credibility and a reputation, we are proud of
today.

Lastly, at IIFL, it is our firm belief that a brand is the face of a company’s work culture. It is
something that introduces you to our customers and to the world. Our brand is your identity;
it narrates your success story and serves as a sign of how you represent us with a sense of
pride and ownership.

There are 10 branches of IIFL in Guwahati, and overall 1750+ branches of iifl across the
major cities of INDIA, there are 15549 employees across the India which is also a strength of
IIFL, and the 364 Billion Assets under management.

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In today’s world, a brand is considered as the most valuable asset of an organization. It serves
as the medium that connects our numerous offerings to customers adding value to their lives.
It is an intangible voice that speaks volumes about the company.

With a product class that fulfils customer expectations and often exceeds them, we have
created a diverse portfolio, a broad spectrum of offerings with a business model that
shareholders and investors have come to trust.

We are a brand that is not afraid to dream big and see those dreams to fruition. Our single-
minded focus in providing investment advice while ensuring the highest standards of ethics
and compliance, transparency while transacting business and staying ahead of the curve in
technological innovations has helped us build credibility and a reputation, we are proud of
today.

Trade Name- India Infoline formerly known as India Infoline Limited

Type of the company- public

Tagline- knowledge is the edge, it’s all about money, honey

Registered under- NSDL and CSDL as depository participant

IIFL vision:

To become the most respected company in the financial service space in India

IIFL Provides the following services:

1. Gold Loan
2. Business Loan
3. Personal loan
4. Home Loan
5. Digital Loan
6. Health Insurance
7. Two-wheeler Insurance
8. Four-wheeler insurance
9. Mutual fund
10. Demat Account

IIFL Values:

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Growth with focused team of dynamic professionals. Integrity in all aspects of business – no
compromise in any situation. Fairness in all dealings- employees, customer, vendors and
shareholders all included. Transparency in what we do- and in how and why we do it.
Services orientation is our core value, imbibed by all sales as well as support teams.

VISION

To be recognized nationally and internationally as a specialized construction organization

comparable with the best in the field covering the entire spectrum of construction activities
and services in the infrastructure sector.

MISSION

To effectively position the Company so as to meet the construction needs of infrastructure

development of the changing economic scene in India and abroad.

To earn global recognition by providing high quality products and services in time and in
conformity with the best engineering practices.

Strategies:

There are three basic strategies of IIFL:

Business strategy.

1. Steady growth by adapting to the changing environment without losing the focus on
our core domain of financial services.
2. De risked business through multiple products and diversified revenue system.
3. Knowledge is the key to power superior financial decisions.
4. Keep costs low and continuously strive for innovation.

Customer strategy.

1. Remain largely a retail focused organization, driving stickiness through knowledge and
quality service
2. Cater to untapped areas in semi urban and rural areas, which is relatively safe from cut
throat competition.
3. Target the micro, small and medium enterprises mushrooming across the country through
a cluster approach for lending business.
4. Use wide multi modal network serving as one stop shop to customer.

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People strategy:

1. Attract the best talent and driven people.

2. Ensure conducive merit environment.
3. Liberal ownership sharing.

COMPANY STRUCTURE

India Infoline Limited is listed on both the leading stock exchanges in India, viz. the Stock
Exchange, Mumbai (BSE) and the National Stock Exchange (NSE) and is also a member of
both the exchanges. It is engaged in the businesses of Equities broking, Wealth Advisory
Services and Portfolio Management Services. It offers broking services in the Cash and
Derivatives segments of the NSE as well as the Cash segment of the BSE. It is registered with
NSDL as well as CDSL as a depository participant, providing a one-stop solution for clients
trading in the equities market. It has recently launched its Investment banking and
Institutional Broking business. A SEBI authorized Portfolio Manager; it offers Portfolio
Management Services to clients. These services are offered to clients as different schemes,
which are based on differing investment strategies made to reflect the varied risk-return
preferences of clients India Infoline Media and Research Services Limited. The content
services represent a strong support that drives the broking, commodities, mutual fund and
portfolio management services businesses. Revenue generation is through the sale of content
to financial and media houses, Indian as well as global. It undertakes equities research which
is acknowledged by none other than Forbes as 'Best of the Web' and '…a must read for
investors in Asia'. India Infoline's research is available not just over the internet but also on
international wire services like Bloomberg (Code: IILL), Thomson First Call and Internet
Securities where India Infoline is amongst the most read Indian brokers. India Infoline
Commodities Limited. India Infoline Commodities Pvt Limited is engaged in the business of
commodities broking. Our experience in securities broking empowered us with the requisite
skills and technologies to allow us offer commodities broking as a contra-cyclical alternative
to equities broking. We enjoy memberships with the MCX and NCDEX, two leading Indian
commodities exchanges, and recently acquired membership of DGCX. We have a multi-
channel delivery model, making it among the select few to offer online as well as offline
trading facilities. India Infoline Marketing & Services India Infoline Marketing and Services

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Limited is the holding company of India Infoline Insurance Services Limited and India
Infoline Insurance Brokers Limited. (a) India Infoline Insurance Services Limited is a
registered Corporate Agent with the Insurance Regulatory and Development Authority
(IRDA). It is the largest Corporate Agent for ICICI Prudential Life Insurance Co Limited,
which is India's largest private Life Insurance Company. India Infoline was the first corporate
agent to get licensed by IRDA in early 2001. (b) India Infoline Insurance Brokers Limited is
a newly formed subsidiary which will carry out the business of Insurance broking. We have
applied to IRDA for the insurance broking licence and the clearance for the same is awaited.
Post India Infoline Investment Services Limited Consolidated shareholdings of all the
subsidiary companies engaged in loans and financing activities under one subsidiary.
Recently, Orient Global, a Singapore-based investment Institution invested USD 76.7 million
for a 22.5% stake in India Infoline Investment Services. This will help focused expansion and
capital raising in the said subsidiaries for various ending businesses like loans against
securities, SME financing, distribution of retail loan products, consumer finance business and
housing finance business. India Infoline Investment Services Private Limited consists of the
following step-down subsidiaries.

(a) India Infoline Distribution Company Limited (distribution of retail loan products)

(b) Money line Credit Limited (consumer finance)

(c) India Infoline Housing Finance Limited (housing finance)

(d) IIFL (Asia) Private Limited IIFL (Asia) Private Limited is wholly owned subsidiary
which has been incorporated in Singapore to pursue financial sector activities in other Asian
markets. Further to obtaining the necessary regulatory approvals, the company has been
initially capitalized at 1 million Singapore dollars

BOARD OF DIRECTORS OF IIFL

The Board of Directors details of IIFL are given below: -

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 Mr. Nirmal Jain is the founder and Chairman of the Company.
He holds a PGDM (Post Graduate Diploma in Management)
from the Indian Institute of Management (IIM), Ahmedabad and
is a rank holder Chartered Accountant and a Cost Accountant.
He started his career in 1989 with Hindustan Lever Limited. He
founded Probity Research and Services Private Limited (later
renamed as India Infoline Limited) in 1995; one of the first
independent equity research companies in India. He was
instrumental in steering the groups foray into various financial
sector activities that have grown over the years into significant
businesses in terms of net worth and profitability. Under his
leadership, IIFL Group has attained its position as a dominant
MR. NIRMAL JAIN and diversified player in the financial services space over the
past 24 years.
Chairman

Mr. R. Venkataraman, is the Co-Promoter and Managing

Director of the Company. He holds Post Graduate Diploma in
Management from Indian Institute of Management (IIM),
Bangalore and Bachelor in Electronics and Electrical
Communications Engineering from IIT Kharagpur. He joined the
Company’s Board in July 1999. He has been contributing
immensely in the establishment of various businesses and
spearheading key initiatives of the group over the past 20 years.

He previously held senior managerial positions in ICICI Limited,

including ICICI Securities Limited, their investment banking
joint venture with J P Morgan of US and Barclays – BZW. He
worked as an Assistant Vice President with G E Capital Services
India Limited in their private equity division. He has a varied
MR. R. VENKATARAMAN experience of more than 28 years in the financial services sector.

Managing Director

Mr. Vibhore Sharma, is an Engineering & Product leader

with over 20 years of experience in building and leading
teams engaged in software and systems engineering. He has
helped to build and evolve some decent money-making
MR. products of both B2C as well as B2B archetypes. He was
amongst the earliest team members of Info Edge India, and
played a pivotal role in scaling the company’s technology
and products. He is currently, scouting for emerging Science
and Tech start-ups to invest in and also helping
organizations scale their tech and product capabilities

VIBHORE SHARMA

Independent director

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 Mr. Ramakrishnan Subramanian is a Chartered Accountant, Cost
Accountant and Masters in Commerce. He has served several leading
Banks, FIs in leadership roles since 1990 in India and abroad. He has
also served as a Boards member of ING Vysya Bank and Shriram
Capital, Shriram Transport, Shriram city union, in the past apart from
having done senior Executive roles such as CEO, MD, Country Head,
Asian head roles in domestic and international banks. He is currently
engaged as a Sr. Advisor, Operating Partner, Consultant with PE, VC,
FIs and Fintech in India. Within financial sector services, his deep
expertise and experience are in Retail Financing - Mortgage, LAP,
Personal Loans, Business Loans, SME, LAS, Gold, Auto, CV/CE,
Securitisation. He has worked in senior capacities involving Strategy,
Board, Governance coupled with strong track record on execution
across functions covering Channels, Product, Pricing, Portfolio
MR. RAMAKRISHNAN SUBRAMANIAN management, Funding, Credit policy, Credit underwriting, Collections
management of large Universal banks, NBFCs and Fintech.
Independent Director

Mr. Arun Kumar Purwar is currently the Chairman of Tadas Wind

Energy Private Limited as well as Eroute Technologies Private
Limited. He also works as an independent director in leading
Companies across diverse sectors, viz. Power including Solar, Wind,
Thermal & Gas based power projects, Steel, Pharmaceuticals,
Telefilms, Engineering Consultancy, Financial Services as well as
Fintech. He also acts as an Advisor to Mizuho Securities, Japan. Mr.
Purwar was the Chairman of State Bank of India the largest Bank in
the country from November, 2002 to May, 2006. He held several
important and critical positions like Managing Director of State Bank
of Patiala, Chief Executive Officer of Tokyo Branch covering almost
the entire range of commercial banking operations in his long and
illustrious career at the Bank. He was also associated in setting up of
SBI Life. Mr. Purwar also worked as Chairman of Indian Bank
Association during 2005-2006. He has received CEO of the year
Award from The Institute of Technology and Management (2004),
"Outstanding Achiever of the year" award from Indian Banks'
Association (2004) "Finance Man of the Year" Award by the Bombay
Management Association in 2006.
MR. ARUN KUMAR PURWAR

Independent Director

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 Mr. Nilesh Vikamsey is a senior partner at Khimji Kunverji & Co LLP, an
82-year-old Chartered Accountants firm (converted to LLP w.e.f. 08-05-
2019) and member firm of HLB International. He is presently Member of
the Advisory Committee on Mutual Funds & Corporate Governance
Committee of Securities and Exchange Board of India (SEBI), Quality
Review Board established by the Government of India under the Chartered
Accountants Act, 1949, Risk Management Committee of Central
Depository Services (India) Limited (CDSL), and Subgroup formed by
Audit Committee of Coal India Limited (CIL) to consider revaluation of
assets of CIL and its subsidiaries as on March 31, 2019.

He is the Past President of the Institute of Chartered Accountants of India

(ICAI). He was an observer on board of International Federation of
Accountants and Member of IFAC’s Technology Advisory Group. He was a
member of IRDA. He was chairman of SEBI’s Qualified Audit Report
Committee and member of Corporate Governance Committee chaired by
Uday Kotak, Primary Market Advisory Committee and Committee on
Disclosures and Accounting Standards.

He is a speaker/ Chairman, at various seminars, meetings, lectures held by

various Committees, Regional Councils, Branches & Study Circles of ICAI,
Bankers Training College of RBI, Comptroller & Auditor General of India
(C&AG) and various other organizations.
MR. NILESH VIKAMSEY

Independent Director

IIFL products and services

Being a full-service broker, IIFL offers multiple products and services to investors in

various segments. The company has given its unique combination of superior service,
cutting-edge proprietary technology, advice powered by world-acclaimed research.

Life Insurance
IIFL -one of the largest insurance brokers presents its clients with a bouquet of products
across multiple service providers in most convenient manner. Expertise in different classes
along with Insurance completes a client's financial planning process.

Mutual Funds
A mixture of comprehensive coverage of all mutual fund offerings and seamless execution of
instructions. IIFL research and Mutual Fund trackers helps clients to navigate the ever-
growing market of MF Offers with outmost ease. IIFL broker allows investors to invest in
the variety of mutual funds of more than 40 asset management companies which can be
invested in multiple funds to diversify the portfolio. Any trader who is registered with IIFL

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can invest in these funds which give access to its traders to 700 branches that handle mutual
fund clients. 

Equity
IIFL offer a bouquet of Equity offerings suitable for high traders to long term investors,
beginners to diverse class of capital market participants. IIFL offers the services of depository
participant and a broker. The broker is known as a leading player in the equity segment
because it has an efficient research team and customer service team which provide traders
best advice. It offers its all investors to invest in Equity SIP It has a dedicated desk assisting
clients on Asset allocation, trading strategies, portfolio optimization. Award winning research
on Fundamental, Technical & Derivatives aimed at growing assets by outperforming market.

Derivatives

Extensive research coverage on strategies such as Hedging, Carry-overs, Spreads, etc., helps
clients to balance the risk and rewards of derivative trading. Experienced advisors support
high traders to make most of this popular market segment.

Structured Product
Customized Structures offering unique combination of coupons, market participation
representing wide variety of Industry segment helps High Net worth Clients manage and
preserve their wealth.

Trading

IIFL Currency Trading allows its clients to trade in various currency segments that are listed
on NSE and MCX. This market has huge liquidity and opens 24 hours. It offers multiple
transactions in the global market such as Euro, US Dollars, Japanese Yen, British Pound,
Swiss Franc, Australian Dollar, Canadian Dollar, etc. 

IIFL Derivatives Trading offers to invest in the derivatives where you can trade in futures and
options with your IIFL Trading Account. With well-planned strategies based on a thorough

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study of the markets, individual investors, and traders, IIFL lets traders earn the handsome
returns

CORPORATE STRATEGY OF IIFL

The corporate strategy has been to let customers make informed decisions and to simplify the
process of investing in stocks. To know the brokerage system of the share market, to know
the various exchanges of share market all over the world, to provide best product and services
to the customer, to understand and follow the rules and regulations of SEBI

ANALYSIS OF INDIA INFOLINE (IIFL)

SWOT analysis of India Infoline (IIFL) analyses the brand by its strengths, weaknesses,
opportunities & threats. In India Infoline (IIFL) SWOT Analysis, the strengths and
weaknesses are the internal factors whereas opportunities and threats are the external factors.

SWOT Analysis is a proven management framework which enables a brand like India
Infoline (IIFL) to benchmark its business & performance as compared to the competitors.
India Infoline (IIFL) is one of the leading brands in the banking & financial services

INDIA INFOLINE (IIFL)

PARENT COMPANY India Infoline limited

CATEGORY Brokerage house, consumer financial services

TAGLINE knowledge is the edge, it’s all about money, honey

USP One of the leading players in the Indian financial services

space

SEGMENT Brokerage

TARGET GROUP Urban and Rural Investors

POSITIONING Complete investment and stock trading solutions

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 SWOT ANALYSIS

1. Wide range of financial products

2. Successful implementation of “insurance broking”
model
3. Online portal’s successful branding as “5 paisa.com”
4. Have over 2500 offices in India over 500 cities
STRENGTH
5. First Indian brokerage house to get membership of
Singapore Exchange
6. IIFL has awarded the “Best Broker” India, Most
improved brokerage India, Fastest growing Equity
Broking House

1. High risk exposure as seen by conservative population

2. Less emphasis on advertising causes lack of brand

WEAKNESS visibility

1. Higher income urban families

OPPURTUNITIES 2. More penetration into growing cities

1. Stringent Economic measures by Government and RBI

THREATS 2. Entry of foreign finance firms in Indian Market

1. Share Khan
COMPETITORS 2. India bulls
3. Angel Broking

Table 1.1.: - India Infoline (IIFL) SWOT Analysis, Competitors, Segmentation, Target Market,
Positioning, USP & Brand Analysis Table

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 1.3. PART-C (THE SUBJECT)

Investment Analysis-A study conducted to analyze the investment decisions

of investor at IIFL, Guwahati

1. Investment

As we all know that tomorrow is uncertain so everybody believes in saving a part of their
income, whatever we earn today we keep aside an amount of money from our earnings as
savings to keep us prepared or as a safeguard against future uncertainties, investment is that
concept where we use our money in such assets with the aim of getting back of some extra
value which is known as return, For example- if we buy a shares of a ABC company say of 1
lakhs rupees and after a period of time we get back as 1 lakhs 40 thousand that 40 thousand is
the return which we have gained, and the increment in the principle value is known as capital
appreciation. So, an investor should always try to grow with his/her funds

The word “Investment “can be defined in many ways depending on different theories and
principle, there are different meaning of investment which are more alike than dissimilar. In
very simple language or layman words investment is known as application of money to earn
more money, Investment also means the amount which we have kept as savings or the
savings made through delayed consumptions that means the amount which we have saved to
consume it in future for buying some useful things.

According to Economics, investment is the utilization of resources in order to increase

income or production output in future therefore it implies formation of new productive capital
say durable equipment, plants, inventories and even human capital. In the view of another
economist, investment is the most vital component of GDP from the expenditure or demand
side, Investment is a major determinant of the economic growth and this distinguishes high
growth economy from a low growth one.

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Through the definition given by financial experts, an investment is essentially an asset that is
created with the intention of allowing money to grow. The wealth created can be used for a
variety of objectives such as meeting shortages in income, saving up for retirement, or
fulfilling certain specific obligations such as repayment of loans, payment of tuition fees, or
purchase of other assets. In other words, investment is capital formation, one of the most
important factors that determines the rate of economic growth of the country. Capital
formation is the net investment in fixed asset.

1.1 Investment meanings according to different perspectives:

Investment in terms of Business Management: According to business management

theories, investment refers to tangible assets like machinery and equipment’s and buildings
and intangible assets like copyrights or patents and goodwill. The decision for investment is
also known as capital budgeting decision, which is regarded as one of the key decisions.

Investment in terms of Finance: In finance, investment refers to the purchasing of securities

or other financial assets from the capital market. It also means buying money market or real
properties with high market liquidity. Some examples are gold, silver, real properties, and
precious items

Financial investments are in stocks, bonds, and other types of security investments. Indirect
financial investments can also be done with the help of mediators or third parties, such as
pension funds, mutual funds, commercial banks, and insurance companies. Investment in
terms of Personal Finance: According to personal finance theories, an investment is the
implementation of money for buying shares, mutual funds or assets with capital risk.

Investment in terms of Real Estate: According to real estate theories, investment is referred
to as money utilized for buying property for the purpose of ownership or leasing. This also
involves capital risk.

Commercial Real Estate: Commercial real estate involves a real estate investment in
properties for commercial purposes such as renting.

Residential Real Estate: This is the most basic type of real estate investment, which
involves buying houses as real estate properties.

Meaning of Investment: - “Investment is the allocation of monetary resources to assets that

are expected to yield some gain or positive return over a given period of time. These assets

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range from safe investment to risky investment. Investments in this form are also called
“Financial investment”

The nature of investment in the financial sense differs from its use in the economic sense, to
the economists; investment means the net additions to the economics capital stock which
consists of goods and services that are used in the production of other goods and services, in
this context the term investment therefore implies the formation of new and productive
capital in the form of new construction new producers the durable equipment such as plant
and equipment investors and human capital are included in the economist’s definition of
investment. The financial and economic meanings of investment are related to each other
because investment is a part of the savings of individuals with flow into the capital market
either directly or through institutions, divided in new and second-hand capital financing.
Investors as suppliers and investors as users of long-term funds find meeting place in the
market.

In national account, investment is the sum of gross fixed capital formation and the physical
change in the stocks and work in progress. Both investment and savings are flow
concepts1and refer to the addition of the stock of capital (wealth) that occurs over a period of
time

Investment Management, investment refers to the sacrifice of the monetary value to gain in
future, if we have some surplus amount of money than what we need to meet our
requirements, we should invest in a proper manner. The concept of investment management
is growing rapidly and perhaps attracted the minds of the investors by serving a spectrum of
financial activities and enabling them to take rational decisions. There are three important
consideration regarding investments:

1. Risk
2. Return
3. Maturity Time

The concept of investment management is quite interesting and providing an edge to the
investors and key players of the market to think in a broad manner, it has been sensitive
matter for both investors (individual or institutional) because investment decisions are

1
Flow concept
Investment is investment in real assets, savings is income that exceeds consumption

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 having long term implications. Investment decision is a tradeoff between risk and return,
all investment choices are made strictly in accordance to the degree of risk and return
associated to them which keeps changing time to time

1.1.1. Types of Investment

INVESTMENT TYPES

Securities Deposit Postal schemes Insurance Real Assets

Stocks Bank Deposit National savings

Life insurance Real
schemes (NSS) Estate
policies
Bonds NBFC Deposit
Monthly
ULIP Precious
income scheme
metals
G-securities (MIS)

Vikas Patras Art and

Money Market Antiques
Instruments

Public
Derivatives Provident Fund
(PPF)
Mutual fund

Figure 1: Chart of different types of Investment

Investment are of different types; they are discussed below: -

1. Securities: The term “security” refers to a fungible2, negotiable financial instruments

that holds some type of monetary values  It represents an ownership position in a
publicly-traded corporation via stock; a creditor relationship with a governmental

2
Fungibility is the ability of a good or asset to be interchanged with other individual goods or assets of the
same type. Fungible assets simplify the exchange and trade processes, as fungibility implies equal value
between the assets.

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 body or a corporation represented by owning that entity's bond; or rights to
ownership as represented by an option.

Securities are fungible and tradable financial instruments used to raise capital in
public and private markets.

There are primarily three types of securities:

Equity--which provides ownership rights to holders;

Debt--essentially loans repaid with periodic payments and

Hybrids--which combine aspects of debt and equity.

Public sales of securities are regulated by the SEC.

Self-regulatory organizations such as NASD (National association of securities dealers),

NFA (National futures association), and FINRA (Financial Industry Regulatory
Authority) also play an important role in regulating derivative securities.

Securities are again broadly classified into two distinct types:

Equity Securities-

An equity security represents ownership interest held by shareholders in an entity (a

company, partnership, or trust), realized in the form of shares of capital stock, which
includes shares of both common and preferred stock.

The difference between holders of equity securities and holders of debt securities is that
the former is not entitled to a regular payment, but they can profit from capital gains by
selling the stocks. Another difference is that equity securities provide ownership rights to
the holder so that he becomes one of the owners of the company, owning a stake
proportionate to the number of acquired shares.

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Debt Securities
A debt security represents borrowed money that must be repaid, with terms that stipulate the
size of the loan, interest rate, and maturity or renewal date.

Debt securities, which include government and corporate bonds, certificates of deposit
(CDs), and collateralized securities (such as CDOs3 and CMOs4), generally entitle their
holder to the regular payment of interest and repayment of principal (regardless of the
issuer's performance), along with any other stipulated contractual rights (which do not
include voting rights).

Hybrid Securities

Hybrid securities include components of both security types, and they accomplish what their
underlying assets accomplish: they enable an issuing company to raise capital without having
either the full commitment of a bond or the exposure of a stock offering.

The most common example of a hybrid security is called a “convertible bond.” This is a bond
that comes with an option to convert the instrument into a different type of security at a future
date. Ordinarily the bond will convert into shares of stock in the issuing company.

This makes the convertible bond a hybrid security. It has the interest payments and guarantee
of a bond, but its value also depends on the asset underlying the bond’s conversion option.
Again, in a typical case, this means that the bond’s value is influenced by the company’s
stock price.

Convertible bonds typically come in two forms: holder options and issuer options. In a
holder-option bond, the investor who owns the bond can choose whether to convert the bond
into shares of stock. In an issuer-option bond, the company which issued the bond can choose
whether to convert it into shares of stock. Holder option bonds generally pay lower interest
rates than issuer option bonds because the investor can choose to convert the bond if the
company’s stock goes up.

3
Collateralized debt Obligations: a CDO is a complex structured finance product that is backed by pool of loans and other
assets and sold to institutional investors
4
Collateralized Mortgages obligations: refers to a type of mortgage-backed security that contains a pool of mortgages
bundled together and sold as an investment.

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Convertible bonds are based on a maturity date. This is the point at which either the investor
or the issuer (depending on the nature of the bond) can convert it into equity. They will also
come with what is known as a “stock conversion price.” This is the price at which the bond
will convert into equity.

Derivative Securities

Derivative securities are financial instruments whose value depends on basic variables. The
variables can be assets, such as stocks, bonds, currencies, interest rates, market indices, and
goods. The main purpose of using derivatives is to consider and minimize risk. It is achieved
by insuring against price movements, creating favourable conditions for speculations and
getting access to hard-to-reach assets or markets. Formerly, derivatives were used to ensure
balanced exchange rates for goods traded internationally. International traders needed an
accounting system to lock their different national currencies at a specific exchange rate.

There are four main types of derivative securities:

a. Futures

Futures, also called futures contracts, are an agreement between two parties for the purchase
and delivery of an asset at an agreed-upon price at a future date. Futures are traded on an
exchange, with the contracts already standardized. In a futures transaction, the parties
involved must buy or sell the underlying asset. 

b. Forwards

Forwards, or forward contracts, are similar to futures, but do not trade on an exchange, only
retailing. When creating a forward contract, the buyer and seller must determine the terms,
size, and settlement process for the derivative.

Another difference from futures is the risk for both sellers and buyers. The risks arise when
one party becomes bankrupt, and the other party may not able to protect its rights and, as a
result, loses the value of its position.

c. Options

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Options, or options contracts, are similar to a futures contract, as it involves the purchase or
sale of an asset between two parties at a predetermined date in the future for a specific price.
The key difference between the two types of contracts is that, with an option, the buyer is not
required to complete the action of buying or selling.

d. Swaps
Swaps involve the exchange of one kind of cash flow with another. For example,
an interest rate swap 5enables a trader to switch to a variable interest rate loan from a
fixed interest rate loan, or vice versa.

Stocks

A stock (also known as equity) is a security that represents the ownership of a fraction of
a corporation. This entitles the owner of the stock to a proportion of the
corporation's assets and profits equal to how much stock they own. Units of stock are called
"shares."

Stocks are bought and sold predominantly on stock exchanges (though there can be private
sales as well) and are the foundation of many individual investors' portfolios. These
transactions have to conform to government regulations that are meant to protect investors
from fraudulent practices. Historically, they have outperformed most other investments over
the long run. These investments can be purchased from most online stockbrokers.

There are two main ways to make money with stocks:

1. Dividends. When publicly owned companies are profitable, they can choose to

distribute some of those earnings to shareholders by paying a dividend. You can either
take the dividends in cash or reinvest them to purchase more shares in the company.
Many retired investors focus on stocks that generate regular dividend income to
replace income they no longer receive from their jobs. Stocks that pay a higher than
average dividend are sometimes referred to as "income stocks."

Capital gains. Stocks are bought and sold constantly throughout each trading day, and
their prices change all the time. When a stock price goes higher than what you paid to buy
5
An interest rate swap is a type of a derivative contract through which two counterparties agree to exchange one stream of
future interest payments for another, based on a specified principal amount.

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 it, you can sell your shares at a profit. These profits are known as capital gains. In contrast,
if you sell your stock for a lower price than you paid to buy it, you've incurred a capital
loss.

Bonds

Bonds are investment securities where an investor lends money to a company or a

government for a set period of time, in exchange for regular interest payments. Once the bond
reaches maturity, the bond issuer returns the investor’s money. Fixed income is a term often
used to describe bonds, since your investment earns fixed payments over the life of the bond.

Companies sell bonds to finance ongoing operations, new projects or acquisitions.

Governments sell bonds for funding purposes, and also to supplement revenue from taxes.
When you invest in a bond, you are a debtholder for the entity that is issuing the bond.

Many types of bonds, especially investment-grade bonds, are lower-risk investments than
equities, making them a key component to a well-rounded investment portfolio. Bonds can
help hedge the risk of more volatile investments like stocks, and they can provide a steady
stream of income during your retirement years while preserving capital.

G-Securities

A Government Security (G-Sec) is a tradeable instrument issued by the Central Government

or the State Governments. It acknowledges the Government’s debt obligation. Such securities
are short term (usually called treasury bills, with original maturities of less than one year) or
long term (usually called Government bonds or dated securities with original maturity of one
year or more). In India, the Central Government issues both, treasury bills and bonds or dated
securities while the State Governments issue only bonds or dated securities, which are called
the State Development Loans (SDLs). G-Secs carry practically no risk of default and, hence,
are called risk-free gilt-edged instruments.

Money market instruments

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The money market is a subsection of the fixed income market. We generally think of the term
"fixed income" as synonymous with bonds. In reality, a bond is just one type of fixed income
security. The difference between the money market and the bond market is that the money
market specializes in very short-term debt securities (debt that matures in less than one year).
Money market investments are also called cash investments because of their short maturities.

Money market securities are essentially IOUs issued by governments, financial institutions,
and large corporations. These instruments are very liquid and considered extraordinarily safe.
Because they are extremely conservative, money market securities offer significantly lower
return than most other securities.

One of the main differences between the money market and the stock market is that most
money market securities trade in very high denominations. Furthermore, the money market is
a dealer market, which means that firms buy and sell securities in their own accounts, at their
own risk. This limits the access of the individual investor to the inventory held by their
broker. Compare this to the stock market where a broker receives commission to acts as an
agent, while the investor takes the risk of holding the stock. Another characteristic of a dealer
market is the lack of a central trading floor or exchange. Deals are transacted over the phone
or through electronic systems.

The easiest way for us to gain access to the money market is through a broker or by using
money market mutual funds. These funds pool together the assets of thousands of investors in
order to buy the money market securities on their behalf. However, some money market
instruments, like treasury bills, may be purchased directly.

Derivatives

A derivative security is a financial instrument whose value depends upon the value of another
asset. The main types of derivatives are futures, forwards, options, and swaps. An example of
a derivative security is a convertible bond. Such a bond, at the discretion of the bondholder,
may be converted into a fixed number of shares of the stock of the issuing corporation. The
value of a convertible bond depends upon the value of the underlying stock, and thus, it is a
derivative security. An investor would like to buy such a bond because he can make money if
the stock market rises. The stock price, and hence the bond value, will rise. If the stock

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market falls, he can still make money by earning interest on the convertible bond. Another
derivative security is a forward contract. Suppose you have decided to buy an ounce of gold
for investment purposes. The price of gold for immediate delivery is, say, $345 an ounce.
You would like to hold this gold for a year and then sell it at the prevailing rates. One
possibility is to pay $345 to a seller and get immediate physical possession of the gold, hold it
for a year, and then sell it. If the price of gold a year from now is $370 an ounce, you have
clearly made a profit of $25. That is not the only way to invest in gold. Another possibility is
to enter into a forward contract with another party. The contract states that you will buy an
ounce of gold for, say, $360 a year from now. The contract specifies that you must buy the
gold and the seller must deliver it. There is no exchange of money at the beginning of the
contract. A year later, you settle your contract by paying $360 to the seller and getting the
ounce of gold. Suppose that the market price of gold at that time is $370; then by selling it
you will have an immediate profit of $10. The value of this contract on that day is $10
because by using it you gain $10 right away. The value of the forward contract varies daily
with the fluctuation in the price of gold, and hence it is a derivative security.

Mutual funds

A mutual fund is an investment that pools money from investors to purchase stocks, bonds
and other assets. A mutual fund aims to create a more diversified portfolio than the average
investor could on their own. Mutual funds have professional fund managers buy securities for
you.

A mutual fund's fees and performance will depend on whether it is actively or passively
managed.
Passively managed funds invest to align with a specific benchmark. They try to match the
performance of a market index (such as the S&P 500), and therefore typically don’t require
management by a professional. That translates into lower overhead for the fund, which means
passive mutual funds often carry lower fees than actively managed funds.
Here are two types of mutual funds popular for passive investing:
1. Index funds are made up of stocks or bonds that are listed on a particular index, so the risk
aims to mirror the risk of that index, as do the returns. If you own an S&P 500 index fund and

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 you hear that the S&P 500 was up 3% for the day, that means your index fund should
be up about that much, too.
2. Exchange-traded funds can be traded like individual stocks, but offer the diversification
benefits of mutual funds. In many cases, ETFs will have a lower minimum investment than
index funds.
Actively managed funds have a professional manager or management team making decisions
about how to invest the fund's money. Often, they try to outperform the market or a
benchmark index, but studies have shown passive investing strategies often deliver better
returns.
Mutual fund types

 Stock (equity) funds typically carry the greatest risk alongside the greatest potential returns.
Fluctuations in the stock market can drastically affect the returns of equity funds. There are
several types of equity funds, such as growth funds, income funds and sector funds. Each of
these groups tries to maintain a portfolio of stocks with certain characteristics.
 Bond (fixed-income) funds are typically less risky than stock funds. There are many
different types of bonds, so you should research each mutual fund individually in order to
determine the amount of risk associated with it.
 Balanced funds invest in a mix of stocks, bonds and other securities. Balanced funds (also
called asset allocation funds or hybrid funds) are often a “fund of funds,” investing in a group
of other mutual funds. One popular example is a target-date fund, which automatically
chooses and reallocates assets toward safer investments as you approach retirement age.
 Money market funds often have the lowest returns because they carry the lowest risk.
Money market funds are legally required to invest in high-quality, short-term investments
that are issued by the U.S. government or U.S. corporations.

2. Deposits
Deposit is a term used to denote the money kept or held in any bank account,
especially to accumulate interest. The fund used as a security to get the goods
delivered can also be called a deposit. Any transaction processed to transfer money to
an entity for safeguarding can be referred to as a deposit. 

Deposit is a term that can also be used in situations other than financial transactions. The
following are the two meanings of the term:

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First, deposit refers to the process involving the transfer of a sum of money to another entity
to be kept in its custody is a deposit. Hence, the money transferred by investors to checking
accounts or saving accounts at credit unions or banks are deposits. Here, the money
transferred still belongs to the one who originally deposited the money, and that entity is
eligible to transfer the fund to another entity’s account, withdraw any portion of funds any
time, and/or use the fund for purchasing products and services.

Generally, a person needs to deposit a certain amount to open a bank account. The amount is
called the minimum deposit. The deposits made into the checking accounts are transaction
deposits, implying the funds are liquid and available immediately.

Another usage of deposit occurs when a sum of money is used as a security for the delivery
of products or making use of services. Entities such as brokerage firms require traders to
make some deposits before they can enter into futures contracts. The initial deposit before
delivery is required by certain contracts as a deed of fair dealing.

Types of Deposit

The following are the two-common type of Deposit

1. Time Deposit

A bank deposit with a fixed interest rate and term is called a time deposit. A person cannot
withdraw money from a time deposit account for a fixed term or must pay a penalty should
he/she need to withdraw funds before the term ends. The penalty amount depends on the
issuer and the term of the time deposit.

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For example, a person buys a certificate of deposit (CD) worth 4,000/- at a fixed rate of
interest of 5% for a fixed term of two years. At the end of the first year, the deposited fund
will become 4,200/-, and at the end of the term, the deposit amount that can be withdrawn
would be 4,410/-.

A time deposit account is an interest-bearing account that allows the depositor to accumulate
money at higher rates of interest than the standard savings account. When the term period
ends, account holders can either withdraw the funds or renew the deposit to be held for
another term.

The funds in time deposit accounts are used by financial institutions to provide financial
products – such as loans – to eligible businesses or individuals. For making profits, banks
lend the funds kept in time deposit accounts at interest rates higher than the ones provided to
the depositors.

2. Demand Deposit

The money deposited with a financial institution that can be drawn from the account without
providing any prior notice is called a demand deposit. Generally, demand deposits pay very
little interest or no interest at all since the lock-in periods are shorter than time deposits.

Below are three types of demand deposit accounts:

Checking Account: A checking account enables easy cash accessibility by allowing

withdrawals from debit cards, ATMs, and writing checks. Thus, the checking account helps
to improve the liquidity of small businesses over the short term.

Money Market Account: The interest rates of a money market account depend on the
market, and hence, the interest rates vary daily. Thus, this account sometimes offers higher
and sometimes lower than savings accounts.

Term Deposit/Savings Account: These are a type of deposit accounts intended for longer
periods. They also provide higher interest rates and lesser liquidity than checking accounts.
Direct withdrawal through checks is not allowed. Banks may charge fees for early withdrawal
of funds.

2. Postal schemes

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Post Office Investments include a number of saving schemes that provide a high rate
of interest as well as tax benefits and most importantly, carry the sovereign guarantee
of Indian Government all the post office investment schemes are tax-exempt under Section
80C, i.e. tax exemption up to Rs. 1,50,000 is allowed. Some small saving schemes offered by
Post Office are Public Provident Fund (PPF), Sukanya Sam Riddhi Yojana (SSY), National
Savings Certificate (NSC), Post Office Time Deposit for a 5 Year Term, and Senior Citizen
Savings Scheme (SCSS)

National saving schemes (NSS)

he National Savings Certificate (NSC) is a fixed income investment scheme that you can
open with any post office branch. The scheme is a Government of India initiative. It is a
savings bond that encourages subscribers – mainly small to mid-income investors – to invest
while saving on income tax.

Monthly income schemes (MIS)

A monthly Income Scheme (MIS) is an investment scheme that promises the investor

guaranteed returns at an interest rate of 6.60% per annum. These returns can be availed as
fixed monthly income.

Vikas Patras

India Post introduced the Kissan Vikas Patra as a small saving certificate scheme in 1988. Its
primary objective is to encourage long-term financial discipline in people. As per the latest
update, the tenure for the scheme is now 124 months (10 years & 4 months) if you purchase
the certificate between 1 July 2021 and 30 September 2021. The minimum investment
amount is Rs. 1000 and there is no upper limit. And if you invest a lump sum amount today,
you can get double the amount at the end of the 124th month.

Public provident Fund (PPF)

The Public Provident Fund (PPF) scheme is a very popular long-term savings scheme in India
because of its combination of tax savings, returns, and safety. The PPF scheme was launched
in 1968 by the Finance Ministry’s National Savings Institute. The main objective of the
scheme is to help individuals make small savings and provide returns on the savings. The
PPF scheme offers an attractive rate of interest and no tax is required to be paid on the returns
that are generated from the interest rates.

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 3. Insurance

Insurance is a legal agreement between two parties i.e. the insurance company (insurer) and
the individual (insured). In this, the insurance company promises to make good the losses of
the insured on happening of the insured contingency. The contingency is the event which
causes a loss. It can be the death of the policyholder or damage/destruction of the property.
It’s called a contingency because there’s an uncertainty regarding happening of the event.
The insured pays a premium in return for the promise made by the insurer.

Insurance are of various types, discussed below are the two types of insurance

i. Life insurance
Life Insurance is defined as a contract between the policy holder and the insurance
company, where the life insurance company pays a specific sum to the insured
individual's family upon his death. The life insurance sum is paid in exchange for
a specific amount of premium. Life is beautiful, but also uncertain. Whatever you
do, however smart and hard you work, you are never sure what life has in store for
you.
It is therefore important that you do not leave anything to chance, especially ‘life
insurance’. As death is the only certain thing in life, apart from taxes, it pays to
insure it well in advance. 

In legal terms, life insurance is a contract between an insurance policy holder (insured) and
an insurance company (insurer). Under this contract, the insurer promises to pay a pre-
decided sum of money (also known as “Sum Assured” or “Cover Amount”) upon the death of
the insured person or after a certain period

ii. ULIP insurance

A Unit Linked Insurance Plan (ULIP) is a unique investment instrument with
the added protection of life insurance. Through systematic investments and
market-linked returns, ULIPs allow us to create wealth for our long-term goals
like our dream house, our child's education, our retirement and more.

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ULIPs enable to place your money in various equity or debt funds, as per your risk appetite.
While the premiums you pay are deductible from your taxable income under Section 80C#,
the returns are also tax-free subject to Section 10(10D)# of the Income Tax Act, 1961. Thus,
ULIPs are a triple bonanza of monetary security for your family, capital appreciation, and tax
savings.

1.1.2. Investment Decisions

1. What are investment decisions

Investment decisions refer to the decisions regarding utilization of funds raised by the firm. It
relates to the selection of assets in which funds are to be invested

The funds can be invested mainly in two types of assets, namely

Long term assets or fixed assets

Short term assets or current assets

Investing is the act of assigning resources, usually money, into assets with the hope of
earning profits. Types of investments range from savings accounts and fixed-term deposits to
property and shares on the stock market.

People choose investments according to their personal needs, goals and interests. There are
factors which need to be considered before making investment decisions. These ensure that
your money is put to its best use, and that it yields the best returns with a minimal likelihood
of incurring loss.

List of factors to be considered while making investment decisions are as follows: -

Return on Investment (ROI)

Return on investment is the benefit that the investor gains after deducting the cost of the
investment.

 It can be in the form of interest, dividends or capital appreciation (an increase in the value
of assets).

 The return on investment should be expressed as the net after-tax income.

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 The net after-tax return should be higher than the inflation rate.

 There is usually a direct link between risk and return on investment.

Risk
In finance, risk refers to the possibility of losing money due to unforeseen circumstances.

 The higher the potential return, the higher the potential risk of losing money.

 For example, investing in shares has a higher risk than investing in a fixed deposit, but it
also promises higher returns.

Investment Period / Investment Term

Investment period is the duration (length of time) of the investment, which can influence the
return on investment.

 The investment can be short, medium or long term.

 Long-term investments must be held for more than a year, while short-term
investments are held for one year or less.
 Long-term investments generally yield higher returns than short-term investments.
 The investment period depends on the personal needs of the investor.

Liquidity

Cash is considered a liquid asset because it can be easily accessed and used to buy almost

anything. Liquidity, therefore, refers to how quickly and easily an investment can be

converted to cash.

 In case of emergencies, there should be an amount of capital allocated to an investment

that can be easily converted to cash.

 A savings account is more liquid than property because it is easier to convert to cash,
while property takes time to sell.

 Many shares on the stock market are considered fairly liquid because they can be easily
sold to other traders in the market.

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Taxation / Tax Implications

Tax is a compulsory fee that citizens must pay to the government.

 Different investments have different tax rates.

 The investor must consider income tax implications in order to secure a high net after-tax
return.6

 A good investment must produce a good after-tax income.

Inflation Rate

Inflation is the continuous rise in the prices of general goods and services, which leads to a

decrease in the value of money. The inflation rate is a percentage that is calculated annually

to measure the rise of the average price of goods and services in the economy.

India's benchmark inflation rate, measured by the Consumer Price Index (CPI) firmed up
to 5.59% year-on-year in December 2021, data released by the Ministry of Statistics and
Programme Implementation on Monday showed. A survey of economists by Reuters had
forecast that Indian retail inflation rose to 5.80%

It has projected CPI inflation at 5.3 per cent for 2021-22 and at 5.1 per cent in Q3; 5.7 per
cent in Q4 and at 5 per cent for the first quarter of financial year 2022-23.

 When the inflation rate rises, the purchasing power of consumers decreases.

 A good investment should have a return on investment that is higher than the inflation
rate.

 Some investments such as property and shares are positively impacted by inflation. Their
value can increase as inflation rises.

Volatility / Fluctuations on Investment Markets

6
Any profit made by an investment after subtracting the amount due for taxes, many business and high-income
investors will use the after-tax return to determine their earnings

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Volatility is a rise and fall of market prices. If a market goes through frequent swings or
fluctuations, it is seen as highly volatile. Low volatility means that the investment, market or
economy is stable.

 Before making an investment, the investor should consider the fluctuations in national
and international economic trends.

 The level of volatility will have an impact on the amount of returns that the investment
yields.

 Market volatility is usually associated with investment risk.

Investment Planning Factors

When planning investments, you should consider the safest possible investment
opportunities. Although some investments offer low returns, they can be safer than those that
offer higher gains.

 Explore opportunities that have a history of good returns.

 To minimise risk, you should divide investments between the different investment
options.

 The method of calculating interest should also be considered.

Budget
The investor’s budget is the amount of capital that the investor has.

 Investors must budget for unexpected costs.

 The budget should provide for emergencies, savings and investments.

 Investors can decide how much of their surplus money can go to investments.

Factors affecting Investment

1. Interest rates
Investment is financed either out of current savings or by borrowing. Therefore, investment is
strongly influenced by interest rates. High interest rates make it more expensive to borrow.
High interest rates also give a better rate of return from keeping money in the bank. With
higher interest rates, investment has a higher opportunity cost because you lose out the

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interest payments.
The marginal efficiency of capital states that for investment to be worthwhile, it needs to give
a higher rate of return than the interest rate. If interest rates are 5%, an investment project
needs to give a rate of return of at least 5% or more. As interest rates rise, fewer investment
projects will be profitable. If interest rates are cut, then more investment projects will be
worthwhile.

Evaluation
 Time lags. If a firm has started an investment project, a rise in interest rates will be
unlikely to change the decision. The firm will continue to finish the investment.
However, it will make them think twice about future investment projects. Therefore,
changes in interest rates can take time to have an effect.
 Other factors. Interest rates can be outweighed by economic conditions. For example,
in 2009, interest rates were cut from 5% to 0.5% – but investment fell because of the
deep recession and the unwillingness of the banks to lend. It was cheap to borrow, but
in these circumstances, this wasn’t enough to encourage investment.

2. Economic growth
Firms invest to meet future demand. If demand is falling, then firms will cut back on
investment. If economic prospects improve, then firms will increase investment as they
expect future demand to rise. There is strong empirical evidence that investment is cyclical.
In a recession, investment falls, and recover with economic growth 

Accelerator theory The accelerator theory 7states that investment depends on the rate of

change of economic growth. In other words, if the rate of economic growth increases from
1.5% a year to 2.5% a year, then this increase in the growth rate will cause an increase in
investment spending as the economy is on an up-turn. The accelerator theory states that
investment is highly dependent on the economic cycle.
3. Confidence

7
The accelerator effect examines the effect on levels of investment from a change in economic output (or
demand for a product).

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Investment is riskier than saving. Firms will only invest if they are confident about future
costs, demand and economic prospects. Keynes referred to the ‘animal spirits’ of
businessmen as a key determinant of investment. Keynes noted that confidence wasn’t
always rational. Confidence will be affected by economic growth and interest rates, but also
the general economic and political climate. If there is uncertainty (e.g. political turmoil) then
firms may cut back on investment decisions as they wait to see how event unfold.

 Evaluation – Confidence is often driven by economic growth and changes in the rate
of economic growth. It is another factor that makes investment cyclical in nature.
4. Inflation
In the long-term, inflation rates can have an influence on investment. High and variable
inflation tends to create more uncertainty and confusion, with uncertainties over the future
cost of investment. If inflation is high and volatile, firms will be uncertain at the final cost of
the investment, they may also fear high inflation could lead to economic uncertainty and
future downturn. Countries with a prolonged period of low and stable inflation have often
experienced higher rates of investment.

 Evaluation – if low inflation is caused by a fall in demand and economic growth –

then this low inflation will not, of itself, be sufficient to boost investment. The ideal is
low inflationary and sustainable growth.

5. Productivity of capital
Long-term changes in technology can influence the attractiveness of investment. In the late
nineteenth century, new technology such as Bessemer steel and improved steam engines
meant firms had a strong incentive to invest in this new technology because it was much
more efficient than previous technology. If there is a slowdown in the rate of technological
progress, firms will cut back investment as there are lower returns on the investment.

6. Availability of finance
In the credit crunch of 2008, many banks were short of liquidity so had to cut back lending.
Banks were very reluctant to lend to firms for investment. Therefore, despite record low-
interest rates, firms were unable to borrow for investment – despite firms wishing to do that.

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Another factor that can influence investment in the long-term is the level of savings. A high
level of savings enables more resources to be used for investment. With high deposits – banks
are able to lend more out. If the level of savings in the economy falls, then it limits the
amounts of funds that can be channelled into investment.

7. Wage costs

If wage costs are rising rapidly, it may create an incentive for a firm to try and boost labour
productivity, through investing in capital stock. In a period of low wage growth, firms may be
more inclined to use more labour-intensive production methods.

8. Depreciation
Not all investment is driven by the economic cycle. Some investment is necessary to replace
worn out or outdated equipment. Also, investment may be required for the standard growth of
a firm. In a recession, investment will fall sharply, but not completely – firms may continue
with projects already started, and after a time, they may have to invest in less ambitious
projects. Also, even in recessions, some firms may wish to invest or start-up.

9. Public sector investment

The majority of investment is driven by the private sector. But investment also includes
public sector investment – government spending on infrastructure, schools, hospitals and
transport.

10. Government policies

Some government regulations can make investment more difficult. For example, strict
planning legislation can discourage investment. On the other hand, government subsidies/tax
breaks can encourage investment. In China and Korea, the government has often implicitly
guaranteed – supported the cost of investment. This has led to greater investment – though it
can also affect the quality of investment as there is less incentive to make sure the investment
has a strong rate of return.

Importance of investment

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 Gone are the days when people use to only rely on their savings for future security. In today's
world, savings may not be adequate to ensure financial safety. Idle money kept in your
savings bank account or locker may also not serve the purpose. That is because of two
reasons – one, the idle cash in your bank account is an opportunity loss as it is not capable of
earning more money, and second, it does not have the potential to beat inflation.

It is clear from the fact mentioned above that just earning money and keeping it idle is not
enough. It would help if you made your money work hard for you. And how do you do that?
By INVESTING.

Investing allocates money in different asset classes with the intention of capital appreciation
and earning better returns in the long run.

Investing ensures present and future financial security. It allows you to grow your wealth and
at the same time generate inflation-beating returns. You also benefit from the power of
compounding.

Furthermore, investments have the potential to meet your financial goals, such as purchasing
a house, accumulating retirement corpus, and building an emergency fund, among others.

Investing instils a sense of financial discipline as you develop a habit of setting aside a
particular amount every month or every year towards your investments.

Some investment vehicles like Equity Linked Savings Scheme (ELSS), Public Provident
Fund (PPF), National Pension System (NPS), etc., help to minimise your tax liability.

In India, you have several investment options. You need to select based on their financial
goals, risk tolerance and investment horizon. 

Popular Investment Options in India

In India, you have several investment options. You need to select based on their financial
goals, risk tolerance and investment horizon. Some of the popular investment options
available in India are:

o Direct Equity
It is commonly referred to as a stock investment. It is one of the most preferred investment
options among investors. When you buy shares of a company, you indirectly acquire an

50 | P a g e
 ownership stake in the company. Long-term stock investment aids in capital
appreciation. Stock investment has enormous potential to earn attractive returns, but there are
associated risks in this type of investment.
o Mutual Funds
A mutual fund comprises a pool of money collected from many investors who share a
common investment objective. The money so collected is invested in various instruments
such as stocks, bonds, money market, etc. Mutual fund investment is considered to be flexible
as you can start or stop investing as per your wish. They offer moderate returns, but the risk is
lower than equity investment.
o Public Provident Fund (PPF)
PPF is a government-backed savings scheme that aims to mobilise small savings and provide
a secure post-retirement life to individuals. It is a long-term savings scheme with a lock-in
period of 15 years. PPF investments are eligible for tax deductions under section 80C of the
Income Tax Act, 1961 and are also considered relatively safe.

o Employee Provident Fund (EPF)

Just like PPF, EPF is also a retirement-oriented investment scheme that is specifically
designed for salaried employees. Under this scheme, a certain percentage is deducted from
the employee’s monthly salary with an equal contribution from the employer. EPF
contribution is eligible for a tax deduction, and the final amount received upon maturity is
also entirely tax-free.

o National Pension System (NPS)

NPS is a retirement pension scheme introduced by the government to build a corpus that can
provide a monthly pension to people post-retirement. It has a mandatory lock-in period till
retirement; however, you can make partial withdrawals after retirement. Investments made
towards NPS are also eligible for a tax deduction.
o Fixed Deposits
Fixed deposits are regarded as an ideal investment option for conservative investors. They
provide a fixed rate of return for a specific period of investment, thus offering guaranteed
returns

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CHAPTER 2

RESEARCH METHODOLOGY

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 2.1. RESEARCH METHODOLOGY

 Title of the study

Investment Analysis-A study conducted to analyze the investment

decisions of investor at IIFL, Guwahati

 Objective of the study:

a. To study the investors perception on investment decision and knowledge about
investment among the investors of IIFL
b. To study the different investment avenues available for investment at IIFL
c. To bring out the different needs of investors of IIFL on the basis of parameters
like safety, liquidity, risk etc.

 REVIEW OF LITERATURE

1) Hans P. Binswanger, Shahidur R. Khandker, 1993, This paper quantifies the

interrelationships among the investment decisions of government, financial institutions and
farmers and their joint effects on agricultural investment and output. Empirical results using
district-level time-series data from India confirm the importance of input and output prices in
the determination of aggregate crop output, but also confirm that aggregate out supply
elasticities are low. Education infrastructure availability and the rural banks play an
overwhelming role in determining investment, input and output decisions. Availability of
banks is a more important determinant of fertilizer demand and aggregate crop output than
interest rates.

2) Holger Grog, David Greenaway, World Bank Res Obs (2004) 19 (2): 171-197.
doi:10.1093/wbro/lkh019There are several possible sources of induced spill overs from
foreign direct investment. This article evaluates the empirical evidence on productivity, wage,
and export spill overs in developing, developed, and transition economies. Although theory
can identify a range of possible spill over channels, robust empirical support for positive spill

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overs is at best mixed. The article explores the reasons and concludes with a review of policy
aspects.

3) Gaurav Kabra 1, Prashant Kumar Mishra 2, Manoj Kumar Dash3, (2010This study
aims to gain knowledge about key factors that influence investment behaviour and ways these
factors impact investment risk tolerance decision making process among men and women and
among different age group. The individuals maybe equal in all aspects, may even be living
next door, but their financial planning need s are very different. It is by using different age
groups along with Gender that synergism between investors can be generated. In this context,
demographics alone no longer suffice as the basis of segmentation of individual investors.
Hence keeping this in mind, the present study is an attempt to find out Factors which affects
individual investment decision and Differences in the perception of Investors in the decision
of investing on basis of Age and on the basis of Gender. The study concludes that investors
‘age and gender predominantly decide the risk-taking capacity of investors

4) Dr. Taqadus Bashir, Aaqiba Javed,. Arslan Ali Butt, Nazish, Azam, Ayesha Tanveer,
2013, IOSRin this article Behavioural finance assumes that characteristics of market
participants and information structure systematically have an influence on individuals
‘investment decisions. This research paper aims at identifying the factors that influences the
Pakistan ‘s individual investor behaviour. Thirty-four items under the five categories of
variables were taken as independent that influences the individual investment decision
making behaviour that belongs to self-image/firm image, neutral information, accounting
information, personal financial needs and advocate recommendations. Data collection is
made with the help of structured questionnaires. Sample size of 125 was considered for the
study out of which 40 were finance students of University of Gujrat 30 were finance teachers
from different colleges and 55 were bank employees of Sialkot, Gujranwala, Lahore and
Gujrat. The statistical tools that were used for data analysis were mean, standard deviation,
frequency distribution table of variables that have significant influence on decision making
and frequency distribution table of variables that have least influence on decision making.
Results of the calculated mean shown that all the variables are somewhat affecting the
decision-making behaviour of investor and accounting information categories of variables is
most influencing while advocate recommendation is the least influencing category.
Frequency table of significantly influencing variables shown that out of the total 33itemsthe 6
most influencing items which belongs to the self-image/firm‘s image and accounting

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information like dividend paid, reputation of firm, feelings for a firm‘s products and services,
get rich quick, firm's involvement in solving community problems, and firm‘s status in
industry On other side factors that were found to be least influencing with respect to order of
importance were friend or co-worker recommendations, opinions of the firm's majority
stockholder, recent price movement in the firm's stock, Religious Reason, Family member
opinion and Broker recommendation related to other variable categories

5) Shalini KalraSahi, Ashok Pratap Arora,2012In this article Indian investors have been
exposed to a plethora of investment opportunities in the past decade and a half, after the
liberalization process which commenced in 1991. Over the years, the increased competition
has brought a wind of change, not just in the economic environment within the country, but
also a radical change in the choices and preferences of the financial consumers. In the
endeavour to provide more personalized advice to the financial consumers, financial service
providers need more insights into the minds of the consumers. However, little work has been
done to understand the Indian individual investor. The purpose of this paper is to study the
Individual investor in India: 30 to segment the investor into distinct behavioural groups based
on their biases; to understand the investment preferences and profile of the identified
segments; and to understand the implications for financial services providers.

6) K.S. Ravichandran1, P.Thirunavukarasu, R.Nallaswamy3, R.Babu4, 2005,

Traditionally, technical analysis approach, that predicts stock prices based on historical prices
and volume, basic concepts of trends, price patterns and oscillators, is commonly used by
stock investors to aid investment decisions. Advanced intelligent techniques, ranging from
pure mathematical models and expert systems to fuzzy logic networks, have also been used
by many financial trading systems for investing and predicting stock prices. Indecent years,
most of their searchers have been concentrating their research work on the future prediction
of share market prices by using Neural Networks. But, in this paper we newly propose a
methodology in which the neural network is applied to the investor‘s financial decision
making to invest all type of shares irrespective of the high/low index value of the scripts, in a
continuous time framework and further it is further extended to obtain the expected return on
investment through the Neural Networks and finally it is compared with the actual value. The
proposed network has been tested it stock data obtained from the Indian Share Market BSE
Index. Finally, the design, implementation and performance of the proposed neural network
are described

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7)Gaurav Chhabra, Ankesh Mundra (2014) The study state various invest options
available with the investors. In earlier time because of non-availability of banking system
investors use to keep hard cash, gold and silver ornament, precious stones etc as savings.
Now investment is made through bank, insurance policies, mutual funds, pension funds,
collective investment schemes, investment clubs. T.

8) N. Murty, P.V.S.H Sastry (2014) Investors choice with the objective of return
optimization is investment in the stock market instruments or securities. Stock market
securities are affected by various internal and external factors. Study examines the perception
of small investment investors towards returns on investment.

9) A. N. Paunikar (2014) The study aims at understanding scheme- wise benefits under
Equity Linked Saving Schemes for tax saving. Data analysis shows that Equity Linked
Saving Schemes has better returns on investments.

10) Tuan-Hock Ng, et. al. (2011) This paper examines the influence of demographic and
investment experience on retirement planning intension. Data analyses reveals that investors
at age of 20 to 29 are more concern about investment for retirement. Singles invest more in
EPF for retirement over the married people.

11)A. Ananth (2013) This study analyses the investors attitude towards various forms of
investment. Investments are classified as marketable and Non marketable, High risk and low
risk investments. Share market is high risk investment with high returns, Commodity market
has no risk. Mutual funds are risk investment with good returns.

12) Sanjay Kanti Das (2012) A tool that allows the small investors to access a well-
diversified portfolio of bonds, equities and other securities is known as Mutual Fund. Most
Suitable investment avenue for common man is mutual fund as it provides opportunity to
invest in diversified, professionally managed securities at low cost.

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  Research Design:

Research design is the plan structured and strategy of investigation conceived to obtain
answer to research question and to control variants. The Research design used for the
study is Descriptive cum exploratory method.

Research Design Description

Survey Area Guwahati

Time Frame of the study 2 months

Type of Research Descriptive and Exploratory Research

Research Approach Quantitative

Sample Size 71 investors of IIFL

Sampling Technique Non-Probability Convenient Sampling

Descriptive Analysis
Tools & Techniques for data analysis

Source of collection of data Questionnaire

Table 2.1.: Description of Research Design

 Sources of Data: -

a) Primary Data collection: - Primary Data is collected from the respondents of IIFL
through structured questionnaire, observation and survey method is also used.

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b) Secondary Data collection: - Secondary Data is collected from sources like Books,
Journals, Reports, websites, Newspaper etc.

 Sample: -
A sample of 71 investors out of 100 investors have responded from IIFL Guwahati is
taken for the research purpose.

 Tools and Techniques of Analysis: -

The Data is analysed and interpreted in the form with the help of pie chart and Bar
Diagram as per convenience.

 Scope of the study: -

The research is confined to the investors who are the customers of IIFL, Guwahati and
have invested in mutual fund. The investment avenues selected for the study are the ones
which are offered by IIFL.

 Limitation of the Study: -

1. The sample size of this project is limited and not sufficient for the study
2. Findings and suggestions given on the basis of this research cannot be extrapolated
3. As the sampling is non -convenient, so there is biasness
4. Due to time limitation of only 2 months research is not accurate or appropriate.

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CHAPTER 3

DATA ANALYSIS AND INTERPRETATION

59 | P a g e
DATA ANALYSIS AND INTERPRETATION
Analysis 1: Classification of Genders among the Respondents

From table it is seen that 36 of the respondents are male and 35 are females

Total Respondent=71 i.e., sample size n=71

Gender No of respondents

Male 36

Female 35

Total 71

Table 1. - Showing the number of respondents and their gender

Respondents
Female ; 35;
49%

Male; 36; 51%

Male Female

Figure1. Pie chart Showing classification of Male and Female

Interpretation: -During the collection of survey data through questionnaire it is found that
equal number of males and females have responded for the requirements and have shared
their views and opinions and choices on knowledge of investment, investment decisions and
various investment instrument.

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Analysis 2. Marital status of the respondents of IIFL

From the table, it is seen that 21% are married and 79% are unmarried

Sl Marital status Number of Percentage of people’s

no. Respondents responses
1. Married 15 21%

2 Unmarried 56 79%

Total 71 respondents 100%

Table 2. Marital status of respondent’s readings is recorded in tabular form

RESPONDENTS

MARRIED; 15; 21%

UN- MARRIED ; 56; 79%

MARRIED UN- MARRIED

Figure 2: Pie chart showing ratio of marital status of respondents

Interpretation

From the data collected, it has been analyzed that 21.1% are married and 78.9% are un-
married. In numbers 15 of them are married and 56 of them are unmarried

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Analysis 3. Determination of the age group among the respondents from IIFL

From the table, it is seen that 1% are below 20 years, 78% between 20 to 30, 17% are
between 31 to 40, 3%are between 41 to 50, and 1% of the respondents are above 50

Determination of Age Group among the Respondents

Sl. No Age group No of respondents Percentage of Responses
(in years) (in numbers) (%)
1. Below 20 1 1%
2. Between 20 to 30 55 78%
3. Between 31 to 40 12 17%
4. Between 41 to 50 2 3%
5. Above 50 1 1%
Total 71 100%

Table 3: Classification of Age group among the respondents of IIFL are recorded in the
tabular form

Re sp o n d en t s A g e G ro u p

Above 50 ; 1; 1%
Below 20; 1; 1%

Between 41 to 50 ; 2; 3%

Between 20 to 30; 55;

Between 31 to 40 ; 12; 77%
17%

Below 20 Between 20 to 30 Between 31 to 40 Between 41 to 50 Above 50

Figure 3. The pie chart shows the age group of IIFL respondents

Interpretation: It has been observed from the chart and table that maximum of the
respondents is of young aged group i.e., between 20 to 30 as responses given by them.

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Analysis 4. Occupations of the respondents of IIFL

From the table, 31 out of 71 are student which is 43.6%, followed by private sector employee
i.e., 25 (35.2%) Similarly, public sector employee is equal to 8 i.e., (11.3%).

Responses
Stuent
31
(43.6%)

Homemaker/Housewife 1 (1.4%)

Self-employed 6 (8.5%)

Private sector employee

25 (35.2%)
Public sector employee 8
(11.3%)
0 5 10 15 20 25 30 35

Responses

Figure 4: Occupation of respondents are represented graphically

Classification of occupation among the Respondents

Sl No. Occupation No of Percentage of responses (%)
Respondents
1. Private sector Employees 25 35.2%
2. Public sector Employees 8 11.3%
3. Self-Employed 6 8.5%
4. Home maker / Housewife 1 1.4%
5. Student 31 43.6%
Total 71 100%
Respondents
Table 4: Occupation of respondent’s readings are recorded in tabular form

Interpretation: - The graph depicts that most of them are students and among working
professional’s maximum no of employees are engaged in private sector and followed by
public sector.

63 | P a g e
Analysis 5. Monthly income of the respondents

From the table it has been observed, that 23 of the respondents have no income, 4 of the
respondents earn below 10,000 , 12 of the respondents earn between 10000 to 20000,
respondents 12 between 20001 to 30000, 2 of the respondents between 30001 to 40000, 2 of
the respondents between 40001 to 50000, 16 of the respondents are above 50,000

Responses
30

Above 50,000; 16
25 No Income, 23
Between 20,001 to
20 Between 10,000- 30,000; 12 Between 40,001 to
20,000; 12 50,000; 2
15

Between 30,001 to
10 40,000; 2
Below 10,000; 4
5

0
No Income Below 10,000 Between Between Between Between Above 50,000
10,000-20,000 20,001 to 30,001 to 40,001 to
30,000 40,000 50,000

Responses

Figure 5: Monthly earnings of the respondents are graphically shown

Readings of Monthly income among the Respondents

Sl no Monthly Income No of Respondents Percentage of Responses (%)

1. No income 23 32.8
2. Below 10,000 4 5.6
3. Between 10,000-20,000 12 16.9
4. Between 20,001-30,000 12 16.9
5. Between 30,001-40,000 2 2.8
6. Between 40,001-50,000 2 2.8
7. Above 50,000 16 22.5
Total 71 Respondents 100%

Table 5- Monthly income readings of the respondents of IIFL recorded in the tabular form

Interpretation: - From the above observation, it is observed that 32.8 % of the respondents
have no income, followed by respondents earning above 50,000 which shows that 22.5 % out
of 100 % earns more than 50,000, so it is easy for them to invest in various ways.

64 | P a g e
Analysis 6: Educational qualification of respondents

From the given pie chart, it is being observed that 37% of the respondents are graduates,34%
are post graduates, professional degree holder among the respondents are 17%, 2 of the
respondents are research scholar, under graduate are 7 respondents, and o for no formal
education

No of Respondents

Professional degree ; 13; Under Graduate ; 7; 9%

17%

Research scholar ; 2; 3%

Post Graduate , 22 34%

Graduate , 27, 37%

Under Graduate Post Graduate Graduate Research scholar

Professional degree No formal education

Figure 6: Pie chart showing the respondents educational qualification

Classification of Educational Qualification

Sl no Educational No of Respondents Reponses

Qualification (in percentage %)
1. Graduate 27 37%
2. Post Graduate 22 34%
3. Under Graduate 7 9%
4. Research Scholar 2 3%
5. Professional Degree 13 17%
6. No formal Education 0 0
Total 71 100%
Table 6: Educational qualification of respondents are recorded in the tabular form

Interpretation: -Through the table, it is observed that maximum of the respondents is

graduate with 27 numbers of respondents

65 | P a g e
Analysis 7. Statement that best describe the knowledge of investment among the
respondents

The observation says having very little knowledge of investment among individuals is 25 i.e.,
(35.2%), no idea about investment, respondents are 2(2.8%), having extensive knowledge on
investment and financial market closely is only 1 i.e., 1.4%, having moderate level of
knowledge of investment and financial market is 44 i.e., 62%

Respondents
25 (35.2%)

y.
50 2 (2.8%)

el
os
40

cl
30

ts
ar .
s
ke
l m et
ts
20 44 (62%)

i a rk
ke

a
ar
10

na l m
1 (1.4%)

lm

t
0

en
nc
ci
ia

tm
ow a n
nc

es
na

fi
fi

nv
fi

d
an an
d

ti
ll
an

ou
fo
ts
ts

ab
en

d
en

ro stm

ea
m

id
ct
st

t p ve
du
ve

o
en f i n

N
in

tm o
of

es g e
e

nv led
dg
le

ow
ow

er f kn
kn

ti

Respondents
lo

en
le
tt

ve
li

le

ff
ry

di
te

Figure7: Graph showing the investment knowledge of individuals

ve

nd
de era
e

ta
av

un od
rs
H

e; m

Respondents knowledge on Investment

dg a
le ve
a
H

Sl no Description on knowledge of Investment No of Responses in percentage (%)

w

Respondents
no
tk

1. Have very little knowledge about investment and 25 35.2%

en
m
st

financial markets
ve
in

2. Have a moderate level of knowledge of investment and 44 62%

e
iv
ns

financial markets
te
ex

3. Have extensive investment knowledge, understand 1 1.4%

e
av
H

different investment products and follow financial

markets closely
4. No idea about investment 2 2.8%
Total 71 responses 100%

Table 7: Knowledge of Respondents on investment, readings are recorded in the tabular form
Interpretation: - Through the above observation it is observed that maximum of the
respondents from the survey have moderate level of knowledge about investment and
financial markets.

66 | P a g e
Analysis 8: Awareness of various investment options available among the individuals

From the below given pie chart and through the survey it is known that among the
respondents only 70% are familiar with various types of investment options available and
30% do not know about the investment options available

Respondents

No; 21; 30%

yes; 50; 70%

yes No

Figure 8: Pie chart showing opinion of individuals on availability of various options of

investment

Awareness among respondents

Sl no Awareness of various No of respondents No of responses in

investment options percentage (%)
among respondents

1 Yes 50 70%

2 No 21 30%

Table 8: Awareness of various investment options among the respondents

Interpretation

The pie chart shows that number of respondents who are aware of various options available
for investment are 70% i.e., 30 respondents in numbers and are not aware of investment
options available are 21 respondents i.e., 30%.

67 | P a g e
Analysis 9: Preferences of investment options choices among individuals

From the above graph it is observed that 51 of the respondents i.e., 71.8% prefer Mutual fund
as the investment options, followed by stock and shares are preferred by 36 of the
respondents i.e., 50.7 %, fixed deposit preferred by 27 respondents i.e., 38%, insurance is
preferred by 23 i.e., 32%, 19 of the respondents i.e., 28% prefers public provident fund(PPF),
post office saving schemes is preferred by 11 respondents i.e., 15.5%, bonds/ Debentures are
preferred by 8 of the respondents i.e., 11.3% , direct equity is choose by 6 of the respondents
i.e., 8.5%

Respondents
Insurance 23

Stock and Shares

36
Investment options

Public provident fund (PPF)

8 19
Bonds/ Debentures

Post office saving schemes

11 51
Direct Equity
6
Mutual Fund

Fixed Deposit 27
0 10 20 30 40 50 60

Respondents

Figure 9: Graph showing the values of respondent’s preferences of various type of investment

SL NO INVESTMENT OPTIONS RESPONDENTS IN PERCENTAGE OF

NUMBERS RESPONSES
1. Insurance 23 32%
2. Stocks and Shares 36 50.7%
3. Public Provident Fund (PPF) 19 28%
4. Bonds/ Debentures 8 11.3%
5. Post office saving schemes 11 15.5%
6. Direct Equity 6 8.5%
7. Mutual Fund 51 71.8%
8. Fixed deposit 27 38%

Table 9: Readings recorded for respondents’ preferences on various types of investment

Interpretation: -From the above observation it is clearly seen that maximum of the
respondents have choose mutual fund as a better choice from available investment options

68 | P a g e
Analysis 10: Sectors that respondents prefer to invest their money

Number of respondents choosing the sectors they prefer is the private sector 52 of
respondents i.e., 48% of them, followed by public Sector 42 i.e., 39% and lastly foreign
sector choose by 14 of respondents i.e., 13% respectively.

Re spondents

PUBLIC SECTOR
39%
FOREIGN SECTOR
13%

PRIVATE SECTOR
48%

PUBLIC SECTOR PRIVATE SECTOR FOREIGN SECTOR

Figure 10: Individuals choices of sectors for investing shown in the form of pie chart

SL SECTORS NUMBER OF PERCENTAGE OF

NO RESPONDENTS RESPONSES

1. Private Sector 52 48%

2. Public Sector 42 39%

3. Foreign Sector 14 13%

Table 10: Showing choices of investment sector among the respondents of IIFL recorded the
readings in the tabular form

Interpretation:

Through the observation we can find out the maximum number of respondents prefer to
invest in private sector which is 48%, followed by public sector and least is foreign sector

69 | P a g e
Analysis 11: factors considered while taking investment decisions by individuals

From the observation the no of respondents is 44 who considers high returns while taking
investment decisions i.e., 62%, followed by safety of principle, no of respondents are 39 i.e.,
54.9%, low risk factor is considered by 31 respondents i.e., 43.7% and maturity period is
concerned by 15 individuals i.e., 21.1% respectively

Respondents

Maturity period
Maturity period ; 15

High returns
High returns ; 44

safety of principle

safety of principle ; 39

Low risk
Low risk ; 31

0 5 10 15 20 25 30 35 40 45 50

Respondents

Figure 11: Graph showing number of respondents, follows factors responsible for investment
decision making

Sl no Factors considered while taking Number of Percentage of

investment decisions by investors Respondents Responses (%)

1. Maturity Period 15 21.1%

2. High Returns 44 62%

3. Safety of Principle 39 54.9%

4. Low risk 31 43.7%

Table 11: Factors considered while making investment decisions among investors responses
are recorded in tabular form

Interpretation:

Through the graph we can observe that maximum of the respondents looks after the high
returns while taking any investment decision

70 | P a g e
Analysis 12: Help with the ranking of profitability for the following investment

Through the graph shows the ranking given by respondents regarding the various investment
options profitability in ratio form: -

Very low profitable ranking of various options is-

1. Bank/P.O. deposit =4:13

2. Insurance = 4:07,
3. Mutual fund =4:4,
4. Share market =4:03
5. Direct equity =4:02

Highly profitable ranking of various options of investment are –

1. Share market=01:34
2. Mutual fund =1:19
3. Direct equity= 1:15
4. Bank/PO deposit=1:13
5. Insurance=1:7

Moderately profitable ranking of various investment options according to respondents of

the survey are-

1. Direct equity= 2:39

2. Insurance =2:37
3. Mutual fund=2:36
4. Bank po deposit =2:26
5. Share market=2:21

Low profitable ranking of various investment options according to the respondents ranking
are as follows-

i. Insurance= 3:20
ii. Bank/po deposit=3:19
iii. Direct equity=3:15
iv. Share market =3:13
v. Mutual fund=3:12

71 | P a g e
 RESPONDENTS PROFITABILITY RANKING ON VARIOUS
INVESTMENT OPTIONS
04:02
DIRECT EQUITY 03:15
02:39
01:15
04:04
MUTUAL FUND 03:12
02:36
01:19
04:03
SHARE MARKET 03:13
02:21
01:34
04:07
INSURANCE 03:20
02:37
01:07
04:13
BANK/PO DEPOSIT 03:19
02:26
01:13
00:00 00:28 00:57 01:26 01:55 02:24 02:52 03:21 03:50 04:19 04:48

VERY LOW PROFITABLE LOW PROFITABLE

MODERATELY PROFITABLE HIGHLY PROFITABLE

Figure12: graph showing the different profitability ranking of investment options available

Sl Investment Options Number of Responses (in ratio)

no Very low Low Moderately Highly
profitable profitable profitable profitable
1. Direct Equity 4:2 3:15 2:39 1:15
2. Mutual Fund 4:4 3:12 2:36 2:36
3. Share Market 4:3 3:13 2:21 1:34
4. Insurance 4:7 3:20 2:37 1:07
5. Bank/po deposit 4:13 3:19 2:26 1:13

Table 12: Showing the ranking of various investment options based on profitability

Interpretation: From above observation, under very low profitable category maximum
respondents have opted for Bank or PO deposit, maximum number of respondents have
chosen insurance as low profitable, moderately profitable chosen by maximum respondents is
for Direct Equity, mutual fund is chosen by maximum respondents as highly profitable

72 | P a g e
Analysis 13: Time period individuals prefers to invest

Through the above pie-chart it is observed that 21% of the respondents prefer short term (0 to
1years) investment, 34% prefer long term (above 5 years) investment, 45 % of them prefer
medium term investment i.e., of (1 to 5 years)

No of Respondents

LONG TERM (>5

SHORT TERM (0-1 YEARS ) ; 24; 34%
YEARS) ; 15; 21%

MEDIUM TERM (1-5

YEARS ) ; 32; 45%

LONG TERM (>5 YEARS ) MEDIUM TERM (1-5 YEARS ) SHORT TERM (0-1 YEARS)

Figure 13: Pie-chart showing the number of respondent’s opinion regarding investment time
period

Sl no Preference of investment time No of respondents Responses in

period by investors percentage

1. Short Term (0-1 years) 15 21%

2. Medium Term (1-5 years) 32 45%
3. Long term (>5 years) 24 34%
Total 71 100%

Table 13: Preference of investment time period among investors are recorded in tabular form

Interpretation: From the survey it is clearly observed that maximum of the respondents
prefers medium term time period for investment which is between 1 to 5 years

73 | P a g e
Analysis 14: Number of respondents holding a DEMAT account.

From the observation, respondents holding a Demat Account is 52% and respondents not
holding a Demat Account is 48%

Respondents

No; 34; 48%

yes; 37;
52%

yes No

Figure 14: Pie chart showing the number of individuals holding a Demat Account

Sl Demat account No of responses in No of Respondents

no holders percent
(%)
1. Yes 52 % 37
2. No 48% 34
Table 14: - Demat account holders as responded by respondents are recorded in tabular form

Interpretation A Demat account helps investor holds shares and securities in an electronic
form. This type of account is called a dematerialised account. It also helps to keep proper
track of all the investment an individual makes in shares, exchange traded funds, bonds and
mutual funds in one place. Demat means “dematerialisation”

From the above observation, it is clear that only 0.27 difference is there among the
respondents of holding a Demat account and not holding Demat account which shows very
few people holds a Demat account and aware of the importance of having a Demat account.

74 | P a g e
 Analysis 15: challenges faced while making investment decisions among respondents
Confidence and
Selection of timing while invest - ; 8;
expectation
ing; 7; 10% 11%
Respondents
All of the above ; 29;
41% Interest rate
Economic ; 5; 7%

Growth inflation; 6;
Selection8%of timing while invest-
ing
Confidence and expectation
Limited capital ; 3;
4% Interest rate Economic
Growth inflation
changes in government policy
Unkiwn Risk
changes in gov-High and low Return rates
ernment policy ; Limited
3; capital
High and low Return rates ; 4; 4% All of the above
6% Unkiwn Risk ; 6; 8%
Figure 15: Pie chart showing the numbers and percentage of respondent’s challenges faced
while making any investment decisions.

75 | P a g e
 Sl no Challenges faced while Number of Percentage of
making investment Respondents responses (%)
decisions

1. Selection of timing while 7 10%

investing

2. Confidence and expectation 8 11%

3. Interest rate economic 5 7%

4. Growth inflation 6 9%

5. Changes in government 3 4%
policy
6. Unknown risk 6 8%

7. High and low return rates 4 6%

8. Limited Capital 3 4%

9. All of the above 29 41%

Table 15: Challenges faced by number of investors are shown in tabular form

Interpretation

Through the pie chart it is graphically visualized that the type of challenges that are faced by
the individuals while making investment decisions, numbers of respondent’s are recorded in
the tabular form in table 15, where investors face problem in selecting timing while investing
are 7 respondents (i.e.,10%), confidence and expectation among investors are responded by 8
person (i.e., 11%),Interest rate economic problem faced by 5 investors (i.e., 7%),Growth
inflation faced by 6 respondents (i.e., 9%),

76 | P a g e
Analysis 16: Knows about India Infoline Finance (IIFL), responses

From the observations, it is clearly seen that maximum of the respondents knows about IIFL
partially i.e., 38 respondents 54%, knows completely are 11 i.e., 15%, don’t know about IIFL
number of respondents are 22 i.e., 31%

Sl no Awareness on IIFL No of Percentage of

among Investors Respondents Responses

1. Knows completely 11 15%

2. Know partially 38 54%

3. Don’t know 22 13%

Table 16: Awareness among respondents about IIFL are recorded in the tabular form

Respondents

Knows partially ;
38; 54%

Don't know ; 22;

31% Knows partially
Knows
completely Knows completely
; 11; 15%
Don't know

Figure 16: Awareness of respondents regarding IIFL company in pie chart shown graphically

Interpretation: -Maximum of the respondents are partially aware of IIFL, it may differ from
other geographical areas

77 | P a g e
Analysis 17: Various types of investment alternatives at IIFL awareness among

individuals

Through this pie chart representation, it has been observed that the investment alternatives at
IIFL are known by 25 respondents i.e., 35%, and are not aware by 46 respondents i.e., 65%.

R es ponde nts
yes; 25; 35%

No; 46; 65%

yes No

Figure 17: Pie-chart showing the respondents percent of awareness of investment alternatives
of IIFL

Sl No Awareness of No of Respondent (%)

investment alternatives
at IIFL
(yes/no)
1 Yes 25(35%)

2 No 46(65%)

Table 17: Table showing the respondents percent of awareness of investment alternatives of
IIFL

Interpretation:

From the observation it is clear that maximum of the respondents is not aware of the
investment alternatives available in IIFL

78 | P a g e
Analysis 18: If IIFL is chosen by any individual then which investment alternative
available in IIFL would be choose

From the observation, Mutual fund is chosen by 33 respondents i.e., 47%, followed by stocks and
share 35%, gold loan and insurances are chosen by 5 respondents each with 7% accuracy of both,
Bonds and debentures are chosen by bonds is 2 respondents i.e., 3% accuracy and debentures is1
respondents i.e., 1% accuracy respectively.

No of Respondents

Insurances ; Mutual
5; 7% Bonds ; 2; 3% Fund; 33;
Gold Loan ; 46%
5; 7%
Debentures-
non convert -
ible and
convertible ;
1; 1%

Stocks and
Shares ; 25;
35%

Figure 18: Pie chart showing the number of respondent’s opinions regarding choosing of
investment alternative of IIFL

Sl no Categories Insurance Bonds Mutual Gold Debenture Shares and

Fund Loan Stocks
1) No of Respondents- 5 2 33 5 1 25

2) Percentage of 7% 3% 47% 7% 1% 35%
Respondents
(%) 

Table 18: Table showing the number of respondent’s opinions regarding choosing of
investment alternative of IIFL

Interpretation Through the graphical representation we can observe that if people would choose IIFL
for available investment alternatives then, maximum of them would have opted for mutual fund

79 | P a g e
Analysis 19: Percentage of earnings individuals invest

Through the above observation , number of respondents would prefer to invest 10% of their
income for any type of investment, number of respondents= 25 i.e., 41%, individuals
preferring up to 15% of income to invest is 16respondents i.e., 26%, individuals preferring up
to 25% is 8 i.e., 13% of respondents among all, individuals preferring up to 50% of income is
10 respondents i.e., 17% accuracy, above 50% respondents is 2 respondents i.e., 3%
respectively.

Above 50%; 2; 3%

Up to 10%; 25; 41%

up to 50%; 10; 16%

up to 25%; 8; 13%

up to 15%; 16; 26%

Up to 10% up to 15% up to 25% up to 50% Above 50%

Figure 19: Pie chart showing the number of respondents prefer the percentage of income to
invest in various ways

Sl no Above 50 % Up to 50 % Up to 25 % Up to 15 % Up to 10 %
No of 2 10 8 16 25
Respondents

Respondents 3 12 13 26 41
Percentage

Table19: Showing the number of respondents prefer the percentage of income to invest in
various ways

Interpretation: From the above observation it can be seen that maximum number of
respondents prefer to invest up to 10% of income in various ways

80 | P a g e
Analysis 20: Please rate the level of risk you are ready to take with the investment
instrument _1. High Risk, 2. Moderate Risk, 3. Low Risk

Through the observation, it is observed that the individuals have marked the ranking as
follows:

1. Bank / PO deposit – 3:37 respondents have ranked it as “low risk”, 2:23 respondents
have ranked it as “moderate risk”, 1:11 respondents have marked it as “high risk”
2. Insurance- 3:34 have ranked as low risk, 2:31 have ranked insurance option as
“moderate risk”, 1:06 respondents have marked or ranked insurance as an investment
option as “high risk”
3. Share Market- 3:12 respondents have marked it as “low risk”, followed by 2:30 have
ranked it as “moderate risk”, 1:29 respondents have marked it as “high risk”
4. Mutual fund- 3:12 respondents have ranked it as “low risk” investment options, 2:43
respondents have ranked as “moderate risk”, 1:16 have ranked it as “high risk”
5. Direct Equity- 3:13 respondents marked as “low risk”, 2:40 have marked it as
“moderate risk”, and 1:18 have ranked it as “high risk”
6. Real estate- 3:17 have ranked it as “low-risk”, 2:34 respondents have marked it as
“moderate risk”, 1:20 respondents marked it as “high risk”.
7. Bonds and debentures-3:20 response as “low-risk”,2:38 responses are “moderate
risk” and 1:13 responses as “high risk”
8. Small saving schemes- 3:30responses are for low risk, 2:31 ranked as “moderate
risk”, 1:10 responses as “high risk”
9. Stocks- 3:10 responses as “low risk”, 2:29 responses as “moderate risk”, 1:32
responses have ranked as “high risk”
10. Fixed deposit- 3:36 responses are for “low risk”, 2:25 responses for “moderate risk”,
1:10 responses are for “high risk”

81 | P a g e
 RANKING OF RISK FOR INVESTMENT OPTIONS
Fixed Deposit 02:25 Fixed Deposit ; 03:36
01:10
Stocks 01:32 02:29 Stocks ; 03:10
Small Sving Schemes ;
Small Sving Schemes 02:31 03:30
01:10 Bonds and Deben-
Bonds and Debentures 02:38 tures ; 03:20
01:13
Real Estate 02:34 Real Estate ; 03:17
01:20
Direct Equity 02:40 Direct Equity ; 03:13
01:18
Mutual Fund 02:43 Mutual Fund ; 03:12
01:16
Share Market 02:30 Share Market ; 03:12
01:29
Insurance 02:31 Insurance ; 03:34
01:06
Bank/PO deposit 02:23 Bank/PO deposit ;
01:11 03:37
00:00 00:28 00:57 01:26 01:55 02:24 02:52 03:21 03:50
Low Risk Moderate Risk High Risk

Figure 20: Ranking of various investment options based on risk among respondents

Type of Risk Fixed Stocks Small Bonds and Real Direct Mutual Share Insurance Bank/
Deposit Saving Debentures Estate Equity Fund Market PO
Scheme Deposit
Low Risk 3:36 3:10 3:30 3:20 3:17 3:13 3:12 3:12 3:34 3:37

Medium Risk 2:25 2:31 2:31 2:38 2:34 2:40 2:43 2:30 2:31 2:23

High Risk 1:10 1:32 1:10 1:13 1:20 1:15 1:16 1:29 1:06 1:11

Table 20: Ranking of various investment options based on risk among the respondents are
recorded in ratio form.

Interpretation From the above observation, it is observed that bank deposit is considered by
maximum respondents as low in risk, mutual fund is considered by maximum respondents as
medium risk followed by stocks which is considered as highly risk by the respondents.

82 | P a g e
Analysis 21: Imagine that 6 months after making an investment the financial markets
start to perform badly. In line with this, your own investment goes down by a
significant amount what decision would you take?

Decisions taken by number of respondents are 19 respondents i.e., 27% accuracy would take
decision to invest more funds to take the advantage of the lower price, expecting future growth, 28
of the respondents i.e., 39% accuracy would take decision of monitoring the investment and wait to
see if it improves , whereas 24, i.e., 34% accuracy out of all the respondents would take decision to
transfer the money to more secure investment product to reduce the risk of further losses
respectively.

RESPONDENTS
Invest more funds to take Transfer the money to
advantage of the lower more secure investment
price, expecting future product to reduce the risk
growth ; 19; 27% of further losses ; 24; 34%

Monitoring the investment and

wait to see if it improves; 28; 39%

Figure 21: Pie chart showing the number of respondents choosing their own investment
decisions

Sl no Invest more funds to take Transfer the money to more Monitoring the investment
advantage of the lower price, secure investment product to and wait to see if it improves
expecting future growth reduce the risk of further
losses

No of Respondents 19 24 28
Percentage of Respondents 27 34 39

Table 21: Table showing the number of respondents choosing their own investment decisions
Interpretation From the observation, it is observed that maximum respondents will prefer
for monitoring the investment and wait to see if it improves if 6 months after making an
investment the financial markets start to perform badly.

83 | P a g e
 Analysis 22: Imagine that you have some money to invest and a choice of two
investment products, which option would you choose?

Through the bar graph it is observed that if the individuals would have some money to invest
and choice of two investment product than, 21 of the respondents would choose A product
with a low average annual return but almost no risk of loss of the initial investment, 13 of
them would choose a product with higher average annual return but some risk of losing part
of the initial investment, A mixture of two products are chosen by 39 respondents
respectively

Respondents

A mixture of two
products ; 39
A product with
A mixture of two products higher average an-
nual return
but some risk of los-
ing
p r o d u c t w i t h h i g h er av er age an n u al r et u r n part of the initial in-
b u t so m e ri sk o f l o si n g vestment; 13
p a r t o f t h e i n i ti a l i n v e s t m e n t

A product with a
low average annual
return but almost
o s t n o r i s k o f l o s s o f t h e i n i ti a l i n v e s t m e n t no risk of loss of the
initial investment ;
21
0 5 10 15 20 25 30 35 40 45

Figure 22: Graph showing respondents choices of two investment product among them.

Sl No A product with higher A mixture of two products A product with a low

average annual return average annual return but
but some risk of losing almost no risk of loss of the
part of the initial investment initial investment

Respondents 13 39 21

Table 22: Table showing respondents choices of two investment product among them

Interpretation From the above observation, it can be concluded that maximum of

respondents would prefer a mixture of two products if they have some money to invest and a
choice of two investment products.

84 | P a g e
Analysis 23: When considering a major investment decision which statement BEST
describes the way you think about the possible losses or the possible gains?

Through the above pie-chart, it is observed that the best statement that describes individual’s
way of thinking about both losses and gains are 54 respondents i.e., 76%, 8 of the
respondents i.e., 11% are excited for possible gains, 3 of the respondents i.e., 4% are
conscious about the possible losses, 6 of the respondents i.e., 9% worry about the possible
losses .

worry about the

possible losses ; 6;
8%

Excited for possible gains ; 8; 11%

concious about the possible losses ; 3;
4%

Thinks about both possible gains and

losses ; 54; 76%

Excited for possible gains Thinks about both possible gains and losses

worry about the possible losses concious about the possible losses
\

Figure 23: Pie chart showing the respondents decision regarding gains and losses

Sl No worry about the conscious about the Excited for possible Thinks about both
possible losses possible losses gains possible gains and
losses

No of Respondents 6 3 8 54

Percentage of 9 4 9 76
Respondents

Table 23: Table showing the respondents decision regarding gains and losses

Interpretation: Here it is observed that maximum of the respondents thinks about both
possible gains and losses regarding any decisions taken for investment

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Analysis 24: Any feedback or suggestion by respondents

Interpretation

Through the observation it is observed that 92.7%, of the respondents do not have any
feedback or suggestions. Among 71 respondents 1 of the respondents have suggested that one
must consider inflation, the effect of compounding and taxation while taking any decision
related to investment.

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CHAPTER 4
SUMMARY OF FINDINGS

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FINDINGS FROM THE SURVEY

From the data analysis and interpretation chapter it can be sum up as given below

1. Total respondents for the survey = 71 Respondents

2. Out of 71 respondents 36 are Males and 35 are Females
3. Out of 71 respondents 15 are married and 56 are un-married
4. The maximum age group of respondents are between 20 years to 30 years responded
by 55 respondents with 77.5% accuracy, followed by 12 of the respondents i.e.,
16.9% are of the age group between 31 years to 40 years, 1 of the respondents are
below 20 years with 1% accuracy, 1 respondent is above 50 years
5. It has been observed that maximum number of students have replied to the survey i.e.,
33 out of 71 which is 46.5%, followed by private sector employee i.e., 25 (35.2%)
Similarly, public sector employee is equal to 8 i.e., (11.3%).
6. The figures of income earned by the respondents are maximum of them are student
without income shows 34 respondents i.e., 33.8%, respondents earning below 10,000
on monthly basis is 4 i.e., 5.6%, followed by respondents earning between 10,000 to
20,000 are 12 i.e., 16.9%, respondents earning between 20001 to 30000 are 12 i.e.,
16.9%, followed by respondents earning 30001 to 40000 is 2 i.e., 2.8%, respondents
earning between 40001 to 50,000 is also 2 i.e., 2.8%, similarly respondents earning
above 50,000 monthly are 16 i.e. 22.5% accuracy
7. It is observed that maximum of the respondents is graduate with 28 numbers of
respondents i.e., 37%, followed by post graduate 26 i.e., 34% respondents, 13 of the
respondents having professional degree, undergraduate 7 respondents (9.9%), 0 for no
formal education
8. Maximum of the respondents has moderate knowledge of investment and financial
markets which is 44 respondents i.e., (62%), followed by having very little knowledge
of investment among individuals is 25 i.e., (35.2%), a few have no idea about
investment, respondents=2, having extensive knowledge on investment and financial
market closely is only 1 i.e., 1.4%
9. Number of respondents who are aware of various options available for investment are
70% i.e., 30 respondents in numbers and are not aware of investment options
available are 21 respondents i.e., 30%.

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 10. It is observed that 51 of the respondents i.e., 71.8% prefer Mutual fund as the
investment options, followed by stock and shares are preferred by 36 of the
respondents i.e., 50.7 %, fixed deposit preferred by 27 respondents i.e., 38%,
insurance is preferred by 23 i.e., 32%, 19 of the respondents i.e., 28% prefers public
provident fund(PPF), post office saving schemes is preferred by 11 respondents i.e.,
15.5%, bonds/ Debentures are preferred by 8 of the respondents i.e., 11.3% , direct
equity is choose by 6 of the respondents i.e., 8.5%
11. Maximum of the respondents looks after the high returns while taking any investment
decision no of respondents are 44 i.e., 62%, followed by safety of principle, no of
respondents are 39 i.e., 54.9%, low risk factor is considered by 31 respondents i.e.,
43.7% and maturity period is concerned by 15 individual i.e., 21.1% respectively
12. Respondents regarding the ranking of profitability of various investment options in
ratio form: -

Very low profitable ranking of various options is-

6. Bank/po deposit =4:13

7. Insurance = 4:07,
8. Mutual fund =4:4,
9. Share market =4:03
10. Direct equity =4:02

Highly profitable ranking of various options of investment are –

6. Share market=01:34
7. Mutual fund =1:19
8. Direct equity= 1:15
9. Bank/PO deposit=1:13
10. Insurance=1:7

Moderately profitable ranking of various investment options according to respondents of

the survey are-

6. Direct equity= 2:39

7. Insurance =2:37
8. Mutual fund=2:36
9. Bank po deposit =2:26

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 10. Share market=2:21

Low profitable ranking of various investment options according to the respondents ranking
are as follows-

i. Insurance= 3:20
ii. Bank/po deposit=3:19
iii. Direct equity=3:15
iv. Share market =3:13
v. Mutual fund=3:12
13. It is observed that 21% of the respondents prefer short term (0 to 1years) investment,
34% prefer long term (above 5 years) investment, 45 % of them prefer medium term
investment i.e., of (1 to 5 years)
14. The number of respondents holding a Demat account, which shows 48% of them not
having a Demat account and 52% respondents hold a Demat account.
15. The type of challenges that are faced by the individuals while making investment
decisions, numbers of respondent’s are as follows: -
a. Selection of timing while investing = 7, 10%
b. Confidence and expectation=8, 11%
c. Interest rate economic=5, 7%
d. Growth inflation=6, 9%
e. Changes in government policy= 3, 4%
f. Unknown risk =6, 8%
g. High and low return rates = 4, 6%
h. Limited Capital=3, 4%
i. All of the above = 29, 41%
16. IIFL is known to how many individuals- maximum of the respondents knows about
IIFL partially i.e., 38 respondents 54%, knows completely are 11 i.e., 15%, don’t
know about IIFL number of respondents are 22 i.e., 31%
17. It has been observed that the investment alternatives at IIFL are known by 25
respondents i.e., 35%, and are not aware by 46 respondents i.e., 65%.

From the survey it is observe that if people would choose IIFL for available investment
alternatives then, maximum of them would choose Mutual fund which is 33 respondents i.e.,
47%, followed by stocks and share 35%, gold loan and insurances are choose by 5

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respondents each with 7% accuracy of both, Bonds and debentures are choose by bonds=2
respondents i.e., 3% accuracy and debentures=1 respondents i.e., 1% accuracy respectively.

18. Maximum of the respondents would choose Mutual fund which is 33 respondents i.e.,
47%, followed by stocks and share 35%, gold loan and insurances are choose by 5
respondents each with 7% accuracy of both, Bonds and debentures are choose by
bonds=2 respondents i.e., 3% accuracy and debentures=1 respondents i.e., 1%
accuracy respectively.
19. Number of respondents would prefer to invest 10% of their income for any type of
investment, number of respondents= 25 i.e., 41%, individuals preferring up to 15% of
income to invest is 16respondents i.e., 26%, individuals preferring up to 25% is 8 i.e.,
13% of respondents among all, individuals preferring up to 50% of income is 10
respondents i.e., 17% accuracy, above 50% respondents is 2 respondents i.e., 3%
respectively.
20. It is observed that the individuals have marked the ranking of risk in investment
options as follows:
Bank / PO deposit – 3:37 respondents have ranked it as “low risk”, 2:23 respondents
have ranked it as “moderate risk”, 1:11 respondents have marked it as “high risk”
Insurance- 3:34 have ranked as low risk, 2:31 have ranked insurance option as
“moderate risk”, 1:06 respondents have marked or ranked insurance as an investment
option as “high risk”
Share Market- 3:12 respondents have marked it as “low risk”, followed by 2:30 have
ranked it as “moderate risk”, 1:29 respondents have marked it as “high risk”
Mutual fund- 3:12 respondents have ranked it as “low risk” investment options, 2:43
respondents have ranked as “moderate risk”, 1:16 have ranked it as “high risk”
Direct Equity- 3:13 respondents marked as “low risk”, 2:40 have marked it as
“moderate risk”, and 1:18 have ranked it as “high risk”
Real estate- 3:17 have ranked it as “low-risk”, 2:34 respondents have marked it as
“moderate risk”, 1:20 respondents marked it as “high risk”.
Bonds and debentures-3:20 response as “low-risk”,2:38 responses are “moderate
risk” and 1:13 responses as “high risk”
Small saving schemes- 3:30 responses are for low risk, 2:31 ranked as “moderate
risk”, 1:10 responses as “high risk”

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 Stocks- 3:10 responses as “low risk”, 2:29 responses as “moderate risk”, 1:32
responses have ranked as “high risk”
Fixed deposit- 3:36 responses are for “low risk”, 2:25 responses for “moderate risk”,
1:10 responses are for “high risk”
21. Investment decision by investors -Number of respondents are 19 respondents i.e.,
27% accuracy would take decision to invest more funds to take the advantage of the
lower price, expecting future growth, 28 of the respondents i.e., 39% accuracy
would take decision of monitoring the investment and wait to see if it improves ,
whereas 24, i.e., 34% accuracy out of all the respondents would take decision to
transfer the money to more secure investment product to reduce the risk of further
losses respectively.
22. Itis observed that if the individuals would have some money to invest and choice of
two investment product than, 21 of the respondents would choose A product with a
low average annual return but almost no risk of loss of the initial investment, 13 of
them would choose a product with higher average annual return but some risk of
losing part of the initial investment, A mixture of two products are chosen by 39
respondents respectively
23. It is observed that the best statement that describes individual’s way of thinking about
both losses and gains are 54 respondents i.e., 76%, 8 of the respondents i.e., 11% are
excited for possible gains, 3 of the respondents i.e., 4% are conscious about the
possible losses, 6 of the respondents i.e., 9% worry about the possible losses .
24. Feedback: -It is observed that 92.7%, of the respondents do not have any feedback or
suggestions. Among 71 respondents 1 of the respondents have suggested that one
must consider inflation, the effect of compounding and taxation while taking any
decision related to investment.

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CHAPTER 5-
SUGGESTIONS AND CONCLUSION

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SUGGESTIONS
In today’s world without money nothing is possible, so we all should know to utilize money
according to our needs and always try to save a part of our earning, from young to old
everyone should understand the importance of money and should try to grow their money ,
“Investment is the allocation of monetary resources to assets that are expected to yield some
gain or positive return over a given period of time .These assets range from safe investment
to risky investment. Investments in this form are also called “Financial investment” as
definition we all understand but in reality there are vast concept on investment, how to
invest , what actually investment is all about, which product to choose for investment, every
single investors must have faced such questions in their mind while investing, Moreover
Investment is very important in a country's economic development: It's the main source of
employment creation and the main factor of economic growth. Investment increase
involves Gross Domestic Product (GDP) and National Revenue increase. Investment induces
the economic prosperity and welfare improvement in general.

As seen from the survey maximum of young aged individuals have rough idea about
investment and its products, people face problem while making investment decisions, where
to invest what must be the minimum amount to invest, how to see and understand the
financial market while investing in stock and share. people with sound knowledge on
investment may not fear to problems or risk that may arise while investing.

In this technologically advanced era, there may be some malfunctions or cyber misleading
may arise so while investing few points must be kept in mind

1. Setting up the objectives

2. Level of risk
3. Control over emotions
4. Diversification of investment
5. Avoidance of leverage

Here are few suggestions as a whole

a. If you are a beginner in investment than before making any investing decision one
should understand and draw their personal financial roadmap, taking an honest look

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 on the entire financial situation – especially if someone is a beginner and have never
made a financial plan before
b. One should always decide and know their investment period weather it is a short term
or long-term investment and accordingly start collecting information regarding the
various investment products according to the profitability
c. Individuals should figure out their goals and risk tolerance either with his/ her self or
taking help from any financial guide or professional
d. Always try to take some risk initially, if someone wants to invest in securities such as
bond, stock, mutual funds etc it is important to firstly understand the terms and
conditions of the financial company or banks, and also must have sound knowledge
of every investment option. also, money invested in securities typically is not
federally insured hence the principle amount may be loss if not properly invested
e. Higher the risk more will be the return so if anyone goes for a long-term investment,
it is likely to make more money by carefully investing in asset categories with greater
risk, like stocks or bonds rather than restricting investment to asset with less risk, like
cash equivalent. On the other hand, investing solely in cash investment than it is
more appropriate for short term financial goals, risk involve in cash equivalents is the
inflation risk, which is the risk that inflation will outpace and erode returns overtime.
So, it is necessary that individuals must have good understand on investment
products and decision making
f. One should also consider an appropriate mix of investment with investment returns
that move up and down under different market conditions within a portfolio, an
investor can help protect against significant losses, by investing in more than one
asset category, it will reduce the risk of losing money and portfolios overall
investment return will have smoother ride.
g. Being an investor, one should always create and maintain emergency fund, to play
smart one should put enough money in a savings product to cover in case of any
emergency like sudden unemployment.
h. And lastly everyone should try to avoid any kind of frauds that may risk everything,
understanding, setting the objective and working on it always leads to any kind of
success.

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CONCLUSION
А spectacular growth in the Indian capital market has taken place in the recent years. The
capital mobilization is expected to increase with every five-year plan. The number of
investors has also increased considerably during the last decade. Although capital formation
was considerable, а number of malpractices like manipulation of share prices, exploitation of
unwary investors by fly by night operators, insider trading, misleading information,
concentration of shareholding etc. have been witnessed.
In this modern era the young aged people are more creative and technology savvy than the
older generation socially and financially so in the further survey question we can observe that
how much young are aware and concerned on financial status in the future and investment

Through this research it is observed and understood that people are not much familiar with
investment options available, people face lots of problems while making investment decision
except those who have extensive or moderate knowledge on investment and collects
information on financial markets. Investment is important to achieve individual goals,
investment decisions are never so easy, cashflows whether they are positive or negative, are
fraught with uncertainty , however investment is a crucial requirement in today’s fast pace
technologically advanced world, as value of money is increasing we as individual should
always try to save and grow our money, and without investment it is not possible.

Inflation is impacting investment in this present era, inflation, in simple terms, is a surge in
the price of materials and services. It decreases the worth of our money and reduces our
purchasing power. When there is a rise in the inflation rate, we buy fewer things with the
same amount of money. We have no control over the inflation rate. If we are to stay ahead of
inflation, we need to have more money to purchase the extent of the goods you intend to in
the future with the money we have today. But money doesn’t grow on its own. If our money
has to grow, then it has to earn returns. To earn returns, we need to invest. Therefore, making
investments is necessary to tackle inflation. Inflation at the rate of 8% means that we need
8% more money than what we have to purchase the same item next year.

Thus, we can conclude that investment play a major role in today’s generation, individuals
from very young age should start small investment, each and every one should understand the
importance of money, even in the school colleges students should be taught about investment
in advanced, about all concepts and investment avenues.

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BIBLIOGRAPHY
1. INDIAN FINANCIAL SYSTEM., BY BHARATI V PATHAK

2. PRASANNA CHANDRA 9TH EDITION, FINANCIAL MANAGEMENT THEORY AND

PRACTICE

REFERENCE:
1. https://www.economicsdiscussion.net/investment-decisions/investment-decisions-
meaning-need-and-factors-affecting-it/21976
2. Journal of Development Economics, how infrastructure and financial institutions
affect agricultural output and investment in India, Volume 41, Issue 2, Pages 337–
366, doi:10.1016/0304- 3878(93)90062-R
3. Asian Journal of Management Research, Factors Influencing Investment Decision of
Generations in India: An Econometric Study, ISSN2229– 3795
4. journal of Business and Management, An Assessment Study on the ‗ ‘Factors
Influencing the Individual Investor Decision Making Behaviour‖ (IOSR-JBM) eISSN:
2278-487X, p-ISSN: 2319-7668. Volume 9, Issue 5 (Mar. - Apr. 2013), PP 37-44,
5. Qualitative Research in Financial Markets, "Individual investor biases: a
segmentation analysis", Vol. 4 Iss: 1, pp.6 – 25,
6. Journal of Theoretical and Applied Information Technology, Estimation of Return on
investment in Share Market Through, the stock market is one of the most popular
investing places because of its expected high profit.
7. Ansari Yasmee; S.C. Dhamija (May, 2011), the Journal of Sri Krishna Research &
Educational Consortium ASIA PACIFIC JOURNAL OF RESEARCH, IN
BUSINESS MANAGEMENT,” An Empirical Assessment of Investment Patterns Of
Investors, “Volume 2, ISSN 2229-4104.
8. Athma Prashanta And K.Raj Kumar, (January 2011), APJRBM, “ETF VIS-A- VIS
INDEX FUNDS: AN EVALUATION” “Volume 2, issue 1, ISSN 2229-4104, page
188.
9. Athma Prashanta An Ms Suchitra K. (January 2011), APJRB, “Gold Etfs: An
Emerging Investment Option”, Volume 2, Issue 1, ISSN 2229-4104, page number 66-
78.

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10. Pearson/INDIAN FINANCIAL SYSTEM., 5TH EDITION BY BHARATI V
PATHAK
11. https://shodhganga.inflibnet.ac.in/handle/10603/74771
12. https://repositorio.iscte-iul.pt/bitstream/10071/9636/1/PROJECT%20INVESTMENT
%20ANALYSIS.pdf
13. https://www.slideshare.net/NinaHaku/investment-analysis-14342682
14. https://www.googlesir.com/factors-that-affecting-investment-decisions/
15. https://scripbox.com/mf/types-of-investment/
16. Gaur Arti and Dr. Monica Bansal (Feb 2010), Indian Journal of Financial, “A
Comparative Study of Gold Price Movements in Indian and Global Markets”.
„Volume 4, number 2, ISSN0973- 8711, page number 32.
17. Gupta Shivani, (April 2011), Indian journal of Finance, “Indian Mutual Fund
Industry: Current State and Future Outlook.,” Volume 5 number ISSN0973-8711,
page number 38-48.
18. Investopedia staff, (February 2010), Forbes magazine, “ETFs Vs. Index Funds:
Quantifying the Difference. 12.
19. ISMR report on, Securities Market in India: An overview (2009-10).
20. Jaiswal Bimal and Namita Nigam (December 2010), IJRCM, “Performance
measurement of mutual funds in India in the post liberalization era – an Economic
review (A study based on sample of 100 actively traded open ended funds with
growth option) “, Volume 1, issue no 8, ISSN 0976-2183, page number 26

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Annexure
QUESTIONNAIRE

Request for co-operation

I am an MBA Student of 3rd semester, specialization in finance has conducted a study

conducted to analyze the “Investment decisions of investor”. I would be highly grateful if you
could kindly spare a few minutes of your precious time to answer the following questions. It
should take about 3-5 minutes.

Your responses will help me in attaining the objectives of the study.

The responses provided by you will be kept confidential and will be used for academic
purpose only.

Thanking you,

Rupshikha Deka

MBA Student

NERIM Group of Institution, Guwahati

Email Id- rupshikhadeka2015@gmail.com

1. Your Name: ____________________________________________________

2. Gender: Male

Female

Others

3. Marital Status
Married
Unmarried

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4. Age:
Below 20 years
Between 20 to 30 years
Between 31 to 40 years
Between 51 to 60 years
Above 60 years

5. Occupation
Govt sector employee
Private sector employee
Self- employed
Home-maker/Housewife
Student

6. Monthly Income
No income
Below 10000
Between 10000 & 20000
Between 20001 & 30000
Between 30001 & 40000
Between 40001 & 50000
Above 50000

7. Educational Qualifications

Under-Graduate Professional degree

Graduate No formal Education
Post- Graduate

8. Which statement best describe your knowledge about investment?

I have very little knowledge of investments and financial markets.

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 I have a moderate level of knowledge of investments and financial markets.

I have extensive investment knowledge; understand different investment products and

follow financial markets closely.

No idea about investment

9. Are you aware of various available options for investment?

Yes
No

10. What type of investment would you prefer?

Fixed deposit
Mutual fund
Direct equity
Post office saving schemes
Bonds and Debentures
Public provident fund (PPF’s)

h Stocks and shares

h Insurance

11. In which sector do you prefer to invest your money?

Private sector Public sector Foreign sector

12. Which factors do you consider while making investment decisions?

Safety of Principle Low Risk

High Returns Maturity Period

13. Help me with the ranking of profitability for the following investment

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 1. Highly Profitable 2. Medium profitable 3. Low Profitable

4. Very-Low Profitable

Investment Instrument Rank

1. Bank/Post office Deposit 1 2 3 4
2. Insurance 1 2 3 4
3. Share market 1 2 3 4
4. Mutual Fund 1 2 3 4
5. Direct Equity 1 2 3 4
6. Real Estate 1 2 3 4
7. Small savings scheme 1 2 3 4
8. Bonds and Debentures 1 2 3 4
9. Stocks 1 2 3 4
10. Fixed Deposit 1 2 3 4

14. What is the time period you would prefer to invest?

Short term (0-1 years)
Medium terms (1-5 years)
Long terms (>5 years)

15. Do you hold a DEMAT account?

Yes
No

16. What are the challenges faced by you while making investment decisions?

Confidence and expectation Selection of timing while investing

Interest Rate Economic Growth Inflation

Changes in Government Policy Unknown Risk

High and low return rates Limited Capital

All of the above

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17. Do you know about India Infoline Ltd (IIFL)?
Know partially Don’t know
Knows completely
18. Do you know about different type of investment alternative at IIFL?
Yes
No
19. If you want to select IIFL, which investment option of IIFL would you choose?
Stocks and shares
Mutual fund
Gold loan
Insurances
Bonds
Debenture- convertible and non-convertible

20. What percentage of your earnings do you invest?

Up to 10%
Up to 15%
Up to 25%
Up to 50%
Above 50%

21. Please rate the level of risk you are ready to take with the investment instrument
1. High risk 2. Moderate risk 3. Low risk

Investment Instrument Risk level

1. Bank/Post office Deposit 1 2 3
2. Insurance 1 2 3
3. Share market 1 2 3
4. Mutual Fund 1 2 3
5. Direct Equity 1 2 3
6. Real Estate 1 2 3
7. Small savings scheme 1 2 3
8. Bonds and Debentures 1 2 3
9. Stocks 1 2 3
10. Fixed Deposit 1 2 3 103 | P a g e
 22. Imagine that 6 months after making an investment the financial markets start to
perform badly. In line with this, your own investment goes down by a significant
amount what decision would you take?

Transfer the money to more secure investment product to reduce the risk of further
losses

Monitoring the investment and wait to see if it improves

Invest more funds to take advantage of the lower price, expecting future growth

23. Imagine that you have some money to invest and a choice of two investment products,
which option would you choose?
A product with a low average annual return but almost no risk of loss of the initial
investment
A product with a higher average annual return but some risk of losing part of the
initial investment
A mixture of the two products

24. When considering a major investment decision which statement BEST describes the
way you think about the possible losses or the possible gains?

Excited for possible gains

Thinks about both possible gains and losses
Conscious about the possible losses
Worry about the possible losses

25. Any feedback: ______________________________________________________

FINANCIAL STATEMENTS

Balance sheet of IIFL for 5 respective years

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Profit and loss account of IIFL

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