SUMMER TRAINING REPORT

on

‘A Study on Risk Perceptions and Portfolio Management of

Equity Investors’
(Accrual intelligence manuals India Pvt Ltd)

Submitted in partial fulfillment of the requirements for the award

of the degree of

Master of Business Administration (MBA)

To
Guru Gobind Singh Indraprastha University, Delhi

Guide Name: Submitted by:

 TABLE OF CONTENTS

S. No. Particulars/Topic Page No.

1 Declaration………………………………………………………. ----

2 Certificate(S)……………………………………………………. ----

3 Acknowledgement………………………………………………. ----

4 Executive Summary……………………………………………... 1

5 Chapter-I
Profile of The Firm/Company…………………………………... 2
1.1 Introduction…………………………………………………. 2
1.2 Industry Type………………………………………………... 3
1.3 Company’s vision and mission……………………………… 4
1.4 Product Range of company…………………………………. 5
1.5 Organizational Structure ……………………………………. 6

6 Chapter-II
Literature Review and SWOT Analysis………………………… 8
2.1 Literature Review…………………………………………… 8
2.2 SWOT Analysis……………………………………………... 10
2.2.1 Objective of the study………………………………… 12
2.2.2 Scope of the study……………………………………. 12

7 Chapter-III
Data Presentation and Analysis…………………………………. 15
3.1 Data Collection……………………………………………… 15
3.1.1 Research methodology ………………………………. 16
3.2 Data Presentation……………………………………………. 17
3.2.1 Demographic profile of respondents…………………. 18
3.2.2 Presentation and Analysis……………………………... 19
3.3 Data Interpretation…………………………………………... 29
8 Chapter-IV
Summary and Conclusions.……………………………………... 31
4.1 Conclusion…………………………………………………... 31
4.2 Recommendations/suggestions……………………………… 33

9 References/Bibliography ………………………………………. 34

10 Annexure/Questionnaire ………………………………………... 35

11 Summer Training Appraisal Form (STA)………………………. 37

 LIST OF TABLES

Table No. Particulars Page No.

3.2.1 Table showing age of the respondents………………. 17

3.2.1 Table showing martial status of the respondents……. 17

3.2.2 Table showing analysis of question- 1………………. 19

3.2.2 Table showing analysis of question- 2………………. 20

3.2.2 Table showing analysis of question- 3………………. 21

3.2.2 Table showing analysis of question- 4………………. 22

3.2.2 Table showing analysis of question- 5………………. 23

3.2.2 Table showing analysis of question- 6………………. 24

3.2.2 Table showing analysis of question- 7………………. 25

3.2.2 Table showing analysis of question- 8………………. 26

3.2.2 Table showing analysis of question- 9………………. 27

3.2.2 Table showing analysis of question- 10……………... 28

 LIST OF GRAPH/CHART

Graph/Chart Particulars Page No.

No.
1 Graph showing occupation of the respondents…. 17

2 Chart showing Age presentation of the 18

respondents …………………………………….

3 Chart showing martial status presentation of the 18

respondents………………………………………

4 Chart showing awareness of the investment 19

options available in market……………………...

5 Graph showing presentation of question- 2 20

6 Chart showing presentation of question- 3 21

7 Graph showing presentation of question- 4 22

8 Chart showing presentation of question- 5 23

9 Graph showing presentation of question- 6 24

10 Chart showing presentation of question- 7 25

11 Graph showing presentation of question- 8 26

12 Chart showing presentation of question- 9 27

13 Graph showing presentation of question- 10 28

EXECUTIVE SUMMARY

Investments are both artistic and scientific. Individuals have their own specific needs and
financial expectations based on their risk-taking ability, while some of these needs and
expectations are universal. Hence, we see that the stock market scenario is changing day
by day, hour by hour and minute by minute. The valuation of financial plans has been
increasing for decades, which can be best seen in the consumer. Now-a-days investing has
become a very important part of saving money.
To keep investors safe from market fluctuations and make them profitable, portfolio
management services are gaining rapid investment options for high-net-worth individuals
(HNI). There is growing competition between brokerage firms in post-India reforms. For
investors, it is difficult to decide which brokerage firm to choose.
The research design is analytical. The questionnaire was prepared and distributed to
investors. Investor profile is based on the results of the questionnaire completed by the
investor.
To determine the effectiveness of risk perceptions and portfolio management of venture
capitalists, this research was conducted across all urban areas. When investing money,
everyone looks for risk factors related to investment options. The report is organized on
the basis of research work done through different mythological research, data is collected
from primary sources, questionnaires and secondary data are collected from different
sources such as websites. Company, magazine and other sources.
In this project, I present the details of the financial plan as well as the asset management to
understand the needs and needs of the clients in relation to the market and how the client
portfolio can be designed and what factors a portfolio manager should have. Must consider
for portfolio design.
Risk is a crucial factor for any investor in making all types of financial investments. It is a
psychological and mental process of decision making based on an individual’s frame of
reference that changes from time to time. This report explores individual investor’s
preference for portfolio choices and investigates impacts of risk tolerance and risk
perception on their investment decision. An attempt is also made to understand the factors
affecting risk appetite of a person.

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 CHAPTER-I
Profile Of the Firm/Company
FIRM/COMPANY

Company name is AIM INDIA (Accrual Intelligence Manuals

India Pvt. Ltd.)
AIM India believes in Dynamic Culture and it is their goal to help the Individual in dealing
with the dynamism of environment whether it is related to their wealth or expansion of
business. Aim India Group is the leading Advisory in India and Abroad. At AIM India they
provide Training / Development programs in India and Abroad. They are having a team of
exclusive corporate trainers. Their principle is to deliver high rate of returns to their clients
through their network of government sector banks in India.
Keeping in mind the most critical needs in today's context, they came up with wealth
Advisory firm to provide a customer expertise advice to achieve financial Independence.

ADDRESS:
Corporate Office: 1208, 12th floor, RG Trade Tower,
Netaji Subhash Place,
Pitampura, New Delhi-110034.

WEBSITE:
AIM India (aimincorp.com)

Their identity as the leading provider of professional wealth advisory in India and Abroad,
AIM India delivers a one stop solution/ service to achieve financial independence. Their
principle is to deliver high returns to their clients through the network of government sector
banks in India. Their comprehensive wealth management is a high-level professional
service that combines financial and investment advice in accounting, taxation services and
retirement planning. Their wealth management is much more than just investment advice
as we encompass all parts of an individual's financial life. They coordinate all the services
needed to manage client's money and plan for their own and family's current and future
needs. They maintain and increase their wealth based on individual's financial situation
goals and comfort level with risk.

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ORGANISATION NATURE/INDUSTRY TYPE
The investment sector is usually divided into security analysis and portfolio management.
At the heart of security analysis is the valuation of financial assets. Value in turn is a
function of risk and return. Both of these concepts are in the study of investment.
Submissions may be limited to the Fund's commitment to one or more assets that will be
held at any time in the future.
In today's fast-growing world, many opportunities are available, so to keep up with the
changes and capture the best opportunities in the field of investment, a professional fund
manager is necessary. Therefore, in the current scenario, portfolio management is rapidly
gaining importance as an investment option for net worth investors.
The company is basically a service and trading company. It gives its customers/clients a
service that means it is service and trading-based company.
When you invest in portfolio management, you own individual securities, unlike mutual
fund investors who own the entire fund. You have the freedom and flexibility to improve
your portfolio to meet personal preferences and financial goals. Although a portfolio
manager can monitor hundreds of portfolios, your account can be unique.
Organization Nature is Asset Management Company
Industry Type is Investment Industry in which company is operating
Portfolio Management is an art of identifying, selecting, creating and maintaining a
collection of different securities in which the total risk is minimized, and total return is
maximized while simultaneously meeting the long-term financial objectives of an
individual, client, company or an institution. It is investment of funds in different securities
in which the total risk of the portfolio is minimized, while expecting maximum return from
it. It primarily involves reducing risk rather than increasing return. All personal objectives
are different according to needs and risk perception of any investor. The ultimate objective
of any investor or portfolio manager is to achieve a level of required return with minimum
possible risk. The definition and measure of risk perception is different for different
investors and this measure is analysed by behavioural finance.
Company (AIM GROUPS (Accrual intelligence manuals Pvt. Ltd.)) has two specific
functional area such as MARKETING and FINANCE.
“Financial Investment is an allocation of monetary resources to assets that are expected to
yield some gain or return over a given period of time.” People invest money to derive a
future income in the form of interest, dividends etc.

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Company’s Vision and Mission

Visions of the Company

AIM INDIA vision is to deliver high rate of returns to their clients and to move towards
financial independence.
AIM INDIA vision is Enabling people to advance with confidence and success.
AIM INDIA vision is the access to diversified asset class around the world, we strive to
achieve and maintain a leading position in the industry by focusing on what matters most
to our clients today and in the future
Drawing on their investment capabilities, products and consulting services as a global asset
management company providing solutions for their clients’ financial needs, we aspire to;
• Be their clients' most trusted and professional asset management company.
• Provide products and services of the highest standard, employing their significant
expertise for all clients.
• Become a world-leading asset management company.

Missions of the Company

AIM INDIA mission is to become an organization that is knowledge centric and offers
expert advice to their clients.
AIM INDIA mission is to make their investor(s) prosper, their staff excel and to create
value for their stakeholders.
Asset Management organization name AIM INDIA provides products and services of the
highest standard, as their clients' most trusted partner in the asset management industry.
Their mission is to contribute to a sustainable economy and society through asset
management for the long-term benefit of their clients.
As an asset management firm, they recognize they play an important role in shaping the
future of their clients. Their mission is to offer a wide range of investment solution to
clients through good and volatile days.

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Product Range of The Company
AIM INDIA (Accrual Intelligence Manuals Pvt. Ltd.) is Service based Company.
Services that provided by the company are:
1. Internship services
2. Compliance services
3. Accounting services
4. Taxation services
5. Training and Development services
6. Recruitment services
7. Consulting services
8. Insurance services
9. Mutual Funds
10. Retirement planning
11. International Expansion services
12. Wealth Advisory services

Organization Structure of the Company

Asset management hierarchy refers to the management hierarchy that asset management
companies follow. An asset management company, long for AMC, is an entity whose sole
purpose is to invest a pool of funds into assets i.e., securities, mutual funds, hedge funds
etc. The pool of funds comes from the clients of the AMC. Given the critical nature of what
the company does, its management is crucial.
A basic description of the asset management company’s hierarchy structure is given below.
 Board of Directors
 Chief Executive Officer
 Audit committee/Risk Management committee
 Investment committee, Investment CC
 Departmental committee
• Human Resources Department
• Administrative Department
• Marketing Department
• Investment Management Department
• Property & Trust Management
• Operations Department

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Market Share and Position of the Company in Industry
Aim India is a private company so it is not listed that means company not have market
share.
Aims India Pvt Ltd is an unlisted private company incorporated on 15 October, 1984. It is
classified as a private limited company and is located in Kolkata, West Bengal. It's
authorized share capital is INR 25.00 lac and the total paid-up capital is INR 20.37 lac.
The current status of Aims India Pvt Ltd is - Active.
The last reported AGM (Annual General Meeting) of Aims India Pvt Ltd, per our records,
was held on 30 November 2021. Also, as per our records, its last balance sheet was
prepared for the period ending on 31 March 2021.
Pleasure in the job puts perfection in the work. AIM India Pvt. Ltd. is the dynamic
organization which thrives on smart working and also seeks to provide adequate
opportunities for AIM people to relish while working. The company involves the activities
like trips in India & Abroad, fun activities at workplace and various social events and this
is perceptible when you will join AIM India Group.
All through the year, various events are arranged which includes awarding ceremony for
best interns and employees. These events work as a motivation factor for the employees to
work more.

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 CHAPTER-II
Literature Review and SWOT Analysis

1. Prabhakaran K, Karthika P (2011), Identifying key factors influencing

individual investor’s decision to make portfolio choices is important to understand
their different investment behavior. This paper explores individual investor’s
preference for portfolio choices and provisionally investigates impacts of risk
tolerance and risk perception on their investment decision. Specifically, we decide
socioeconomic status difference in investment preference for portfolio choices with
respect to investor’s age, income level. Using chi-square analysis on investment
experiments to obtain some evidence from a sample of 200 respondents in survey;
our results indicate that investor’s decisions to make their portfolio choices are
significantly and negatively related to personal income level. This finding
implicates that investor with higher risk tolerance level shows higher likelihood to
make their investment decision on portfolio choices it is found that male investor
demonstrates much preference on portfolio choices with higher percentage of total
return.

2. Dr. Mayur Rao, Jagdish Luhar, Sandip Padhiyar, Investment in the Stock
market should be according to Risk return and past data analysis and ratios which
ensures the return on savings. Also, if an investor is investing in different sectors,
then it is also necessary to create a portfolio as per the Interest of investing in the
Stock market. By this research, we have researched that if an investor is investing
in whether public or non-public banking sector then on which basis they ought to
invest and within which bank. And as per secondary data how the portfolio is
created to invest in a different segment. Without portfolio management, an investor
may face losses in a different segment.

3. Ranjit Singh, Amalesh Bhowal (2012)- Risk perception of employees in

shareholders.
The analysis represents Associate in Nursing solely value of share doesn’t influence
shareholders to shop for securities however conjointly basically sturdy company
are vital to influence the shareholders. Also, past monetary Record are result on
equity shareholders.
4. Mukesh. H. V. (2015)- Investor’s perception on mutual fund for return, tax benefit
The investors lack awareness concerning Risk Behaviour. the way to react once the
market is opposite of our mindset. Hence, it becomes necessary to make awareness

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 among the investors through conducting seminars, workshops on the monetary
market, and revealed knowledge like newspapers, magazines, and journals.

5. Dr. M. Ramesh and N. Geetha (2011)- analysed the performance investment

behaviour
Performance investment behaviour is bothered with decisions about purchases of
little amounts of securities, deposits, mutual funds, insurance, bill Funds. The
investigator confirmed that their appearance to be a positive degree of correlation.
The result delineated investment provides to a person’s cash to achieve future
financial gain within the kind of interest
6. Patnaik and shah (2008)- foreign and domestic institutional investors in Indian
stock markets.
has analyzed the preferences of foreign and domestic institutional investors in
Indian stock markets. Global and domestic institutional investors both prefer larger,
widely spread firms and do not chase returns. However, we and evidence of strong
differences in the behavior of Global and domestic institutional investors.
7. Vyas, Madhuri; Singh, Sachin 2011- Risk Management in Banking Sector
This paper describes the key structure Part that needs to be in place before the
spiteful cycle of risk can be ruined. The fundamental idea behind this research paper
is why risk management is needed. It outlines some of the theoretical Depend on
modern bank risk management, with importance on market and credit risks. Banks
are often proud of their management of risk. Self-satisfaction may well be justified
for market and credit risks, but banks can learn much from industry about managing
operational risk Banks have been involved in a process of advancing their risk
management capabilities.
8. Prasanna Chandra, 2017- Investment analysis and portfolio management
This research focuses on fundamental modern developments and provides a guided
tour of the world of savings. It shows the background for portfolio management in
a proper manner and covers all the techniques used by professionals for analysing
and valuing investment substitutes and portfolio management to increase return on
investment.

9. Grable and Joo (1997), Grable and Lytton (1999), and Grable (2000) Financial
risk tolerance is defined as the maximum amount of uncertainty that someone is
willing to accept when making a financial decision. Although the importance of
assessing financial risk tolerance is well documented, in practice the assessment
process tends to be very difficult due to the subjective nature of risk taking (the risk

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 of investor willing to reveal their risk tolerance) and objective factors such as
Grable and Joo (1997), Grable and Lytton (1999), and Grable (2000). Risk
tolerance represents one person’s attitude towards taking risk. This indicated is an
important concept that has implications for both financial service providers (asset
management institution or other financial planner) and consumers (investors). For
the latter, risk tolerance is one factor which may determine the appropriate
composition of many assets in a portfolio which is optimal and satisfied investors
invest preference in terms of risk and return relative to the needs of the individual
investors Droms, (1987), Hallahan et al., (2004).

10. Barber and Odean (2001), Chen and Volpe (2002) There also have been studies
where researchers compared and established a relationship between risk appetite
with demographics and gender. Research done by Slovic in 1999 says that
demographics is one of the most fundamental determinants of risk perception.
Scholars like Barber and Odean (2001) in their research papers concluded that
gender plays an important role while taking risks. They believed men take more
risks than women. Chen and Volpe (2002) also discussed about the same issue
where they opined that women are considered to have less information and interest
in subjects like finance and economy than men and hence, their confidence is low
while taking any kind of financial risk. They are also considered to be largely
dependent on men for finances and hence cannot take finance related decisions on
their own. However, it is observed that these studies are much conservative and
were done in past which has very less significance in current day scenario. A study,
contradicting to the above-mentioned studies, done by Wagland in 2009 on
Australian university students, proved that gender is not a significant factor in risk-
taking and it also stated that there is no connection between the genders and
financial literacy. Hence, bringing down the curtain, it could be said that many
research outputs show that men are less risk averse than women. However, our
current study tries to find out if the same is the case in present day scenario or not.

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STRENGTH OF THE COMPANY

Below are the Strengths of AIM India in the SWOT Analysis:

1. Wide range of services to serve all categories and a strong focus on Finance and
Consulting.
2. Effective localization of services offerings for growth markets states like Delhi, Mumbai,
Bangalore.
3. Good services and wide distribution network
4. Competition can boost business in the division.
5. Focusing on one product can produce high quality “sophisticated” output.
6. Quick response to customer request.

WEAKNESS OF THE COMPANY

Here are the weaknesses of AIM India in the SWOT Analysis:

1. Brand lacks influence in the opinionated segment of early adopters especially in the
social media environment.
2. The result of the higher duplicate higher costs of the effort.
3. Customers will have to work with multiple departments if they want more than one
product/service.
4. The low share of assets across categories.
5. A product should be changed, dropped, or added that the recognized company may be
slow.

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OPPORTUNITIES OF THE COMPANY

Following are the Opportunities in AIM India of SWOT Analysis:

1. The demand for products and services in the industry in which the company operates is
growing,
2. A smooth policy of customs and tax burdens.
3. Development of information technologies in the field of Finance , increases the
possibility of creating new product solutions and reaching new customers,
4. Reduction of trade barriers (customs, tax) in international trade.
5. Favourable age structure of the population in the market served by the company.

THREATS OF THE COMPANY

The threats in the SWOT Analysis of AIM India are as mentioned:

1. Restriction of economic freedom by state authority
2. Higher costs of raising investment capital for the development of the company,
3. Difficult access to technology,
4. Very high costs of purchasing patents,
5. Pressure on the company to comply with excessive ethical standards.
6. New types of taxes,

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Objective of the study

1. To analyse the risk perception of equity investors of M/s AIM India.

2. To understand the portfolio management of equity investors of M/s AIM India.

3. To analyze the stock, its industry, and its peer group to provide earnings and
valuation estimates.

Scope of the Study

The benefit of the study for the researcher is that it helped to gain knowledge and
experience and also provided the opportunity to study and understand the various finance
practices performed by the Finance and Information technology Manager in an
organization.

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The Variations/Deviations in Practices Followed by The Company
INTERNSHIP
We provide domestic & international level internship. We have a team of
experienced educational and training professionals who can provide
services/solutions for clients. Exposure to interns in mixed specialization i.e.,
HR and Marketing which will result in the implication of their theoretical
knowledge into corporate world.

WEALTH ADVISORY
We are having experts who are helping individuals in managing their wealth.
These experts are also providing consultancy services regarding financial and
investment sector to individuals so that they can secure the financial future for
themselves and their family.

ACCOUNTING
We will help you in maintaining books to give you strategic insight of the
financial position of your company.

CONSULTING
Helping customers providing professional or expert advice in wealth
maximization, carrier planning etc. and we also guide them in taking crucial
decisions.

TRAINING & DEVELOPMENT

AIM India Training specialists includes professionals in Marketing, HR and
Finance. They will help employees and interns in learning values which are
needed in the corporate world to enhance propositions which will help them
in making their career.

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TAXATION
Tax Management is required in every organisation but due to its strenuous
process, it can be difficult to manage at higher levels. Our Professionals are
flexible in their approach and provide services according to the needs of
clients.

RECRUITMENT
Our objective is to fulfill professional commitments and value-added services
in terms of recruitment of quality manpower. We have been providing our
recruitment services to the known names in all sectors.

INSURANCE
Life insurance is an act of love. Let's talk about protecting what matters the
most.
Our motto is to provide coverage at affordable premiums, our underwriters
will provide you required coverage efficiently & effectively.

MUTUAL FUNDS
Never depend on single income. Make investments to create a second source.
Mutual funds have historically offered safety & diversification & they spare
you from the responsibility of picking the individual stocks.

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 CHAPTER-III
Data Presentation and Analysis

A. Data Collection
Data Sources

Collection of data is the most essential part of this study as it gives the first-hand knowledge
about customers’ and investors’ psychology and decision making. The task of collecting
data begins after a research problem has been defined and plan is chalked out. For this
study, the research is conducted and insights are captured using both primary data such as
surveys, questionnaires, personal interviews, and secondary data like data thorough review
of journals, stock market analysis, research papers etc.

Primary research is conducted by generating leads through references, personal contacts

and other sources. This is done in order to understand and analyse about the psychology of
equity investors while investing in stock market and other portfolios. This would also give
an insight about the mentality of new investors and their strategies while entering
investment market. The research was both qualitative and quantitative in nature with a mix
of closed and open-ended questions. Secondary research was also done in order to
understand about the studies that are already done and to give a background information
about the topic. This was done through magazines, books, reading journals, articles etc.

Research Approaches

There are different ways to collect primary data such as through observations like
ethnographic research, focus group, surveys, experiments, behavioural research and so on.
To efficiently fulfil the purpose of the study and gather relevant data, surveys and personal
interview is used. Survey approach is undertaken in order to assess people’s knowledge,
attitudes, choices and satisfaction related to investment choices. Surveys were conducted
in online mode like through LinkedIn, WhatsApp. In addition to this, an online survey was
also conducted to gather more appropriate data. The survey was kept short and simple so
as to make it easier for respondents to understand and answer it appropriately.

Research Instrument

Research instrument is the tool for collecting primary information through various methods
discussed above. There are three main options of research instrument that a researcher can
choose from, such as, through questionnaires, qualitative measures, and technological
devices. The research instrument that is used, in this study, to collect primary data is
majorly through questionnaires and sometimes through qualitative research options like
word associations.

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Development of the Questionnaire

A questionnaire is considered to be the most flexible, structured, and efficient way of

collecting primary data as it is cost and time effective. In this survey, a self-administered
questionnaire is prepared and used to gather the data from the respondents. The survey is
conducted using close- ended. A five-point likert scale is used to analyse the risk appetite
of the investors. In order to understand the various objectives for which an investor invests,
rating scale was used. Other Multiple-Choice Questions (MCQs) were also used to
understand their demography and financial literacy. Open ended questions were asked only
during the personal interviews to dive deep into the psychology of an investor. No open-
ended questions were used in the questionnaire.

Sampling

Sampling Unit: In order to have an overall understanding of the research perspective of

investors, the data is collected from investors who have an experience in trading, brokers
who usually deals with people who wants to invest, novice investors who are new to
investing in risky assets and lastly, people who do not have an experience in asset market
but want to invest and have a knowledge of stock market and financial markets in general.

Sampling Size: It is often said that large samples are much more reliable and hence, an
attempt was made to gather as much data as possible. The data from 57 respondents
residing in Delhi were gathered. However, due to incomplete information, 2 of the
responses were discarded and 55 were accepted. Hence, a sample of 55 respondents is used
to complete the survey and analysis of this report.

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B. Data Presentation
1. Demographic Profile of The Respondents
Age of the respondents
Age Frequency Percentage

Below 18 4 8%

18-40 47 84%

Above 18 4 8%

Total 55 100%

Occupation of the Respondents

Marital Status of the Respondents

Marital status Frequency Percentage

Married 3 6%

Single 52 94%

Total 55 100%

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Age presentation: where 85.5% respondents belong to 18-40 age group, 7.3%
respondents belong to below 18 age group and rest 7.3% respondents belong to above 40
age group.

Marital status presentation: where 94.5% respondents are single, and 5.5% respondents
are married.

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 2. Presentation and Analysis

Question - 1 Frequency Percentage

Yes 42 76.4%

No 13 23.6%

Total 55 100%

Interpretation: 76.4% (42 out of 55) people/respondents are aware about the investment
option available in the market and 23.6% (13 out of 55) people/respondents are aware
about the investment option available in the market.

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 Question - 2 Frequency Percentage

Return 19 34.5%

Tax benefits 9 16.4%

Risk covering 1 1.8%

Capital appreciation 9 16.4%

Liquidity 10 18.2%

Others 7 12.7%

Total 55 100

Interpretation: 34.5% (19 out of 55) people/respondents make investments for

RETURN, 18.2% (10 out of 55) people/respondents make investments for LIQUIDITY,
16.4% (9 out of 55) people/respondents make investments for TAX BENEFITS, 16.4%
(9 out of 55) people/respondents make investments for CAPITAL APPRECIATION,
12.7% (7 out of 55) people/respondents make investments for OTHERS, and 1.8% (1 out
of 55) people/respondents make investments for RISK COVERING.

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Question - 3 Frequency Percentage

Risk 3 63.6%

Return 17 30.9%

Both 35 5.5%

Total 55 100%

Interpretation: 63.6% (35 out of 55) people/respondents consider BOTH (RISK and
RETURN) the most important factor at the time of investment, 30.9% (17 out of 55)
people/respondents consider RETURN the most important factor at the time of investment,
and 5.5% (3 out of 55) people/respondents consider RISK the most important factor at the
time of investment.

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 Question - 4 Frequency Percentage

Mutual funds 14 25.5%

Shares 16 29.1%

Bonds 2 3.6%

Commodities 5 9.1%

Fixed deposits 4 7.3%

Property 12 21.8%

Others 2 3.6%

Total 55 100%

Interpretation: 29.1%(16 out of 55) people/respondents thinks SHARES is the best to get
the best returns, 25.5% (14 out of 55) people/respondents think MUTUAL FUNDS is the
best to get the best returns, 21.8% (12 out of 55) people/respondents think PROPERTY
is the best to get the best returns, 9.1% (5 out of 55) people/respondents thinks
COMMODITIES MARKET is the best to get the best returns, 7.3% (4 out of 55)
people/respondents thinks FIXED DEPOSITS is the best to get the best returns, 3.6% (2
out of 55) people/respondents thinks BONDS is the best to get the best returns, and 3.6%
(2 out of 55) people/respondents thinks OTHERS is the best to get the best returns.

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Question - 5 Frequency Percentage

Upto 15% 18 32.7%

15-25% 16 29.1%

25-35% 12 21.8%

More than 35% 9 16.4%

Total 55 100%

Interpretation: UPTO 15% prospects that people/respondents apply to increase their

income from investing is 32.7% (18 out of 55), 15-25% prospects that people/respondents
apply to increase their income from investing is 29.1% (16 out of 55), 25-35% prospects
that people/respondents apply to increase their income from investing is 21.8% (12 out of
55), and MORE THAN 35% prospects that people/respondents apply to increase their
income from investing is 16.4% (9 out of 55).

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Question - 6 Frequency Percentage

Satisfactory return 16 29.1%

Burned finger 9 16.4%

Unsatisfactory results 10 18.2%

No 20 36.4%

Total 55 100%

Interpretation: 29.1% (16 out of 55) people/respondents who are investing in share
market have experienced SATISFACTORY RETURN, 16.4% (9 out of 55)
people/respondents who are investing in share market have experienced BURNED
FINGER, 18.2% (10 out of 55) people/respondents who are investing in share market have
experienced UNSATISFACTORY RESULTS, and 36.4% (20 out of 55)
people/respondents who are investing in share market have experienced NOTHING.

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 Question - 7 Frequency Percentage

Yes 19 34.5

No 36 65.5

Total 55 100%

Interpretation: 65.5% (36 out of 55) people/respondents are using Portfolio Management
Services (PMS) and 34.5% (19 out of 55) people/respondents are not using Portfolio
Management Services (PMS).

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 Question - 8 Frequency Percentage

Self 29 52.7%
Depends on the company for portfolio 5 9.1%
Investment tips 5 9.1%
Brokerage 6 10.9%

Research 9 16.4%
Services 1 1.8%
Total 55 100%

Interpretation: , 52.7% (29 out of 55) people/respondents manage their portfolio by

SELF, 16.4% (9 out of 55) people/respondents manage their portfolio by RESEARCH,
10.9% (6 out of 55) people/respondents manage their portfolio by BROKERAGE, 9.1%
(5 out of 55) people/respondents manage their portfolio by INVESTMENT TIPS, 9.1%
(5 out of 55) people/respondents manage their portfolio by DEPENDS ON THE
COMPANY FOR PORTFOLIO, and 1.8% (1 out of 55) people/respondents manage
their portfolio by SERVICES.

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Question - 9 Frequency Percentage

Aman 26 47.3%

Bobby 10 18.2%

Both are equally rich 9 16.4%

Do not know 10 18.2%

Total 55 100%

Interpretation: Above analysis states that, 47.3% (26 out of 55) people/respondents say
AMAN is richer, 18.2% (10 out of 55) people/respondents say BOBBY is richer, 16.4%
(9 out of 55) people/respondents say BOTH ARE EQUALLY RICH, and 18.2% (10 out
of 55) people/respondents DO NOT KNOW is richer.

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Question - 10 Frequency Percentage

More than today 14 25.5%

Less than today 21 38.2%

Equal to today 5 9.1%

Do not know 15 27.3%

Total 55 100%

Interpretation: Above analysis states that, 25.5% (14 out of 55) people/respondents think
MORE THAN TODAY, 38.2% (21 out of 55) people/respondents think LESS THAN
TODAY, 9.1% (5 out of 55) people/respondents think EQUAL TO TODAY, and 27.3%
(15 out of 55) people/respondents DO NOT KNOW.
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C. Data Interpretation
I. 76.4% (42 out of 55) people/respondents are aware about the investment option
available in the market and 23.6% (13 out of 55) people/respondents are aware
about the investment option available in the market.

II. For which purpose do you made investments? 34.5% (19 out of 55)
people/respondents make investments for RETURN, 18.2% (10 out of 55)
people/respondents make investments for LIQUIDITY, 16.4% (9 out of 55)
people/respondents make investments for TAX BENEFITS, 16.4% (9 out of 55)
people/respondents make investments for CAPITAL APPRECIATION, 12.7% (7
out of 55) people/respondents make investments for OTHERS, and 1.8% (1 out of
55) people/respondents make investments for RISK COVERING.

III. According to the Data analysis, 63.6% (35 out of 55) people/respondents consider
BOTH (RISK and RETURN) the most important factor at the time of investment,
30.9% (17 out of 55) people/respondents consider RETURN the most important
factor at the time of investment, and 5.5% (3 out of 55) people/respondents
consider RISK the most important factor at the time of investment.

IV. Above analysis says 29.1%(16 out of 55) people/respondents thinks SHARES is
the best to get the best returns, 25.5% (14 out of 55) people/respondents think
MUTUAL FUNDS is the best to get the best returns, 21.8% (12 out of 55)
people/respondents think PROPERTY is the best to get the best returns, 9.1% (5
out of 55) people/respondents thinks COMMODITIES MARKET is the best to get
the best returns, 7.3% (4 out of 55) people/respondents thinks FIXED DEPOSITS
is the best to get the best returns, 3.6% (2 out of 55) people/respondents thinks
BONDS is the best to get the best returns, and 3.6% (2 out of 55)
people/respondents thinks OTHERS is the best to get the best returns.

V. UPTO 15% prospects that people/respondents apply to increase their income from
investing is 32.7% (18 out of 55), 15-25% prospects that people/respondents apply
to increase their income from investing is 29.1% (16 out of 55), 25-35% prospects
that people/respondents apply to increase their income from investing is 21.8% (12
out of 55), and MORE THAN 35% prospects that people/respondents apply to
increase their income from investing is 16.4% (9 out of 55).

VI. 29.1% (16 out of 55) people/respondents who are investing in share market have
experienced SATISFACTORY RETURN, 16.4% (9 out of 55) people/respondents
who are investing in share market have experienced BURNED FINGER, 18.2%
(10 out of 55) people/respondents who are investing in share market have
experienced UNSATISFACTORY RESULTS, and 36.4% (20 out of 55)

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 people/respondents who are investing in share market have experienced
NOTHING.

VII. Are you using portfolio management services (PMS)? 65.5% (36 out of 55)
people/respondents are using Portfolio Management Services (PMS) and 34.5%
(19 out of 55) people/respondents are not using Portfolio Management Services
(PMS).

VIII. According to the Data analysis, 52.7% (29 out of 55) people/respondents manage
their portfolio by SELF, 16.4% (9 out of 55) people/respondents manage their
portfolio by RESEARCH, 10.9% (6 out of 55) people/respondents manage their
portfolio by BROKERAGE, 9.1% (5 out of 55) people/respondents manage their
portfolio by INVESTMENT TIPS, 9.1% (5 out of 55) people/respondents manage
their portfolio by DEPENDS ON THE COMPANY FOR PORTFOLIO, and 1.8%
(1 out of 55) people/respondents manage their portfolio by SERVICES.

IX. If Aman inherits Rs. 10,000 today and Bobby inherits Rs. 10,000 3 years from now.
Who do you think is richer due to this inheritance?
Above analysis states that, 47.3% (26 out of 55) people/respondents say AMAN is
richer, 18.2% (10 out of 55) people/respondents say BOBBY is richer, 16.4% (9
out of 55) people/respondents say BOTH ARE EQUALLY RICH, and 18.2% (10
out of 55) people/respondents DO NOT KNOW is richer.

X. If interest rate on your savings account is 1% per year and inflation rate is 2% per
year. After 1 year how much will you be able to buy with the amount in your
account?
Above analysis states that, 25.5% (14 out of 55) people/respondents think MORE
THAN TODAY, 38.2% (21 out of 55) people/respondents think LESS THAN
TODAY, 9.1% (5 out of 55) people/respondents think EQUAL TO TODAY, and
27.3% (15 out of 55) people/respondents DO NOT KNOW.

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 CHAPTER-IV
Summary and Conclusions

CONCLUSION
1) It is observed that the overall risk perception of investors lies between moderate to
high level with very minute difference between the two levels. Since, maximum
frequency lies in the moderate level, we can conclude that majority of investors
have an overall risk perception of moderate level. This is a little different from the
findings of other researchers where they concluded that people have high level of
risk perception.

2) The decision-making process is complicated and does not only depend on risk-
return relationship. People make decision based on the importance of the objectives
as well. The objectives could be tax savings, capital appreciation, dividends etc.
Investors who look for tax saving options do not trade and keep their investment
for long term or they invest in fixed deposits where they do not have to pay extra
tax on the appreciation. Capital appreciation is one of the most important objectives
for all the investors. Also, very few investors find it important to have a quick short-
term gain on their investment avenue.

3) It is also observed that demographic identity of an individual like age, marital status
and gender does not affect the choice of investment of an individual. However,
experience and financial literacy do have a significance on the level of risk of an
investor and his choice of investment avenue. The results are inconsistent with the
previous study done by Chen and Volpe (2002) and Barber and Odean (2011) who
opined that gender plays an important role in decision making.

4) There is also a direct relationship between experience of an investor in stock market

and his risk-taking capacity. In other words, if the experience of an investor
increases in the stock market, he becomes more confident and starts taking more
risk as long as that risk is proven to be fruitful due to loss aversion personality bias.
Exposure to a risky situation influences a person to make an investment in a risky
asset.

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5) Cognitive dissonance of an investor plays a major role in selecting the investment
type. As we could conclude from the personal interviews, investors often find
themselves in dilemma as to which investment option to choose from. In this case,
majority of them said that more than their knowledge, they believe on their gut
feeling.

6) When asked investors about the thoughts that come to their mind when they think
about stock market, major responses were that they feel stock markets give them
huge returns in the way of dividends and capital appreciation. Moreover, non-
investors feel that they would like to give a chance in stock market if they are given
proper knowledge about stocks, assets and trading by their stock brokers.
Individuals also trust more on their stock brokers than their own knowledge and
research on equity market.

7) One major fact that is observed while taking interviews was that people with high
or very high level of risk appetite also invest in other safe avenues like government
bonds, or fixed deposits. They do not let their entire investment expose to high risk.
Also, when asked about least fluctuated financial market majority of them answered
mutual funds to be least fluctuated which seems absurd as even mutual funds are
subject to market risk and are not the safest options to invest in. Majorly, moderate
risk takers invest a large chunk of their money in safer options like Mutual funds,
Life insurance or PPF and rest of the money in stock market. Whereas investors
with high or very high-risk perception go for equity market, forex with majority of
their money. Some of them also try to invest in real-estate.

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RECOMMENDATIONS/SUGGESTIONS
1) Most of the respondents showed keen interest in equity market but they have a low-
risk appetite because of lack of knowledge about how to invest, where to invest and
so on. Hence, an attempt should be made to increase the awareness about equity
market among general public. An attempt should also be made to not just improve
the knowledge about equity market but about finance in general. As table 9.1
suggest that investors do not have much knowledge about complex finance
concepts.

2) Efforts should be made to popularize equity markets through various social media
measures and create awareness as some people think that taking high risk would
mean less returns. Efforts could be made to make people understand that in long
run, the chances of loss become highly negative.

3) More new studies should be conducted to understand about latest relationship

between demography, risk taking appetite and choice of portfolio as the available
studies have become outdated and does not align with my study of investors where
there is no relationship between gender, marital status and risk perception.

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 References/Bibliography

1) Websites- AIM India, Google Scholar,

2) Bhattacharjee, Jayashree, and Ranjit Singh. 2017. Awareness about equity

investment among retail investors: A kaleidoscopic view- Qualitative Research in
Financial Market.

3) Barber, B. M. Odean, T, 2001. Boys will be Boys: Gender, Overconfidence, and

Common Stock Investment. The Quarterly Journal of Economics, 116(1), pp261-
292

4) Deb, Sujit, and Ranjit Singh. 2016. Impact of Risk Perception on Investors
towards their Investment in Mutual Fund. Pacific Business Review International

5) Deb, Sujit, and Ranjit Singh, 2018. Risk perception dynamics of mutual fund
investment decisions. Iranian Journal of Management Studies.

6) Dr. P. Amraveni and Mrs. M Archana, 2017. A Study of Investor’s Behaviour

Towards Various Investment Avenues in Warangal City. Asia Pacific Journal of
Research in Business Management, 8(7), pp 32-48.

7) Ranjit Singh and Jayashree Bhattacharjee, 2019, Measuring Equity Share

Related Risk Perception of Investors in Economically Backward Regions.

8) Rooij, M. V., Lusardi, A., Alessie, R., 2011. Financial Literacy and Stock
Market Participation. Journal of Financial Economics. pp 449-472.

9) Singh, Ranjit, and Amalesh Bhowal, 2008. Risk Perception- The Theoretical
Kaleidoscope. Vanijya, 18, pp 54–63.

10) Veld, Chris, and Yulia Veld-Merkoulova. 2008. The risk perceptions of
individual investors.

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 Annexure/Questionnaire

Q1. Are you aware about the investment option available in the market?
o Yes
o No
Q2. For which purpose do you make investments?
o Liquidity
o Return
o Tax benefits
o Risk covering
o Capital appreciation
o Others
Q3. At the time of investment what are the most important factor you consider?
o Risk
o Return
o Both
Q4. Which is the best will you get the best returns?
o Mutual funds
o Shares Bonds
o Commodities market
o Fixed deposits
o Property
o Others
Q5. How many prospects do you apply to increase your income from investing?
o Upto 15%
o 15-25%
o 25-35%
o More than 35%
Q6. If you are investing in a share market, what have you experienced?
o Satisfactory return
o Burned finger
o Unsatisfactory results
o No

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Q7. Are you using portfolio management services (PMS)?
o Yes
o No
Q8. How do you manage your portfolio?
o Self
o Depends on the company for portfolio
o Research
o Brokerage
o Services
o Investment tips
Q9. If Aman inherits Rs. 10,000 today and Bobby inherits Rs. 10,000 3 years from now.
Who do you think is richer due to this inheritance?
o Aman
o Bobby
o Both are equally rich
o Do not know
Q10. If interest rate on your savings account is 1% per year and inflation rate is 2% per
year. After 1 year how much will you be able to buy with the amount in your account?
o More than today
o Less than today
o Equal to today
o Do not know

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 Bhagwan Parshuram Institute of Technology

School of Business Administration

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