Research Methodology

Title: A comparative analysis on the returns given by Gold or Equity over a period of 2 years. Problem Statement: This study proposes to analyse the performance of Gold and Equity over a period of 2 years. Objectives: 1. To analyse the returns produced by Gold over a period of 2 years. 2. To analyse the returns produced by Equity over a period of 2 years. 3. To analyse which of the two have performed better.

Review of Literature 1. Government Hikes Gold Import Duty Upto 6% Dated 23rd January, 2013 The Economic Times Government announced its decision to increase the import duty on Gold from 4% to 6% in order to reduce the rising demand of Gold in the Indian market. The Finance Ministry had also directed Gold ETFs to park a part of their Gold holdings wid the Banks so that the demand for Gold is met from the Domestic Sources. They also eased the terms of the Gold Deposit Schemes for the same reason. These steps were taken due to the increasing Current Amount Deficit5.4%. A duty of . 180 per gram had to be paid on account of the increase. These measures resulted in an increase in the price of Gold in the Bullion Market of Rs. 315 per 10 grams and an increase of almost 1% in Gold Futures.

2. Gold Outshines Equity, Other Asset Classes, Assochan Study says Udit Prasanna Mukherji, TNN 23rd September, 2012. The study states that Gold has outperformed equity over a period of time. Whereas equity had given negative returns over the last three years. This was proved by the statistics in 2009, Gold was selling at Rs. 15,000 - 15,500 per 10 grams and sensex was trading at 17,711. By the end of 2012, Gold was trading at approximately 31,000 per 10 grams whereas equity was trading approximately at 20,873. This proved that Gold had given almost double the returns and equity had eroded the investors income.

3. Top five Sensex predictions for 2013. NDTV - Updated on 31st December, 2012. The article stated the performance of Sensex during 2012. Sensex jumped by nearly 26% growth in Japan, Nikkei 225 and 6% Dow Jones Average. Major Companies had also predicted the performance of Sensex in 2013.

1. Morgan Stanley expects the market to show a bullish trend and Sensex to go upto 23097 i.e., 18% rise. 2. Citi Sensex targeted of 20,800 which implies 7% increase. Bank of America Merrill lynch - Sensex targeted of 21,750 which indicated 11% increase. 4. BNP Paribas Sensex targeted 21,300, a 95 growth from the current level. 5. UBS Targeted Nifty of 6,350, a 7% increase.

4. Equity or Gold: Which is a better investment option?? Dated 17th November, 2012. The Economic Times The article talks about the returns generated by both Equity and Gold over a period of time. It states that the returns made by Gold over the past five years, outshines the gains made by Nifty by big margins. In absolute terms, the prices of the yellow metal i.e., Gold had risen almost 200% from January, 2008 till the date while Nifty had generated -8% during the same period.

Research Design This study is about the comparative analysis between performance of gold and equity over a 2 year period. This study will analyze the returns produced by Gold and equity over a period of two years. Method Of Data Collection Secondary Period Of Study This study will be carried out for a period of 15days. Limitation Of Study Its is secondary in nature.