A

PROJECT REPOET
ON
“A STUDY ON PREFERENECES OF INVESTER PERCEPTION
TOWARDS INVESTMENT AVENUE IN RAJKOT CITY”
“MARWADI SHARES AND FINANCE LIMITED”
SUBMITED TO
“ATMIYA INSTITUTE OF TECHNOLOGY & SCIENCE”
IN PARTIAL FULFILMENT OF THE
REQUIRMENT OF THE AWARD FOR THE DEGREE OF
“MASTER OF BUSINESS ADMINISTRATION”
UNDER
GUJARAT TEHNOLOGICAL UNIVERSITY
UNDER THE GUIDENCE OF
FACULTY GUIDE COMPANY GUIDE
PROF. ALPESH SHAH MISS. LEENA PUROHIT
SUBMITED BY
THUMAR RUTVI KANTIBHAI
ENROLMENT NO.: 177030592111
M.B.A - SEMESTER - 3
ATMIYA INSTITUTE OF TECHNOLOGICAL & SCIENCE
M.B.A PROGRAMME

AFFILIATED GUJARAT TECHNOLOGICAL UNIVERSITY

AHMEDABAD

JULY 2018
COMPANY CERTIFICATE
 PREFACE

Practical training has been incorporating the studies of MBA, which make the
management studies to conclude themselves with the practical vision of management.
This is very important useful as it cultivates in the student understanding of
professionalism and makes them ready to face the real life challenges in their concerned
future. Thus a student gets theoretical aspects and in classroom and how these are
applied in practical training in industry.

The main purpose of practical training is to develop experimental knowledge &

consciousness about industrial environment and business practices in the students as an
augmentation to theoretical studies of administration and management in specific area
like Finance, Marketing, HRM, Logistics etc., it increases the skill, abilities and
attitude to perform specific job in industrial environment.

Luckily, I got golden opportunity to visit and complete my one and half months
training at MARWADI SHARES AND FINANCE LIMITED. I got a chance to see
the functioning of Quality Management & absorb a lot learning of subjects.
 ACENOWLEDGEMENT

It was a great opportunity for me to get Summer Training with a financial

organization like “MARWADI SHARES AND FINANCIAL PVT.LTD.”

I am very glad to present this report before you all whose work and ideas have been
so helpful in working out on this project report. As I carried our way towards the
completion of this project, I had many people involved directly or indirectly and all
guiding me, directing and motivating me towards attaining my goal.

I would like to knowledge the following who contributed materially towards the
project. First I would like to thank PROF. ALPESH SHAH, MISS LEENA
PUROHIT and all administrative staff of Marwadi Shares and Finance Limited for
their guidance and support.

I am greatly thankful to director to Mr.KetanMarwadi, Mr.SandeepMarwadi,

Mr.DevenMarwadi for giving me opportunity to work in Marwadi.

Last but not least, I am thankful to ATMIYA INSTITUTE OF TECHNOLOGY &

SCIENCE for including this project report as an aspect of our M.B.A. program, which
exposes us to actual business environment.
 DECLERATION

I RUTVI THUMAR, hereby declare that the report for “Summer Internship
Project Report” entitle “A STUDY ON PREFERENCES OF INVESTORS
PERCEPTION TOWARDS INVESTMENT AVENUE” is a result of my own work
and my indebtedness to other work publications, reference, if any, have been duly
acknowledged.

Date:

Place: Rajkot

RUTVI THUMAR
 EXECUTIVE SUMMERY

The only aim of SIP is not have a one - way approach that is not only the benefit of
the students but also the company should be benefited.

The value addition done by me and the survey has been conducted by me. The
survey carried out was “A STUDY ON PREFERENCES OF INVESTORS
PERCEPTION TOWARDS INVESTMENT AVENUE”.

The survey includes things like number of investor, which medium they prefer for
investment, how they do financial planning, purpose behind the financial planning, etc.

I carried a survey of 100 people by formulating a questionnaire which is attached at

the end.
 TABLE OF CONTENTS

Sr. No. Particulars Page No.

Preface

Acknowledgement

Declaration

Executive Summary

1.0 Part - 1 Industry Information

1.1 About the Industry

1.2 Indian Market

1.3 The growth of the Industry

2.0 Part - 2 Organization

Information

2.1 About Organization

2.2 Introduction to Functional

Department

Finance

Marketing

HR
 IPO Department

2.3 Organization Structure

2.4 SWOT Analysis

3.0 Part - 3 Primary Study

3.1 Introduction to the study

3.2 Literature Review

3.3 Background of the study

3.4 Problem Statement

3.5 Research Objective

4.0 Research Methodology

4.1 Research Design

4.2 Sources of data

4.3 Data Collection Method

4.4 Population

4.5 Sampling Method

4.6 Data Analysis & Interpretation

5.0 Findings

5.1 Conclusion

5.2 Limitation of the study

6.1 Reference / Bibliography

Annexure
 1.1 About Industry

Introduction:

Capital is a crucial factor in the development of an economy. The pace of economy

development is conditioned, among other things, by the rate of capital information. And
capital formation is conditioned by the mobilization and channelization of investment
funds. The role of the financial system is to channel funds from surplus sectors to
deficit sectors. Facilitating and effective demand and thus accelerates economic
development.

Savings is important part of the economy of any nation. Now a day various options
are available in investment. The money act is main object of growth of country. Indian
financial scene too presents a plethora of avenue to the investors. Though certainly not
the best or deepest of markets in the world. It has reasonable options for an ordinary
man to invest his savings.

What is investment?

In a theoretical way, investment is a process of sacrificing something today for the

possibility of gaining something in future or Investment is an agreement for a current
outflow of money for some period of as well as the uncertainty regarding to the inflow
of the money in futures.

In economics, investment is the collection of newly produced physical entities such

as factories, machinery, houses and goods investors.

In Finance, the purchase or possession of an assets or item having monetary value

with the hope that it will generate income or appreciate in the future and be sold at the
higher Income is called as making an investment.

Classification of Investment:

Investment divided in to two part, economic investment and financial investment.

(1) Financial Investment: It means fund of people in the form of assets with the
object of earning extra income in the value of investment in future. Assets which are
 the depended on subject matter of investment may be varying be risky and safe
once.

(2) Economic Investment: It is a different from financial investment. The term

‘Economic Investment’ derived net addition to the capital stock of the society.
Capital stock of society it means those goods and services which are used in the
production of goods and services.

Factor Determining Investment: The activities related to investment consist of

acquisition of assets, their maintenance and the liquidation of assets. A good
investment should facilitate these investment activities and factors their growth. There
are certain factors which are the growth of investment. As investment is the result of
savings, the government should introduced adequate measures to encourage saving
accumulation. The right of the investor who have invested their surplus in assets should
be protected against any possible infringement.

Well organized monetary system:

It is essential of the growth of the investment market. Investment consist of convey

of surplus funds in specific assets. In fact it should constant price level, which in turn
will contribute to a discipline investment market.

Role of financial institutions:

Financial institutions mobilize saving and convey them for productive use in
industry. There are two types of financial institution in the market. Development
institution and Investment institution. Such as, ICICI, IDBI, IFCI, etc. Which have
been performing to all India basis and State level bodies such as state finance and
development? These financial institutions give support for saving and investment.

Macro-Household saving and investment:

As per the RBI data, published from time to time financial saving and physical
assets held by households are available for discussion. During recent years the data
shows that the net investment in financial assets and net physical assets are in the ratio
of about 45% and 55%, respectively.
OBJECTIVE:

l There are main three objective of investment - safety, income, growth of capital

l An investor may invest to get benefit in tax reduction.

l And another objective is Marketability/Liquidity.

l Investment is helpful to generate income of individual.

 INVESTMENT AVENUES

Bullions &
Jewelleries
Bank &
Postoffice Real Estate
Deposite

Investment
avenue
Mutual Insurance
Funds Polices

Capital Money
Market Market
Instrument Instrument
 INVESTOR PERCEPTION:

Perception is a kind of process of attaining awareness or understanding of the

environment by organizing and interpreting information. Investment perceptions on the
basis of occupation, marital status etc. Fundamental investment rules and principals are
same like, investment climate and investor behaviour change from time to time and
place to place. Investor perception is individual. They collect available and relevant
information for making decision.
 1.2 INDIAN MARKET

Why do people invest? Generally people invest because of get long term financial
benefit. It’s to save and invest money for long period of time to have a financial
stability in future. Investment is to make our money work for us. There are many
investment avenue are available in India.

1. Investing a Mutual Fund:

People generally choose to invest in mutual fund. Nowadays trend is money invest
in mutual fund. One of the best investment options is mutual fund for a systematic
investment plan. This investment plan is give a better return compared to any another
investment option in the market. Many company introduce mutual fund like L&T
Infrastructure Fund introduce in September 27, 2007 and Aditya Birla Sun Life
Frontline Equity Fund introduce in August 30, 2002.

2. Capital market instrument:

Generally people know how to analyse share stock before going to buy direct
equity or share. In this case no limit of maximum amount or minimum amount. In
this case not applicable minimum investment period.

One of the best investment options is Invest in Bonds. They actually provided
a high rate of return on investments. There bonds that are under the regulation of
government. There are various short term and long term investments option are
provide. High investment leads to high risk and more return.

3. Real Estate Investment:

Real estate is one of the fast growing sectors in India. In area major sector like
housing, commercial, hospitality, manufacturing, retail and more. Best decision in
investment purchasing flat or plot. In this area risk is low because rate of property
increases within 6 month.
 4. Investing in Gold in Various Ways:

Gold is one of the oldest and most popular investment products, as the value of
gold increases move fast. Gold investment benefit given in the short period of time.
Any gold investment format such as Gold Deposit Scheme, Gold ETF, Gold
mutual fund etc.

Indian Gold ETF Investment options, with their return rates:

Mutual Fund 1 Month 3 Month 6 Month 1 Year 2 Year 3 year 5 year

Scheme

SBI - ETF Gold -1.5 13.2 8.1 10.7 1.6 2.5 5.7

Quantum Gold -1.6 13.1 8 10.5 1.5 2.4 5.6

fund

HDFC Gold -1.5 13.2 8.1 10.3 1.4 2.3 5.5

Exchange

Traded Fund

5. Post Office Saving Schemes:

This is best option in investment. That ensures the highest return. Post Office
Scheme is monthly income plan. So this is very suitable for retired people with
regular income requirement. In this area does not have related any risk factor but
interest is low. This is government saving scheme. Many requirements and benefits
are included,

Ø Maximum investment limit in single account Rs. 4.5 Lakh.

Ø Maximum investment limit in joint account Rs. 9 lakh.

Ø Minimum eligibility age 10 and above.

Ø Single account can be converted it joint and vice versa.

6. Insurance Plans:

It is best investment option in India. It invests in debt and equities market. In

this area fluctuation is counted by the Net Asset Value. It is also known as ULIP. It
is play important role in investment market.

7. Company Fixed Deposits:

Company FD gives higher rate interest. Generally people selected investment

period very carefully. This schemes are not under any insurance benefits and
neither it is under control of the Reserve Bank of India. It is long term investment.

8. Money market instrument:

The money market is important for businesses because it allows companies

with temporary cash to invest in short term securities. The money market is the
arena in which financial institution make available to a broad range of borrowers
and investors the opportunity to buy and sell various forms of short term securities.

l Treasury bills

l Federal agency notes

l Certificates of deposit

l Eurodollar deposits

l Commercial paper
 1.3 THE GROWTH OF THE INDUSTRY

1. Real Estate:

The real estate sector is one of the most developing sectors. In India real estate is
second largest employment generated industry after agriculture. It is estimated that it
will grow up to 30% in next decades. The growth of this sector is depending upon
environment and demand of the country.

2. Mutual Fund:

The mutual fund increases of around 2.2 million new investors during 2014-15.
The total number of investors are 4.17 crore at the end of the month in March 2015 as
compared to 2014, in 2014 it was 3.95 crore. ICICI prudential is registered as the fastest
growing industry of 25% with the total investor. Similarly Birla sun life is growing with
growth of 20% to 24.26 lakhs from 20.19 lakh investors. HDFC mutual fund is one of
the country’s largest fund houses.

3. Gold:

“India is having a largest gold consumer in the world.”

Gold is traditional investment avenue and one of the safe investment options. In
2015 the gold price was Rs. 26,343.50, in 2016 it increases by Rs. 28,623.50 and in
2017 it increases by Rs. 29,667.50.

4. Post Office & Bank:

“Over the last several years, post office deposits have been attracting investors, by
reducing its interest rate.”

According to RBI data, from last five years post office deposit grow by 24%
annually between 2011-12 and 2014-15.

Bank deposit has been 14% in similar time duration.

 5. Insurance:

Insurance industry plays a vital role in the Indian market. There are altogether 53
insurance companies that are serving both life insurance and general insurance products
to the customers countrywide. The life insurance sector recorded a new premium
income of Rs. 1.38 trillion in a year, i.e. April 2015 to March 2016. This indicated a
dramatic growth rate of 22.05% in the premium income.

A life insurance sector offers about 360 million policies. Currently the general
insurance business in the market account for more than Rs. 70,000 Crore premium
yearly and it is growing at a positive rate of 17% every year.
 2.1 About Organization

Marwadi group was established in 1992. Their vision is providing superior and
innovative financial services to meet the emerging needs of the investor community.
The company became a corporate member of the National Stock Exchange of India
(NSE) in 1996 and lunched depository services of Depository Participant under
National Securities Depository Limited (NSDL) in 1997. In the years since, from our
humble beginning, committed to the principles of professionalism, speed and ethic we
have catapulted our growth to emerge amongst the leading retail broking houses in
India.

They invest relationship. They are share accurate insights and insure that their
front end and back end infrastructure is state of the art and backed by latest technology.
And most importantly, all relationships are nurtured on the tenet of uncompromising
integrity.

A company with the group of 1000 employees has expertise in providing like
broking services, DP services, risk management, operation and customer related
services etc. MSFL has around 1,61,000 broking and 1,11,000 active DP client availing
services from around 85 branches location and around 700 sub broker ship network
across India.The company has a strong clientele base and retail broking is its strength.
MSFL’s contribution in turnover on the exchange is 1.01% while in retail segment it
has rose up to 2.01%

MSFL is awarded by BSE for being amongst top five volume drivers for cash as
well as F&O segment since year 2006-2007 brokers onwards and has remained
amongst top 5 brokers on BSE platform.

As a trusted, strategy partner they are deeply committed to meet our financial goals
by helping us successfully navigate the changing and complex market structures. Their
inimitable capabilities: Excellent network, professional and knowledgeable team,
client-centric services and product, advance technology and system and transparency
place us at a vantage point to manage these challenges and stay at the forefront of the
financial services industry.

Ø Excellent network:

At MSFL, they have presence across 200 cities and 3400 pin codes with 104 branches,
over 1450+ sub-brokers/authorized person in India. An organization employee team
has grown substantially to 800+ already. They make sure that each branch delivers
hassle-free operation for a better customer services. To empower us in our efforts to
provide the highest level of services they are expanding and deepening our network
even further. Which more financial power to you!
Ø Professional and knowledgeable team:

Knowledge is wealth, literally so in their business and that is why they have a powerful
in house team who can understand market trend and offer in-depth insight and analytics
for delivering better outcomes for us. They also have expertise like marketing, law and
economics.

Ø Client centric services and products:

In their success, own. Driven by this belief, they extend products and services that help
you accomplish our financial goals. Long term, short term, and the one in between.
Personalized support has enabled us to nurture long term relationship our and their
valued client. Besides dealing in equity / commodities / currencies broking, their
financial services offerings also include distribution of third party products: IPOs,
mutual funds, tax-free bonds, exchange traded funds, goal traded funds.

Ø Advanced technology and systems:

They have embraced market leading technology to make certain that their servers,
which are vital back-end tools, are never down. This means uninterrupted trading
during business hours. Apart from this, they also recognize that enhance front end
experience is critical. Easy - to - read tickers to keep a watchful eye on investment, live
market commentary, high evolved online trading platforms, mobile apps and other
technology backed solution are their answer to help we stay ahead in the crowd.

Ø Transparency:

Business is as much about responsibility as it is about meeting financial goals. They

have a reputation of having a stringent risk management system, maintaining high
compliance standards, client of safety and security of their investment. A finely honed
internal system is ensured through efficient communication, documentation, written
system and procedures along with a yearly calendar of meeting and training schedules.
Their associate as well as their outsourced specialist deals directly with their clients to
facilitate transactional transparency.

Marwadi group reported a net profit of Rs. 19.8 crore on a total income (net of
brokerage expense) of Rs. 85.4 crore for fiscal 2016. Against net profit and total income
(net of brokerage expense) of Rs. 29.2 crore and Rs. 102.9 crore, respectively for the
previous fiscal. For the nine month ended December 31, 2016, the group reported a net
profit of Rs. 16.5 crore on a total income of Rs. 74.3 crore.

MSFL, on a standalone basis, reported a net profit of Rs. 15 crore on total income
of Rs. 72.4 crore for fiscal 2016, against net profit and total income of Rs. 25 crore and
Rs. 90.8 crore, respectively for fiscal 2015.

High capital adequacy and sound financial of MSFL are borne out by the fact that
Marwari terminals have never ever been disabled for lack of margins or shortage of
funds.Normally, during wild market swings, except for banks and FII, very few brokers
can infuse the funds required to keep trading terminals on.
 MISSION & VISION OF MSFL

l Vision:

“Providing superior standards of financial services, focuses on

professionalism, speed & ethic to a wider corporate service in India &
proposed to start its operation in the sub-continent & overseas.”

l Mission:

“Provide world class services under one roof at inexpensive cost

through cost effective delivery system, and achieve the organic
growth of business by adding new goal of business.”
 GENERAL INFORMATION OF MSFL

Name : Marwadi Shares and Financial Ltd.

Establishment : 1992

Registered office : Marwadi Financial Plaza

Address : Marwadi Shares and Finance, Nana Mauva Main

Road, 150 Ft.Ring Road, Rajkot - 360001

E-Mail : reception.msfl@marwadionline.net

F-Web Site : www.mawadionline.com

Form of organization : Limited company

Department : Marketing, Training,Operation, Audit, HR, Finance

& Account, Risk Management, Commodity, Mutual
Funds, Collection & System.

Membership : NSE, BSE, MCX, NCDEX, NSDL, CDSL

Managing Director : Mr.KetanMarwadi

 2.2 INTRODUCTION TO FUNCTIONAL DEPARTMENT

1. Finance Department:

Finance is regarded as heart of any business organization. Finance is a productive

wealth business organization cannot produce goods and services without finance.
Financial Department included many object such as Financial Planning, Financial
Control, Financial decision making.

Ø Financing Planning:

Management needs to ensure that enough funding is available at the right time
to meet the need of the business. In the short term, fund may be needed to invest in
equipment and stock, to pay salaries to employees.

Ø Financial Control:

Financial control is a critically important activity of business. Helpful in

business and to ensure that the business is meeting its objectives.

Ø Financial Decision making:

Financial decision is profit earned by the business should be retained rather

than to distribute it the shareholders via dividends. If dividends are too high, the
business may be starved of fund to reinvest in the business in growing revenue and
profit further.

2. Marketing Department:

“Marketing is the social and managerial process. It is may be individual or groups.

Acquired what they need and want through creating, offering and exchanging
products of value with other.”
 Services offered by MSFL:

l Demit

l Depository services

l Commodity trading

l Mutual fund

l Portfolio management services

l Online trading

l Research based information

l Insurance

l Pan card

Marketing of mutual fund:

What does mutual sell? Really speaking, they do not sell anything tangible or
intangible. This does seem confusing. Banks sell their products based on certain
assured returns; insurance companies sell contracts. Not so with mutual funds. They
mobilize funds from the investing public to manage those funds efficiently, i.e. they
create an expectation of good return in the minds of investors and generate a desire in
them to put their money with a particular fund. Thus, there is a clear distinction between
company shares and mutual fund units.

Marketing strategies for mutual fund:

The marketing strategies of mutual fund products can be divided in to following heads;

ü Direct marketing

ü Selling through intermediaries

ü Other channels
Direct Marketing:

It constitutes 20% of the total sales of mutual funds. Some of the important tools used in
this type of selling are;

• Personal selling
• Telemarketing
• Advertisement

Selling through intermediaries:

Intermediaries include distributors or agents or broker who contribute in great to

increase the sale of mutual funds schemes. These peoples or distributors are in direct
touch with the investors.

Regular meeting with distributors also plays vital role in collecting the sales of
mutual funds.

The sales executives regularly meet these distributors and solve their requirement
and complain from either services side or from customer side. The objective is to make
a good business relation and work with co-operation because this distributors or
brokers contribute 70-80% of total sales of mutual funds.

Other channel:

Apart from direct marketing and intermediaries, there are other distribution
channels also developed by mutual funds. It includes banks and other financial
institution who is promoting these mutual funds schemes as per the regulation
prescribed by SEBI & RBI private as well as nationalized banks, there is a separate
section of mutual funds. They have their own executives with efficient sales force to
promote the mutual fund schemes among their customers.

Nowadays mutual funds companies also set up their own professional distribution
units to promote the mutual fund scheme and with an object to expand the e-business.
3. Human Resource Department:

Introduction:

The principle component of an organization is its human resource or people at

work. It is human which is of paramount importance in the business enterprise. The
main aim of human resource department is to keep smooth relationship between the
employees and employers in the organization.

The human resource department serve as a link between management and

employees. Human Resource Development at MSFL mainly performs the following
functions:

• HR policies
• Salary and Composition
• Employee training
• Motivational activities
• Employee recreation
• Motivational activities
• Administrative functions

RECRUITMENT:

Recruitment is the process to discover the sources of manpower to meet the

requirement of the staffing schedule and to effective measure for attracting that
manpower in adequate numbers to facilitate effective selection of an efficient work
force.

Recruitment in Marwadi is done mainly through following sources;

l Internal reference

l Campus placement

l Advertisement

l Employment

l Consultancies
SELECTION:

After application of number of employees, they are secured through different

method to recruitment. The selection procedure is concerned with securing relevant
information about applicant.

PLACEMENT:

Once a candidate has been selected he is placed on a job for which he was selected.
Thus placement means interesting the proper job to the employee who is selected for it.

Placement is the responsibility of the superior or colleague with whom the

employee has to work. The human resource department should monitor the right
placement so that the new entrant settles down satisfactory in the work place

HR Department of Organization:

The internal organization of structure of the personnel department varies widely in

different companies, depending upon that size. For example, in small companies
personnel functions are discharged by the line executives. But in the large company,
where personal activities are generally of a complex nature separate department is
organized for the purpose which is called HR department as in MSFPL. Here,

The organization structure of HR department of this company is as follows,

ü Personnel Department

ü Administration Department

Personnel Department:

This department perform one of the major role, which is primarily connected with
human constitute of an organization. The principal component of an organization is its
“Human Resources” or “People at Work”. Human resource can be differentiated on the
basis of skills, attitudes, talents and knowledge. Here the Marwadi understand the
importance of human resource so they have separate department called “PERSONNEL
DEPARTMENT”.
 To recruit an employee within organization Marwadi give promotion to the
employee or transfer to other place. But if Marwadi has to select from outside then they
follow the traditional channel for recruitment and selection.

To give training and development Marwadi follow very unique technique. First of
all they check the recruitment of individual employee. For that Marwadi use special
report for an individual employee and as per report H.R. manager will take decision for
training and development. For bonus, gratuity, PF, salary Marwadi follows the relevant
act.

4. IPO department:

“ IPO (Initial Public Offer) means the company issue shares for very first time and
also invite the general public to invest or buy the company shares.

The purpose behind this is to increase the capital of the company. A company can
also issue shares to its existing share holders is called OFS (Offer of Sale).

Marwadi manage their IPO department very well with coopration and support of
all the employees. This can be possible only is they having good relation with their
employee and due that only they can sever their best to customers.

• Offer a best opportunity to customer for net higher return in just short term.
• Their main purpose is to generate an opportunity so that they can own a
company share at lower price.

Who should invest in IPO:

• IPO can be subscribed by investor, institution, individual, etc.

• IPO can be beneficial for retail investors in short-term.

Services provided by MSFL related to IPO:

1. When customer needed they provided advise on IPO.

2. Easy and fast application procedure of IPO.
3. On time update of IPO.
4. They provide client support service which helps to maintain customers
for longer period of time.
5. They provided pre-printed forms with applicant detail to applicant.
6. They update information related to Demate account through SMS.
 2.3 ORGANIZATION STRUCTURE

WHOLE MANAGING Whole Time

TIME DIRECTOR Director
DIRECTOR

CTO-IT-NETWORK

AVP-IT-NETWORK

CFO-FIN & JT-VP-DP CCO & PROJ. SR. VP BUS

A/C CS-AUD & MANAGER- DEVP & HR

COMP SYSTEM

JT-VP-FIN AVP-CLEARING
SR. MANAGER
& A/C SETTLEMENT
SR. MANAGER AUDIO AND
JT-VP-FIN SR. MANAGER AUDIO AND COMPLIANCE
& A/C DESPATCH COMPLIANCE
A.V.P.-SUP & RMS
SR. SR. MANAGER MANAGER AUDIO
REGIONAL-MANAG
MANAGER STORE AND
ER-B.D.
-FIN & A/C COMPLIANCE
SR. MANAGER DP
REGIONAL
SR. BACK MANAGER AUDIO
MANAGER B.D.
MANAGER AND
-FIN & A/C COMPLIANCE SR. MANAGER-
RESEARCH

A.V.P.-DISTRIBUTI
ON

MANAGER-B.D.

MANAGER-
OPERATION

MANAGER-IBT
 2.4 SWOT ANALTSIS OF MSFL

SWOT analysis refers to the analysing the strengths, weakness, opportunities

and threats of the organization. Swot analysis is measure company performance.
SWOT is a compound of two factors namely external factors and internal factors.
Strength and weakness are internal factor which can be controlled by the technical and
personnel departments. Opportunities and threats are external factor which can be
controlled by the company.
STRENGTHS WEAKNESSES

- Wide area of services. - Depends on market situation.

- Original Research. - Insignificant presence in

institutional segment.
- Experience and Professional
management. - Lack of proper communication.

- Good credibly in market. - Requirement of more skilful

worker.
- Well designed culture and
discipline staff.

OPPORTUNITIES THREATS

- To be an ideal broking services. - Technological changes.

- Great in insurance sector. - Uncertainty of stock market.

- Firm provide good financial - International and domestic

services. competitors.

- Volatile movement in indices and

events.
 3.1 INTRODUCTION TO THE STUDY

Capital market development because of their have been closely related to an

economic development. At low levels of development, commercial banks tend to
dominate the financial system. There are many financial assets and investment avenue
are available in India. Each investment option has its own strengths and weakness.
Some option achieve good return but with high risk. Other option like, FDs offer safety
and liquidity, but at the cost of return.

Savings is an important part of the economics of any nation. With the savings
invested in various options are available to the people, the money acts as the driver for
growth of the country. Main aim of invest and earn return on their resource and
generate specific goal in life. One of the important reasons is inflation. Inflation is the
rate at which the cost of living increases. The cost of living simply what is coat to buy
the goods and services you need to live. By investing early you allow your investment
more time to grow, whereby the concept of compounding increases your income.

Investing is not a game, but serious subject that can have a major impact on
investor’s future well beaning. Investor has a lot of Investment Avenue to park their
savings. The investor has to choose Proper Avenue depending upon his specific need,
risk preference, and returns expected. Investment is always interesting, challenges and
rewarding. A good investment strategy will diversify the according to the specific need.
 3.2 LITERATURE REVIEW

Behavioural finance is a new emerging science that studies the irrational behaviour
of the people. Vanish Kumar Singh (2006) the study entitle “Investment perception of
people” has been undertaken with the objective; to analyse the investment perception of
people in analysis of the study was undertaken with the help of survey conducted. After
analysis and interpretation of data it is concluded most of investors are more aware
about various investment avenues. All the age groups give more important to invest.
Major investors are aware about the risk associated with that.

Sudalaimuthu and Senthil Kumar (2008) Mutual fund is the one of investment
avenue the researcher research in this area about investors perception towards mutual
fund investment has been analysed effectively taking into account the investors
reference towards the mutual fund sector, scheme type, purchase of mutual fund units,
level of risk undertaken by investors, sources of information about the market value of
the units, investors opinion on factors influenced to invest in mutual funds, the investor
satisfaction level towards various motivating factor, problem faced by mutual fund
investors. The study has made an attempt to understand the financial behaviour of
mutual fund investors in connection with the scheme preference and selection.

Sunil Gupta (2009) the investment pattern among different groups in city had a clear
as well as a complex picture. The complex picture means that the people are not aware
about the different investment avenues and they did not respond positively, probably it
was difficult for them to understand the different avenues. The attitude of the investors
towards the securities in general was bleak, through service and professional class is
going in for investment in shares debentures and in different mutual fund schemes.
Major cities though being rich have a tendency of investing then surpluses in fix
deposits of banks, provident funds, post office savings, real estate’s etc. For want of
safety and suitability of returns.

Manish Mittal and Vyas (2009) Investors have certain cognitive and emotional
weakness which comes in the way of their investment decisions. Over the past few
years, behavioural finance researchers have scientifically shown that investors do not
always act rationally.
Nayak, M. K. (2010), analyse the significance of difference between the various
demographic variable and investors knowledge of grievances, awareness of function of
readdressed agencies, loading of complain are some of the factors which affect their
satisfaction level. Agriculture is generally less informed and passive to making
investment so that they suffer from all the traits of being prone to grievances.

Brahma Bhatt, P. S. Raghukumari, Dr. Shamira Malekar in their study “ An

investor behaviour in investment avenue in Mumbai Fein (September 2012), examined
that people like to invest in stock market even if they face huge losses. They give more
preference to savings and safety but at the same time they want higher interest at low
risk in shorter span. He also examined that most of the percentage of the income that
they invest depend on their annual income.

Rd. Appara and Professor N. Kishore Babu explain through their study “an
investment perception towards investment avenue in Godavari district of Andhra
Pradesh (January 2015), that majority of respondents obtained their information
regarding investment through their friends and relatives as a first priority and then
national newspapers. They also noted that majority of respondents having savings for
the purpose of safety for future, capital appreciation, regular returns, speculative gains
and tax benefits. They proved that most of respondents agreed bank deposits are the
safety investment avenue.
 3.3 BACKGROUND OF THE STUDY

There is one quote, “In investment, you expect to have fun and make money”.

The study has been conducted with the objective of investment perception towards
Investment Avenue in Rajkot city. The sample of 100 represents the investor of Rajkot
city. Financial planning through high amount of saving can be possible and saving
leads to investment.

This project is based on which type of avenue used of investor. Many people don’t
have invested about Investment Avenue. So one purpose is that what reasons behind
their lack of knowledge are. Many people know about Investment Avenue but they
really don’t do it because they are not aware of the benefits which they can get through
investment and it also helps to increase our savings and help to generate income out of
savings.

To identify above details, I look a response of 100 people who are living in Rajkot
city and invest in Investment Avenue.
 3.4 PROBLEM STATEMENT

This project knows the preference and analyse the significance of factors that
influence the investors decision towards making investments. This study follows to
find out factors of population like age, gender, occupation, income etc. several
elements of investment. The hypotheses have been developed to research objective.
Investment perception it has been taken a dependent variable. Demographic factors like
age and gender are considered as independent variable. Data were classified, tabulated
and tested statistical inference were drawn by the use of hypothesis and Chi-square
technique.
 3.5 OBJECTIVE OF THE STUDY

The main objective of the analysis is to determine the investment behaviour of

investors and investment preference for the same. The main purpose of the project is to
find out need of the current and future investors. For this analysis, investor’s perception
level will be measured in the important area such as:

ü To understand in difference investment avenue available in India.

ü To find out how investors get information about the financial instrument.

ü Which would prefer to invest?

ü To know the awareness about the different avenue among the investors.

ü To identify the risk bearing capacity, management between expense and saving

ü And other factor influences their investment decision.

ü To give an advice to the investors that where they should invest.

 4.1 RESEARCH DESIGN

There are total three types of research design descriptive, exploratory, and causal.

Here descriptive research design will used to gain better understanding of respondent,
the design used will help in gaining better understanding of respondents. Descriptive
design helps to gain better understanding of respondent’s responses.

Causal research design used when changed in one factor leads to change in another
factor, means it shows cause and effect relationship. To identify the awareness about
investor perception towards investment avenue age group, the cause and effect
relationship research method can’t be applied.

So, here descriptive research method has been used.

 4.1 SOURCES OF DATA :

Here, survey method used in this study. Most of the data collected in books,
questionnaire, internet, and websites, etc.
 4.2 DATA COLLECTION METHOD :

Information collected both primary and secondary data.

1. Primary Data:

Primary data are those which are collected for the first time and happen to be
original in character. Primary data was collected through direct personal interviews
(open ended and close ended questioner).

2. Secondary Data:

Secondary data are those which are have already been collected by someone else.
This type of data happen to be passed through the statistical process. Secondary data
was collected,

• Investment Magazines, Business Magazines.

• Experts’ opinion published in various print media.
• Web sites.
• Books.

Here primary study has been conducted to get information. Primary data collected
through questionnaire. 100 responses have been collected for this study.
 4.3 POPULATION:

Here Rajkot city has been taken for this study and as due to limitation of time
100 has been taken as sample.

Out of total population 100 respondents gave their precious response to

complete this study. This whole study is conducted on the basis of their responses.

Rajkot city has been large population but, so to take response of each and
every person could not be possible that is why here 100 samples has been taken as
a sample who represent the entire population of Rajkot city.
 4.5 SAMPLING METHOD:

The responses have been collected as per convenience sampling method,

which is classification of non-random sampling method.

Purpose behind the selecting this method is we can’t force any person for
response and if we force respondent then there are chances of wrong response
given by them. So convenience responses collected is as per the convenience of
respondent.
 4.7 DATA ANALYSIS AND INTERPRETATION:

Q - 1. Age

Age Group Response

20 - 25 73

26 - 30 12

30 - 35 7

Above - 35 8

Above 35
30-358%
20-25
7%
26-30
26-30
12%
30-35
20-25
73% Above 35

Interpretation:

From above the table and chart represent data, the major population of investors was
between age group of 20 - 25 years invest 73%. 26 -36 years of respondent were 12%
invest. 7% respondent is 30 - 35 years. Above 35 years invest 8%.
Q - 2. Gender

Gender Response

Female 68

Male 32

32%
Male

Female
68%

Interpretation:

This tendency is also show in the present study. The female population of the present
study exceeds to male population. The above chart and table shows gender wise
distribution. Out of 100 sample investors 32% males and 68% females.
Q - 3. Occupation

Occupation Response

Student 49

Businessmen 13

Salaried employee 33

other 5

5%

Student
33%
49%
Businessman

Salaride
13% employee
Other

Interpretation:

From above it is visible that major responses are given by students, they might be
employed or might be not. 49% of responses are given by them only, after that 33%
responses are given by salaried employee, 13% responses are given by businessman, it
can be conclude that they invest their money in any investment avenue as per their
convenience and at last only 5% responses are given by other people. They might be
investing their money in investment avenue or not.
Q - 4. Annual Income

Income Response

2,00,000 - 3,00,000 57

3,00,000 - 4,00,000 18

4,00,000 - 5,00,000 12

Above 6,00,000 13

9%
10% 2,00,000 - 3,00,000

3,00,000 - 4,00,000

58% 4,00,000 - 5,00,000

23%
Above 6,00,000

Interpretation:

Here it is easily visible that the major responses are given the respondents whose annual
income is between 2 lakhs to 3 lakhs, that means majority of them are belongs to middle
age group and they might be investing in fixed deposit only. 23% responses are given
by the respondents whose annual income is 3 lakhs to 4 lakhs, 10% responses given by
the respondents whose annual income is 4 lakhs to 5 lakhs and only 8% responses are
given by them whose annual income is above 6 lakhs that means they might be
investing in investment avenue like stock market, mutual fund, etc.
Q - 5. Are you aware of investment avenues?

Awareness Response

Yes 91

No 90

9%

Yes

No

91%

Interpretation:

From the above charts and table was found that 91% respondent invests in the stock
market and 9% non-investors do not invest in stock market.
Q - 6. If yes, which investment avenue are you aware of?

Investment Avenue Response

Saving A/C, Bank FD (Safe / low risk) 61

Equity Management (High risk) 31

Mutual fund, Bonds (moderate risk) 41

Gold, Silver 27

Savings A/C, Bank FD

(safe/low risk)
17%
Equity management (High
38% risk)

26% Mutual fund, Bonds

(Moderate risk)
19% Gold, Silver (Treditional)

Interpretation:

Above the chart and table shows that 38% investor were aware about savings A/C,
Bank FD (safe/low risk), 19% investor were about Equity management (high risk),
26% investor were about Mutual fund, bonds (moderate risk), 17% investor were about
Gold, silver (traditional).
Q- 7. Which is the sector you have been mostly investing in?

Sector Response

Public 61.6

Private 38.4

38% Public

Private
62%

Interpretation:

Above the chart and table shows that 62% respondent were invest public and 38%
respondent were invest private.
Q - 8. What are you investment objective?

Objective Response

Short term 72

Long term 28

28%
Short term

Long term
72%

Interpretation:

Above the charts and table shows that 72% respondent are invest in short term and 28%
respondent are invest in long term.
Q - 9. What are the benefit come in your mind investing?

Benefit Response

Wealth creation 23.5

Tax benefit 17.3

Future expectation 52

Other 7.1

7% Wealth creation
24%
Tax benefit

Future expectation
52% 17%
Other

Interpretation:

From the survey it was found that the maximum respondents considered other
investment factor are most important. 24% considered wealth creation, 17%
Q - 10. How often do you monitor your investment?

Time Response

Daily 12.1

Monthly 48.5

Quarterly 27.3

Yearly 12.1

12% 12%
Daily

Monthly
27%
Quarterly

49% Yearly

Interpretation:

From the above table and chart it was found that 12% respondents invest daily, 49%
respondents invest monthly, 27% invest quarterly, and there were 12% respondents
invest yearly.
Q - 11. At which rate would you like to invest?

Rate Response

Steady 19

Average 65

Fast 16

16% 19%
Steady

Average

Fast

65%

Interpretation:

From the above chart and table found that 19% respondent wants their investment to
grow at steady and 65% wants their investment to grow at average and only 16%
respondents were in the fever if investment to grow fast.
Q - 12. From where did you find reference for investment?

Reference Response

Internet 27

Friends & Family 36

Newspaper 11

Financial Adviser 26

26% Internet
27%
Family & Friends

Newspaper
11%
Finanacial adviser
36%

Interpretation:

Above the charts and table shows that 27% investor collect information through on
internet, 36% investors collect information from family and friends, 11% investor
conduct newspaper and 26% investor collect information through on financial adviser
Q - 13. Are you satisfied with your investment avenue?

Satisfaction Response

Yes 93.9

No 6.1

6%

Yes

No

94%

Interpretation:

94 respondents out of 100 were satisfied with the various factors such as return on
investment, risk, liquidity etc. Whereas, only 6 respondents among those 100 were
dissatisfied with the various investment factor
HYPOTHESIS TESTING:

𝑯𝟎 : There is significant difference in Annual income.

𝑯𝜶 : There is no significant difference in Annual income.

Level of significant: 0.05

Annual 2,00,000- 3,00,000- 4,00,000- Above TOTAL

Income 3,00,000 4,00,000 5,00,000 6,00,000

Rate

Steady 9 5 3 2 19

Average 44 6 6 9 65

Fast 4 7 3 2 16

TOTAL 57 18 12 13 100

( fo − fe)²
𝑋%= ∑
fe

𝒇𝒐 𝒇𝒆 𝒇𝒐 − 𝒇𝒆 𝟐 𝟐
𝒇𝒐 − 𝒇𝒆 𝒇𝒐 − 𝒇𝒆
𝒇𝒆

9 11.21 -2.21 4.88 0.43

44 37.05 6.95 48.30 1.30

4 9.12 -5.12 26.21 2.87

5 3.42 1.58 2.49 0.72

6 11.7 -5.7 32.49 2.77

7 2.88 4.12 16.97 5.89

 3 2.28 0.72 0.51 0.22

6 7.8 -1.8 3.24 0.41

3 1.92 1.08 1.16 0.60

2 2.47 -0.47 0.22 0.089

9 8.45 0.55 0.30 0.035

2 2.08 -0.08 0.0064 0.0030

15.337

-.∗0.
𝑓, =
1

𝑥 % Calculated = 15.337

Degree of Freedom = (No. of column-1) * (No. of raw – 1)

= (3-1) * (4-1)

=6

𝑥 % Tabulated = 12.5916

Result: Here, 𝑯𝟎 is rejected and 𝑯𝜶 is accepted.

𝑯𝟎 : There is significant difference in Investment Avenue.

𝑯𝜶 : There is no significant difference in Investment Avenue.

Level of significant: 0.05

Age 20 -25 26 – 30 30 - 35 Above 36 TOTAL

Investment
avenue

Savings 30 3 1 - 34

Equity 7 2 - 1 10

Mutual fund 12 1 2 - 15

Gold 5 - - - 5

Savings, 3 - - 1 4
M/F

Savings, 4 1 - 2 7
gold

Savings, 1 1 - - 2
Equity

Savings, 1 - 2 - 3
Equity, M/F

Savings, 5 2 - 1 8
Equity, M/F,
Gold

Savings, 3 - - - 3
M/F, Gold

Equity, M/F, - - 1 1 2
 Gold

Equity, Gold - - 1 - 1

M/F, Gold 1 - - - 1

Equity, M/F 1 2 - 2 5

TOTAL 73 12 7 8 100
𝒇𝒐 𝒇𝒆 𝒇𝒐 − 𝒇𝒆 𝟐 𝟐
𝒇𝒐 − 𝒇𝒆 𝒇𝒐 − 𝒇𝒆
𝒇𝒆

30 24.82 5.18 26.83 1.08

7 7.3 -0.3 0.09 0.012

12 10.95 1.05 1.10 0.10

5 3.65 1.35 1.82 0.49

3 2.92 0.08 0.064 0.02

4 5.11 -1.11 1.23 0.24

1 1.46 -0.46 0.21 0.14

1 2.19 -1.19 1.41 0.64

5 5.84 -0.84 0.70 0.11

3 2.19 0.81 0.65 0.29

1 0.73 0.27 0.07 0.095

1 3.65 -2.65 7.02 1.92

3 4.08 -1.08 1.16 0.28

2 1.2 0.8 0.64 0.53

1 1.8 -0.8 0.64 0.35

1 0.84 0.16 0.02 0.02

1 0.24 0.76 057 2.37

2 0.96 1.04 1.08 1.125

2 0.6 1.4 1.96 3.26

1 2.38 -1.38 1.90 0.79

 2 1.05 0.95 0.90 0.85

2 0.21 1.79 3.20 15.23

1 0.14 0.86 0.73 5.21

1 0.07 0.93 0.86 12.28

1 0.8 0.2 0.04 0.05

1 0.32 0.68 0.46 1.43

2 0.56 1.44 2.07 3.69

1 0.64 0.12 0.36 0.18

1 0.16 0.70 0.84 4.37

2 0.4 2.56 1.6 6.4

63.252

-.∗0.
𝑓, =
1

𝑥 % Calculated = 63.252

Degree of Freedom = (No. of column-1) * (No. of raw – 1)

= (4-1) * (15-1)

= 42

𝑥 % Tabulated = 55.7585

Result: Here, 𝑯𝟎 is rejected and 𝑯𝜶 is accepted.

5.0 FINDING
 The project title is “A STUDY ON PREFERENCE OF INVESTORS
PERCEPTION TOWARDS INVESTMENT AVENUE”. On the basis of above
analysis, it can be easily visible that the overall major responses are given by
female respondent.

Major responses are given by the respondent whose investment avenue is

savings. 49% of the responses are given by the student.

Dependency plays a major role in Investment Avenue because they have to

manage their income and expenses.

In India majority of the people still invest their savings in fixed deposit
because they still don’t trust in share market, commodity market, etc. but in graph
it can be easily seen that people are getting more aware of mutual fund and this
shows graph as well. Out of responses 41% respondents are investing in their
home.

Every people have some objective in their life and fulfil their objective they do
investment this above graph and chart that all the respondent’s dose investment to
fulfil their objective. Many people dose invest for their children education, income
tax saving, wealth creation and other objective.

From above graph it concludes that investment avenue help in future

expectation that is why to out of total responses 52% respondents. This shows that
investment is help full in future.

If a person wants a fast rate of interest on their investment, then it can be

possible only if he/she take high risk and invest in share market. In India generally
people less prefer to invest in share market that is why 16% of the respondent want
a fast return on their investment and 65% respondent invest in their saving in
medium rate, so they might invest their saving in mutual fund, fixed deposit, etc.
 So above analysis shows that for investor perception all factor are consider
like age, occupation, annual income, objective, time period, interest rate on their
investment etc. If they would be aware of financial planning than they can do more
savings and if they can invest their savings better investment avenue as per their
convenience then they can earn more money out of their savings.
 5.1 CONCLUSION

Investment planning is choice of individual. Investment helps to individual as

well as economic too. If an individual does investment plan then they will be invest
their savings and in any investment avenue as per their convenience.

Most of the investors invest their money in savings A/C as per my survey.
Generally people invest in their saving in long term to get maximum return. By
saving their money in investment avenue investors expect for future expansion and
tax benefit.
 5.2 LIMITATION OF THE STUDY

This analysis based upon investor’s perception toward various investment

avenues. This analysis would be focusing on the information from the investor
about their perception, knowledge and behaviour on different financial product.

The various limitation of the study is:

Ø Only 100 investor have been considered for this study.

Ø The total number of financial instrument in the market is so large that it
needs a lot of resources to analyse them all.
Ø A few respondents might have furnished the required information from
their momentary memory and invented temper and hence the collected
data might be suggested to bias.
Ø As analysis is based on primary data.
Ø The size of the sample compared to the population is small and hence it
night not signify the ideas of entire population.
5. BIBLIOGRAPHY

ü Naval Bajpai,
Research Methodology,
Publisher: Person (2013).
ü Websites:
ü https://www.maewadionline.com/about/ourcor
ü http://www.slideshare.net/mobile/abhinaya19/new-project-63405457
ü www.iosrjournals.org
ü http://www.scribd.com/document/15555181/investoers-perception-about-vario
us-investment-avenues-available-at-financial-market
ü http://www.academia.edu/30536729/INVESTOR_PERCEPTION_TOWARD
S_DIFFERENT_INVESTMENT_AVENUES
ü http://www.managementparadise.com/nityaaroma/documents/11023/project-o
ninvestors-perception-regarding-various-investment-avenues/
ü http://www.policybazaar.com/life-insurance/investment-plans/articales/best-in
vestment-options-in-india/
ü http://goo.gl?images/QnWLFJ
ü https://www.bankbazaar.com/gold-rate/gold-rate-trend-in-india.html?ck=y%B
ziX71XnZlM9ZwEflsyDYlRL7gaN4W0xhuJSr9lq4a%2F9e0ll%2BWm6RG6
QA%2FONi&rc=1
ü https;//www.ibef.org/industry/real-estate-india.aspx
ü https://www.thehindubusinessline.com/money-and-banking/govts-savings-ma
ntra-move-out-of-post-offices-head-for-banks/articale8393778.ece
ü https;//www.investopidia.com/articales/mortages-real-eastate/11/the-truth-abo
ut-the-real-estate-market.asp
 ANNEXURE

Q-1 Age

a. 20 – 25
b. 20 – 30
c. 30 – 35
d. Above – 35

Q-2 Gender

a. Female
b. Male

Q-3 Occupation

a. Student
b. Businessmen
c. Salaried person
d. Other

Q-4 Annual Income

a. 2,00,000 – 3,00,000
b. 3,00,000 – 4,00,000
c. 4,00,000 – 5,00,000
d. Above 6,00,000

Q-5 Are you aware of investment avenue?

a. Yes
b. No

Q-6 if yes, which avenue are you aware of?

a. Saving A/C, bank FD (safe/low risk)

b. Equity management (high risk)
c. Mutual fund, Bonds (moderate risk)
d. Gold, Silver
Q-7 which is the sector you have been mostly investing in?

a. Public
b. Private

Q-8 what are you investment objective?

a. Short term
b. Long term

Q-9 what are the benefit come in your mind investing?

a. Wealth creation
b. Tax benefit
c. Future expectation
d. Other

Q-10 how often do you monitor your investment?

a. Daily
b. Monthly
c. Quarterly
d. Yearly

Q-11 at which rate would you like to invest?

a. Steady
b. Average
c. Fast

Q-12 from where did you find reference for investment?

a. Internet
b. Friends & family
c. Newspaper
d. Financial adviser
Q-13 Are you satisfied with your investment avenue?

a. Yes
b. No

Q-14 Suggestion