Perception of People Towards Various Avenues of Investment

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“Perception of people towards Various Avenues of Investment for their savings” RICHA GUPTA, AMANDEEP KAUR, TANIA SHARMA RIMT-IMCT, MBA-II (A) MANDI GOBINDGARH

Abstract
India is thought to be the first rate investment. India has a vast potential for foreign investment and foreign players find it their next investment destination. There are various opportunities available in India for investing the savings of the person like mutual funds, fixed deposits etc. Savings form an important part of the economy of any nation. With the savings invested in various options available to the people, the money acts as the driver for growth of the country and attitude towards saving depends on the demographic and socio economic factors. In this research paper we tried to evaluate that which is the most favorable option in which people like to invest their savings and which factors do generally considered by people while making investments in available avenues. For this we conducted our survey in the areas of Mandi Gobindgarh, Ludhiana and Patiala and 100 respondents were analyzed to know their perception regarding the various avenues of investment. Most of the respondents belong to the age group 25 to 35 years.

Introduction
Savings form an important part of the economy of any nation. With the savings invested in various options available to the people, the money acts as the driver for growth of the country. Indian financial scene too presents a plethora of avenues 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. The money people earn is partly spent and the rest saved for meeting future expenses. Instead of keeping the savings idle they may like to use savings in order to get return on it in the future. This is called Investment. One needs to invest to and earn return on your idle resources and generate a specified sum of money for a specific goal in life and make a provision for an uncertain future. The various avenues of investment are: a) b) c) d) MUTUAL FUNDS STOCK MARKET BONDS INSURANCE POLICIES

e) FIXED DEPOSITS f) GOVERNMENT SECURITIES g) REAL ESTATE h) COMMODITY MARKET a.MUTUAL FUNDS- A mutual fund is a collection of stocks, bonds or cash-type investments such as a money market fund—or some combination of these. Reasons to invest in mutual funds include: they are easy to buy and sell, are managed by someone other than you, and they give you a better. Basically Mutual fund is a pool of money collected from investors and is invested according to stated investment objectives. b.BONDS- A bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest (the coupon) and/or to repay the principal at a later date, termed maturity. It is a formal contract to repay borrowed money with interest at fixed intervals. c.COMMODITY MARKET - A commodity is a normal physical product used by everyday people during the course of their lives, or metals that are used in production or as a traditional store of wealth and a hedge against inflation. The market in which the trading regarding these commodities takes place is called commodity market. d.STOCK MARKET- A stock market or equity market or industrial security market is a private or public market for the trading of company stock and derivatives of company stock at an agreed price; both of these are securities listed on a stock exchange as well as those only traded privately i.e. it is a market in which stocks are bought and sold. e. GOVERNMENT SECURITIES- Government securities (G-secs) are sovereign securities which are issued by the Reserve Bank of India on behalf of Government of India, in lieu of the Central Government's market borrowing programme. The term Government Securities includes: · Central Government Securities. · State Government Securities · Treasury bills f.INSURANCE POLICIES- An insurance...
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