A Behavioural Study of Investment

Topics: Investment, Mutual fund, Foreign direct investment Pages: 65 (16501 words) Published: October 5, 2010
Emerging strong even during the scariest phase of global financial meltdown, India has become one of the favorite investment destinations for the foreign investors across the globe. The investment scenario in India is getting better and better with each passing day due to high confidence level of the investors. Today, India is considered the 4th biggest economy in the world. Its impressive GDP rate, especially in the field of purchasing power, has catapulted it to second position among all the developing nations. According to forecasts, Indian economy will grow to become 60% in size of the economy of US. It will also witness macro-level stability in economic conditions. Behind all this, investment can be said to be the key player.

Need for Study: To help the Research N Data to prepare an Industry report on Investment market in India.

Objectives of the Study:
    To study the preferences and perceptions made by different customer segment. To study the need of an investment plan and triggers and barriers. To study the competition situation and key players in the market. To study the different Investment products and variety of investment opportunities available.

Problem Statement: A detailed study of Investment Options in India and customer preferences.

Data sources:
First Phase is the collection of Secondary Data: This involves the collection of Secondary data using internet and internal sources for getting knowledge about the investment industry.


Second Phase is Collection of Primary Data and Analysis: After collecting the Secondary data the next phase was collection of primary data using Questionnaires. The questionnaires were filled by around 60 people who were from Bangalore region. The sample consists of people who are employed or working or dealing in investment options to know their investment preferences. Based on their preferences they invest in different plans. The data collected then entered into MSexcel for analysis of the data.



Introduction: Investment is referred to as the concept of deferred consumption, which might comprise of purchasing an asset, rendering a loan, keeping the saved funds in a bank account such that it might generate lucrative returns in the future. The options of investments are huge; all of them having different risk-reward trade off. This concludes that the investment industry is really broad and that is why understanding the core concepts of investments and accordingly analyzing them is essential.

Wealth Creation
Starting the process of Investment of money is the first cornerstone to wealth creation especially when we know that India is on a fast track growth. In the pre-independence era (before 1947) India was mainly characterized by people who saves and savesheavily. It was the country of savers. But post-independence the growth has picked its pace and also is the rate of inflation. Prices of essential commodities like food, housing, gas, electricity, education etc has been increasing at a dramatic pace of more than 9%. This is one of the biggest disadvantages of a growing economy inflation rate


seems to fly like a limitless bull. Investment is required to fight inflation and in addition make your money grow.

Change of shift from saver to an investor
The transition form a "nation that only saves" to a "nation of investors" is evident. Taking the statistics of last 35years, the number of retail as well as institutional investors in India has multiplied several folds. Not only Indian investors but international investors are eying India as an Investment heaven. Only next to China, India has been rates as the fastest growing economies in recent times. India has learned to differentiate between saving and investment. If earning money is a need then savings and investment should be a habit. Savings in isolation is not of much help because inflation is...
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