CONTENTS

Sr. NO Chapter 1 1.1 Chapter 2 2.1 2.2 Chapter 3 Chapter 4 4.1 4.2 Chapter 5 Chapter 6 Chapter 7 Chapter8 Chapter 9 Chapter 10 Introduction Objective of the study Analysis of Investment Characteristics, Importance & Types of Investment Investment Planning Investment Avenues Research !" Test Analysis of #ariance $A%O#A& Analysis & Interpretation 'indings Recommendations Conclusion (ibliography Anne)ure ethodology TOPIC PAGE 2 4 5 6 7 9 19 22 23 25 38 40 41 42 43

CHAPTER - 1 INTRO !CTION

"hat #$ ta% p&a''#'( a') *hat +,- .,-&) (a#' /r,0 #t1

A good citi*en should al+ays pay ta), (ut he should not end up paying unnecessary ta), A smart citi*en is one +ho pays ta) but also ma-es ma)imum use of provisions available in Ta) .a+s to minimi*e it, This can be achieved through scientific Ta) planning, Ta) Planning involves measures +ithin the current legislation dealing +ith the choice of time, location and activities, +ith creation and support of the most effective schemes and contractual relationships to increase the cash flo+s due to minimi*ation of ta) payments, Through proper ta) planning, you +ill not only lo+er amounts of ta) payments +ith respect to basic ta)es, but you/ll also create a +ealth stream for achieving long term goals, Opt#0#2at#,' ,/ ta% pa+0e't$ #'.&-)e$3 0, 1)amination of the ta) saving schemes available2 3, 4hort listing the most suitable schemes for your benefit2 5, 1)pert opinions on ta)ation problems2 Ta) planning involves conceiving of and implementing various strategies in order to minimi*e the amount of ta)es paid for a given period, 'or a small business, minimi*ing the ta) liability can provide more money for e)penses, investment, or gro+th, In this +ay, ta) planning can be a source of +or-ing capital, According to The 1ntrepreneur aga*ine 4mall (usiness Advisor, t+o basic rules apply to ta) planning, 'irst, a small business should never incur additional e)penses only to gain a ta) deduction, 6hile purchasing necessary e7uipment prior to the end of the ta) year can be a valuable ta) planning strategy, ma-ing unnecessary purchases is not recommended, 4econd, a small business should al+ays attempt to defer ta)es +hen possible, 8eferring ta)es enables the business to use that money interest9 free, and sometimes even earn interest on it, until the ne)t time ta)es are due, 1)perts recommend that entrepreneurs and small business o+ners conduct formal ta) planning sessions in the middle of each ta) year, This approach +ill give them time to apply their strategies to the current year as +ell as allo+ them to get a jump on the follo+ing year, It is important for small business o+ners to maintain a personal a+areness of ta) planning issues in order to save money, 1ven if they employ a professional boo--eeper or accountant, small business o+ners should -eep careful tabs on their o+n ta) preparation in order to ta-e advantage

of all possible opportunities for deductions and ta) savings, :ou should not blindly allo+ someone else to ta-e complete charge of your ta) paying responsibilities,; In addition, as 'rederic- 6, 8ailey +rote in his boo- Ta) 4avvy for 4mall (usiness, ;Ta) -no+ledge has po+erful profit potential, !no+ing +hat the ta) la+ has to offer can give you a far better bottom line than your competitors +ho don/t bother to learn,; Ta) planning is an integral piece of a proper financial plan, The fact is many people do not concentrate on ta) planning, I have seen this truth in my practice through ne+ clients +ho often tell me, < y ta) guy never tal-ed to me about ho+ to lo+er my ta) bill through ta) planning,= disaster, ?nderstanding the impact ta)es +ill have on your financial +ell9being is essential, especially for those +ho are self9employed, Ta-e time to plan for the current year and ma-e adjustments to create positive momentum, There are al+ays ne+ la+s and changing provisions in the ta) code, +hich, again illustrate the importance of planning, Ta-ing control of your ta)es and saving ta) dollars is +hat ta) planning is all about, 4ome of the biggest savings associated +ith ta) planning can come from ideas that are very simple, such as saving a percentage of your income to cover estimated ta)es or retirement contributions $if you are self employed&, or increasing your @A0!B@A5( contribution +hile adjusting your 69@ so your paychec- is not affected $for those +ho are employees&, .i-e many other aspects of your financial life, through -no+ledge and understanding can come clarity and improvement, Ta-e control of your ta)es, Remember that ta)es are the single largest recurring e)pense that must of us +ill have throughout our lifetime, The ta) code is 7uite complicated, so tal- +ith your 'inancial Advisor or ta) preparer about helping you plan accordingly, ost fol-s handle their ta)es in a reactive manner versus a proactive approach, They dump their ta) documents on the ta) preparer>s des- and hope for the best, This is a recipe for

1.1 O45ECTI6ES O7 THE ST! 8

 The main objective of the study is to find out the investment pattern of the investors in various Investment Avenues,

To determine +hat factors influence them +hile they choose a particular investment,

To find out +hether they are satisfied +ith their investment decision or not,

?nderstanding the impact ta)es +ill have on your financial +ell9being is essential, especially for those +ho are self9employed, 1)amination & understanding the investor perception in the ta) saving schemes +hich is available,

CHAPTER 9 2 ANA:8SIS O7 IN6EST;ENT

"HAT IS IN6EST;ENT1
Investment is the activity, +hich is made +ith the objective of earning some sort of positive returns in the future, It is the commitment of the funds to earn future returns and it involves sacrificing the present investment for the future return, 1very person ma-es the investment so that the funds he has increases as -eeping cash +ith himself is not going to help as it +ill not generate any returns and also +ith the passage of time the time value of the money +ill come do+n, As the inflation +ill rise the purchasing po+er of the money +ill come do+n and this +ill result that the investor +ho does not invest +ill become more poor as he +ill not have any funds +hose value have been increased, Thus every person +hether he is a businessman or a common man +ill ma-e the investment +ith the objective of getting future returns,

T8PES O7 IN6EST;ENT3There are basically three types of investments from +hich the investors can choose, The three -inds of investment have their o+n ris- and return profile and investor +ill decide to invest ta-ing into account his o+n ris- appetite, The main types of investments areC 9

E.,',0#. #'<e$t0e't$3These investments refer to the net addition to the capital stoc- of the society, The capital stocof the society refers to the investments made in plant, building, land and machinery +hich are used for the further production of the goods, This type of investments are very important for the development of the economy because if the investment are not made in the plant and machinery the industrial production +ill come do+n and +hich +ill bring do+n the overall gro+th of the economy,

7#'a'.#a& I'<e$t0e't$3This type of investments refers to the investments made in the mar-etable securities +hich are of tradable nature, It includes the shares, debentures, bonds and units of the mutual funds and any other securities +hich are covered under the ambit of the 4ecurities Contract Regulations Act definition of the +ord security, The investments made in the capital mar-et instruments are of vital important for the country economic gro+th as the stoc- mar-et inde) is called as the barometer of the economy,

Ge'era& I'<e$t0e't$3-

These investments refer to the investments made by the common investor in his o+n small assets li-e the television, car, house, motor cycle, These types of investments are termed as the household investments, 4uch types of investment are important for the domestic economy of the country, 6hen the demand in the domestic economy boost the overall productions and the manufacturing in the industrial sectors also goes up and this causes rise in the employment activity and thus boost up the D8P gro+th rate of the country, The organi*ations li-e the Central 4tatistical Organi*ation $C4O& regularly ta-es the study of the investments made in the household sector +hich sho+s that the level of consumptions in the domestic mar-ets,

CHARACTERISICS O7 IN6EST;ENT
Certain features characteri*e all investments, The follo+ing are the main characteristic featureC 9

1. Ret-r'3 All investments are characteri*ed by the e)pectation of a return, In fact, investments are made +ith the primary objective of deriving a return, The return may be received in the form of yield plus capital appreciation, The difference bet+een the sale price & the purchase price is capital appreciation, The dividend or interest received from the investment is the yield, 8ifferent types of investments promise different rates of return, The return from an investment depends upon the nature of investment, the maturity period & a host of other factors,

2. R#$=3 Ris- is inherent in any investment, The ris- may relate to loss of capital, delay in repayment of capital, nonpayment of interest, or variability of returns, 6hile some investments li-e government securities & ban- deposits are almost ris- less, others are more ris-y, The ris- of an investment depends on the follo+ing factors, A 0 The longer the maturity period, the longer is the ris-, The lo+er the credit +orthiness of the borro+er, the higher is the ris-,

The ris- varies +ith the nature of investment, Investments in o+nership securities li-e e7uity share carry higher ris- compared to investments in debt instrument li-e debentures & bonds,

3. Sa/et+3 -

The safety of an investment implies the certainty of return of capital +ithout loss of money or time, 4afety is another features +hich an investors desire for his investments, 1very investor e)pects to get bac- his capital on maturity +ithout loss & +ithout delay,

4. :#>-#)#t+3 An investment, +hich is easily saleable, or mar-etable +ithout loss of money & +ithout loss of time is said to possess li7uidity, 4ome investments li-e company deposits, ban- deposits, P,O, deposits, %4C, %44 etc, are not mar-etable, 4ome investment instrument li-e preference shares & debentures are mar-etable, but there are no buyers in many cases & hence their li7uidity is negligible, 17uity shares of companies listed on stoc- e)changes are easily mar-etable through the stoc- e)changes, An investor generally prefers li7uidity for his investment, safety of his funds, a good return +ith minimum ris- or minimi*ation of ris- & ma)imi*ation of return,

I;PORTANCE
In the current situation, investment becomes necessary for everyone & it is important & useful in the follo+ing +aysC

1. Ret#re0e't p&a''#'(3 Investment decision has become significant as people retire bet+een the ages of EE & FA, Also, the trend sho+s longer life e)pectancy, The earning from employment should, therefore, be calculated in such a manner that a portion should be put a+ay as a savings, 4avings by themselves do not increase +ealth2 these must be invested in such a +ay that the principal & income +ill be ade7uate for a greater number of retirement years, Increase in +or-ing population, proper planning for life span & longevity have ensured the need for balanced investments,

2. I'.rea$#'( rate$ ,/ ta%at#,'3 Ta)ation is one of the crucial factors in any country, +hich introduce an element of compulsion, in a person>s saving, In the form investments, there are various forms of saving outlets in our country, +hich help in bringing do+n the ta) level by offering deductions in personal income,

'or e)amplesC9 ?nit lin-ed insurance plan, .ife insurance, %ational saving certificates, 8evelopment bonds, Post office cumulative deposit schemes etc,

3. Rate$ ,/ #'tere$t3 It is also an important aspect for sound investment plan, It varies bet+een investment & another, This may vary bet+een ris-y & safe investment, they may also differ due different benefits schemes offered by the investments, These aspects must be considered before actually investing, The investor has to include in his portfolio several -inds of investments stability of interest is as important as receiving high rate of interest,

4. I'/&at#,'3 4ince the last decade, no+ a day>s inflation becomes a continuous problem, In these years of rising prices, several problems are associated coupled +ith a falling standard of living, (efore funds are invested, erosion of the resource +ill have to be carefully considered in order to ma-e the right choice of investments, The investor +ill try & search outlets, +hich gives him a high rate of return in form of interest to cover any decrease due to inflation,

5. I'<e$t0e't .ha''e&$3 The gro+th & development of country leading to greater economic activity has led to the introduction of a vast array of investment outlays, Apart from putting aside saving in savings ban-s +here interest is lo+, investor has the choice of a variety of instruments, The 7uestion to reason out is +hich is the most suitable channelG 6hich media +ill give a balanced gro+th & stability of returnG The investor in his choice of investment +ill give a balanced gro+th & stability of returnG The investor in his choice of investment +ill have try & achieve a proper mi) bet+een high rates of return to reap the benefits of both, 'or e)ampleC 9 'i)ed deposit in corporate sector, ?nit trust schemes,

CHAPTER 9 3 IN6EST;ENTS A6EN!ES

There are various investments avenues provided by a country to its people depending upon the development of the country itself, The developed countries li-e the ?4A and the Hapan provide variety of investments as compared to our country, In India before the post liberali*ation era there +ere limited investments avenues available to the people in +hich they could invest, 6ith the opening up of the economy the number of investments avenues have also increased and the 7uality of the investments have also improved due to the use of the professional activity of the players involved in this segment, Today investment is no longer a process of trial and error and it has become a systemati*ed process, +hich involves the use of the professional investment solution provider to play a greater role in the investment process, 1arlier the investments +ere made +ithout any analysis as the comple)ity involved the investment process +ere not there and also there +as no availability of variety of instruments, (ut today as the number of investment options have increased and +ith the variety of investments options available the investor has to ta-e decision according to his o+n ris- and return analysis, A' #'<e$t,r ha$ a *#)e arra+ ,/ I'<e$t0e't A<e'-e. The+ are a$ -')er3

Investment

I%4?RA%AC1 PO.I C:

PROVIDENT FUND

INFRA. BOND
OT"1R4

%4C

A.. 4A#I%D 4C"1

14

These are ideal investment vehicles for the small investor I the retail resident Indian investors, %onresident Indians are not allo+ed to invest in these schemes, .et us loo- at the salient features of these schemes, 0, Public Provident 'und 3, Post Office onthly Income 4cheme 5, Post Office Time 8eposit @, %ational 4aving Certificate E, !isan #i-as Patra F, Dovernment of India Ta)able 4avings (ond J, 4enior Citi*en 4aving 4cheme

P-?&#. Pr,<#)e't 7-')

Public Provident 'und $PP'& is a savings9cum9ta)9saving instrument in India, The Public Provident 'und $or the PP'& is one such long9term investment option that +ould suit investors of all types, 4coring high on safety, by virtue of it being government bac-ed, this +onderful option comes +ith ta) benefits, loan options and a lo+ maintenance cost, PP7 TA@ CONCESSIONS Interest earned is fully e)empt from ta) +ithout any limit, Annual contributions 7ualify for ta) rebate under 4ection KAC of Income ta) Act, Contributions to PP' accounts of the spouse and children are also eligible for ta) deductions, (alance in PP' account is not subject to attachment under any order or decree of court, (ut, Income Ta) authorities can attach the account for recovering ta) dues, P-?&#. Pr,<#)e't 7-') APP7B is a great instrument for ris-9averse investors, It is also a very good instrument for long term +ealth creation I mainly for goals that re7uire relatively safe investments, 'or e)ample, PP' can be a great avenue for investing to achieve a goal li-e <building retirement corpus=,

This is a very big s+eetener for PP' I PP' provides not one, but t+o ta) benefits One, the investment made in PP' is deductible from your income under 4ection KAC of the Income Ta) Act, This means that your entire investment in PP' can be ta) free, subject to the provisions of 4ec KAC,

P,$t O//#.e ;,'th&+ I'.,0e S.he0e

This scheme appeals to conservative investors +ith traditional values, and for good reason, This scheme offers monthly income and is a safe, guaranteed9by9the9government option, 'or retirees, +ido+s and others loo-ing for a steady income, it can be ideal,The Post Office 4cheme, or PO onthly Income I4, is offered by Indian Post Offices, A lump sum amount is deposited +ith I4 is one of the safest

the post office and monthly interest earned each month is paid out to you,As the scheme is offered by post offices, it is bac-ed by the government, Thus, the PO investments available,

P,$t O//#.e T#0e ep,$#t

A Post9Office Time 8eposit Account $R8A& is a ban-ing service similar to a (an- 'i)ed 8eposit offered by 8epartment of post, Dovernment of India at all post office counters in the country, The scheme is meant for those investors +ho +ant to deposit a lump sum of money for a fi)ed period2 say for a minimum period of one year to t+o years, three years and a ma)imum period of five years, Investor gets a lump sum $principal L interest& at the maturity of the deposit, Time 8eposits scheme return a lo+er, but safer, gro+th in investment,

Nat#,'a& Sa<#'( Cert#/#.ate

%ational 4avings Certificates $%4C& are certificates issued by 8epartment of post, Dovernment of India and are available at all post office counters in the country, This scheme is specially designed for Dovernment employees, (usinessmen and other salaried classes +ho are IT assesses, It is a long term safe savings option for the investor, Trust and "?' cannot invest, The scheme combines gro+th in money +ith reductions in ta) liability as per the provisions of the Income Ta) Act, 0MF0, The duration of a %4C scheme is F years,

Investments and Payments

Nat#,'a& Sa<#'($ Cert#/#.ate ANSCB Investments Interest Rate aturity Period ?pper .imitation .o+er .imitation Availability of .oans ode of Operation a), 8eductions In multiple of Rs, 0AAB9 Return at interest rate of KN F years %o Rs,0AAB9 :es 4ingly, jointly, or by a minor +ith hisBher parent or guardian O ?nder section KK of the Income Ta ) Act, 0MF0 any person can ta-e benefit in income ta) on amount invested in this scheme O ?nder section KA. of Income Ta) Act, 0MF0 there is a provision of benefit on interests coming from scheme,

C#$a' 6#=a$ Patra

!isan #i-as Patra or !#P is a sort of savings, +hich is regulated +ith the help of government and post offices, This !isan #i-as Patra !#P is a plan, +hich allo+s the investors to ma-e their investments up to double amount in a less duration of time in comparisons to the other governmental plans, The plan and subscription for !isan #i-as Patra is no+ available at every post offices that are regulated through government, !#P is -no+n as the most reliable savings procedure as the government conducts it directly and regulated by it,

G,<er'0e't ,/ I')#a Ta%a?&e Sa<#'($ 4,')

The Dovernment of India ta)able saving bond , is an instrument for those investors +ho are see-ing a secured return +ith almost no ris-, It is not a good option for those investors +ho are loo-ing for capital appreciation or high returns,

Se'#,r C#t#2e' Sa<#'( S.he0e

The 4enior Citi*en 4aving 4cheme 3AA@ had been introduced by the Dovernment of India for the benefit of senior citi*ens +ho have crossed the age of FA years, "o+ever, under some circumstances the people above EE years of age are also eligible to enjoy the benefits of this scheme, The scheme is not allo+ed for %on Resident Indians $%RIs& and "indu ?ndivided 'amilies, The 4enior Citi*en 4aving 4cheme 3AA@ offers an interest rate of M percent per annum, +hich +ill be payable on a 7uarterly basis on the 50st of arch, 5Ath of Hune, 5Ath of 4eptember and 50st of 8ecember of every year, The interest earned upon the savings is fully ta)able, and the ta) is deducted at the source itself, The tenure of 4enior Citi*en 4aving 4cheme 3AA@ is E years, +hich can be further e)tended for a period of 5 years by ma-ing an application to that effect,

Special Schemes for Retiring People

G,<er'0e't E0p&,+ee$ Interest Rate aturity Period ?pper .imitation .o+er .imitation a), 8eductions Return at interest rate of KN 5 years Total retirement benefit Rs,0AAAB9 According to Income Ta) Act, 0MF0 interest on this scheme is ta) free, P-?&#. Se.t,r E0p&,+ee$3 Interest Rate aturity Period ?pper .imitation .o+er .imitation ode of Operation a), 8eductions Return at interest rate of M,EN payable half9yearly on 5Ath Hune and 50st 8ecember respectively 5 years Total retirement benefit Rs,0AAAB9 Retired P4? employees in hisBher o+n name or +ith the spouse, jointly, According to Income Ta) Act, 0MF0 interest on this scheme is ta) free,

7#%e) I'.,0e I'$tr-0e't$ 9 :,'( Ter0

This segment deals +ith securities and deposits that have maturity periods one year or longer and +here couponBinterest is paid periodically, as opposed to discounted prices in case of short term instruments, discussed earlier, These vehicles are attractive for investors +ho see- regular income +ith relative safety, 4ome of the most popular avenues of fi)ed income instruments are as underC DOI dated securities I Dovernment (onds Dovernment of India borro+s for long term through these securities, (an-s, financial institutions, insurance companies and mutual funds subscribe to these bonds through the auction process initiated by Reserve (an- of India, These bonds are plain vanilla bonds of face value Rs 0AAAB9 +here on the couponBinterest is paid to the holders on half yearly basis, These bonds are 7uoted as <KN DOI bonds 3A0@= +hich indicate the coupon rate and maturity of these bonds, The prices of these bonds fluctuate based on the prevailing interest rates, the nearness to payment of coupon and of course, mar-et factors of li7uidityB demandBsupply, etc, These bonds are generally issued for periods ranging from 5 years to 3A years, The Dovernment of India issues securities in order to borro+ money from the mar-et, One +ay in +hich the securities are offered to investors is through auctions, The government notifies the date on +hich it +ill borro+ a notified amount through an auction, The investors bid either in terms of the rate of interest $coupon& for a ne+ security or the price for an e)isting security being reissued, 4ince the process of bidding is some+hat technical, only the large and informed investors, such as, ban-s, primary dealers, financial institutions, mutual funds, insurance companies, etc generally participate in the auctions,

PS! 4,')$
Public 4ector ?nderta-ing, Public 4ector 1nterprises and local authorities, but supported by 4tateBCentral Dovernment issue securities similar to Central Dovernment 4ecurities, Dovernment offers guarantee for payment of interest and repayment of principal amount of

these P4? borro+ings, These bonds, as they carry sovereign guarantee, are considered less ris-y compared to corporate bondsBdebentures but more ris-y compared to Dovernment securities, any 4tate Dovernment corporations have floated bonds in the past and have raised moneys for infrastructure projects and the

C,rp,rate 4,')$D e?e't-re$

Companies can borro+ directly from the mar-et through issue of securities, subject to capital mar-et regulations for meeting their capital re7uirements, The term of the debentures +ill depend upon the need of the company, The rate of interest +ill depend on mar-et conditions as +ell as credit+orthiness of the company and the credit rating for the debentures,

C,rp,rate ep,$#t$
Companies are allo+ed to borro+ from the public through public deposits for meeting their medium term capital re7uirements,

N,' 4a'=#'( 7#'a'.e C,0pa'#e$3

Only %('C>s +hich are registered +ith R(I can accept fi)ed deposits, An %('C can accept fi)ed deposits only if credit rating is above inimum rating fi)ed by R(I from time to time, To the investor 'i)ed 8eposits +ith %('C>s offer a higher ris- higher return investment option,

4a'= )ep,$#t$
(an-s accept fi)ed deposits for short term as +ell long term offering specific fi)ed rate of interest, This is the most popular investment vehicle for the retail investors in India because investors find ban-s very convenient to deal +ith, These deposits are perceived to be highly safe and li7uid "hat are the a)<a'ta(e$ a') )#$a)<a'ta(e$ ,/ 7 $1 The main advantage is that

 '8s from reputed ban-s are a very safe investment because such ban-s are carefully regulated by the Reserve (an- of India, R(I, the ban-ing regulator in India, %ote that company '8s isn/t as safe as ban- '8s because if the company goes ban-rupt you may lose your money, a-e sure you chec- the credit rating of a company before investing in its '8s, :ou should be especially +ary of companies +hich offer interest rates significantly higher than the average to attract your money, The other advantage of '8s is that you have the option of receiving regular income through the interest payments that are made every month or 7uarter, This option is especially useful for retirees, On the flip side, A fi)ed deposit +on/t give you the same returns that you may get in the stoc- mar-ets, 'or instance a stoc-9portfolio may raise 3A95A per cent in a good year +hereas a fi)ed deposit typically earns only J90A per cent, A fi)ed deposit also doesn/t offer protection against inflation, If inflation rises steeply during the maturity of the '8 your inflation adjusted return +ill fall, 4ay, for e)ample, the inflation +hen you deposited the money at a fi)ed return of K per cent per annum is 5 per cent, %o+ +hen your '8 matures say after 3 years, the inflation increases to say E per cent,

.I'1 I%4?RA%C1 PRO8?CT4

.ife insurance is a misunderstood concept in India, (asically .ife Insurance Plans should provide insurance cover to protect the dependants of the .ife Assured, (ut conventionally .ife Insurance policies have been sold as investment products +here the .ife Assured gets a lump sum at the end of a fi)ed term or periodic returns on a regular basis during the term, The emphasis has been more on the investment aspects than on life cover, The private players in .ife Insurance sector in India they have brought in ne+er concepts li-e adding riders to life

insurance policies but they also continue to sell insurance plans +ith more emphasis on the investment features, Insurance is not for the person +ho passes a+ay, it for those +ho survive, It is e)tremely important that every person cover his ris-s so that his life, or in case of any eventuality, his family, his lifestyle does not undergo any drastic change, It is the responsibility of every bread earner to guard against the events that could affect the family in the unfortunate circumstance of his demise, Thus, the need for proper insurance, .ife insurance saving schemes for government o+ned :#/e I'$-ra'.e C,rp,rat#,' ,/ I')#a a') ,ther pr#<ate &#/e #'$-ra'.e .,0pa'#e$ &#=e 4aEaE A&&#a'2 F 4#r&a S-' :#/e I'$-ra'.eF H 7C :#/e I'$-ra'.e F ICICI Pr-)e't#a& a') 0,re.
Life Insurance Plan

Applicable If Conditions a) 8eductions .imitations

O All life insurance plans gives you the ta) benefit O :ou should have .ife Insurance Policy O Complete amount invested in life insurance policy is ta) free, O Payout from life insurance policy is ta) free, O Do for plan +hich is suitable to your life and your financial planning, O :ou need not buy every year ne+ policy, O If you thin- that you have already invested enough in life insurance plan but +ant to invest again then you should go for ?.IP plans,

"h+ #$ :#/e I'$-ra'.e $, #0p,rta't1 .ife insurance is usually ta-en by the earning member$s& of the family to ensure that in case of their death, and hence their source of income ceasing to e)ist, the dependent family members +ould have a lump9sum amount to fall bac- on, 4o by paying a small amount every year the earning member of the family can ensure that the future of their loved ones is absolutely secure from a financial point of vie+, 4o in the event of death of an insured person, the nominee of the policy +ould receive an amount called the sum assured +hich can then be used effectively to plan for their future,

.ife insurance is absolutely critical for everyone irrespective of the amount of income you currently earn, unless you have saved enough to ensure that your family can comfortably live +ith the savings alone, #re.t 4e'e/#t$ ,/ ta=#'( a :#/e I'$-ra'.e P&a' Provides for .oss of Income 9 In case of the policy holder>s death, the dependents +ill suddenly be left +ithout a constant source of income, The future re7uirements of the dependent members too +ould be hugely compromised +ith them having to settle for options +hich are not as good as you +ould have +anted if you +ere around, 6ith a good amount of life insurance cover you can ensure that your family is not left high and dry along +ith emotional trauma of your absence, It is one of the most important reasons for ta-ing a life insurance policy, Protects your Assets 9 In your absence, your family should not have to resort to selling the assets +hich you accumulated +ith your hard +or-, In the event that there is no source of income your family +ould have to sell assets li-e land, home, vehicle, je+ellery +hich you had so lovingly purchased, The comforts you +anted to provide to your family should not be ta-en a+ay from them to ma-e do for their day9to9day living, In case you are ade7uately ensured, all your loans and your family>s financial future +ould be +ell ta-en care of, 'inancial Planning 9 .ife insurance policies can also be ta-en for sound financial planning depending on your re7uirements and ris- appetite, 'or the conservative investors there are a host of traditional policies li-e money bac- insurance policies and endo+ment plans to provide income to you at regular intervals of time, The more mar-et friendly investors can choose ?.IPs $?nit .in-ed Insurance Plans& to plan their future, There is a higher element of risinvolved +ith ?.IPs but the gains too can potentially be on the higher side, Ideally each individual should assess their re7uirements and choose their investment options and time hori*on, Ta) 4avings 9 One of the -ey reasons, people buy life insurance is to avail ta) benefits, a life insurance policy on maturity also get ta) e)emption, oney

paid as premium of .ife Insurance policies is e)empted from income ta) and the proceeds from

CHAPTER 9 4 RESEARCH ;ETHO O:OG8

Nee) ,/ the St-)+3
#. Identification of Customers PreferenceC +ith the survey on investment pattern, +e can identify customer preference to+ards investment in different options, ##. The study +ill be helpful for the companies +ho are involved in investment ban-ing to adopt a proper mar-eting strategy,

O?Ee.t#<e$ ,/ the St-)+3

#. The main objective of the study is to find out the investment pattern of the investors, ##. To determine +hat factors influence them +hile they choose a particular investment, and to find out +hether they are satisfied +ith their investment decision or not,

Sa0p&e e$#('3
#. Sa0p&e !'#t3 Investors ##. Sa0p&e S#2e3 42 ###. Sa0p&#'( ;eth,)3 Random 4ampling In random sampling, each item or element of the population has an e7ual chance of being chosen at each dra+,

ata C,&&e.t#,'3
The tas- of data collection begins after a research problem has been defined and research designedB plan chal-ed out, 8ata collection is to gather the data from the population, The data can be collected of t+o typesC Pr#0ar+ )ata Se.,')ar+ )ata

Pr#0ar+ )ata The Primary data are those, +hich are collected afresh and for the first time, and thus happened to be original in character, ethods of collection of Primary data are as follo+sC Intervie+ Puestionnaire

Se.,')ar+ )ata The 4econdary data are those +hich have already been collected by someone else and +hich have already been passed through the statistical tool, ethods of collection of 4econdary data are Hournals, 6ebsites and boo-s,

ata C,&&e.t#,' Te.h'#>-e$3

?sing available information Observing Intervie+ing $face9to9face& Administering +ritten 7uestionnaires 'ocus group discussions #. !$#'( A<a#&a?&e I'/,r0at#,' ?sually there is a large amount of data that has already been collected by others, although it may not necessarily have been analy*ed or published, .ocating these sources and retrieving the information is a good starting point in any data collection effort, ##. O?$er<#'(

Observation is a techni7ue that involves systematically selecting, +atching and recording behavior and characteristics of living beings, objects or phenomena, ###. I'ter<#e*#'( An intervie+ is a data9collection techni7ue that involves oral 7uestioning of respondents, either individually or as a group, #<. A)0#'#$ter#'( "r#tte' G-e$t#,''a#re$ A +ritten 7uestionnaire $also referred to as self9administered 7uestionnaire& is a data collection tool in +hich +ritten 7uestions are presented that are to be ans+ered by the respondents in +ritten form,

Re$ear.h T,,&$ a') te.h'#>-e$ -$e)3

Primary Tool 9 Puestionnaire 9 Observations 4econdary Tool 9 4 1)cel

9 4P44

Re$ear.h App&#.at#,'3
9 !R?4!A.96A..I4 T14 9 A%O#A

S.,pe ,/ the $t-)+3

i, This study helps in estimating the Investment pattern of the people, ii, This study helps to -no+ about the response of the people regarding the investment opportunities,

:#0#tat#,'$ ,/ the $t-)+3

In every research there are chances of errors and constraints, 6e have found follo+ing limitations in our study, i, 4ample si*e, +hich +e have ta-en, is very small, on the basis of +hich efficient decision can>t be ta-en, ii, Respondents +ere biased in their responses because they +ere more in favour of the pattern they +ere using, iii, Co9operation from respondents, this +as the major problem, iv, ost of the people +ere at their +or-, 4o they did not have enough time to give all replies, v, The population surveyed +as not open to 7uestions related to their personal income i,e, either they fell hesitant in disclosing the facts about their incomes or they +ere simply not interested, vi, The respondents +ere not in the favour to disclose their address and contact number because they believed that they +ould be contacted through telemar-eting, vii, Time factor, viii, Cost factor,

4.1 CR!SCA:-"A::IS TEST

The !rus-al96allis test evaluates +hether the population medians on a dependent variable are the same across all levels of a factor, To conduct the !rus-al96allis test, using the ! independent samples procedure, cases must have scores on an independent or grouping variable and on a dependent variable, The independent or grouping variable divides individuals into t+o or more groups, and the dependent variable assesses individuals on at least an ordinal scale, If the independent variable has only t+o levels, no additional significance tests need to be conducted beyond the !rus-al96allis test, "o+ever, if a factor has more than t+o levels and the overall test is significant, follo+9up tests are usually conducted, These follo+9up tests most

fre7uently involve comparisons bet+een pairs of group medians, 'or the !rus-al96allis, +e could use the ann96hitney ? test to e)amine uni7ue pairs,

ASS!;PTIONS !N ER:8ING A ;ANN-"HITNE8 ! TEST

Assumption 0C The continuous distributions for the test variable are e)actly the same $e)cept their medians& for the different populations, Assumption 3C The cases represent random samples from the populations, and the scores on the test variable are independent of each other, Assumption 5C The chi9s7uare statistic for the !rus-al96allis test is only appro)imate and becomes more accurate +ith larger sample si*es, The p value for the chi9s7uare appro)imation test is fairly accurate if the number of cases is greater than or e7ual to 5A, Chi9s7uare is a statistical test commonly used to compare observed data +ith data +e +ould e)pect to obtain according to a specific hypothesis, 'or e)ample, if, according to endel/s la+s, you e)pected 0A of 3A offspring from a cross to be male and the actual observed number +as K males, then you might +ant to -no+ about the ;goodness to fit; bet+een the observed and e)pected, 6ere the deviations $differences bet+een observed and e)pected& the result of chance, or +ere they due to other factors, "o+ much deviation can occur before you, the investigator, must conclude that something other than chance is at +or-, causing the observed to differ from the e)pected, The chi9s7uare test is al+ays testing +hat scientists call the '-&& h+p,the$#$F +hich states that there is no significant difference bet+een the e)pected and observed result, The formula for calculating chi9s7uare $
3 3

& isC

Q (o-e)3/e

That is, chi9s7uare is the sum of the s7uared difference bet+een observed $ o& and the e)pected $e& data $or the deviation, d&, divided by the e)pected data in all possible categories,

4.2 ANA:8SIS O7 6ARIANCEAANO6AB

In statistics, analysis of variance $A%O#A& is a collection of statistical models, and their associated procedures, in +hich the observed variance in a particular variable is partitioned into components attributable to different sources of variation, In its simplest form, A%O#A provides a statistical test of +hether or not the means of several groups are all e7ual, and therefore generali*es t9test to more than t+o groups, 8oing multiple t+o9sample t9tests +ould result in an increased chance of committing a type I error, 'or this reason, A%O#As are useful in comparing t+o, three, or more means, There are several types of A%O#A, any statisticians base A%O#A on the design of the

e)periment, especially on the protocol that specifies the random assignment of treatments to subjects2 the protocol/s description of the assignment mechanism should include a specification of the structure of the treatments and of any bloc-ing, It is also common to apply A%O#A to observational data using an appropriate statistical model,R 4ome popular designs use the follo+ing types of A%O#AC

One9+ay A%O#A is used to test for differences among t+o or more independent groups $means&,e,g, different levels of urea application in a crop, Typically, ho+ever, the one9+ay A%O#A is used to test for differences among at least three groups, since the t+o9group case can be covered by a t9test,S3AR 6hen there are only t+o means to compare, the t9test and the A%O#A '9test are e7uivalent2 the relation bet+een A%O#A and t is given by F Q t3, 'actorial A%O#A is used +hen the e)perimenter +ants to study the interaction effects among the treatments,

Repeated measures A%O#A is used +hen the same subjects are used for each treatment $e,g,, in a longitudinal study&,

ultivariate analysis of variance $ A%O#A& is used +hen there is more than one response variable

CHAPTER-5 ANA:8SIS AN
HCr-$=a&-"a&&#$I te$t

INERPRETATION

G, 8ifferent age group of respondents are influencing in ta) planning,

7#')#'($1
"$A& 0C %o significant difference in ran-ing belonging to different age of respondents for the factor influencing ta) planning, "$0& 0C 4ignificant difference in ran-ing belonging to different age of respondents for the factor influencing ta) planning, Table $0&

Age 3A95A years Increase Income 5A9@A years @A9EA years Above EA years 3A95A years "igher Ta) 5A9@A years @A9EA years Above EA years 3A95A years Problems ta) 5A9@A years @A9EA years Above EA years 3A95A years Income 'amily 5A9@A years @A9EA years Above EA years

% 0A 3A 0A 3 0A 3A 0A 3 0A 3A 0A 3 0A 3A 0A 3

ean Ran30,EE 0J,F3 3J,0A 53,AA 0K,EE 35,M3 0K,EE 3F,JE 0K,@A 3A,MA 3E,JE 30,JE 0E,JE 3A,FK 3E,3A @A,AA

Chi947uare F,0F@

df 5

Asymp, 4ig, A,0A@

3,J

A,@@

3,05M

A,E@@

K,@@

A,A5K

I'terpretat#,'
'rom table $0&, !rus-al96allis>s "9test sho+s that of the four variables +ith respect to ta) planning are rated by respondents belonging to different age groups in order so as to understand that +hether any difference in influencing the respondents across different age e)ists +ith regards to their preference Ta) Planning Assessment, Thus out of four variables, one variables is found to have significant impact i,e, Income 'amily $"QA,A5K, pT A,AE& +ere found to be significantly related +ith the Age groups, Thus, +e accept the null "ypotheses for these three variables and reject the null "ypothesis for remaining one variable that is Income of the 'amily selected for study,

G, 8ifferent 1ducation of respondents are influencing in ta) planning,

7#')#'($

"$A& 3C There is no significant difference in ratings of the respondents belonging to different educational bac-grounds for the factors that influence ta) planning, "$0& 3C There is significant difference in ratings of the respondents belonging to different educational bac-grounds for the factors that influence ta) planning, Table $3&

1ducation ?ndergraduate IncreaseUIncome Draduate Post Draduate ?ndergraduate "igherUTa) Draduate Post Draduate ?ndergraduate ProblemsUta) Draduate Post Draduate ?ndergraduate IncomeU'amily Draduate Post Draduate Total

% K 33 03 K 33 03 K 33 03 K 33 03 @3

ean Ran0E,AA 3A,5A 3K,A@ 0E,EF 35,EA 30,JM 0M,AA 35,F0 0M,3M 30,5K 35,KA 0J,5K

Chi-Square

As!m". Si#.

$.%&$

&

'.'()

&.))*

&

'.&($

+.%%,

&

'.-%*

&.(+*

&

'.(+-

I'terpretat#,'
'rom table $3&, !rus-al96allis>s "9test sho+s that of the four variables +ith respect to ta) planning are rated by respondents belonging to different education groups in order so as to understand that +hether any difference in influencing the respondents across different education e)ists +ith regards to their preference Ta) Planning Assessment, Thus out of four variables, one variables is found to have significant impact i,e, Increase Income $"QA,A5K, pT A,AE& +ere found to be significantly related +ith the education groups, Thus, +e accept the null "ypotheses for these three variables and reject the null "ypothesis for remaining one variable that is Increase Income selected for study,

G. 8ifferent Occupation of respondents are influencing in ta) planning,

7#')#'($
"$A& 5C There is no significant difference in ratings of the respondents belonging to different occupations for the factors that influence ta) planning "$0& 5C There is significant difference in ratings of the respondents belonging to different occupations for the factors that influence ta) planning, Table $5&

Occupation IncreaseUIncome 4alaried Professional (usiness Retired "igherUTa) 4alaried Professional (usiness Retired ProblemsUta) 4alaried Professional (usiness Retired IncomeU'amily 4alaried Professional (usiness Retired Total

% 3E J K 3 3E J K 3 3E J K 3 3E J K 3 @3

ean Ran0F,F3 3J,3M 3M,AF 53,AA 33,0A 30,0@ 0K,F3 3F,JE 30,EF 0K,EJ 35,K0 30,JE 33,3@ 0J,F@ 0J,M@ @A,AA

Chi-Square d ++.+() (

As!m". Si#. '.'++

+.'&+

'.,*$

'.,,$

'.)%%

$.%-%

'.'))

I'terpretat#,'
'rom table $5&, !rus-al96allis>s "9test sho+s that of the four variables +ith respect to ta) planning are rated by respondents belonging to different occupation groups in order so as to understand that +hether any difference in influencing the respondents across different occupation e)ists +ith regards to their preference Ta) Planning Assessment, Thus out of four

variables, one variables is found to have significant impact i,e, Increase Income $"QA,A00, pT A,AE& +ere found to be significantly related +ith the occupation groups, Thus, +e accept the null "ypotheses for these three variables and reject the null "ypothesis for remaining one variable that is Increase Income selected for study,

ANO6A Te$t

7#')#'($
"$A& @C There is no significant difference in ratings of the respondents in selecting a particular ta) saving scheme +ith respect to their investment parameters, "$0& @C There is significant difference in ratings of the respondents in selecting a particular ta) saving scheme +ith respect to their investment parameters,

Ta?&e A4B3 ANO6A 4um of 47uares TAVU(1%1'IT (et+een Droups 6ithin Droups Total "ID"UR1T?R% (et+een Droups 6ithin Droups Total 4A'1T: (et+een Droups 6ithin Droups Total .IP?I8IT: (et+een Droups 6ithin Droups Total RI4! (et+een Droups 6ithin Droups Total R1D?.ARIT:UI%CO 1 (et+een Droups 6ithin Droups Total 0A,A5K EM,KFJ FM,MAE 0J,@3F EE,EEA J3,MJF M,3F5 FM,A33 JK,3KF J,M00 EM,@33 FJ,555 5,F@M @3,JEF @F,@AE 0F,@3F M3,EEA 0AK,MJF df @ 5J @0 @ 5J @0 @ 5J @0 @ 5J @0 @ 5J @0 @ 5J @0 @,0AJ 3,EA0 0,F@3 ,0K@ ,M03 0,0EF ,JKM ,E5M 0,MJK 0,FAF 0,350 ,50@ 3,50F 0,KFE 0,3@0 ,50A @,5EJ 0,EA0 3,MA3 ,A5E ean 47uare 3,E0A 0,F0K ' 0,EE0 4ig, ,3AK

Ta?&e A5B ;-&t#p&e C,0par#$,'$ (onferroni ean $I& $H& 8ifference 4td, Ta)UOptions Ta)UOptions $I9H& 1rror PP' %4C (onds Others PP' .IC %4C (onds Others %4C .IC PP' (onds Others (onds .IC PP' %4C Others Others .IC PP' %4C (onds MEN Confidence Interval 4ig, .o+er (ound 90,@K@M 93,KE5E 93,5KFA 9,3K0@ 90,@E0E 95,A50@ 93,EM@E 9,@5KE 90,0E5E 90,5F@J 93,0M@@ ,A5MF 90,A0M5 90,3F03 93,E3JK ,AKA3 9@,3@KA 9@,@5KE 9E,F3JA 9E,3E50 ?pper (ound 0,@E0E 0,0E5E 0,A0M5 @,3@KA 0,@K@M 0,5F@J 0,3F03 @,@5KE 3,KE5E 5,A50@ 3,E3JK E,F3JA 3,5KFA 3,EM@E 3,0M@@ E,3E50 ,3K0@ ,@5KE 9,A5MF 9,AKA3

8ependent #ariable

"ID"UR1T?R% .IC

9,A0FFJ ,@M0K3 0,AAA 9,KEAAA ,FJ003 0,AAA 9,FK555 ,EJA5@ 0,AAA 0,MK555 ,JEKF5 ,03M ,A0FFJ ,@M0K3 0,AAA 9,K5555 ,J5F50 0,AAA 9,FFFFJ ,F@EJM 0,AAA 3,AAAAA ,K0FKF ,0M3 ,KEAAA ,FJ003 0,AAA ,K5555 ,J5F50 0,AAA ,0FFFJ ,JMAM5 0,AAA 3,K5555W ,M5EK@ ,A@E ,FK555 ,EJA5@ 0,AAA ,FFFFJ ,F@EJM 0,AAA 9,0FFFJ ,JMAM5 0,AAA 3,FFFFJW ,KFF@3 90,MK555 ,JEKF5 93,AAAAA ,K0FKF 93,K5555W ,M5EK@ 93,FFFFJW ,KFF@3 ,A5M ,03M ,0M3 ,A@E ,A5M

W, The mean difference is significant at the A,AE level,

I'terpretat#,'

'rom Table $@&, it is found that the p value for "igher Returns is lesser than A,AE and for the remaining investment parameters the p value is greater than A,AE, This means that +e reject the null hypotheses +ith respect to investment parameter of higher returns and accept the null hypotheses for the remaining investment variables, Table $E& sho+s that +hich ta) saving schemes e)hibit those differences and it has been found that both %4C and (onds are significantly different than others options of those schemes +ith respect to higher returns, This sho+s that investors have different perceptions +hile selecting ta) saving schemes +hen higher returns are considered, Therefore +e reject the null hypotheses and accept the alternative hypotheses that there is no significant difference in ratings of the respondents in selecting a particular ta) saving scheme +ith respect to the investment parameters of higher return and accept the null hypotheses for the remaining investment parameters

A%O#A C Age

7#')#'($
"$A& FC There is no significant difference in ratings of the respondents belonging to different age for the factors that influence in ta) planning, "$0& FC There is significant difference in ratings of the respondents belonging to different age for the factors that influence in ta) planning,

Ta?&e A6B3 ANO6A 4um of 47uares TAVU(1%1'IT (et+een Droups 6ithin Droups Total "ID"UR1T?R% (et+een Droups 6ithin Droups Total 4A'1T: (et+een Droups 6ithin Droups Total .IP?I8IT: (et+een Droups 6ithin Droups Total RI4! (et+een Droups 6ithin Droups Total R1D?.ARIT:UI%CO 1 (et+een Droups 6ithin Droups Total 3,KEE FJ,AEA FM,MAE K,@JF F@,EAA J3,MJF 3,@KF JE,KAA JK,3KF 0,@K5 FE,KEA FJ,555 M,JAE 5F,JAA @F,@AE F,@3F 0A3,EEA 0AK,MJF df 5 5K @0 5 5K @0 5 5K @0 5 5K @0 5 5K @0 5 5K @0 3,0@3 3,FMM ,JM@ ,EAE 5,35E ,MFF 5,5EA ,A3M ,@M@ 0,J55 ,3KE ,K5F ,K3M 0,MME ,@0E ,J@5 3,K3E 0,FMJ 0,FFE ,0M0 ean 47uare ,ME3 0,JF@ ' ,E5M 4ig, ,FEK

Ta?&e A7B3;-&t#p&e C,0par#$,'$ (onferroni ean 8ifferenc e $I9H& ,5AAAA ,@AAAA MEN Confidence Interval 4td, 1rror ,5KAF3 ,@5MEA ,JF035 ,5KAF3 ,5KAF3 ,J3KK3 ,@5MEA ,5KAF3 ,JF035 ,JF035 ,J3KK3 ,JF035 4ig, 0,AAA 0,AAA ,0A3 0,AAA 0,AAA ,A3J 0,AAA 0,AAA ,A3J ,0A3 ,A3J ,A3J .o+er (ound 9,JEM@ 9,K355 9@,A0KM 90,5EM@ 9,MEM@ 9@,33KJ 90,F355 90,0EM@ 9@,@0KM 9,30KM ,0J05 ,0K00 ?pper (ound 0,5EM@ 0,F355 ,30KM ,JEM@ 0,0EM@ 9,0J05 ,K355 ,MEM@ 9,0K00 @,A0KM @,33KJ @,@0KM

8ependent #ariable RI4!

$I& Age

$H& Age

3A95A years 5A9@A years @A9EA years

Above EA 90,MAAAA years 5A9@A years 3A95A years @A9EA years 9,5AAAA ,0AAAA

Above EA 93,3AAAAW years @A9EA years 3A95A years 5A9@A years 9,@AAAA 9,0AAAA

Above EA 93,5AAAAW years Above EA years 3A95A years 5A9@A years @A9EA years 0,MAAAA 3,3AAAAW 3,5AAAAW

I'terpretat#,'

'rom Table $F&, it is found that the p value for Ris- is lesser than A,AE and for the remaining investment parameters the p value is greater than A,AE, This means that +e reject the null hypotheses +ith respect to investment parameter of ris- and accept the null hypotheses for the remaining investment variables, Table $J& sho+s that +hich age groups e)hibit those differences and it has been found that age group @A9EA and EA above are significantly different than others options of age group +ith respect to ris-s, This sho+s that investors have different perceptions +hile selecting ta) saving schemes +hen ris- is considered, Therefore +e reject the null hypotheses and accept the alternative hypotheses that there is no significant difference in ratings of the respondents in selecting a particular ta) saving scheme +ith respect to the investment parameters of ris- and accept the null hypotheses for the remaining investment parameters A%O#A C 1ducation

7#')#'($
"$A& KC There is significant difference in ratings of the respondents belonging to different education for the factors that influence in ta) planning, "$0& KC There is no significant difference in ratings of the respondents belonging to different age for the factors that influence in ta) planning

Ta?&e A8B3 ANO6A 4um of 47uares TAVU(1%1'IT (et+een Droups 6ithin Droups Total "ID"UR1T?R% (et+een Droups 6ithin Droups Total 4A'1T: (et+een Droups 6ithin Droups Total .IP?I8IT: (et+een Droups 6ithin Droups Total RI4! (et+een Droups 6ithin Droups Total R1D?.ARIT:UI%CO 1 (et+een Droups 6ithin Droups Total 0,3ME FK,F0A FM,MAE 5,0AE FM,KJ0 J3,MJF F,JMA J0,@MF JK,3KF ,EME FF,J5M FJ,555 ,@AM @E,MMF @F,@AE E,JA5 0A5,3J5 0AK,MJF df 3 5M @0 3 5M @0 3 5M @0 3 5M @0 3 5M @0 3 5M @0 3,KE3 3,F@K 0,AJJ ,5E0 ,3A@ 0,0JM ,0J5 ,K@3 ,3MJ 0,J00 ,0J@ ,K@0 5,5ME 0,K55 0,KE3 ,0JA 0,EE3 0,JM3 ,KFJ ,@3K ean 47uare ,F@J 0,JEM ' ,5FK 4ig, ,FM@

I'terpretat#,'
A%O#A C Occupation

7#')#'($

"$A& MC There is no significant difference in ratings of the respondents belonging to different occupation for the factors that influence in ta) planning, "$0& MC There is significant difference in ratings of the respondents belonging to different occupation for the factors that influence in ta) planning

Ta?&e A9B3 ANO6A 4um of 47uares TAVU(1%1'IT (et+een Droups 6ithin Droups Total "ID"UR1T?R% (et+een Droups 6ithin Droups Total 4A'1T: (et+een Droups 6ithin Droups Total .IP?I8IT: (et+een Droups 6ithin Droups Total RI4! (et+een Droups 6ithin Droups Total R1D?.ARIT:UI%CO 1 (et+een Droups 6ithin Droups Total ,AJA FM,K5E FM,MAE J,K55 FE,0@@ J3,MJF F,30J J3,AFM JK,3KF ,5FE FF,MFM FJ,555 M,J55 5F,FJ3 @F,@AE J,M@J 0A0,A3M 0AK,MJF df 5 5K @0 5 5K @0 5 5K @0 5 5K @0 5 5K @0 5 5K @0 3,F@M 3,FEM ,MMF ,@AE 5,3@@ ,MFE 5,5F3 ,A3M ,033 0,JF3 ,AFM ,MJF 3,AJ3 0,KMJ 0,AM5 ,5F@ 3,F00 0,J0@ 0,E35 ,33@ ean 47uare ,A35 0,K5K ' ,A05 4ig, ,MMK

Ta?&e A10B3 ;-&t#p&e C,0par#$,'$ (onferroni ean $I& $H& 8ifference Occupation Occupation $I9H& 4alaried Professional (usiness Retired Professional 4alaried (usiness Retired (usiness 4alaried Professional Retired Retired 4alaried Professional (usiness ,0JJ0@ 9,5AEAA 93,0KAAAW 9,0JJ0@ 9,@K30@ 93,5EJ0@W ,5AEAA ,@K30@ 90,KJEAA 3,0KAAAW 3,5EJ0@W 0,KJEAA MEN Confidence Interval 4td, 1rror ,@3AAK ,5MMA@ ,J30KM ,@3AAK ,EAK@5 ,JKJFE ,5MMA@ ,EAK@5 ,JJFF5 ,J30KM ,JKJFE ,JJFF5 4ig, 0,AAA 0,AAA ,A3J 0,AAA 0,AAA ,A3M 0,AAA 0,AAA ,03@ ,A3J ,A3M ,03@ .o+er (ound 9,MM30 90,@0EJ 9@,0KM@ 90,5@F@ 90,KMJ5 9@,E@ME 9,KAEJ 9,M55A 9@,A5FJ ,0JAF ,0F@J 9,3KFJ ?pper (ound 0,5@F@ ,KAEJ 9,0JAF ,MM30 ,M55A 9,0F@J 0,@0EJ 0,KMJ5 ,3KFJ @,0KM@ @,E@ME @,A5FJ

8ependent #ariable RI4!

W, The mean difference is significant at the A,AE level,

I'terpretat#,'
'rom Table $M&, it is found that the p value for Ris- is lesser than A,AE and for the remaining investment parameters the p value is greater than A,AE, This means that +e reject the null hypotheses +ith respect to investment parameter of ris- and accept the null hypotheses for the remaining investment variables, Table $0A& sho+s that +hich occupation e)hibit those differences and it has been found that professional retired above are significantly different than others options of occupation +ith respect to ris-s, This sho+s that investors have different perceptions +hile selecting ta) saving schemes +hen ris- is considered, Therefore +e reject the null hypotheses and accept the alternative hypotheses that there is no significant difference in ratings of the respondents in selecting a particular ta) saving scheme +ith respect to the investment parameters of ris- and accept the null hypotheses for the remaining investment parameters

CHAPTER 9 6 7IN INGS

'rom the analysis made in the previous chapter the follo+ing findings can be derivedC ainly males & young people bet+een the age group 3A9@A have invested in investment avenues,

ainly young graduates have invested in investment avenues, (ut in real mar-et this doesn>t stand true, ainly businessmen and private sector employees invest in investment avenues, ost of the people +ho have invested investment avenues are in the income group of Rs,@90A la-h,

ost of the investors had invested bet+een Rs, 395 la-hs in, investment avenues,

ostly people invest for a safe retirement follo+ed by children>s marriage and education,

Investors mainly invest for +ealth creation and to earn returns,

ost of the investors consider safety before investing,

ost of the investors have invested bet+een 3A95AN of their savings in investment avenues,

ost of the respondents are ready to ta-e average ris-,

ost of the investors trading in investment avenues prefer short9term period,

ost of the investors got to -no+ about investment avenues through

edia,

CHAPTER 9 7 RECO;EN ATATIONS

Investors should ma-e the investment +ith proper planning -eeping in mind their investment objectives, Investors should read the offer document carefully before investing in any scheme of the mutual funds and life insurance, Investors should also consults the bro-ers or agents to see- information and advice but their decision should not merely be based on agents advice rather the decision should be based on their careful investigation,

 The investors should select a particular investment option on basis of their need and ristolerance, The investors should diversify their investment portfolio in order to reduce the ris-, The investors should continuously monitor their investments, The companies should provide all relevant information to the investors, If the minimum investment is reduced, this might induce more people to invest, It is not a necessity that one must be very educated to invest in investment avenues, 4o, it is recommended that those +ho are not so +ell educated also can invest in investment avenues,

XX J 4T1P4 TO (1TT1R I%#14T 1%T P.A%%I%DXX

Here are $,0e $tep$ +,- .a' /,&&,* t, ?etter +,-r #'<e$t0e't p&a''#'(3
Step 13 Create a ?-)(et a') tra.= +,-r e%pe'$e$ A budget helps you identify problem spending areas and also helps regulate your cash flo+, Step 23 Pa+ ,// +,-r e%#$t#'( .re)#t .ar) )e?t$ Credit cards charge a high amount of interest along +ith the principal repayments, 6hen you clear this amount, youYll be glad to reali*e that all the interest amounts and late fees you paid to credit cards can be utili*ed for your savings and investment program,

Step 33 Sa<e e//e.t#<e&+ /,r a ra#'+ )a+ 1mergencies often arrive unannounced, 1nsure that some money is set aside to cover monthly e)penses for at least three months, These funds should be invested or set aside in instruments that can be readily accessed should you need cash, Step 43 e$#(' a )#$.#p&#'e) $a<#'($ pr,(ra0

:ou can open a recurring deposit account, In this case a particular amount from your income gets deposited every month for a fi)ed tenure, :ou can also invest in a series of fi)ed deposits $'8s&, Step 53 I'<e$t #' e)-.at#,'F pe'$#,'F a') ret#re0e't #'$-ra'.e p&a'$ :ou can get life cover, education cover and save for retirement +hen you invest in insurance, (esides this, you get ta) e)emptions to reduce your current ta) payout, Step 63 4-+ +,-r$e&/ +,-r )rea0 h,0e Investing in a house is one of the best investments you can ma-e, 'irst, your payments to+ards interest and real estate ta)es are ta) deductible, 4econd, your property increases in value over time, Step 73 I'<e$t #' a )#<er$#/#e) #'<e$t0e't pr,(ra0 D $+$te0at#. #'<e$t0e't p&a' :our ris- tolerance level goes a long +ay in defining your investment approach, If you>re not averse to ta-ing ris-s, then you may +ant to invest in an e7uity based mutual fund or in bonds and other safe securities, Also, ensure that you -eep in mind your investment objectives before you subscribe to an investment plan,

CONC:!SION
Investing is about ma-ing your money +or- for you,

Reinvesting your earnings allo+s you to ta-e advantage of compounding,

1ach investor is different in his or her objectives and ris- tolerance,

 There isn/t just one strategy that can be used to invest successfully,

1ach investment vehicle has its o+n uni7ue characteristics,

8iversifying investments in a portfolio helps to manage ri

9 ANNE@!RES
G-e$t#,''a#re 7a.t,r$ I'/&-e'.#'( I'<e$t0e't #' Ta% $a<#'( $.he0e.
0& In +hich of the follo+ing ta) saving schemes have you investedG

+. Insurance PolicyC &. Provident 'und 4cheme (. %ational 4avings Certificates -.

Infrastructure (onds

%. Other Ta)94aving 4chemes

3& !indly ran- the follo+ing statements as per your preference, 0C .east Preferred and FC Preferred

ost

N,

Part#.-&ar$

:IC

PP7

NSC

4,')$ Other ta% $a<#'( $.he0e$

0 3 5 @ E F

Ta) (enefit "igh Return 4afety .i7uidity Ris- Coverage Regularity of Income

5& !indly ran- the follo+ing statements that influences the Assessees for ta) planning, 0C .east Important and EC ost Important N, 0 3 5 @ Part#.-&ar$ Increasing Income "igh Income Ta) Rate Problems in Ta) Payment Increasing Income of 'amily embers 1 2 3 4 5

4B Per$,'a& eta#&$

Ge')er3 A(e3

0&

ale

3& 'emale 3& 5A I @A years 5& @A I EA years

0& 3A I 5A years @& Above EA years

E)-.at#,'3 O..-pat#,'3

0& ?ndergraduate 0& 4alaried @& Retired

3& Draduate 3& Professionals

5& Post Draduate 5& (usiness