Vicky Saini

Investment is the commitment of money or capital to purchase financial instruments or other assets in order to gain profitable returns in the form of interest, income, or appreciation of the value of the instrument. Investment is related to saving or deferring consumption.

An investment involves the choice by an individual or an organization such as a pension fund, after some analysis or thought, to place or lend money in a vehicle, instrument or asset, such as property, commodity, stock, bond, financial derivatives (e.g. futures or options), or the foreign asset denominated in foreign currency, that has certain level of risk and provides the possibility of generating returns over a period of time.

The Investment Avenues I have considered in my project are:

Shares Insurance Mutual Funds Fixed Deposits Government Securities

More Avenues (not considered in my project): Gold Real Estate Postal Saving Schemes Bonds, Chit Funds & Company FDs

The factors which affect the investment decisions (considered in my project as well):

Risk Tolerance: Risk refers to the volatility of portfolios value. The amount of risk the investor is
willing to take on is an extremely important factor.

Return Needs: This refers to whether the investor needs to emphasize growth or income. Investment Horizon: The time horizon starts when the investment portfolio is implemented
and ends when the investor will need to take the money out. exempt, others will have no such preference.

Tax Exposure: Investors in higher tax brackets prefer such investments where the return is tax

Market Trends: You need to understand how various asset classes have performed in the past
before planning your finances.

Investment Needs: How much money do you need at the time of maturity? Risk Coverage: A type of insurance coverage that can exclude only risks that have been
specifically outlined in the contract.

Dependents: People who relies on another person, especially a family member, for financial
support.

The objective of the project was to understand respondents perception about the various investment avenues available to them while making investment and its impact on the investment behavior of people. While understanding the customers investment behavior, I got encouraged to do in-depth research on the weight of various factors influencing the customers decision to invest in the Investment Avenues.
The study aims to look at various factors that affect the investment decision. I tried to analyze this by conducting graphical analyses. Through this study we also aim to test the following hypothesis: H1.1: Return is the main factor which affects the investment decision of investor. H1.2: The main for not investing is the unexpected fluctuations in the market.

 Avenue Type Classification Income Type Classification Reasons For Not Investing

Preferred Investment
Assumptions

Insurance

Mutual Funds

Fixed Deposits

Government Securities

 Security Type Classification Income Type Classification Reasons For Not Investing

Preferred Investment
Assumptions

 Security Type Classification Income Type Classification Reasons For Not Investing

Preferred Investment
Assumptions

 Security Type Classification Income Type Classification Reasons For Not Investing

Preferred Investment
Assumptions

 Security Type Classification Income Type Classification Reasons For Not Investing

Preferred Investment
Assumptions

Below are the assumptions considered during the project:

The interest rates & economic conditions are same in last six months Each investment factor used in the avenues has the importance The employees are from different places in India, hence the thinking of each
respondent varies