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AN EMPIRICAL STUDY ON ASSET

ALLOCATION BY INVESTORS IN
ULHASNAGAR
Objectives

To study the concept of Asset Allocation.

To gain knowledge about various Asset Classes in detail.

To learn about different Portfolios designed.

To understand how different factors affect returns on various


investments.

And specifically to know how many people in ULHASNAGAR


diversify their risk through asset allocation.
RESEARCH METHODOLOGY

Sources of data
Primary Secondary
data data
INTRODUCTION
REVIEW OF LITREATURE

RICHARD FERRI in his book ALL ABOUT ASSET ALLOCATION:-


Stated that , when it comes to investing for your future, there is one
sure bet ASSET ALLOCATION the easy way to get started
everything.
He has given 3 steps for successful investment :
plan creation
Implementation
Maintenance
AMAR PANDIT stated that RIGHT DECISION plays a very
IMPORTANT role in asset allocation, investing decisions- where to
invest, what amount to be invested and when to invest will affect the overall
Investment returns.
Area of study
Ulhasnagar a place called as business
hub, with mostly sindhi community,
which is nowhere left behind. Here
people earn profits out of business
and make investments. Not only
businessmen but also salaried people
living here make investments as per
there capacity. My study is based on
how ulhasnagar people allocate assets
and make their portfolio a better one
to earn a greater rewards.
Facts and findings
1.

NUMBER OF RESPONDENTS
MALE FEMALE

26%

74%
2.
AGE GROUP OF RESPONDENTS

1%
5% 3%

30% 30%
less than 18 yrs
18-21 yrs
21-25 yrs
30% 25-35 yrs
35-50 yrs
50 yrs & above
3.
Investments in different sectors
currency market
commodity market
cash and equivalents
Mutual funds
fixed income
Equities
Real estate
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
4.
Reasons of investments

RETURNS & REWARD

FUTURE UNFORSEEN INCIDENTS

RISK DIVERSIFICATION

0% 20% 40% 60% 80%


5.

Investors response of risk taking


capacity
9% 2%
17%

1
23% 2
3
39%
4
5
6. AGE OF INVESTING

Respondents view
1%
9%

early age
middle age
after 50 yrs
90%
7.
factors that investors consider while making
investments
40%
35%
30%
25%
20%
15%
10%
5%
0%
demand of popularity growth in inflation govt. benefits own needs
particular of particular particular policies from
investment investment investment particular
investment
8.
Beneficial investments on the basis of returns

mutual funds
currency market
commodity market
cash and equivalents
fixed incomes
equities
real estate

0% 10% 20% 30% 40% 50% 60%


9.
More beneficial- short term v/s long term
(investors response)

12%

short term investment


long term investment

88%
10.
Investment returns always beneficial

39%

YES
NO
61%
ANALYSIS AND INTERPRETATIONS
o From the survey of 100 respondents
Majority of respondents- male .
Most preferred avenues are- fixed incomes, equities, real estate.
The reason behind this could be investors risk taking capacity, investing
capacity, his attitude and knowledge towards particular investment.
The major reasons for investments are returns and rewards and risk
diversification.
Factors considered benefits, growth, popularity, demand, own needs, .
The main cause behind this is to analyze the avenues and than take
decisions to make the investments in a correct way.
Most beneficial investments on the basis of returns- real estate, fixed
incomes and equities.
The reason is simple , long term investments are more beneficial, as returns are high.
conclusion
ASSET ALLOCATION is investors choice of
making investments, depending upon past
experiences, knowledge, capacity, returns from
particular avenue to diversify risk and build a
stronger portfolio.
So it is never too late to get started, it is also never too
late to give your existing portfolio a face lift.
Asset allocation is not a one time event
It is life-long process of progession and fine tuning.
References
William Bernstein. (2000), The intelligent
asset allocator Mc Graw Hill publishing
house.
Richard ferri. (2010), The All about asset
allocation Mc Graw Hill publishing house.
Amar pandit. (2000), The journal on asset
allocation.
CNN MONEY MAGAZINE (2012).