Consumer Awareness of Different Investment Plan Repaired) (2)

FINAL PROJECT REPORT ON

Consumer Awareness Of The Different Investment Plan

For

Sundaram Finance

By

submitted

In Partial fulfillment for the award of the degree

MASTER OF BUSINESS ADMINISTRATION

Batch 2009-2011

To

Punjab Technical University, Jalandhar

NEW DELHI INSTITUTION OF MANAGEMENT

F-13, Phase-1,Okhla, New Delhi

New Delhi Institution Of Management

FINAL PROJECT REPORT ON

Consumer Awareness Of The Different Investment Plan

For

Sundaram Finance

Under The Guidance Of

Prof.R.K.Sharma

And

Mrs.Sayanti Banerjee

Submitted by:- Submitted to:-

Soumitra Khawas Prof.R.K.Sharma

9212760358,D-49


DECLERATION

I hereby declare that this Project Report entitled “CONSUMER AWARENESS OF

DIFFERENT INVESTMENT PLAN” submitted in the partial fulfilment of the

requirement of Master of Business Administration (MBA) of NEW DELHI

INSTITUTION OF MANAGEMENT, NEW DELHI is based on primary & secondary

data found by me in various departments, books, magazines and websites. The

information submitted is true & original to the best of my knowledge.

Date of Project Submission:-

Signature of the student:-

Faculty Comment:-..................................................................................................

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.....................................................................................................................................

.................................................................................................................................

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Signature of the faculty guide: – Signature of research methodology guide:-

Name: Name:


ACKNOWLEDGEMENT

I take this opportunity to express my gratitude to all of them who in some or the

other way to helped me to accomplish this project.The project study cannot be

completed without their guidance , assistance, inspiration and kind co-operation.

For successfully accomplishment of task apart from hard work the

most important requisite is the right direction and guidance for which I would like to

express my special thanks to Prof.R.K.Sharma who helped me a lot during this

project.

I would also like to extend my thanks to my members and friends

for their support and lastly, I would like to express my gratefulness to the parent’s for

seeing me through it all.


EXECUTIVE SUMMERY

In few years all different investment plan has emerged as a tool for ensuring one’s

financial well being. Investment plan have not only contributed to the India growth

story but have also helped families tap into the success of Indian Industry. As

information and awareness is rising more and more people are enjoying the benefits of

investing in all investment plans. The main reason the number of investors remains

small is that nine in ten people with incomes in India do not know that investment plan

exist. But once people are aware of mutual fund, equity, commodity, life insurance etc

investment opportunities, the number who decide to invest in all investment plan

increases to as many as one in five people. The trick for converting a person with no

knowledge of mutual funds to a new Mutual Fund customer is to understand which of

the potential investors are more likely to buy mutual funds and to use the right

arguments in the sales process that customers will accept as important and relevant to

their decision This Project gave me a great learning experience and at the same time it

gave me enough scope to implement my analytical ability. The analysis and advice

presented in this Project Report is based on market research on the saving and

investment practices of the investors and preferences of the investors for investment in

different investment option. This Report will help to know about the investors

Preferences in Mutual Fund means Are they prefer any particular Asset Management

Company (AMC)Which type of Product they prefer, Which Option (Growth or


Dividend) they prefer or Which Investment Strategy they follow (Systematic

Investment Plan or One time Plan).

TABLE OF CONTENTS

Chapter - 1 INTRODUCTION..………………………………………..........7

Chapter - 2 COMPANY PROFILE……………………………….....................8

Chapter -3 INTRODUCTION OF DIFFERENT INVESTMENT TERM.......12

Chapter - 4 OBJECTIVES AND SCOPE………………………...................41

Chapter - 5 RESEARCH METHODOLOGY..............................................43

Chapter - 6 DATA ANALYSIS AND INTERPRETATION.......................46

Chapter - 7 FINDINGS AND CONCLUSIONS..........................................60

Chapter - 8 SUGGESTIONS & RECOMMENDATIONS..........................64

Chapter-9 BIBLIOGRAPHY.....................................................................67

Chapter-10 QUESTIONAIRE……………………………………………….68


INTRODUCTION

Sundaram Finance Ltd incorporated in 1954 has grown today into one of the most trusted financial services groups in India.

Today, the activities of the group span savings products like Deposits and Mutual Funds, Car and Commercial Vehicle Finance, Insurance, Home Loans, Software Solutions, Business Process Outsourcing, Tyre Finance, Fleet Cards and Logistics Services.

Subsequently, the equity shares of the company have been delisted from Madras Stock Exchange Limited (MSE) with effect from January 27, 2004, in accordance with SEBI (Delisting of Securities) Guidelines, 2003, for voluntary delisting

The strength of the Group lies in the quick completion of transactions, long association with transporters for generations and the intimate knowledge of the market and its nuances.

The Group has a vast network of over 400 branches to cater to the financing needs of our customers. The company was started with a paid-up capital of Rs.2.00 Lakhs and later went public in 1972.The Company's shares were listed in the Madras Stock Exchange in 1972 and in the National Stock Exchange in January 1998.

Sundaram Finance Group is driven by value and culture, where individual initiatives are encouraged. For nearly fifty years, SFians have created an asset of immense value - the Sundaram Finance Group?s reputation for integrity and high standards of business conduct. This reputation, built over many years, is reflected in each business or personal transaction. Integrity in all actions and thought is necessary for every employee or prospective employee of Sundaram Finance Group.

Obsession for Excellence, Speed, Openness to new ideas, Aggressive Goals, Accountability & Commitment are some of the virtues that we expect from our employees.

The Sundaram Finance Group has been established on a bedrock of honesty, transparency and a reputation for customer service across more than one hundred locations in India.


COMPANY PROFILE

Website : www.sundaramfinance.in

About the Company

Date of Establishment 1953Revenue 215.604 ( USD in Millions )Market Cap 24287.303796 ( Rs. in Millions )Corporate Address 21,Patullos Road,Chennai-600002, Tamil Nadu

www.sundaramfinance.inManagement Details Chairperson - S Viji

MD - T T SrinivasaraghavanDirectors - A Rangaswami, Arnoon Raman, Aaron Raman, S Narayanan, S Prasad, S Ravindran, S Venkatesan, S Viji, Sram, Srinivas Acharya, T R Seshadri, T T Srinivasaraghavan

Business Operation Finance NBFCBackground Sundaram Finance, a Sundram Group company, was

incorporated in 1954, with the object of financing the purchase of commercial vehicles and passenger cars. The company was started with a paid-up capital of Rs.2.00 Lakhs and later went public in 1972.

The company's shares were listed in the Madras Stock Exchange in 1972 and in the National Stock Exchange in January 1998.

Subsequently, the equity sharesFinancials Total Income - Rs. 11147.69 Million ( year ending

Mar 2009) Net Profit - Rs. 1507.314 Million ( year ending Mar 2009)

Company Secretary S Venkatesan


http://www.sundaramfinance.in/

http://www.sundaramfinance.in/

BankersAuditors Brahmayya & Co

VV

COMPANY HISTORY

Sundaram Finance, a Sundram Group company, was incorporated in 1954, with the object of financing the purchase of commercial vehicles and passenger cars. The company was started with a paid-up capital of Rs.2.00 Lacks and later went public in 1972.

The company's shares were listed in the Madras Stock Exchange in 1972 and in the National Stock Exchange in January 1998.

Subsequently, the equity shares of the company have been delisted from Madras Stock Exchange Limited (MSE) with effect from January 27, 2004, in accordance with SEBI (Delisting of Securities) Guidelines, 2003, for voluntary delisting.

Sundaram has grown today into one of the most trusted financial services groups in India. Today, the activities of the group span savings products like deposits and mutual funds, car and commercial vehicle finance, insurance, home loans, software solutions, business process outsourcing, tyre finance, fleet cards and logistics services. The strength of the Group lies in the quick completion of transactions, long association with transporters for generations and the intimate knowledge of the market and its nuances.

The Group has a vast network of over 400 branches to cater to the financing needs of our customers.

Sundaram Finance is one of the oldest and largest providers of finance for the acquisition of commercial vehicles of all makes. The commercial vehicle finance provided by it helps the small operators to acquire vehicles with minimum hassle and documentation. It provides customised financing options to suit the needs.

Large fleet operators also find it easy to expand their fleet through the finance provided by the company. It also offers special schemes, supported by the manufacturers, where the rates are highly competitive. The finance schemes


are easy to understand and without any hidden costs.

The other Group Companies:

Lakshmi General Finance (since merged with SFL on 1/4/2005) Sundaram BNP Paribas Asset Management Sundaram BNP Paribas Home Finance Royal Sundaram Alliance Insurance Sundaram InfoTech Solutions Sundaram Business Services Sundaram Finance Distribution Limited In freight Logistics Solutions Limited

Products / Services Offered

Deposits Car Finance Commercial Vehicle Finance Fleet Card Mutual Fund Life Insurance General Insurance Health Advisory

KEY EXECUTIVES

S.L Name Designation

1 S Viji Chairman

3 T T Srinivasaraghavan Managing Director

2 S Venkatesan Company Secretary

4 S Narayanan Director

5 T R Seshadri Director

6 S Ravindran Director


http://www.sundaramfinance.com/products/fleetcard/fleetcard.asp

http://www.sundaramfinance.com/products/commercialvehicles/commercialvehicles.asp

http://www.sundaramfinance.com/products/carfinance/carfinance.asp

http://www.sundaramfinance.com/products/deposits/features-sf.asp

7 S Prasad Director

8 Arnoon Raman Director

9 Srinivas Acharya Director

COMPETITORS

CompanySales

(Rs.Million)

Current

Price

Change (%)

P/E Ratio

MarketCap.

(Rs.Million)

52-WeekHigh/Lo

w

Rel. Capital 29475.50 733.95 -3.94 53.11 180282.19 987/611

Shri ram Trans. Fin

44402.30 587.70 -0.24 15.18 132536.82 614/282

Mah. Finan 13790.46 454.60 -3.73 12.85 44050.98 484/210

I Bull Fin 14208.09 135.00 -3.30 15.86 41884.54 220/93

Manappuram Gen Fin

1605.33 73.70 -0.41 20.95 25086.39 840/22

Sund.Fin 10918.18 437.20 -0.90 10.71 24287.30 457/250

Shriram City 9277.41 468.50 2.26 11.86 23044.17 557/322


Union

BajAutFin 5941.33 474.30 -0.15 19.41 17357.52 509/135

Cholamandalam Invest

10985.33 127.10 -1.09 90.65 13969.42 140/49

Future Capital 1295.64 186.50 0.95 68.47 11857.29 305/140

Sigrun Holdings

0.01 20.00 4.99 0.00 10704.80 84/12

SREI Infra Fin 3222.70 79.85 -1.42 8.32 9274.16 94/45

India Securities

66.13 40.15 -1.59117.3

78012.59 41/2

Seagull Leaf in

24.65 24.80 0.00 0.00 4344.41 0/0

PNB Gilts 755568.82 25.20 -0.79 9.27 3402.19 36/21

Shree Nath Comm&Fin

0.67 399.40 3.20840.9

92388.41 411/18

GE Capital 1738.10 107.30 0.00 0.00 2174.30 108/106

Database Finance

44.65 38.25 0.00 0.00 2039.99 0/0

Bengal & Assam

161.53 192.90 -1.10 6.94 1675.06 230/50

First Leasing 1881.40 52.05 -0.57 3.40 1186.25 70/39

TVS Finance 315.14 24.60 0.00 40.69 1018.46 25/24

MuthootCapital

170.42 144.95 -3.69 13.13 942.18 189/46


WHAT IS INVESTMENT?

An asset or item that is purchased with the hope that it will generate income or appreciate in the future.

In an economic sense, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth.

In finance, an investment is a monetary asset purchased with the idea that the asset will provide income in the future or appreciate and be sold at a higher price.

Images for investment:-

PURPOSE OF INVESTING

Higher current income

Saving money for major purchases

Planning for the retirement

Shelter for taxes


Is Investment and Speculation same?

Basis Investment Speculation

Time frame Long Term Short Term

Nature of Reward Interest or Dividends Speculative gains

Commonly used instruments for investments

Stock , Bonds, Mutual Funds Stock , Bonds, Mutual Funds

Risk involved Less risk High risk involved

Analysis/ Information Trading is done after thorough study (fundamental analysis), past performances etc.

Trading is usually done on Rumors, Hot tips, Inside dopes etc.

TYPES OF INVESTMENT AVENUES

Equities

Bonds

Mutual Funds

Real Estate

Gold ETF’s

Commodities, Futures and Options

Insurance


FACTORS CONSIDERED IN THE CHOICE OF INVESTMENTS

Risk

Market risk

Interest Rate risk

Default risk

Purchasing power risk

Foreign Exchange Risk

Political Risk

Marketability and Liquidity

Tax consideration

What is a Bond?

A bond is an instrument in writing which gurentees to repay the principal of the plus the interest to the bondholder.

Advantages of Bonds over Stocks

Bonds, while a more conservative investment than stocks, can offer certain investors some very attractive features:

Safety

Reliable income

Potential for capital gains

Diversification (especially for an otherwise all-equity portfolio)

Tax advantages


Types of bonds

• Secured and unsecured loans.

• Senior and subordinate bonds.

• Convertible and non-convertible bonds.

• Treasury bonds and corporate bonds

• Junk bonds

Bond yield measures

One Period Rate of Return

Current Yield

Yield to Maturity ( YTM )

Capital Gain ( Loss )

Realized Yield

One-Period Rate of Return

Rate of return over a single holding period =

Price gain or loss during the period + Coupon Interest

Purchase period at the begining of holding period

Current Yield

Rate of return earned if the bond is purchased at

Current market price and if coupon interest is paid =

Coupon Interest Current Market Price


Capital Gain (Loss )

Market Value at the end of t years =

C * PVIFA r, (n –t) + F * PVIF r, (n – t)

Where

C = Coupon

r = Reinvestment Rate

n = Term to maturity

t = Holding Period

F = Redemption Price

Yield to Maturity (YTM)

Rate of return earned by an investor who holds the bond till maturity .

YTM = KD in the formula

YTM equates the present value of cash flows to the current market price.

Relationship between YTM & Coupon Rate

YTM = Coupon Þ bond is selling at par

(P0 = PN)

YTM > Coupon Þ bond is at a discount

(P0 < PN)

YTM < Coupon Þ bond is at a premium (P0 > PN)


Assumptions underlying YTM

1. All coupon and principal payments are made as per the schedule.

2. The bond is held to maturity.

3. The coupon payments are fully and immediately reinvested at precisely the same interest rate as the promised YTM.

It is the rate that equates the future value of the purchase price to the total cash flow realized on the bond.

P * FVIF r, n = Total returns + Purchase price

Risks Faced by a Bond Investor

Default risk

Interest rate risk (price risk)

Reinvestment risk

Call risk

Inflation risk

Foreign exchange risk

Liquidity risk

Bond investment strategies

Matching strategy

Laddered strategy

Barbell strategy

Interest rate strategy


Realized Yield ( RY )

How to read bond table

Indian Equity Market- More popularly known as the Indian Stock Market

Market capitalization of nearly $600 billion

Third biggest after China($2,347.4 billion) and Hong Kong($1,293.7 billion) in the Asian region

Supervised by SEBI (Securities Exchange Board of India)

The Indian equity market depends on three factors :

1) Funding into equity from all over the world

2) Corporate houses performance

3) Monsoons major ones

23 stock exchanges – BSE and NSE


New York Stock Exchange The London Stock Exchange

House Ter Beurze in Bruges, Belgium, was one of the first stock exchanges

Advantages of Investing in Shares

Capital Appreciation

Bonus shares

Dividend earnings

Portfolio

Long term benefits and return on investment

Simple method

Easily cashable

Liquidity

Disadvantages of Investing in Shares

No guaranteed return

Last to get paid

Volatility in stock prices

Do not enjoy all the rights


http://en.wikipedia.org/wiki/Stock_exchange

http://en.wikipedia.org/wiki/Belgium

http://en.wikipedia.org/wiki/Bruges

http://en.wikipedia.org/wiki/The_London_Stock_Exchange

http://en.wikipedia.org/wiki/New_York_Stock_Exchange

Investment Process

1. Get a Broker

2. Get a Demat Account

o With banks, financial institutions, broking firms, NBFC, etc

3. Get a PAN

4. Check if you need a UIN

Exchange Traded Funds

ETF is an investment vehicle traded on a stock exchange, much like stocks.

ETF are securities that track an index, a commodity or a basket of assets like an Index fund.

ETF does not have its NAV calculated everyday like a Mutual Fund.

It is attractive coz:

Stock like features

Diversification of index

Low cost

Tax efficiency

Demat form

Gold-ETF

Gold backed Exchange Traded Funds (ETFs) are securities designed accurately to track the gold price.

It tracks the performance of Gold Bullion

It provides investors a means of participating in the gold bullion market without the necessity of taking physical delivery of gold, and to buy and sell that participation through the trading of a security on stock exchange.

While investing in Gold, few points need to be considered:

Volatility

Entry time matters


Other selection factors

Investment Process

Requirements for trading:

Trading account with a stock exchange broker

Demat account as Gold ETF can be traded only in Demat form

Load Structure:

Entry Load: NilExit Load: Nil

Tax treatment:

Is taxed as per non equity mutual fund taxation rules.

Need not pay Wealth tax.

Opportunities-why to invest?

No worry on adulteration

Gold provides diversification to the portfolio

Gold is considered as a Global Asset Class

Gold is used as a Hedge against Inflation

Gold is considered to be less volatile compared to equities

Held in Electronic Form

Store of value

Extremely Liquid


Comparison of Gold ETF with Physical Gold

Parameters Jeweller Bank Gold ETFFORM Bar or Coin Bar or Coin Demat formSECURITY Investor’s

concernInvestor’s concern

Fund house takes The responsibility

PRICING Neither standard nor transparent

Differs from bank to bank. Not standard

Transparent Will be traded at NSE

WEALTH TAX Yes Yes NoLONG TERM CAPITAL GAIN TAX

Only after 3 years

Only after 3 years

After 1 year

RESALE Conditional and Uneconomical

Banks do not buy back

At secondary Market prices

IMPURITY RISK

High Nil Nil

Advantages

Safety

Brings diversification and stability to a portfolio

Highly liquid and portable

Tool against inflation

Less regulatory intervention

Risks Involved

Are subject to market risks.


As with any investment in securities, the NAV of the units issued under the Scheme can go up or down depending on the factors and forces affecting the Bullion Market, Capital Market and Money Market.

The Past Performance of the fund house issuing the ETF should not be construed for the future performance of the fund.

ETFs are a new concept in India compared to other parts of the world.

The sponsor of the mutual fund is not responsible or liable for any loss or shortfall resulting from the operation of the fund beyond the initial contribution made by it of an amount of Rs 1 Lac towards setting up of the Mutual Fund.

Investors are not offered any guaranteed or assured returns

Gold ETFs available in India

Benchmark Mutual Fund - Gold Benchmark Exchange Traded Scheme (NSE Symbol: GOLDBEES)

Kodak Mutual Fund - Gold Exchange Traded Fund (NSE Symbol: KOTAKGOLD)

UTI Mutual Fund - UTI Gold Exchange Traded Fund (NSE Symbol: GOLDSHARE)

Reliance Mutual Fund - Gold Exchange Traded Fund (NSE Symbol: RELGOLD)

Quantum Gold Fund - Exchange Traded Fund (ETF) (NSE Symbol: QGOLDHALF)

COMMODITY MARKETS:

• Commodities are any goods that are common and unbranded.

• Gold, Silver, Rubber, Pepper, Jute, Wheat, Sugar and cotton are a few popular commodities.

• Commodity market represents a formal system for the interplay of demand for and supply of commodities.

• These markets are classified into spot market and future market.

• Due to erratic weather changes and uncertain economic environment a commodity shortage (or oversupply) in a particular season lead to increase (decrease) in the price of the commodity.

• Farmers and merchant could not predict what the prices would be on a given day or season.


• It was in this context, the farmers and food grains merchants in Chicago started negotiating for future supplies of grains in exchange for cash at a mutually agreeable price.

• Thus the farmer could lock in his price in advance thereby securing his income.

• This effectively started the system of commodity market forward contract which subsequently led to the development of future markets.

Sport Market & Future Market

Spot Market :

Commodities for immediate delivery are traded through the spot market.

The players in the spot market are actual producers and the traders of the commodity

Futures Market : facilitate contracts for future delivery of the underlying commodity either through a physical delivery or a cash settlement ( net profit / net loss from the transaction)

The major players in the future markets are hedgers, speculators, arbitrageurs and investors.

Forms of Commodity Derivative Products – Futures and Options .

While a commodity future was reintroduced in India in 2003, commodity options are yet to take off in the Indian markets.

Role of Commodity Futures Market:

It serves as a mechanism for price discovery either for the current price or to determent expected future prices.

Price quoted for a commodity on the futures market is thought to be the best measure of the actual price either current or future.

Commodity futures also help to hedge price risk and provide opportunities for speculators.

Farmers can benefit from its price discovery mechanism to decide which crops to grow.

It also enables businesses to hedge commodity and currency risk and help against earnings volatility.


Concepts of Hedging:

In today’s dynamic environment stakeholders are exposed to price volatility particularly if it involves a future transaction. Hedging plays an important role to mitigate the risks of both parties in the transaction.

The process involves hedgers taking opposite positions in two different markets.

Hedging Process:

Examples:

A copper wire manufacturer has 100 tons of copper in his inventory and there may be a threat of inventory revaluation due to decrease in copper prices.

In such a scenario he is better off going short (Sell) on copper futures contracts to protect this against any possible decline in prices. This method is called Short Hedge

If a copper wire manufacturer has to sell copper wires to a telecom company at a predetermined price and if the delivery needs to make after four months he can take a long (Buy) position in the futures market to hedge against risk of increase in copper prices.

This method is called Long Hedge.

Indian Commodity Exchanges

There were 23 regional commodity future exchanges active in the country prior to 2003 when the Govt. opens the field for nation wise electronic exchanges.

The growth of futures trading after that was stupendous and the total turnover crossed Rs.50 lacks cores in 2008.

The three national commodity exchanges

Of this, Rs.35, 05,137 crore was contributed solely by MCX and NCDEX.

The increasing awareness and popularity of commodity futures in India and the slowdown in equity markets have contributed spectacularly to the turnover in the market. The turnover of the MCX and NCDEX reached Rs.63, 62,603 crore for the period January 2008 until March 2009.


Major Exchanges worldwide –

Exchanges Abbreviation Location ProductsChicago Board of Trade

CBOT Chicago, US Agricultural

Chicago Mercantile Exchange

CME Chicago, US Agricultural

New York Metal Exchange

NYMEX New York, US Energy, precious metals, industrial metals

Multi Commodity Exchange

MCX India Energy, metals, precious metals, agricultural

National Multi-Commodity Exchange of India

NMCE India Metals, agricultural

National Commodity and Derivatives Exchange

NCDEX India Metals, agricultural

Tokyo Commodity Exchange

TOCOM Tokyo, Japan Energy, precious metals, industrial metals, agricultural

London Metal Exchange

LME London, UK Industrial metals, plastics

Recent Developments

The economic survey for 2008-2009 has recommended certain reforms in the commodity markets

1. Bring commodity future regulations under SEBI

• Since commodity futures are part of the financial market bringing all financial market regulations under SEBI is better.

• At present commodity futures are regulated by FMC

• 2. Lift ban on futures trading in rice, tur, urad

Futures trading of rice, tar, urad were banned in early 2007 as trading in these commodities was perceived to be causing pressure on inflation.


Lifting of ban on these commodities will restore price discovery and price risk management.

A future in wheat was also banned but the curve was lifted in May this year.

Sugar has been put on the suspended list till December this year.

FMC had recommended to the Govt. to lift the ban on all commodities as there was no direct evidence to suggest that futures trading caused price spiral.

2. Recent Developments contd….

Involve APMCs or State Mandies to expand the scope of electronic trading

1. Two leading future exchanges in India – MCX and NCDEX that has already launched electronic exchanges.

2. There are over 7500 APMCs where trading take place in the physical form.

3. 4. Removal of the Commodity Transaction Tax (CTT)

4. At present the tax is not enforced.

What is “Insurance”?

Insurance is a contract whereby, in return for the payment of premium by the insured, the insurers pay the financial losses suffered by the insured as a result of the occurrence of unforeseen events.

Commercial mechanism for transferring risk and spreading loss.


Why do we need insurance?


Types of Insurance

Engineering

Property & Casualty

Accident & Health

Liability

Specialized

Individual & Group

Mechanism…. Economic Concept of Insurance:

1. Insurer offers policy to cover specified risks2. Insurer collects policy premiums from customers3. Insurer invests premiums4. Insurer pays money to insured customers in the event of losses covered by

policy.


Micro Insurance market in India

Current Insurance landscape

Penetration is abysmally low at less than 3% of insurable population* despite

The presence of an insurance market for a long period and with 16 Life Insurance and 15 General Insurance active today in the market


Opportunities in non-life insurance

Life insurance premium as % of GDPOpportunities in life insurance

US UK Australia Korea Japan Malaysia China India

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%4.6%

3.5% 3.4% 3.4%

2.2%

1.8%

0.9%0.6%

Non-life insurance premium as % of GDP

UK Japan Korea Austrlia US Malaysia India China

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%10.7%

8.9% 8.7%

5.7%

4.4%

3.4%

2.3% 2.3%

Life insurance premium as % of GDP

Existence of products to cover various risks

Globally ranked at 54th position in terms of market penetration and 19th in premium collection

This anomaly persists due to the legacy of life insurance being positioned as a savings and tax-minimization tool rather than as a risk protection tool

Innovations are needed to overcome barriers for penetration, like:

Innovations to develop low cost distribution models using a combination of process simplifications and application of Info Tech solutions.

Product Simplification to enable simplicity in both underwriting and claims administration

Improving the awareness on the function of insurance products

Real Estate

Real estate is a legal term that encompasses land along with improvements to the land, such as buildings, fences, wells and other site improvements that are fixed in location – immovable

According to The Economist, “developed economies’” assets at the end of 2010 were the following:

Residential property: $108 trillion;

Commercial property: $84 trillion;

Equities: $40 trillion;

Government bonds: $45 trillion;

Corporate bonds: $31 trillion;

Total: $268 trillion.

That makes real estate assets 60% and financial assets 40% of total stocks, bonds, and real estate assets. Assets not counted here are bank deposits, insurance “reserve” assets, natural resources, and human assets. It is not clear if all debt and equity investments are counted in the categories equities and bonds.


BUSINESS SECTOR:

Some kinds of real estate businesses include:

Appraisal: Professional valuation services

Brokerages: A fee charged by the mediator who facilitates a real estate transaction between the two parties.

Development: Improving land for use by adding or replacing buildings

Net lease: Sharing leased property amongst tenants

Property management: Managing a property for its owner(s)

Real estate marketing: Managing the sales side of the property business

Real estate investing: Managing the investment of real estate

Relocation services: Relocating people or business to a different country

Corporate Real Estate: Managing the real estate held by a corporation to support its core business

RISKS IN REAL ESTATE:

Liquidity Risk: It is the risk that a given security or asset cannot be traded

Quickly enough in the market to prevent a loss (or make the required profit)

Types of Liquidity Risk:

Asset liquidity - An asset cannot be sold due to lack of liquidity in the

Market - essentially a sub-set of market risk. This can

be accounted for by:

Widening bid/offer spread

Making explicit liquidity reserves

Lengthening holding period for VAR calculations

Funding liquidity - Risk that liability:

Cannot be met when they fall due


Can only be met at an uneconomic price

Can be name-specific or systemic

MARKET RISK

Market risk is the risk that the value of a portfolio, either an investment portfolio or a trading portfolio, will decrease due to the change in value of the market risk factors. The four standard market risk factors are stock prices, interest rates, foreign exchange rates, and commodity prices. The associated market risks are:

Equity risk: The risk that stock prices and/or the implied volatility will change.

Interest rate risk: the risk that interest rates and/or the implied volatility will change.

Currency risk: The risk that foreign exchange rates and/or the implied volatility will change.

Commodity risk: The risk that commodity prices (e.g. corn, copper, crude oil) and/or implied volatility will change.

VOLATILITY AND SETTLEMENT RISK:-

VOLATILITY RISK: In financial markets it is the likelihood of fluctuations in the exchange rate of currencies. Therefore, it is a probability measure of the threat that an exchange rate movement poses to an investor’s portfolio in a foreign currency. The volatility of the exchange rate is measured as standard deviation over a dataset of exchange rate movements. A far more sophisticated extension of this model is the Value at Risk method, which helps to determine the actual risk exposure to a portfolio of several currencies.

SETTLEMENT RISK: It is the risk that counterparty does not deliver a security or its value in cash as per agreement when the security was traded after the other counterparty or counterparties have already delivered security or cash value as per the trade agreement.

SOVEREIGN RISK

Sovereign risk is the risk of a government becoming unwilling or unable to meet its loan obligations, or reneging on loans it guarantees. The existence of sovereign risk means that creditors should take a two-stage decision process when deciding to lend to a firm based in a foreign country. Firstly one should consider the sovereign risk quality of the country and then consider the firm’s credit quality.


Five macroeconomic variables that affect the probability of sovereign debt rescheduling are:

Debt service ratio

Import ratio

Investment ratio

Variance of export revenue

Domestic money supply growth

OPPORTUNITIES:

Three factors have contributed much to global real estate opportunities :

Rapid Economic Growth

Changing Demographics

Phenomenon of off-shoring

INVESTMENT PROCESS:

First, the Advisory Board determines the broader framework of the real estate investment strategy and oversees the Investment Committee and Fund Management team with annual reviews of portfolio performance and approval of large transactions that are over a preset amount or percent of total portfolio.

Investment Committee oversees and approves Portfolio Setup framework, as well as Asset and Portfolio Management operations. Within this context the Investment Committee reviews semi-annually asset and portfolio performances, current and projected, for the whole portfolio and by category, such as property type, location, tenant industry etc.; reviews portfolio optimization recommendations and makes decisions regarding changes in portfolio mix in terms of property types and locations in order to maximize portfolio return prospects and minimize risk; sets and reviews risk mitigation processes both at the portfolio and at the asset level. Ideally, portfolio optimization recommendations should be based on the results of advanced portfolio analysis using reliable return and risk projections by property type and location (derived through advanced econometric and forecasting techniques) and modeling frameworks that draw from the modern portfolio theory


The Implementation Committee executes the portfolio setup and structure, as determined by the Advisory Board and the Investment Committee. The acquisition department executes the portfolio build up process by screening properties available in the market to identify those that fit the Fund’s investment strategy, performing preliminary screening to select assets that will go through more detailed market analysis and feasibility study, negotiating transaction terms and financial structuring, preparing project documentation and analysis package to be presented to Investment Committee for final approval.

Return and risk analysis by asset should take into account each asset's cash flow prospects, given current leases, stipulated rental rates, annual rent increases, expiration dates, probabilities of renewing, probabilities and time duration for finding new tenants for non-renewed leases, and projected market rents at which new leases will be signed and renewed leases will rollover. Lease renewal probabilities, time for finding new tenants and rental rate projections should be based on market vacancy rate projections, which provide a very good indicator of market tightness.

Mutual Fund


A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors and invests it in stocks, bonds, short-term money market instruments, and/or other securities

Types of Mutual Funds

• Term of Fund

• Open - ended

• Close - ended

• Investment Objective

• Growth Funds

• Income Funds

• Balanced Funds


Securities

Fund ManagersReturns

Investors

Mutual Funds Operations Flow Chart

• Specialized Funds etc.

• Types of Investor

• Pension Funds etc.

• Management Style

• Managed Funds

• Index Funds

• Load

• Load Funds

• No load Funds etc.

ADVANTAGES OF MUTUAL FUND

Portfolio Diversification Professional management Reduction / Diversification of Risk Liquidity Flexibility & Convenience Reduction in Transaction cost Safety of regulated environment Choice of schemes Transparency

DISADVANTAGE OF MUTUAL FUND

No control over Cost in the Hands of an Investor No tailor-made Portfolios Managing a Portfolio Funds Difficulty in selecting a Suitable Fund Scheme

Risks & Diversification strategies

Risks

Instrument Risk

Market Risk

Portfolio Risk

Business Risk

Financial Risk


Risk in Money Market Funds

Risk in Bond Funds

Risk in Stock Funds

Strategies for risk reduction

Diversification by investment style

Diversification by investment objective

Who should invest in Mutual Funds?

Novice uninformed investors

Ordinary small investors

Risk averse investors

Retirees

Investors with time constraint

Investors on the lookout for liquidity

Steps for choosing the right Mutual Fund Scheme

Clarity of objective

Collect information from sources like Funds' prospectus and advisors

Do not be swayed by peripherals

Go through the Investment Mix carefully

Past record is not always reliable

Know your Fund Manager

Pointers for Measuring Mutual Fund Performance

Standard Deviation allows you to evaluate the volatility of the fund

Beta indicates the level of volatility associated with the fund as compared to the benchmark

R squared measuring the correlation of a fund's movements to that of an index, R-squared describes the level of association between the fund's volatility and market risk

Alpha is the difference between the returns one would expect from a fund, given its beta, and the return it actually produces. An alpha of -1.0 means the fund produced a return 1% higher than its beta would predict. An alpha of 1.0 means the fund produced a return 1% lower.


Top 10 Funds

Rank Scheme Name Date NAV (Rs.)

Last 1 Week

Since Inception

1 Birla Sun Life Commodity Equities Fund - Gbl Pre Metals - Retail - Growth

Jun 21 , 2010

13.44 4.73 20.02

2 AIG World Gold Fund - Growth Jun 18 , 2010

13.3 4.2 15.07

3 ICICI Prudential Technology Fund - Growth

Jun 21 , 2010

15.62 3.79 4.42

4 JM Agri & Infra Fund- Growth Jun 21 , 2010

2.96 3.66 -39.43

5 DSP Blackrock World Gold Fund - Institutional Plan - Growth

Jun 21 , 2010

10.35 3.66 2.66

6 DSP Blackrock World Gold Fund - Growth

Jun 21 , 2010

16.54 3.65 19.92

7 Birla Sun Life Tax Relief 96 - Growth

Jun 21 , 2010

11.44 3.62 6.04

8 JM Equity - Growth Jun 21 , 2010

36.5 3.61 8.87

9 SBI Magnum Midcap Fund - Growth Jun 21 , 2010

22.26 3.58 16.52

10 Mire Asset China Advantage Fund - Regular - Growth

Jun 21 , 2010

9.29 3.42 -11.14


http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=MR085

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=MR085

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=SB100

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=JM002

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=BM382


http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=DS145





http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=PI016


http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=AG054




Top 10 fund

Rank Scheme Name Date NAV (Rs.)

Last 1 Month

Since Inception

1 DSP Blackrock World Gold Fund - Institutional Plan - Growth

Jun 21 , 2010

10.35 13.71 2.66

2 DSP Blackrock World Gold Fund - Growth

Jun 21 , 2010

16.54 13.69 19.92

3 Birla Sun Life Commodity Equities Fund - Gbl Pre Metals - Retail - Growth

Jun 21 , 2010

13.44 11.74 20.02

4 ICICI Prudential FMCG - Growth Jun 21 , 2010

58.56 11.59 17.04

5 ICICI Prudential Technology Fund - Growth

Jun 21 , 2010

15.62 11.25 4.42

6 DSP Blackrock World Mining Fund - Regular - Growth

Jun 21 , 2010

9.63 10.94 -7.57

7 Franklin FMCG Fund - Growth Jun 21 , 2010

59.85 10.46 17.27

8 JM Equity - Growth Jun 21 , 2010

36.5 10.45 8.87

9 Taurus Ethical Fund - Growth Jun 21 , 2010

22.68 9.41 96.95

10 ICICI Prudential Index Fund Jun 21 , 2010

49.59 9.22 21.22



http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=TR053


http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=KP016













Chapter - 4

Objectives and scope

OBJECTIVES OF THE STUDY


1. To find out the Preferences of the investors for Asset Management

Company.

2. To know the Preferences for the portfolios.

3. To know why one has invested or not invested in different investment option.

4. To find out the most preferred channel.

5. To find out what should do to boost investment plan Industry.

Scope of the study

A big boom has been witnessed in investment plan Industry in recent times. A

large number of new players have entered the market and trying to gain market

share in this rapidly improving market.

The research was carried on in New Delhi. I surveyed on my Project Topic “A

study of awareness of the Investors for investment in different investment

option” on the visiting customers of the SF Noida Branch. The study will help to

know the preferences of the customers, which company, portfolio, mode of

investment, option for getting return and so on they prefer. This project report

may help the company to make further planning and strategy.


Chapter – 5

Research Methodology

RESEARCH METHODOLOGY


This report is based on primary as well secondary data, however primary data

collection was given more importance since it is overhearing factor in attitude

studies. One of the most important users of research methodology is that it helps

in identifying the problem, collecting, analyzing the required information data

and providing an alternative solution to the problem .It also helps in collecting

the vital information that is required by the top management to assist them for

the better decision making both day to day decision and critical ones.

Data sources:

Research is totally based on primary data. Secondary data can be used only for

the reference. Research has been done by primary data collection, and primary

data has been collected by interacting with various people. The secondary data

has been collected through various journals and websites.

Sampling:

Sampling procedure:

The sample was selected of them who are the customers/visitors of Sundaram

finance in India, Noida branch, irrespective of them being investors or not or

availing the services or not. It was also collected through personal visits to

persons, by formal and informal talks and through filling up the questionnaire

prepared. The data has been analyzed by using mathematical/Statistical tool.

Sample size:


The sample size of my project is limited to 200 people only. Out of which

only 120 people had invested in different-different investment plan.

Other 80 people did not have invested in any investment option.

Sample design: Data has been presented with the help of bar graph, pie charts,

line graphs etc.

Limitation: 1. some of the persons were not so responsive.

2. Possibility of error in data collection because many of investors may have not

given actual answers of my questionnaire.

3. Sample size is limited to 200 visitors of Sundaram finance of India, Noida

Branch, and New Delhi out of these only 120 had invested in Investment option. The

sample size may not adequately represent the whole market.

4. Some respondents were reluctant to divulge personal information which can affect the validity of all responses.

5. The research is confined to a certain part of New Delhi

.


Chapter – 6

Data Analysis

&

Interpretation

ANALYSIS & INTERPRETATION OF THE DATA


1. (a) Age distribution of the Investors of New Delhi

Age Group <= 30 31-35 36-40 41-45 46-50 >50

No. of

Investors

12 18 30 24 20 16

Interpretation:

According to this chart out of 120 investors of Delhi the most are in the age

group of 36-40 yrs. i.e. 25%, the second most investors are in the age group of

41-45yrs i.e. 20% and the least investors are in the age group of below 30 yrs.

(b). Educational Qualification of investors of Delhi


<=30 31-35 36-40 41-45 46-50 >500

5

10

15

20

25

30

35

1218

3024

2016

Age group of the Investors

Inv

es

tors

inv

es

ted

in in

ve

stm

en

t p

lan

Educational Qualification

Number of Investors

Graduate/ Post Graduate

88

Under Graduate 25

Others 7

Total 120

71%

23% 6%

Graduate/Post Graduate Under Graduate Others

Interpretation:

Out of 120 investors 71% of the investors in Delhi are Graduate/Post

Graduate, 23% are Under Graduate and 6% are others (under HSC).

c). Occupation of the investors of Delhi


.

Govt. Service

Pvt. Service Business Agriculture Others0

10

20

30

40

50

3545

30

4 6

Occupation of the customers

No

. of

Inve

sto

rs

Interpretation:

In Occupation group out of 120 investors, 38% are Pvt. Employees, 25%

are Businessman, 29% are Govt. Employees, 3% are in Agriculture and

5% are in others.


Occupation No. of Investors

Govt. Service 30

Pvt. Service 45

Business 35

Agriculture 4

Others 6

(d). Monthly Family Income of the Investors of Delhi.

Income Group No. of Investors

<=10,000 5

10,001-15,000 12

15,001-20,000 28

20,001-30,000 43

>30,000 32

<=10 10-15 15-20 20-30 >3005

101520253035404550

512

28

43

32

Income Group of the Investorsn (Rs. in Th.)

No

. of

Inv

es

tors

Interpretation:

In the Income Group of the investors of Delhi, out of 120 investors, 36%

investors that is the maximum investors are in the monthly income

group Rs. 20,001 to Rs. 30,000, Second one i.e. 27% investors are in the

monthly income group of more than Rs. 30,000 and the minimum

investors i.e. 4% are in the monthly income group of below Rs. 10,000.


(2) Investors invested in different kind of investments.

Saving A/c

Fixed D

eposits

Insura

nce

Mutu

al Fund

Post Office

(NSC)

Shares/D

ebenture

s

Gold/Silv

er

Real Esta

te

0 50 100 150 200 250

195148152

12075

5030

65

No.of Respondents

Kind

s of I

nves

tmen

t

Interpretation: From the above graph it can be inferred that out of 200 people, 97.5%

people have invested in Saving A/c, 76% in Insurance, 74% in Fixed Deposits, 60% in

Mutual Fund, 37.5% in Post Office, 25% in Shares or Debentures, 15% in Gold/Silver

and 32.5% in Real Estate. Most of the people wants secure investment so they are

prefer to invest in saving a/c.


Kind of Investments No. of RespondentsSaving A/C 195Fixed deposits 148Insurance 152Mutual Fund 120Post office (NSC) 75Shares/Debentures

50

Gold/Silver 30 Real Estate 65

3. Preference of factors while investing

Factors (a) Liquidity (b) Low

Risk

(c) High

Return

(d) Trust

No. of

Respondents

40 60 64 36

20%

30%32%

18%

Liquidity Low Risk High Return Trust

Interpretation:

Out of 200 People, 32% People prefer to invest where there is High Return,

30% prefer to invest where there is Low Risk, 20% prefer easy Liquidity and

18% prefer Trust.


4. Awareness about investment plan and its Operations

68%

33%

Yes No

Interpretation:

From the above chart it is inferred that 67% People are aware of investment

plan and its operations and 33% are not aware of it and its operations.


Response Yes No

No. of Respondents 135 65

5. Source of information for customers about investment plan

Source of information No. of Respondents

Advertisement 18

Peer Group 25

Bank 30

Financial Advisors 62

Advertisement Peer Group Bank Financial Advisors0

10203040506070

18 25 30

62

Source of Information

No.

of R

espo

nden

ts

Interpretation:

From the above chart it can be inferred that the Financial Advisor is the most

important source of information about investment plan. Out of 135

Respondents, 46% know about it Through Financial Advisor, 22% through

Bank, 19% through Peer Group and 13% through Advertisement.

7. Reason for not invested in investment plan

Reason No. of Respondents


Not Aware 65

Higher Risk 5

Not any Specific

Reason

10

81%

13%6%

Not Aware Higher Risk Not Any

Interpretation:

Out of 80 people, who have not invested in any plan, 81% are not aware of it,

13% said there is likely to be higher risk and 6% do not have any specific

reason.

10. Reason for not invested in SF

Reason No. of Respondents


Not Aware 25

Less Return 18

Agent’s Advice 22

38%

28%

34%

Not Aware Less Return Agent's Advice

Interpretation:

Out of 65 people who have not invested in SF, 38% were not aware with SFMF,

28% do not have invested due to less return and 34% due to Agent’s Advice.

11. Mode of Investment Preferred by the Investors

Mode of Investment One time Investment Systematic Investment Plan (SIP)

No. of Respondents 78 42


65%

35%

One time Investment SIP

Interpretation:

Out of 120 Investors 65% preferred One time Investment and 35 % Preferred

through Systematic Investment Plan.

14. Preferred Portfolios by the Investors

Portfolio No. of InvestorsEquity 56

Debt 20

Balanced 44


47%

17%

37%

Equity Debt Balance

Interpretation:

From the above graph 46% preferred Equity Portfolio, 37% preferred Balance

and 17% preferred Debt portfolio

15. Option for getting Return Preferred by the Investors

Option Dividend Payout Dividend

Reinvestment

Growt

h

No. of

Respondents

25 10 8

5


21%

8%

71%

Dividend Payout Dividend Reinvestment Growth

Interpretation:

From the above graph 71% preferred Growth Option, 21% preferred Dividend

Payout and 8% preferred Dividend Reinvestment Option.


Chapter – 7

Findings and Conclusion


Findings

In Delhi in the Age Group of 36-40 years were more in numbers. The

second most Investors were in the age group of 41-45 years and the least

were in the age group of below 30 years.

In Delhi most of the Investors were Graduate or Post Graduate and below

HSC there were very few in numbers.

In Occupation group most of the Investors were Govt. employees, the

second most Investors were Private employees and the least were

associated with Agriculture.

In family Income group, between Rs. 20,001- 30,000 were more in

numbers, the second most were in the Income group of more than Rs.30,

000 and the least were in the group of below Rs. 10,000.

About all the Respondents had a Saving A/c in Bank, 76% Invested in Fixed

Deposits, Only 60% Respondents invested in Mutual fund.

Mostly Respondents preferred High Return while investment, the second

most preferred Low Risk then liquidity and the least preferred Trust.

60% Investors preferred to Invest through Financial Advisors, 25%

through AMC (means Direct Investment) and 15% through Bank.

65% preferred One Time Investment and 35% preferred SIP out of both

type of Mode of Investment.


The most preferred Portfolio was Equity, the second most was Balance

(mixture of both equity and debt), and the least preferred Portfolio was

Debt portfolio.

Maximum Number of Investors Preferred Growth Option for returns, the

second most preferred Dividend Payout and then Dividend Reinvestment.

Conclusion

Running a successful investment plan requires complete understanding of the

peculiarities of the Indian Stock Market and also the psyche of the small oaf all

plan investors in connection with the preferences of Brand (AMC), Products,

and Channels etc. I observed that many of people have feared of invested in

any plan. They think their money will not be secure in investment. They need

the knowledge of all plan and its related terms. Many of people do not have

invested due to lack of awareness although they have money to invest. As the

awareness and income is growing the number of investors are also growing.

“Brand” plays important role for the investment. People invest in those

Companies where they have faith or they are well known with them. There are

many AMCs in Delhi but only some are performing well due to Brand

awareness. Some AMCs are not performing well although some of the schemes

of them are giving good return because of not awareness about Brand.

Reliance, UTI, SBI, ICICI Prudential etc. they are well known Brand, they are


performing well and their Assets Under Management is larger than others

whose Brand name are not well known like Principle, Sundaram, etc.

Distribution channels are also important for the investment. Financial Advisors

are the most preferred channel for the investment. They can change investors’

mind from one investment option to others. Many of investors directly invest

their money through AMC because they do not have to pay entry load. Only

those people invest directly who know well about plan and its operations and

those have time.


Chapter – 8

Suggestions

And

Recommendations


Suggestions and Recommendations

The most vital problem spotted is of ignorance. Investors should be

made aware of the benefits. Nobody will invest until and unless he is

fully convinced. Investors should be made to realize that ignorance is no

longer bliss and what they are losing by not investing.

Mutual funds offer a lot of benefit which no other single option could

offer. But most of the people are not even aware of what actually a

mutual fund is? They only see it as just another investment option. So

the advisors should try to change their mindsets. The advisors should

target for more and more young investors. Young investors as well as

persons at the height of their career would like to go for advisors due to

lack of expertise and time.

Company needs to give the training of the Individual Financial Advisors

about the Fund/Scheme and its objective, because they are the main

source to influence the investors.

Before making any investment Financial Advisors should first enquire

about the risk tolerance of the investors/customers, their need and time

(how long they want to invest). By considering these three things they

can take the customers into consideration.


Younger people aged fewer than 35 will be a key new customer group

into the future, so making greater efforts with younger customers who

show some interest in investing should pay off.

Customers with graduate level education are easier to sell to and there

is a large untapped market there. To succeed however, advisors must

provide sound advice and high quality.

Systematic Investment Plan (SIP) is one the innovative products

launched by Assets Management companies very recently in the

industry. SIP is easy for monthly salaried person as it provides the facility

of do the investment in EMI. Though most of the prospects and potential

investors are not aware about the SIP. There is a large scope for the

companies to tap the salaried persons.


BIBLIOGRAPHY

News paper(Business Word)

Outlook Money

Television Channel (CNBC AAWAZ)

Mutual fund hand book

Fact Sheet and Statement

www.sbimf.com

www.moneycontrol.com

www.licindia.com

www.sundaramfinance.com

www.amfiindia.com

www.onlinesearchonline.com

www.mutualfundsindia.com


http://www.mutualfundsindia.com/

http://www.onlinesearchonline.com/

http://www.amfiindia.com/

http://www.sundaramfinance.com/

http://www.licindia.com/

http://www.moneycontrol.com/

http://www.sbimf.com/

QUESTIONAIRE

1. In what type of financial instruments you invest?a) Stock b) Mutual fund

c) Fixed deposits d) Any other

2. What is the purpose of your investment?

a) Increase in the total wealth b) Tax saving

c) To fill future need d) All of the above

3. Sources that helps you in making the investment decision?

a) Financial journal/business magazines

b) Television

c) General/business newspaper

d) Brokers/agents/professional consultant

4. What factors you keep in mind while investing?

a) Risk factor b) Return

c) Risk & return d) any other

5. At what time you invest?

a) When the market is rising b) When the market is falling

c) When the market is stagnant

6) What type of portfolio you manage during different market condition (in %)?

Equity Dept

a) During rising market

b) In constant market

c) In declining market


7. Are you aware about BSE, NSE, and SENSEX?

a) Yes b) No

8. Do you invest in equity diversified fund?

a) Yes b) No

9. Among which assets management company you would prefer to invest?

a) Reliance b) Sundram

c) SBI d) HDFC e) Others

10. Are you aware about Sundram’s BNP Paribas?

a) Yes b) No

11. Which would you prefer among the following fund type?

a) Tax saver b) Thematic fund c) Hybrid fund

d) Sectorial fund e) Equity diversified fund

12. Are you able to spot the factors responsible for fluctuation in the stock market?

a) Yes b) No

Name:-...............................................................................................................

Age:-.................................................................................................................

Occupation:-........................................................................................................

Contact no:-.........................................................................................................

Address:-.............................................................................................................


Consumer Awareness of Different Investment Plan Repaired) (2)

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Transcript of Consumer Awareness of Different Investment Plan Repaired) (2)