SYNOPSIS ON PROJECT REPORT

ON
ANALYSIS OF VARIOUS INVESTMENT AVENUES IN INDIA

Submitted in partial fulfillment of the requirement for the award of degree of

MASTER OF BUSINESS ADMINISTRATION
To
KAKATIYA UNIVERSITY, WARANGAL.

Submitted By
MURALA DEEPTHI
H.NO. 23162C1141

Under the guidance of

Dr. M. SRAVANTHI
Assistant Professor

VAAGDEVI COLLEGE OF ENGINEERING (MCA)

BOLLIKUNTA, WARANGAL-506005
(Affiliated to Kakatiya University)

2024

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1. Introduction of the Study

Investment is to allocate money in the expectation benefits in the future. Investment gives

the benefit to the society as well as to the economic. Through investment we can grow

you’re economic all over the world through modern capitalism. In earlier times

investment only means saving in banks like FDs, jewelry and rare stones but today the

people are more of investments. But now a days people are aware about investing and

their return but still they do not take high risk while investing their money in the capital

market (investment avenues). As they are not able to select appropriate investment

avenues available in the market because of changing in the market and business trends

day by day. This research paper helps the new investors to invest their money or fund in

the appropriate way. By increasing the saving habit in the peoples this can increase your

country economic wealth as well as economic growth all over the world. In a long term

investment people can increase their standard living and also they can increase the capital

of the companies. Investment can contribute economic growth and wealth. Investments

avenues also provide many benefits to the investors as well as to the whole economy.

2. Review of Literature

Palanivelu K. Chandrakumar (2021) this analysis separates the investment avenues into

various parts such as debt with a higher risk and rate of return. Debt which has a fixed

amount of rate of interest on investment, Fixed deposits are only with the bank ,

insurance, public fund, with very less rate of return on investment, and safe. Data that

analysis revealed 60% of responses like to invest their amount in insurance , 20% of

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responses like to invest their money in banks in term or fixed deposits, 30% of people

invest in metals such as Gold, property and silver.

N. Panda J. K. Panda (2022) the study analyses the categories in the discrimination of

investing people in the suggestion of investing their money based on their gender and

age. There are various types of investment options that are analyzed in this research paper

like Debentures, Life Insurance, Bonds, Debts, Pension, Property, Metal etc. investment

suggestions are taken by the investing peoples only and the company has to wait to see

the result of it, while some investors are best in investing their money with best

investment avenues.

Odoemene Met. al.(2013):-Investing in Investment avenues for the future returns. We

get the results after analysis that the policy which have made for the investors not

properly study and analysis and any proper saving schemes made for rural areas. Because

improper study and analysis is difficult for the farmers and low class category people to

make the decisions for Savings and investments. The motive of Saving and Investments

is to take care of families or fulfil the requirements in future uncertainty.

Prasanna Kumar (2014) Investment means getting benefits in later life. Investment

categories are such as Equity, Government deposit, dealing in property, shares, bonds,

etc. The responses of the analysis tell us that the various people select bank deposits

investment.

Ravi Vyas (2012)The analysis says that the various types of investing schemes are

preferred by the investors. People think that Mutual Funds investment is secured than any

other investment with good rate of return in future. Responses analyzed that most people

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 invest their money in metal such as Gold, Silver, etc. Mutual Funds investing people are

very moderate in the country. For better security, safety, liquidity, risky, tax saving, and

normal payback of Mutual funds have low scores among people.

GauriPrabhu N.M. Vechalekar(2013):- Mutual funds are the place where investors can

invest their funds in the global capital market also. The huge amount of money is

collected in Mutual funds and then it is invested in shares, debentures, bonds, and other

securities which are available in the capital market. This paper analyzes the knowledge

and awareness about the mutual funds between the peoples. The study states that between

age 21 to age 40 are more active or interested in more investments. Private sectors

employees invest more rather than the Government sectors employees.

Priyanka Jain (2012):- The analysis states that there are various Investments avenues

and schemes are available in the market for Investments. It study that equity shares are

lower return, heavy capital, liquidity, risk, market, tax allowances. Debentures are higher

return than equity shares with 10% risk and marketability. Bank deposits give moderate

rates of return and also normal capital and risk, liquidity.

3. Research Gap

Most of the studies are undertaken about investment avenues in India not more than one

year data.in this study taken three years data for getting accurate information for the

analysis of Various Investment Avenues in India. To fulfill this gap my research was

undertaken.

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4. Objectives of the Study

a) To analyze and study the various investment avenues which are available in the

world.

b) To determine the objective of savings.

c) To resolve the problems faced by investors.

d) To analyze the investor's risk and return.

e) To compare the investments.

f) To know which investment avenue gives extra income

5. Scope of the Study

The scope of investment analysis includes various types of investments, such as stocks, b

mutual funds, real estate, and commodities. The analysis also considers factors such as

the investment's time horizon, expected return, and risk tolerance of the investor.

6. Research Methodology

The research methodology aims to find the perfect investment schemes for investors. In

this procedure, research is examined and appropriate ideas and identified the knowledge

which is the best appropriate topic to the investment. At the time of Primary stage, the

data collected or analyzed by individual investors. Secondary data collected from various

sources such as, journals, webs, magazines, research papers, etc.

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 Data Sources / Data Collection methods

i. Secondary Data,

Secondary data collected from various sources such as, journals, webs, magazines,

research papers, etc

ii.Tools of Data Analysis

There are different types of statistical techniques that are used in the analysis of data. The

following are some tools used for analysis the data.

Data representation:-

● Pie Charts

● Bar Graphs

● Tables

iii. Period of the Study

For this study used three years i.e. from 2020-2023

7. Limitations of the Study

For this study used only secondary data.

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8. Chaptalization

Chapter I:

Chapter – II: Company Profile

Chapter – III: Theoretical Framework

Chapter – IV: Data Analysis and Interpretation

Chapter – V: Summary of Findings, Suggestions and Conclusion

Bibliography

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 Chapter – II: Company Profile

Jalpa Thakkar, SheenamGogia&VatsalaManjunathan (2013) has conducted an empirical

study on gold investment rage among the professionals with a comparative analysis of e-

Gold, gold ETF and gold funds with an objective to study the most preferred metal for

investment from gold, silver and platinum, to know the attitude towards investment in

gold and other gold options and also to know the information sources, risk associated and

returns in making gold investment. The study was conducted with a sample of 100

investors through online questionnaire. The study concluded that physical gold is most

preferred investment by the investors, market information has the first source of

information for investment in gold. It was also found that family members and friend

play an important role in investment decision and V-SEARCH 2021 ISBN: 978-93-5457-

359-0 67 Risk and return perspective of gold ETF is considered as moderate in the ratings

as compared to E-Gold and Gold funds. The Institute of company secretaries of India in

its Investor Education series III entitled, “Investment Decision making by a Lay Investor”

(1991) explained the preconditions for investment decision making, analysis and

evaluating risks.

SEBI (1998) survey revealed that Risk appetite, investment objective of the investor,

income of the investor, funds available for investment, greatly influences the behavior of

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the investor in corporate securities at various levels. According to Brahma Bhatt, Raghu

&Malekar of ArunaManharlal Shah Institute of Management and Research, Mumbai

University (2012), “the awareness of investment knowledge, investment opportunities is

quite high. Financial portals, financial news channels, financial newspapers help these

people; various markets related T.V. shows, Expert talks, magazines.

For Indian public money is everything. Therefore, they are more sensitive about their

money. They will think hundred times before investing in any market and will expect

more than that. They feel that they are having enough money, time, resources and

opportunities with them for investing. Though they are having sound knowledge of

financial market and economic condition of India, yet they lack the edge above the others

as this field is very unpredictable and vast hence, they must be backed up by a financial

planner. Manish Mittal and Vyas (2008) Investors have certain cognitive and emotional

weaknesses which come in the way of their investment decisions.

Over the past few years, behavioural finance researchers have scientifically shown that

investors do not always act rationally. They have behavioural biases that lead to

systematic errors in the way they process information for investment decision. Many

researchers have tried to classify the investors on the basis of their relative risk-taking

capacity and the type of investment they make. Empirical evidence also suggests that

factors such as age, income, education and marital status affect an individual’s

investment decision.

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This paper classifies Indian investors into different personality types and explores the

relationship between various demographic factors and the investment personality

exhibited by the investors. Investment is the sacrifice of certain present value for the

uncertain future reward. It entails arriving at numerous decisions such as type, mix,

amount, timing, grade etc. of investment and disinvestments. Further such decisions

making has not only to be continuous but rational too. Instead of keeping the savings idle

you may like to use savings in order to get return on it in the future, which is known as

‘investment’. There are various investment avenues such as Equity, Bonds, Insurance,

and Bank Deposit etc

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 Chapter – III: Theoretical Framework

Investors

Investors means the person investing his small savings into various investment avenues

categories, such as Gold, Land, Fixed Deposit, PPF, Debt Funds, Bonds, Equities, etc.,

with the intention to earn high profits to the investors.

Investment

Investment means to put some part of the amount in other avenues which give high

returns. Most investors want to make investments in such a way that they get a sky high

return as soon as possible without bearing the risk and without losing the principal money

that they have invested. This is the reason why investors are always on the lookout for

top investments plans where they can double their money in a few months or years with

little risk. It is a fact that investment products that give high return with low risk do not

exist.In reality higher the risk, higher the return, and vice versa. While selecting

investment avenues one has to match one’s risk profiles with risk associated with the

product before investing.an understanding the basic concepts deep analysis of avenues in

investing which can help the investors to build a good portfolio that minimizes the risk

and maximizes the profits. There are some characteristics of Investments;

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Return

All investments are made with the primary object of deriving return. Capital appreciation

is the difference between sales prices and the purchase price. The expectation return from

investment depends upon the nature of the investment, maturity period and market

demand so on

Risk

Risk and expected return of an investment are related. Higher the risk, Higher the return

are expected. Higher return depends on willingness of investors bearing the risk

Safety

Safety of investment is identified with the certainty of the return of capital without loss of

time or money. Safety is another feature expected by the investors from the investments.

Every investor expects that to get back the initial capital on maturity without loss and

without delay.

Liquidity

A well-developed secondary market for security increases the liquidity of the

investments. Any investments that can be converted into cash without loss of value or

time is said to be liquid. An investor tends to prefer maximization return and

minimization of the risk safety of funds and liquidity of investments.

Equity

Equity means shares denotes with small units of equal denomination constituting the

share capital of the company.It is the most risky instrument in the market but gives higher

return. If a company is performing well and making profit year and year then the demand

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 of share should be high and then it will be growth in the market value of share.so

shareholder has an option to sold the share in high value and earn high capital gain.

Chapter – IV
Data Analysis and Interpretation

Table 1

Sr.No. InvestmentSchemes No.ofResponses Percentage(%)

1 StockMarket 40 18.33%

2 BankDeposit 60 23.90%

3 RealEstate(Property) 10 8.10%

4 MutualFunds 90 9.33%

5 Metal(Gold,Silver) 70 12.36%

6 InsurancePolicies 50 12.30%

7 Commodity 2 0.22%

8 Tax-SavingBenefits 30 11.80%

9 DebtMarket(Equity) 1 2.23%

10 Other 1 1.56%

Total 354 100%

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 Fig1:-MostPreferableInvestmentOption

 Mutual Fund:

AnnualizedReturn–

Ifselecting,annualizedreturnspolicythen themeasure of an increasing the value of your

investment fundon the basis of annual return, for example, you have invested Rs.2 lakhs in an

Mutual Fund scheme. In a period of three years, yourinvestmenthasgrowthof R s . 2 . 8

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Lakhs.InthisScenario, the absolute return of your investment is 40% ,But because the effect

ofannualized return is calculated on compounding therefore the return should be 11.99 %.

TotalReturn:-

It referringthat actual returnwhich youwill accruing from the investment. It includes

bothcapital gain and dividend. For example, let’sassumeyouhaveinvestment Rs 1 lakh in

Mutual Fund Schemes, and the Net Asset Value is Rs.20. From when you purchase the

investment of Rs.1Lakh and the net asset value of Rs.20, It indicates that you purchased

5000 units. After some years later, Net Asset Value of Mutual Fund SchemeInvestment

Increased by Rs.22 and the value of units will be increased by Rs.1.1 Lakh, that means

(5000units x Rs.22 per unit) which indicates that you earn capital gain Rs 10,000 from

your Investments. Now in this Scenario dividend is declared by the company of Rs.2 per

unit over the year, overall Rs.10,000 dividend paid to Investors Rs. 10,000(5,000unitsx Rs.

2 per unit),Therefore your totalearning shall be Rs.10,000 +

Rs.10,000=Rs.20,000(Dividend + CapitalGains amount) which means youearning total 2

returns.

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 Table2:-ReturnfromHigh-RiskyEquityFunds

TypesofSchemeNames 1Year 3Years 5Years

Aditya Birla SLEquityFund(G) 12.87% 15.58% 27.41%

FranklinIndiaPrimaFund(G) 10.70% 12.65% 21.65%

FranklinIndiaSmallerCosFund (G) 12.40% 18.65% 28.96%

HDFCMid-CapOpportunitiesFund(G) 11.60% 15.89% 25.89%

ICICIPruValueDiscoveryFund(G) 9.85% 12.84% 22.90%

L&TIndiaValueFund–Reg(G) 10.25% 14.69% 26.39*%

MiraeAssetEmergingBlue-chip–Reg(G) 8.36% 13.45% 24.75%

MotilalOswalMulticap35Fund–Reg(G) 14.10% 19.00% 27.28%

PrincipalEmergingBlue-chipFund(G) 16.29% 18.36% NA

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SundaramMidCapFund(G) 11.09% 16.01% 24.78%

Table3:-ReturnsfromHybridEquities-orientedFunds–
ModerateRisk (Note Source: Different sites of Mutual Fund)

TypesofSchemeNames 1Year 3 Years 5years

AdityaBirlaSLBalanced’95Fund(G) 9.36% 12.48% 18.81%

ICICIPruEquity&DebtFund(G) 10.65% 13.27% 21.63%

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 HDFCBalancedFund(G) 11.56% 14.19% 23.81%

L&TIndiaPrudenceFund–Reg(G) 8.75% 14.00% 22.87%

 Equity(StockMarket):

Equity Value is also called market capitalization,which is the total-sum values of the

shareholders made available for the business and can be calculated by multiplying the

market value per share by the total numberof shares outstanding. It is the very main key for

a business owner especially when he makes a strategy to sell out his business as it gives a

good calculation of what the seller of business would receive after the debt has been paid.

 IncreasingEquityvalue

 Paid In-Capital is increased. Shareholders are making capital contributions, such as

equipment, property and cash to all small business firms which are incorporated.

 DecreaseintheLiabilities.

 IncreaseinNetIncome.

 IncreaseinOutstandingShare.

 IncreasesinRetainedEarnings.

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 EquityValue=SharePricexNumberofOutstanding Shares.

 Theshareistheclosing priceofthestocks.

Thenumberofoutstandingsharesshouldbethenew figureavailable

Table 6

InvestmentOptions VeryHigh High Moderate Low VeryLow

StockMarket 70.55% 22.33% 0.2 3% -

BankDeposit 1% 3.55% 25.00% 20.00% 60.00%

RealEstate 15% 18.33% 33.33% 33.00% 20%

MutualFund 6% 50.02% 62% 10.00% 9%

Metals 2.00% 40% 20% 20% 4.22%

Insurance 2.55% 18.00% 45% 25.00% 3.33%

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CommodityMarket 38.20% 20.00% 24.33% 10% -

Tax-SavingSchemes - 12.00% 55.33% 22.00% 12%

DebtMarket 14.67% 10% 32% 20% 5.00%

Fig2:-LevelofRiskisinvolvedinInvestmentSchemes

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 Chapter V

FINDINGS

1. The researcher has investigated 70 responses of India &it comes to know that 80% of

people are knowing about the investment schemes where the remaining 20% is unknown.

2. The main reason for people is higher return in the future with a secured amount of invested

money.

3. Most of the people invest more in FD so that they get a fixed amount of return at low

return.

4. From table no. 7 We come to know that 50% of people invest in FD, 30% of people invest

in mutual funds and only 20% of people invest in the stock market.

5. Theyinvest lessamount inthestockmarket becausethey think it is not giving proper return or

any fixed return amount as FD and a little bit of mutual fund and mutual fund give 12% of

a fixed amount of invested amount.But they don’t know that the stock market gives more

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 than this investment.

6. From table no. 6 we come to know that if we invest 2 lakh rupees in a debt fund and fixed

deposit at a rate of interest of 7% for 3 years after tax deducted we get atotal amount in

debt fund Rs. 35094 and in fixed deposit we get Rs.26500.So from this, we come to know

that we get more amounts in return in debtfunds than infixed deposit amounts.

7. From table no. 1 we came to know that people invest 90%in mutual fundsandthe2nd

invested option ismost preferable by people is 70% in metal and the 3rdinvested option is

bank deposit i.e. 60%.

CONCLUSION

After the study of various investment avenues through the investigation, it comes to knowthat

the people who are investing their moneyare well known about investing avenues that are

present in the current market in India but still, people are more preferred with bank deposits

thanother investments.

Thestudyofinvestors tells thatthesafety andhigh return of moneyas a vital factor while

savingtheir money in any investment, so other options of investing amount is less found less

preferable in investment bypeople.

People refer mostly to normal interest amountsrather than heavy risk that they can get more

amount in return. From the analysis people started investing amountsin the stock market to

earn more profit by taking high risk. Also they can balance their risk with investing in

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secured investment avenues such as bonds, debentures and FD.

It is identifying great options to the investors to put their money in a wealth avenue for

beautiful income. By increasing investors' economic wealth, investors can contribute to

economic growth and economic wealth.

This analysis helps the company from where companies can have raised the capital through

the market. This study helps the Investors, corporates, and many more, to benefit in

increasing their financial wealth. It is a plan to make a habit of investing from small savings,

which is made to guide an investor to Select the most suitable investment portfolio that will

help them to achieve their financial goals within a given period of time.

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 Bibliography

References

[1]. Mrs.Pandey Meena;InvestmentAnalysisand Portfolio Management;Himalaya

Publishing House Pvt. Ltd., Bombay; P.2016; pp 31-150
[2].Miss.SinghPreeti;Investment Management: Security Analysis and Portfolio
Management; Nineteenth Edition edition; Bombay: Himalaya Publishing House;
P.2012; pp 20-300
[3].TheJournalofPortfolioManagementWinter2014
[4]. C.R. Kothari, Research methodology: methods and techniques, VishwaPrakashan,
New Delhi, 1999, pp. 21-151
[5]. Virani, V.2012.Saving and Investment pattern of school teachers- AstudyWith special
reference to Rajkot City, Gujrat. Abhinav National Refereedjournal of research in
Commerce and Management. 2(4) :2277-1166.

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