SUMMER TRAINING PROJECT REPORT ON INVESTORS PERCEPTIONS REGARDING VARIOUS INVESTMENT AVENUES AVAILABLE IN THE STOCK MARKET

OBJECTIVES To take an overview of the Indian stock market and encapsulate various investment avenues available. To know various options available in the capital market to invest. To know investor’s perception regarding investment in the stock market. To study investment behavior of investors and the factors that affect their investment decisions. To know the satisfaction level of investors regarding return of different investment avenues.

COMPANY PROFILE The IIFL (India Infoline) group, comprising the holding company, India Infoline Ltd and its subsidiaries, is one of the leading players in the Indian financial services space. IIFL offers advice and execution platform for the entire range of financial services covering products ranging from Equities and derivatives, Commodities, Wealth management, Asset management, Insurance, Fixed deposits, Loans, Investment Banking, GoI bonds and other small savings instruments

HISTORY AND MILESTONES 2006 Acquired membership of DGCX Commenced the lending business 2007 Commenced institutional equities business under IIFL Formed Singapore subsidiary, IIFL (Asia) Pvt Ltd 2008 Launched IIFL Wealth Transitioned to insurance broking model 2009 Acquired registration for Housing Finance SEBI in-principle approval for Mutual Fund 2010 Received in-principle approval for membership of the Singapor Stock Exchange Received membership of the Colombo Stock Exchange.

RESEARCH METHODOLOGY Type of Research methodology used: Descriptive research Sampling Unit: The sampling unit of research included students and professionals residing in Noida city. Sample Size: The sample size of 50 Investors was taken. Sampling Technique : Convenience Sampling was used to select the sample. Data collection Primary data : Interviewing clients Secondary Data : Companies website and other published data. Tools of presentation and analysis 1. Likert scale 2. Percentage, Bar Graphs and Pie Charts

ANALYSIS Demographic profile of investors. Major populations of investors was greater than 40 years. 50% investors were under graduate and 50 % were post graduate. Majority of the investors were doing service. Majority of the investors earn between Rs per month.

Awareness regarding types of investment instruments

To know the respondent’s influence on the investment decision

To know the type of investment option the person has been investing.

To Know The Factors That Were Considered While Investing

To know the frequency of investment by the Respondents.

FINDINGS OF THE STUDY Maximum investors are aware of all the investment options. Investors do not invest in a single avenue. They prefer different avenues and maximum investors prefer to invest in shares, mutual funds & debentures. The investment decision of investors is influenced by their own decision and through friends & relatives. Different factors considered by investors while investing are return, risk, tax benefits, capital appreciation and the most prominent factor is the return on any investment avenue. Majority of investors invest 15-20% of their annual income. Maximum investors invest on monthly basis.

RECOMMENDATIONS The various investment tools which were mostly preferred by the investors were shares, mutual funds etc. So there should be various other means to create awareness regarding the potential of other instruments and the tools which can be more beneficial to the investors. The investors consider various factors while making investment like risk, return, liquidity etc. There should be rational thinking so that the investor is able to know that at what point of time they need capital appreciation instead of reducing the risk and when they need return instead of liquidity. The satisfaction levels of various investors are different due to different investment alternatives they opt for. Investors should have the knowledge of stock market.

CONCLUSIONS Maximum investors are aware of all the investment options. Investors do not invest in a single avenue. Investors prefer different avenues and maximum investors prefer to invest in shares, mutual funds & debentures. The investment decision of investors is influenced by their own decision and through friends & relatives. Majority of investors invest 15-20% of their annual income. The most important factor is Return which influenced the decision regarding investment.

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