A study on investment behavior of women investors at asit c mehta, ltd, hassan

“ INVESTMENT BEHAVIOR OF WOMEN INVESTORS”

1.1 STATEMENT OF THE PROBLEM
This research is carried out primarily to find out the various options available to the
women investors whole doing their financial planning and to find their attitude towards
risk and return. To find out the type of investment option which are desirable to different
kinds of women investors.

1.2 OBJECTIVES OF THE STUDY
This study focuses on investment behavior of women investors and the factors that
influence their investment decisions. An in depth analysis is made in terms of their
financial goals and their investment patterns. It also focuses on the various investment
options women invest in and how aggressive they are in terms of investing.

Primary Objectives
• To find out risk appetite of women investors.
• To find out whether the women investors are looking for long term growth or risk
or return or liquidity.
• To know their long term financial goals.

Secondary Objectives
• To understand the needs and wants of the respondents with respect to their
financial requirements in their life.
• To have an understanding of the respondents’ saving pattern.

1.3 SCOPE OF THE STUDY
The scope of the study is restricted to the market survey conducted on women
investors with respect to the preference of various investment options while doing their
financial planning.

HRIHE, Hassan Page 1


1.4 METHODOLOGY
The nationwide telephone poll examined the investment mistakes of 1,000 investors
— 500 men and 500 women — and their related attitudes, beliefs and knowledge levels.
Overall findings were analyzed looking specifically at results by gender. The survey was
done and random selection of sample was collected. The data was presented and
summarized to get the pattern of relationships between various characteristics such as
respondent’s attitude, emotions etc.

RESEARCH METHODOLOGY
Type of research:
Descriptive Research
The type of research used in this study is descriptive. This has been used this research
centers around the typically structured investigative questions. In this case descriptions of
characteristics associated with population of women investors are formulated. Estimates
of the proportions of women who possess particular investment behavior is evaluated.
And after this process association was made to different aspects of the investment habits
of women and their appetite of risk and investment styles of women is discovered.

Method of Data Collection
a) Primary data
Primary data has been used in this study. Primary data was collected by administering
a detailed questionnaire and also by conducting in depth personal interviews.
b) Secondary Data
For this study secondary data was collected through various sources such as
magazines, internet, company report and business journals.

Survey
The communication approach involved surveying women investors and recording
their responses for analysis. Questionnaires were given to various women who are
working to evaluate their investment patterns and to know their financial goals in life.



Sampling Design
Population
The population chosen for this study is women who stay in Hassan as the research
revolves around the investment habits and the financial requirements of women investors.

Sample Size
For the purpose of this study, I have collected data from 50 women respondents. This
is the true representative of the universe.

Sample Unit
In this research is conducted only for women.

Sampling Techniques
For the purpose of the study, judgment sampling has been used. In judgment sampling
technique, on the basis of the researcher’s judgment, sample is selected which is
considered as representative of the population. So in this case on the basis of my
judgment sample has been selected.

Instrumentation Technique
Most of the questions are close ended questions in the questionnaire administered to
the respondents. The simple category scale and multiple response scale have been used.
Ranking scale has been used wherever appropriate.

Data Analysis
This involved reducing the accumulated data to a manageable size, developing
summaries, looking for patterns which will help the objectives of the study and applying
of statistical techniques. After the collection of data, coding sheet was prepared to classify
the data. The various tools which were used to for presentation and testing of hypothesis
are:
• Bar graphs.
• Pie charts.
• Column graphs.



1.5 LIMITATIONS OF THE STUDY
• This is an academic effort and it is limited to cost, time and geographical area.
• As the data is collected from 50 respondents only, generalization to other women
investors is inevitable.
• An interpretation of this study is based on the assumption that the respondents
have given correct information.
• It is conducted in Hassan city.
• It is only Asit C. Mehta clients and potential customers.



Financial investment is the purchase of a financial security, such as a stock, bond,
or mortgage. Investment in human capital is spending on education, training, health
services, and other activities that increase the productivity of the workforce. It is the use
of money for the purpose of making more money, to gain income, increase capital, or
both. The purchasing of stocks, bonds, mutual funds, options, real estate, etc., made with
the expectation of future income or capital gains is investment.

As a woman, and an investor, shaping of financial future is as important as the
many other roles they play in life. That's why taking control today is essential for
realizing their dreams for tomorrow. Whether women are just beginning to develop their
investment strategy or are refining a current one, it's important to keep in mind that they
should build a financial legacy for long term. At various stages of your life, you are faced
with important investment and financial decisions. Your success in making these
decisions with the help of a sound investment strategy can have a major impact on your
income, net worth and, ultimately, quality of life in retirement.

Women today have more earning potential and more influence over financial
decisions than ever before. Women represent almost half of the workforce and many
businesses are owned or managed by women. Many women influence or control the
majority of all consumer purchase decisions and many of the investment decisions. As a
result, it is important for women to focus on finances now more than ever.

Throughout their lives, as a woman, they will be faced with different financial
challenges than their male counterparts. If women are going to take control of their
financial future, it’s important that they recognize those differences and empower
themselves.

Earning money is only half the equation for achieving financial independence.
Effectively putting your money to work for you is equally important. Though the size of
household income matters, how to manage the money women have — to meet short-term
obligations as well as long-term goals — determines how they live today and in the
future. That's why taking control of their finances is so important. The challenges of
investing are unique for each individual. In addition, circumstances are frequently
different for women — and whatever choices you make will be better as a result of
greater knowledge of the underlying issues and your options.



Women are more likely to live longer
As a woman; the life expectancy is at an all time high. In fact, 90% of women
eventually end up living on their own. To help ensure that women will be able to
maintain their lifestyle, they should stay involved in investment decisions and consider
planning for the unexpected early on.

Women are more likely to have dependents to care for
With a growing divorce rate, the number of single mothers is on the rise.
Providing for and raising a family, while also saving for college and retirement, can be a
daunting task. One way to help ensure that you have enough savings is to invest a small
amount regularly through a systematic investment plan.

Women are less likely to take investment risks
For whatever reason; many women are less willing than men to take risks. Yet, a
certain degree of risk is necessary to build a well-diversified portfolio. By learning all
about investing, women can become more comfortable making investment decisions that
involve different levels of risk.

Financial Planning Process
For this purpose a thorough understanding of financial planning is important for
all investors. Financial planning is the process of meeting one’s life goals through the
proper management of his/her finances. Life goals can include buying a home, saving for
your child's education or planning for retirement. The financial planning process consists
of six steps that help people to take a "big picture" look at where they are financially.
Using these six steps, women can work out where they are now, what they may need in
the future and what they must do to reach their goals.
The process involves gathering relevant financial information, setting life goals,
examining current financial status by women and coming up with a strategy or plan for
how they can meet their goals given their current situation and future plans.
Financial and personal satisfaction is the result of an organized process that is
commonly referred to as personal money management or personal financial planning.
Personal financial planning is the process of managing investor’s money to
achieve personal economic satisfaction. This planning process allows him/her to control
their financial situation. Every person, family, or household has a unique financial



position, and any financial activity therefore must also be carefully planned to meet
specific needs and goals.
A comprehensive financial plan can enhance the quality of life and increase
investor’s satisfaction by reducing uncertainty about your future needs and resources. The
specific advantages of personal financial planning include-
• Increased effectiveness in obtaining, using, and protecting your financial
resources throughout the lifetime.
• Increased control of the financial affairs by avoiding excessive debt, bankruptcy,
and dependence on others for economic security.
• Improved personal relationships resulting from well-planned and effectively
• Communicated financial decisions.
• A sense of freedom from financial worries obtained by looking to the future,
• Anticipating expenses, and achieving the personal economic goals.

We all make hundreds of decisions each day. Most of these decisions are quite
simple and have few consequences. Some are complex and have long-term effects on our
personal and financial situations. The financial planning process is a logical, six-step
procedure:
• Determining of current financial situation
• Development of financial goals
• Identifying alternative courses of action
• Evaluating alternatives
• Creating and implementing a financial action plan, and
• Evaluating and revising the plan.

Step 1: Determination of Current Financial Situation
• In this first step of the financial planning process, investors will determine their
current financial situation with regard to income, savings, living expenses, and
debts. Preparing a list of current asset and debt balances and amounts spent for
various items which give a foundation for financial planning activities.



Step 2: Development of Financial Goals
• Investors should periodically analyze their financial values and goals. This
involves identifying how they feel about money and why they feel that way. The
purpose of this analysis is to differentiate their needs from their wants.
• Specific financial goals are vital to financial planning. Others can suggest
financial goals for investors; however, they must decide which goals to pursue.
Their financial goals can range from spending all of their current income to
developing an extensive savings and investment program for their future financial
security.

Step 3: Identify Alternative Courses of Action
• Developing alternatives is crucial for making good decisions. Although many
factors will influence the available alternatives, possible courses of action usually
fall into these categories:
Continue the same course of action.
• Expand the current situation.
• Change the current situation.
• Take a new course of action.
• Not all of these categories will apply to every decision situation; however, they do
represent possible courses of action.
• Creativity in decision making is vital to effective choices. Considering all of the
possible alternatives will help the investor make more effective and satisfying
decisions.

Step 4: Evaluate Alternatives
• Investors need to evaluate possible courses of action, taking into consideration life
situation, personal values, and current economic conditions.
• Consequences of Choices. Every decision closes off alternatives. For example, a
decision to invest in stock may mean an investor cannot take a vacation.
Opportunity cost is what investor gives up by making a choice. This cost,
• Commonly referred to as the trade-off of a decision, cannot always be measured.
Decision making will be an ongoing part of personal and financial situation. Thus,



investor needs to consider the lost opportunities that will result from their
decisions.
Evaluating Risk
• Uncertainty is a part of every decision. Selecting a college major and choosing a
career field involve risk.
• Other decisions involve a very low degree of risk, such as putting money in a
savings account or purchasing items that cost very less. The chances of losing
something of great value are low in these situations.
• In many financial decisions, identifying and evaluating risk is difficult. The best
way to consider risk is to gather information based on investor’s experience and
the experiences of others and to use financial planning information sources.

Financial Planning Information Sources
Relevant information is required at each stage of the decision-making process.
Changing personal, social, and economic conditions will require that investor continually
supplement and update your knowledge.

Step 5: Create and Implement a Financial Action Plan
• In this step of the financial planning process, investor will develop an action plan.
This requires choosing ways to achieve your goals. As he/she achieves their
immediate or short-term goals, the goals next in priority will come into focus.
• To implement the financial action plan, investors may need assistance from
others.
For example, investor may use the services of an insurance agent to purchase property
insurance or the services of an investment broker to purchase stocks, bonds, or mutual
funds.

Step 6: Reevaluate and Revise the Plan
• Financial planning is a dynamic process that does not end when investor takes a
particular action. They need to regularly assess their financial decisions. Changing
personal, social, and economic factors may require more frequent assessments.
• When life events affect investor’s financial needs, this financial planning process
will provide a vehicle for adapting to those changes. Regularly reviewing this



decision-making process will help them to make priority adjustments that will
bring their financial goals and activities in line with their current life situation.
• To achieve the best results from financial planning engagement the following
becomes necessary for women investors:

Set measurable financial goals
Set specific targets of what women want to achieve and when they want to
achieve results. For example, instead of saying you want to be "comfortable" when you
retire or that you want your children to attend "good" schools, you need to quantify what
"comfortable" and "good" mean so that you'll know when you've reached your goals.

Understand the effect of each financial decision
Each financial decision women make can affect several other areas of their life.
For example a decision about a woman’s child's education may affect when and how’s he
meets her retirement goals. All the financial decisions are interrelated.

Re-evaluation of financial situation periodically
Financial planning is a dynamic process. Financial goals may change over the
years due to changes in your lifestyle or circumstances, such as an inheritance, marriage,
birth, house purchase or change of job status. Revision of the financial plan to reflect
these changes becomes necessary to stay on track with the long-term goals.

Start planning as early as possible
People who save or invest small amounts of money early, and often, tend to do
better than those who wait until later in life. By developing good financial planning habits
such as saving, budgeting, investing and regularly reviewing finances by women early in
their life will help them to meet life changes and handle emergencies.

Be realistic in your expectations.
Financial planning is a common sense approach to managing finances to reach
your life goals. Events beyond a person’s control such as inflation or changes in the stock
market or interest rates will affect your financial planning results.



The various factors which will influence a women investor are:
Start early
The most important step in any long-term investment plan is to start early. Even if
women are only able to set aside a small amount of money monthly, or even quarterly,
that money should still grow and generate earnings over time. One highly effective way
to make investing a habit is by paying yourself first. Setting aside a portion of income
before paying other expenses can ensure that women have the money they need to stick to
an investment plan.
Stay Ahead of Inflation
Day-to-day inflationary price increases are often barely noticeable. Yet, over the
long term, a small increase in average yearly inflation can add up to a serious drain on
investor’s buying power. Women should focus on educated investment choices which
may offset inflation's daily climb .

Invest Routinely
The widely heard mantra of "buy low, sell high" is something many investors
strive for —but few achieve. Since no one can really predict the markets' ups and downs,
even extensive research and analysis can't guarantee you a "low" price when you decide
to invest.

Risk Tolerance
Risk is not something many people seek in their daily lives, but when it comes to
investing, some degree of risk can be potentially rewarding. The investments usually
involve some degree of risk. As a general rule of thumb, the higher the risk associated
with an investment, the higher the potential return. What is the best saving and investing
products should be ascertained. This depends on when women will need the money, their
goals For instance, if women are saving for retirement, and they have 35 years before
they retire, they may want to consider riskier investment products, knowing that if you
stick to only the "savings" products or to less risky investment products, their money will
grow too slowly— or given inflation or taxes, they may lose the purchasing power of
their money. A frequent mistake people make is putting money they will not need for a
very long time in investments that pay a low amount of interest.



On the other hand, if women are saving for a short-term goal, five years or less,
they don't want to choose risky investments, because when it's time to sell, they may have
to take a loss. Since investments often move up and down in value rapidly, they want to
make sure that they can wait and sell at the best possible time.
The primary risks in fund investing include the following:
• Systematic Risk - A risk that influences a large number of assets. An example is
political events. It is virtually impossible to protect yourself against this type of
risk.
• Unsystematic Risk - Sometimes referred to as "specific risk". It's risk that affects
a very small number of assets. An example is news that affects a specific stock
such as a sudden strike by employees.
• Credit or Default Risk – Default risk refers to the risk accruing from the fact that
borrower may not pay interest and/or principal on time. This is the risk that a
company or individual will be unable to pay the contractual interest or principal
on its debt obligations. This type of risk is of particular concern to investors who
hold bond's within their portfolio. Government bonds, especially those issued by
the Federal government, have the least amount of default risk and least amount of
returns while corporate bonds tend to have the highest amount of default risk but
also the higher interest rates. Bonds with lower chances of default are considered
to be “investment grade,” and bonds with higher chances are considered to be junk
bonds.
• Country Risk – This refers to the risk that a country won't be able to honor its
financial commitments. When a country defaults it can harm the performance of
all other financial instruments in that country as well as other countries it has
relations with. Country risk applies to stocks, bonds, mutual funds, options and
futures that are issued within a particular country. This type of risk is most often
seen in emerging markets or countries that have a severe deficit.
• Foreign Exchange Risk – When investing in foreign countries you must consider
the fact that currency exchange rates can change the price of the asset as well.
Foreign exchange risk applies to all financial instruments that are in a currency
other than your domestic currency. As an example, if you are a resident of
America and invest in some Canadian stock in Canadian dollars, even if the share
value appreciates, you may lose money if the Canadian dollar depreciates in
relation to the American dollar.


• Interest Rate Risk - A rise in interest rates during the term of your debt securities
hurts the performance of stocks and bonds.
• Political Risk - This represents the financial risk that a country's government will
suddenly change its policies. This is a major reason that second and third world
countries lack foreign investment.
• Market Risk - This is the most familiar of all risks. It's the day to day fluctuations
in a stocks price. Also referred to as volatility. Market risk applies mainly to
stocks and options. As a whole, stocks tend to perform well during a bull market
and poorly during a bear market— volatility is not so much a cause but an effect
of certain market forces. Volatility is a measure of risk because it refers to the
behavior, or “temperament,” of your investment rather than the reason for this
behavior. Because market movement is the reason why people can make money
from stocks, volatility is essential for returns, and the more unstable the
investment the more chance it can go dramatically either way.

The risk/return tradeoff is the balance an investor must decide on between the
desires for the lowest possible risk for the highest possible returns. Remember to keep in
mind that low levels of uncertainty (low risk) are associated with low potential returns
and high levels of uncertainty (high risk) are associated with high potential returns.

Diversification of the Assets
Limiting the investments to a single type or style can be a potentially dangerous
situation. The success of investment strategy depends more on the combination of asset
classes chosen, and less on the individual securities themselves. Diversifying the assets,
or spreading them across a variety of investment types and styles, is a more effective way
to manage portfolio's risk level. Because different investments respond differently to
changing market conditions, diversification may provide protection in the event that one
or more investments experience a downturn. Applying the concept of asset allocation
helps ensure that you adequately diversify your assets. Asset allocation means spreading
your money across different asset classes, such as stocks, bonds and cash. Asset classes
usually do not move in tandem. Therefore, at any given risk level, there is an allocation of
stock; bond and cash investments that may help you realize your return potential while
minimizing your risk exposure.



Alleviate Tax Burdens
It sounds easy enough identify investments with strong fundamentals and good
growth prospects, purchase the most promising, and sit back and wait. This strategy,
known as "buy and hold" investing, is known to be a highly effective way of riding out
the markets' short-term fluctuations. In contrast, some investors try to time the market by
anticipating the markets' movements and investing accordingly. While this may seem like
a proactive way of investing, pinpointing the exact highs and lows is a difficult thing to
do even for investment professionals.

Investment Alternatives
Today's investor is faced with an overwhelming number of choices when it comes
to implementing an investment strategy. Since the right combination of investments in the
right types of accounts can mean reaching your goals sooner rather than later, it is
important to know your alternatives. Below is a list of the major building blocks of any
successful strategy.

Stocks
A share of stock represents partial ownership in a company. Initially sold by the
company itself to raise money, the shares are then bought and sold by investors in the
secondary market. Shareholders can vote on the company's major decisions, and receive
dividends as their share of profits. As a company's stock price rises or falls, so does the
shareholder's investment.

Bonds
Like stocks, bonds are issued by companies and governments to raise money to
fund a variety of projects and operations. Unlike stocks, a bond is a loan that the issuer
promises to pay back, usually at a set interest rate. Bonds are then bought and sold by
investors in the secondary market.



Mutual Funds
One of the most convenient investment options available, mutual funds offer
investors the benefits of professional management and diversification. By pooling the
assets of many investors, and pursuing a set investment objective, mutual fund managers
are able to provide investors with buying power unavailable to individual investors.

Insurance and Annuities
Insurance and annuities can help you work towards life's goals and plan for the
unexpected. Offering tax-deferred growth, the option of income for life and a guaranteed
death benefit, annuities can be a way to supplement your 401(k) or IRA retirement
savings plan. An annuity requires you to make one or a series of payments and, if you
choose, the insurance company will pay you a regular stream of income in the future in
return. With life insurance, you pay premiums to the insurance company which entitle
your beneficiaries to a specified benefit payment should something happen to you
unexpectedly. This is all subject to the paying ability of the issuing insurance company.

Cash and Cash Equivalents
Treasury bills, money market mutual funds, certificates of deposit, even passbook
savings accounts are all considered cash. Returns on these types of savings and
investments are usually low because they often involve little or no loss of principal. But
as a relatively safe place to keep funds that you may need to access readily, they play an
important role in any investment plan.

But women investors have to restrict their choice of investment assets. These
restrictions arise from their specific circumstances. Identifying these restrictions will
affect their investment policy. The investment decisions are mainly affected by:

Liquidity
Liquidity is the ease with which an asset can be sold and still fetch a fair price.
Women investors must consider how likely they are to dispose of the assets at short
notice. From this likelihood, they establish the minimum level of liquid assets they want
in the investment portfolio.



Investment Horizon
This is the planned liquidation date of the investment or part of it. It could be the
time to fund a child’s education or marriage for women. Horizon needs to be considered
as the women investors have to choose between assets of various maturities.

Tax Considerations
Tax consequences are central to investment decisions. The performance of any
investment strategy is measured by how much it yields after taxes. For women investors
who face significant tax rates, tax sheltering and deferral of tax obligations may be
pivotal in their investment strategy.

Unique needs
Virtually every investor faces special circumstances. Primary investment of an
individual and the unique risk profile that results from employment can play a big role in
determining a suitable investment portfolio for women. These unique needs often center
on a woman’s stage in the life cycle. Retirement, housing and children’s education and
many other factors demand for funds and investment policy will depend in part on the
proximity of this expenditure.

Since this research has been conducted on the women investors and a study of
their investment behavior, it becomes important to divide them into different types.
Women Investors have their own investing styles: some are risk takers by nature, willing
to gamble large amounts of money on highly speculative investments. Others prefer the
safety and security of cash in the bank even if it means that the actual buying power of
their money is slowly dwindling because of inflation. Most people fall somewhere in
between these extremes, and are willing to assume some risk, with the expectation that
they’ll be rewarded with higher returns. The amount of risk you’re willing to take is your
investing style.

The investing style stems from a variety of things: age, personality, personal
experience, and financial circumstances to name a few. For instance, if women are
approaching retirement, have many financial responsibilities, or have lived through major
recession, chances are they may be a more risk-averse, or conservative investor.



On the other hand, if you’re young, earning a high income, have few financial
responsibilities, and have seen little in the way of economic hardship, you might be
inclined to take more risk.

Categories of Investors
While there are as many investing styles as there are investors, most people fall
more or less into one of three broad categories: conservative, moderate, aggressive

 Conservative investors

Generally, conservative investors feel that safeguarding what they have is their top
priority. These investors want to avoid risk — particularly the risk of losing any
principal (their original investment) — even if that means they’ll have to settle for very
modest returns.

Conservative investors allocate most of their portfolios to bonds, such as Treasury
notes or high-rated municipal bonds, and cash equivalents, such as CDs and money
market accounts. They’re generally reluctant to invest in stocks, which may lose value,
especially over the short term. When conservative investors do venture into stocks they‘re
often inclined to choose blue chips or other large-cap stocks with well-known brands
because they tend to change value more slowly than other types of stock and often pay
dividend income.

 Moderate investors
Moderate investors want to increase the value of their portfolios while protecting
their assets from the risk of major losses.

For example, a moderate investor might use an allocation model that has 60% in
stock, 30% in bonds, and 10% in cash equivalents. While they will tend to favor blue
chip and other large-cap stocks, they may be willing to invest a modest portion of their
principal in higher risk securities — such as international stock, small-caps, and volatile
sector funds — in order to increase their potential for higher returns. Even if women are
not risk takers by nature, a moderate investing style may be suitable in any circumstance
or financial situation.



 Aggressive investors
Aggressive investors concentrate on investments that have the potential for
significant growth. They are willing to take the risk of losing some of their principal, with
the expectation that they will realize greater returns.

Aggressive investors might allocate from 75 to 95% of their portfolios to
individual stocks and stock mutual funds. While large- and small-cap stocks and funds
may make up the core of their portfolios, many aggressive investors will have significant
holdings in more speculative stocks and funds, such as emerging market and sector
mutual funds. Since aggressive investors focus on growth, they are usually less inclined
to hold income producing securities, such as bonds.

An aggressive investing style is definitely not for the faint of heart. It’s best suited
for investors with a long-term investing horizon of 15 years or more, who are willing to
make along-term commitment to the stocks they buy. But history has shown that an
aggressive investing approach, combined with a well diversified portfolio, and the
patience to stick to a long-term buy-and-hold investing strategy through inevitable
market downturns, can be the most profitable in the long run.



3.1 INDUSTRY PROFILE:
A. INTRODUCTION:
Basically, Securities markets provide a channel for allocation of savings by an
individual or an organization to those who have a productive need for them. So, a security
market can be said a location where the savers meet the real investors who need the fund.
The savers and investors are constrained by the economy’s abilities to invest and save
respectively which thus helps market in enhancing savings and investment in the
economy. Stock Market is therefore affected by the dynamics of the economic, political,
cultural and environmental activities within the country and rest of the world.

A stock market is a public market for the trading of company stock and
derivatives at an agreed price; these are securities listed on a stock exchange as well as
those only traded privately. The size of the world stock market was estimated at about
$36.6 trillion US at the beginning of October 2008. The total world derivatives market
has been estimated at about $791 trillion face or nominal value. 11 times the size of the
entire world economy. The value of the derivatives market, because it is stated in terms of
notional values, cannot be directly compared to a stock or a fixed income security, which
traditionally refers to an actual value. Moreover, the vast majority of derivatives 'cancel'
each other out (i.e., a derivative 'bet' on an event occurring is offset by a comparable
derivative 'bet' on the event not occurring.). Many such relatively illiquid securities are
valued as marked to model, rather than an actual market price.

B. BRIEF HISTORY:

Indian Share Market is the oldest Asian stock market incorporated in 1875. The
name of the first share trading association in India was Native Share and Stock Broker's
Association which later came to be known as Bombay Stock Exchange. This association
started with 318 members.

The Bombay Stock Exchange is known as the oldest exchange in Asia. It traces its
history to the 1850s, when stockbrokers would gather under banyan trees in front of
Mumbai's Town Hall. The location of these meetings changed many times, as the number



of brokers constantly increased. The group eventually moved to Dalal Street in 1874 and
in 1875 became an official organization known as 'The Native Share & Stock Brokers
Association'. In 1956, the BSE became the first stock exchange to be recognized by the
Indian Government under the Securities Contracts Regulation Act.

The Bombay Stock Exchange developed the BSE Sensex in 1986, giving the BSE
a means to measure overall performance of the exchange. In 2000 the BSE used this
index to open its derivatives market, trading Sensex futures contracts. The development
of Sensex options along with equity derivatives followed in 2001 and 2002, expanding
the BSE's trading platform.

Today, BSE is the world's number 1 exchange in terms of the number of listed
companies and the world's 5th in transaction numbers. The market capitalization as on
December 31, 2007 stood at USD 1.79 trillion . An investor can choose from more than
4,700 listed companies, which for easy reference, are classified into A, B, S, T and Z
groups.

The BSE Index, SENSEX, is India's first stock market index that enjoys an iconic
stature, and is tracked worldwide. It is an index of 30 stocks representing 12 major
sectors. The SENSEX is constructed on a 'free-float' methodology, and is sensitive to
market sentiments and market realities. Apart from the SENSEX, BSE offers 21 indices,
including 12 sectoral indices.

Three segments of the NSE trading platform were established one after another.
The Wholesale Debt Market (WDM) commenced operations in June 1994 and the Capital
Market (CM) segment was opened at the end of 1994. Finally, the Futures and Options
segment began operating in 2000. Today the NSE takes the 14th position in the top 40
futures exchanges in the world.

In 1996, the National Stock Exchange of India launched S&P CNX Nifty and
CNX Junior Indices that make up 100 most liquid stocks in India. CNX Nifty is a
diversified index of 50 stocks from 25 different economy sectors. The Indices are owned
and managed by India Index Services and Products Ltd (IISL) that has a consulting and
licensing agreement with Standard & Poor's.



In 1998, the National Stock Exchange of India launched its web-site and was the
first exchange in India that started trading stock on the Internet in 2000. The NSE has also
proved its leadership in the Indian financial market by gaining many awards such as 'Best
IT Usage Award' by Computer Society in India (in 1996 and 1997) and CHIP Web
Award by CHIP magazine (1999).

The past decade has been quite remarkable for the Securities market in India with
the boom in the economy fuelled by better banking system. It has grown exponentially
and the market has also witnessed fundamental institutional changes. There have also
been significant improvements in efficiency, transparency and safety.

However global economic activity decelerated towards the end of the calendar
year resulting in investment concerns on account of the sub-prime crisis in the US and
other developed nations. Naturally the effects of this slowdown spilled over into
developing economies also and we are looking ahead with some degree of concern over
the prospects in the near future.

In recent days economic collapsed in variation of the foreign investors fund main
effect of the Indian economy in 2008-2009 the Bombay Stock Exchange (BSE) the
sensex was 13,400 in the month of 8th July 2009. In other side National Stock Exchange
(NSE) 3,974 is in the same month of 2009.

Since the markets has taken up word moment from 9th July 2009 from the low of
3,974 to 4,578 on 24th July 2009 due to the Sharpe recovery in global economy as well as
the 1st quarter Results of all major company which has been announced better than
expectations, Hence Indian markets are one of the fastest emerging markets in world and
attracted by many Foreign intuitional investors,

C. THE REGULATORY AUTHORITY: SEBI

The rise in number of investors was also leading to an increase in malpractices on
part of the companies, brokers, merchant bankers, investment consultants and various
other agencies involved in new issues. This led to erosion of investor confidence. The
Government and the stock exchanges Realizing this, Securities Exchange Board of India



(SEBI) was constituted were helpless as the existing legal framework was just not enough
by the Government of India in 1992.

The major functions of SEBI:

 To promote fair dealings by the issuers of securities and ensure a market place
where funds can be raised at relatively low costs.

 To provide protection to the investors and safeguard their rights and interests such
that there is steady flow of savings into the market.

 Registration and regulation of stock brokers, sub-brokers, registrar to all issue,
merchant bankers, underwriters, portfolio managers and such other intermediaries
who are associated with securities market

 Prohibit insider trading in securities.

 To regulate and develop a code of conduct and fair practices by the intermediaries
involved in the stock market etc.

Outlook 2009-2010
The Indian markets traded in a very narrow range during April amidst mixed cues
coming from global and domestic markets. While the markets were hurt by the sovereign
debt default concerns of Greece and SECs allegations against Goldman Sachs, it found
some comfort from good set of FY 2009-2010earnings numbers declared by India Inc...

India’s industrial output, as measured by the Index of Industrial Production (IIP),
grew by 15.1% as against an annual gain of 16.7% in January 2010, and17.6% in
December 2009. Industrial production grew by a mere 0.2% in the same month last year.
Manufacturing output rose by 16% as against a mere 0.2% in February 2009, while
Mining production was at 12.2% versus (-) 0.2% in the year-ago period. Electricity sector
output expanded by 6.7%compared to just 0.7% in the same month a year Consumer
Durables production expanded by 29.9%in February 2010 as against 6% in the same
period in 2009. Output in Capital Goods grew by 44.4% in February 2010 as against
11.8% for the same month of 2009. The growth rate in Basic Goods category stood at



8.4% versus a contraction of 0.1% in the year-ago period. Intermediate Goods' output
rose by15.6% in the month under review versus (-) 3% in the year-ago period. As many
as 14 out of the 17 industry groups showed a positive growth during February 2010
compared to the corresponding month of the previous year.

3.2 COMPANY PROFILE:
Company History & Background
Asit C. Mehta Investment Intermediates Ltd. (ACMIIL) was established in the
year 1986 with a view to offer a one stop solution to Indian entities for their needs in
financial services. Over the last two decades it has achieved the distinction of being
amongst the most trusted and reputed brokerage houses in India. It provides a complete
bouquet of products in equity, debt, commodities, forex, depository, derivatives and allied
services in India.

The company is jointly promoted by noted stock market professionals, Mr. Asit C.
Mehta and Mrs. Deena A. Mehta, and is a part of the Mumbai-based Nucleus Group of
Companies. The other group companies are engaged in IT and IT related services such as
development of databases, back-office applications for banks, corporate document
management solutions and geographical information systems (GIS).

Asit C. Mehta Investment Intermediates Ltd provides equity broking and research
based advisory service to institutional investors like Banks, Insurance, Mutual Funds,
Investment Entities of Institutional Investors, Foreign Financial Institutions, etc.

Vision, Mission & Quality:
Envisioned to be the “Trusted Financial Intermediary”, the group has etched out a
very specific corporate purpose – “To reach appropriate financial products, services and
solutions to every Indian entity.”

PURPOSE
To reach appropriate financial products, services and solutions to every Indian
entity.

Our Belief



 That every household can, should, and will need to participate in the financial
markets directly or indirectly to protect their financial interests
 That regulatory/legal compliance ensures economic sustainability.
 That transparency and fairness are the cornerstones of all dealings.
 That knowledge rather than capital is the key driver of this business.
 That product, process, and technology led innovations are necessary preconditions
for continuously adding value for all our constituents.
The FIRSTS to our credit:
• First limited liability Company to acquire membership on Bombay Stock
Exchange.
• First multiple seat holder and multiple exchange members.
• First to achieve the ISO quality certification for business processes.
• First to receive a CRISIL grading for quality of operations and services.
• Company Managing Director Mrs. Deena Mehta was the first lady to be elected to
the governing board of the Stock Exchange Mumbai and first and only lady to be
the President of Stock Exchange, Mumbai.

Values, Relationship…..core to our business

We are currently expanding our business in the retail and institutional segments on
the domestic and overseas (NRI/FII) fronts. We have select positions open for marketing,
sales, research, back office operations, and business development activities.

At Asit C. Mehta, we aim to select a candidate whose goals are aligned with ours.
Knowledge about the product, a conceptual understanding of the financial markets, a
thirst to innovate, desire to grow within the company, meticulousness towards the task on
hand, an ability to design and follow process are all qualities valued in the company.

We foster a culture that rewards talent, initiative, hard work, and accountability
and nurtures teamwork.

Shareholders

Asit C Mehta Investment Intermediates Ltd.(ACMIIL) is incorporated as a
publicly held limited liability company in India under the Indian Companies Act, 1956.



The company was incorporated in the year 1993 under the new enabling provisions for
limited liability stock broking companies framed by the Government to encourage limited
liability company in this area. ACMIIL was first such company on the Bombay Stock
Exchange.



Currently, the company is mostly held by its founder shareholders as follows:

 Mr. Asit C Mehta
 Mrs. Deena Asit Mehta
 Mr. Kirit H Vora
 Nucleus Netsoft & GIS (India) Ltd.

Company background

Asit C Mehta Financial Services ltd

Computers Software - Medium / Small
ISIN Demat INE041B01014
Book Value 22.75
NSE Symbol NA
Div & Yield % 1.487
Market Cap (Rs. Cr) 23.53725
P/E 108.06818
EPS 0.44
Face Value 10
Incorporation Year 1984
Registered Office Nucleus House Saki Vihar Road,
Opp L&T Gate No 7,Andheri (E),
Mumbai, Maharashtra-40007

Telephone 91-22-28570781
Fax 91-22-28578352
Chairman and Managing Director Asit C Mehta
Company Secretary Tushar Kapadia

Auditor Manek & Associates

Face Value 10
Market Lot Listing Mumbai 1
Registrar Link Intime India Pvt Ltd,
C-13 Pineal Silk, Mills Cmpd LBS
Road, Bhandup West, Mumbai – 400 078



SERVICE STANDARDS & COMPLIANCE:
In order to institutionalize business processes, our company has moved to a
documented customer-centric quality management system. This has ensured that the
entire organization is driven by the common objective of delivering quality brokerage
services that would create a unique brand and top-of-the-mind recall. We are the first
brokerage house to be certified under ISO 9001:2000 for the Equity and Debt segments.
We are also first stock brokerage house to be graded under the Broker Grading service by
Credit Rating & Information Services of India Ltd. (CRISIL) for our quality of operations
and services provided to clients.

MEMBERSHIP:
 Cash Market: BSE, NSE
 Derivatives: BSE, NSE
 Debt: NSE
 Foreign Exchange: Accredited by FEDAI
 PMS under SEBI License
 Merchant Banking: Approved by SEBI under Category I
 Commodities: NCDEX MCX, DGCX, EAST INDIA

Clearing Bank: State Bank of India

Reach and Access (as on July 01, 2009)
Investment Centers : 665 (branches, franchisee, etc.)
States & UT covered : 26
Employees : 1002



PRODUCTS AND SERVICES:

• Equity – Initial Public Offering (IPO)
• Equity – Secondary trading (cash and derivative)
• Equity – PMS
• Equity – Online Trading
• Equity – Depository Services
• Equity – Investment Advisory (fundamental and technical)
• Equity – Mutual Fund
• Equity - Arbitrage
• Commodity - Derivatives
• Debt – Government Securities
• Debt – Primary Placements
• Debt – Advisory
• Debt – Mutual Funds
• Debt – Relief bonds, etc.
• Forex – Inter bank broking
• Merchant Banking – Amalgamation & Mergers
• Merchant Banking – Private Equity Merchant Banking – Public Offering.

OUR SERVICES
 Equity and Derivatives Trading:
Equity trading is offered to retail clients through different channels in the Bombay
Stock Exchange (BSE) & the National Stock Exchange of India (NSE), for the cash and
the derivatives segments. Investors are serviced through a PAN India network of over 650
associates / locations comprising of 585 franchisee and 65 company branches. (as on July
2009)

 Online Trading:
Investmentz.com is our trading portal that offers online trading to retail investors
in the BSE and NSE cash and derivatives segments. The investors can do their own
trading through a browser-based interface as well as a streamer-based solution called live
exchange. This service is also available through an Interactive Voice Response (IVR)



facility for those clients who are unable to access the Internet service at any time. The
company has tied up with leading nationalized, private and co-operative banks to offer
share trading services to the banks' customers. A seamless gateway has been established
between the banking and depository software of the bank.

Institutional Desk:

Equity trade execution services are provided to institutional investors both
domestic and FII by our institutional desk. Research and market.

 Investment Banking:
ACMIIL has been granted a Category I Merchant Banking license by SEBI. It
offers services in mergers, amalgamations, private equity, public offerings and a full
gamut of investment banking services.

 Commodity trading service are provided through our associate:
Asit C. Mehta Commodity Services Pvt. Ltd. The company is member of India’s
premier commodity exchanges, namely, the Multi Commodity Exchange of India Ltd.
(MCX), the National Commodity & Derivatives Exchange, India (NCDEX) and the East
India Cotton Exchange Association (EICA). The online trading portal also provides
facility to trade on NCDEX. One of the group company is a member of Dubai Gold &
Commodity Exchange (DGCX).

 Inter-bank Forex Desk:
Our associate company, Asit C Mehta Forex Pvt. Ltd., undertakes inter-bank forex
order execution. Accredited by the Foreign Exchange Dealers’ Association of India
(FEDAI), the company is empanelled with approximately 60 banks and has a reasonable
presence in the market.

SUPPORT SERVICES
 Research: Investors are provided with extensive information on markets and
companies through hourly market reviews, periodic market commentary and
recommendations, which enable them to make informed decisions. The company



firmly believes that providing continuous and accurate decision making tools can add
substantial value to its investors.

 Advisory services: Advisory services are provided as a value-added service to all
retail and institutional clients. This service is delivered through the hourly, daily,
weekly, fortnightly and monthly publication of fundamental and technical research.
Calls are made through broadcast services on our private VSAT network, SMS and e-
mail.

 Accounts Information: Accounts information to the retail clients is provided through
access on our website. This assists clients in knowing details about their trading
accounts and their resultant obligations through various reports like Bill, Contract,
Financial Ledger, Transaction Register, Stock Register, Portfolio Tracker, Stock
holding position, etc. E-contracts are generated for investors giving trade details.

 Price Ticker
ACMIIL, in association with Capital Market Publications, presents the
equity/derivative/commodity price ticker for easy desktop access to capital market
information. The prices reflected are generally delayed by five minutes, and any
additional delay (if any) depends on the user’s connectivity and computer system
configuration. You can customize the ticker as per your individual needs.

 Alertz
As our registered client, Investmentz.com provides you with ‘Alertz’ facility on your
email SMS and assists you in your investment decision, thus enriching your capital
market investment experience through us.

Investmentz.com’s Alertz service keeps you informed about stock prices through
email and SMS. You may activate the Email Alertz service and track your selected
stocks/indices without monitoring the trading terminal during market hours. It is now
very easy to track the prices of your selected stocks without deviating from normal
activities .The SMS Alertz service is available for trade confirmation, fund pay-in and
pay-out, market views/calls, etc, to clients who actively use our trade execution services.



As general information, Investmentz.com does not guarantee any accuracy of
generation, databases, and delivery timings, and does not make any claims of any nature
in this matter The critical components to avail the Alertz service are:
a) Internet connectivity / bandwidth speed at your end,
b) Information feed available from the exchange,
c) Computing speed of the Alertz, and
d) Speed of your Internet Service provider (ISP) and/or domain provider and/or Telecom
service provider (TSP).

 Advice Me
To service general retail investor and assistance them in systematic creation of
wealth, we could try to provide you with some basic / brief investment idea on stock of
your interest. You could ask us an investment question related to a particular stock or
sector and we would see that brief research (fundamental / technical) input could be
provided on that stock or sector.

Whatever may be our research input on your inquiry, still the final investment
decision would need to be taken by you as you know your investment profile & habits,
risk appetite, income – cash flow, person / family / social obligation, etc.

Potential Growth Areas:
India is amongst the least affected countries in the 2008 global meltdown. May
2009 general election in the country provided a fairly stable government. We see great
potential for the country in general and financial market in particular in the years to come.
Investor participation, product innovations, volume growth is likely to be in exponential
proportion.

Our company is well poised to build a great institution in India to service the
Indian and global investors for their financial services needs The company has created a
strong organization driven by processes to handle multifold volume growth.

Do not disturb:
To service our clients and aide them in wealth creation process, we at Asit C
Mehta Investment Intermediates Ltd. keep on sending information about our products and
services, information related to capital market investment, etc. This information might be
sent / conveyed to you via letter, newsletter, email, phone; SMS, etc. based on our



assumption that you would need this information and benefit you in your wealth creation
process. But, at times, you might need privacy and wish us not to contact you for such
information. We would take the precaution and see not to disturb you by excluding your
contact details from our marketing list. Kindly provide your details so as to not disturb
you.

Message Board:
Welcome to our new website! We are pleased to announce some exciting new
features, an improved user-friendly design and services to benefit our esteemed
customers. We have also taken steps to ensure faster loading of pages.

 User-friendly design:
No part of the website is more than three clicks away. This ensures speedy access
to whatever information you may need.

 Easy Trading:
We have two options for trading: Quick Trade and Regular Trade. Quick Trade
enables you to transact in any share quickly by presenting only the most relevant
information. Regular Trade gives you full information about the share, enabling you to
take an informed decision.

 New features:
We've added some exciting new features like Advise Me and Online Purchase of
Mutual Funds and IPO’s.

Knowledge Center:
Investor Education and Empowerment is essential for inculcating correct
investment habits. We undertake various initiatives to educate investors and enable them
to make informed investment decisions based on their investment profiles, risk appetites,
and return expectations. Three important parts of our Investor Education and Awareness
Program are: Market Wisdom series, Video broadcasts of Investment Education Topics,
and the Nucleus Investments newsletter. We also conduct activities such as seminars,
exhibitions, etc.

 Market Wisdom



This is an Investor Empowerment series comprising material prepared to assist
investors as they just step into the capital market or when they are in the middle of
various curves in the wealth creation process.
The various market wisdom series for general investor education and awareness
some of them are as follows:
 Why do we need financial planning?
 Investors guide to share markets
 Safety, liquidity and returns
 What is Stock market?
 Equity or Mutual funds?
 The first step
 How to select your broker?
 Why is the stock market not a gambling den?
 Do operators run the stock market?
 Why do prices go up and down in the stock market?
 A Lesson in Options and Futures
 Sensex 12000...12800...13000...What to do?
 Dividend: What does it mean to investor?
 Margins and investors
 Hedge funds
 Dabba trading
 Exchange-traded funds
 Basics of commodities futures market
 Settlement of trades
 Investor grievance redressal mechanism
 Risk associated with equity investments etc.

 Investor Education Topics

We have been conducting the Investor Education and Awareness program via
video broadcasts through our own network (branches and business associates), which is
spread over 600 locations across 25 states and union territories in India. Speakers with
industry expertise participate in video broadcasts from our head office in Mumbai, which
is accessible from any of our branches across the country.



The last session was on February 21, 2009; our expert in-house fundamental and
technical research team conducted an investor education program on crude oil market
outlook.
 Nucleus Investmentz.

For the past seven years, we have been publishing a fortnightly newsletter,
Nucleus Investmentz. It includes analyses of current financial topics, insights on
investment-relevant topics, and performance score cards of various mutual funds. This is
available in English, Hindi & Gujarati.

Benefits of Trading With Us:
 Focus on wealth creation for the investors.
 Client Level Risk Management.
 Auto Pay-in / Pay-out of securities.
 Transfer of payout directly to the designated customer bank account.
 Account & Portfolio information through Internet 24x7, 365 days.
 Strong foundation of Technology, Compliance and Transparency First corporate
member of the Bombay Stock Exchange Proven track record for the last 25 years
in the stock broking industry First broking house to gain the ISO 9001:2000
certification Presence in 23 states and 650 locations.

MANAGEMENT:
Chief Executive Officer : Mrs. Deena Asit Mehta
Whole-time Director : Mr. Kirit H Vora

Membership:
• Cash Market: BSE, NSE
• Derivatives: BSE, NSE
• Debt: NSE
• Foreign Exchange: Accredited by FEDAI
• PMS under SEBI License
• Merchant Banking: Approved by SEBI under Category I
• Commodities: NCDEX MCX, DGCX, EAST INDIA



3.3 ORGANISATION STRUCTURE:

BRANCH

DESIGNATION NAME
Chairman and Managing Director Mr. Asit C. Mehta
Chief Executive Officer Mrs. Deena Asit Mehta
Whole-Time Director Mr. Kirit H Vohra
Chief Operating Officer Mr. Kirit H Vohra
Chief Technological Officer Mr. Kamal Goel
Chief Officer Wealth centre Mr. T .S Netrajan
Chief Manager Co-operative commodities Mr. Vidia
Chief Financial Manager Mr. Veerendra Thakur
Chief Officer Human Resources Mr. V. Vishvanath
Senior Vp Operation Mr. T .S Netrajan
Unit Manager Mr. B.P Shanthish



3.4 ACHIEVEMENTS:
 Having secured brokerage grading of BQ1 from CRISIL of India.(Top Most Grading
given to any Good Broking House)It has been marked as a very good broking house
as regards to all the criteria given by CRISIL of India. In previous year it was in the
BQ2 grade, but looking at the workings and very good Risk management system of
the company, it has been upgraded to BQ1
 It is an ISO 2000-9001 company.
 Making a very good turnover and giving directly and indirectly appointment for more
than 2500 people in India. It has got more than 600 branches network all over India
covering all most all states in India.
 To become the very old brokerage house in India and getting incorporated in the year
1984 got the BSE membership card at the early stages.
 Having its leadership position in equity broking, equity research, forex and
commodity markets & mutual funds.
 Holding an equity brand of investments.
 Now serving around 2lakhs clients all over India and abroad. (NRIs).



3.5 SWOT ANALYSIS:
SWOT analysis refers to, analyzing the strength, weakness, opportunity and threat
of the organization SWOT is a compound of two factors namely external factors and
Internal factors. Strengths and weaknesses are the internal factors controlled by the
technical and personnel departments. Opportunities and threats are the external factors
which cannot be controlled by the company. External factors may include political
factors, Socio –Cultural factors, Technical factors, demography and Environmental
factors.

WEAKNESS

SWOT
STRENGHT ANALYSIS OPPORTUNITIES

THREATS



STRENGTHS:

 One of the fastest growing brokerage firms in India.
 Rich experience of wealth creation.
 Robust technology with online trading facility.
 Swift response to market dynamics.
 Customer first support team.
 Handheld/mobile feeds and SMS updates.
 It has well experienced staff and good infrastructure.

WEAKNESS:
 Less number of branches in south India.

 Unable to compete with the brokerage rates of their competitors.

 Lack of efficient and effective strategies in attracting customers.

 Unable to market their products & services more efficiently.

OPPORTUNITIES:
 Growing India economy opens up huge market for stock broking companies.

 Increase the resource mobilization by mutual funds.

 Introduction of new technologies leads to trapping new markets.

 Company is committed to achieve profitable progress consistently.

 Targeting rural and sub urban areas.

THREAT:
 Facing Increased level of competition.

 Uncertainty in the market.

 Changes in government polices and regulation.

 Falling brokerage rates & the entry of several big players.



TABLE 1
OCCUPATION OF THE WOMEN INVESTORS
PARTICULARS NUMBER PERCENTAGE
Govt sector Employee 10 20

Private Sector employee 25 50

Self Employed 5 10

House Wives 10 20

TOTAL 50 100



CHART 1

OCCUPATION OF THE WOMEN INVESTORS
.
60

50
Respondents

40

30

20

10

0
Govt sector Private sector Self employed House wives
employee employee
Occupation

Interpretation:
Most of the women respondents who were interviewed were working in private
sector and had the majority. Next equal percentage of respondents was govt employees
and house wives. The least number of women are self employed. There is a trend of the
women becoming independent financially which can be highlighted.



TABLE 2

AGE OF WOMEN INVESTORS


Between 20 and 30 10 20



Above 50 5 10

TOTAL 50 100



CHART 2

AGE OF WOMEN INVESTORS

50
45
Percentage of respondents

40
35
30
25
20
15
10
5
0
Between 20 and Between 30 and Between 40 and Above 50
30 40 50
Age

Interpretation:
Most of the women are in the age group which is between 30 years and 40 years.
And the next highest percentage of women aged between 40 years and 50 years. This is
closely followed by women in the age group of 2o to 30 years. Least percentage of the
respondents is above 50 years. Most of the women are in the middle age and above.



TABLE 3

MARITAL STATUS OF WOMEN INVESTORS

YES 30 60
NO 20 40
TOTAL 50 100



CHART 3
MARITAL STATUS OF WOMEN INVESTORS

Married
Single

Interpretation:
Most of the women respondents who were surveyed were married to understand
the relation between marital statuses and investing habits this consideration is taken. Most
of the women who are married have a tendency to invest in much secure investments and
assets which give benefit in the long term. The rest of the respondents who are single
have mainly invested in the avenues irrespective of their long term growth.



TABLE 4
ANNUAL INCOME OF WOMEN INVESTORS
Less than Rs100000 1 2.5

Between Rs100000 and Rs250000 0 50

Between Rs250000 and Rs500000 18 45

Above 500000 1 2.5

40 100
TOTAL



GRAPH 4

ANNUAL INCOME OF WOMEN INVESTORS

60
Percentage of Respondents

50

40

30

20

10

0
Less than Between Between Above 500000
Rs100000 Rs100000 and Rs250000 and
Rs250000 Rs500000
Annula Income

Interpretation:
Majority of the women are earning an income which lies between Rs 1 lakh and
Rs2.5 lakh and accordingly plan their investment. Very closely it is followed by women
earning between Rs2.5 lakh and Rs5 lakh and the least number by women who earn less
than Rs1 lakh and above Rs5 lakh.



TABLE 5

PERCENTAGE OF INCOME INVESTED BY WOMEN


Less than 10% 4 8
10% to 20% 35 70
20% to 30% 10 20
More than 30% 1 2
TOTAL 50 100



GRAPH 5

PERCENTAGE OF INCOME INVESTED BY WOMEN

80

70
60
50
40
30
20
10
0
Less than 10 10 to 20 20 t0 30 Above 30
Percentage of Income Invested

Interpretation:
Most of the women have invested 10% to 20% of their income making them
conservative investors. Then few of them have invested 20% to 30% of their income
which is not a big percentage and few of them have invested less than 10% of their
income as many women don’t have a thorough knowledge of all the investment avenues
and the least percentage of women have invested more than 30% as they don’t want to
take risks.



TABLE 6

INVESTMENT DECISION TAKEN BY WOMEN THEMSELVES

Yes 30 60
No 20 40

TOTAL 50 100



GRAPH 6

INVESTMENT DECISION TAKEN BY WOMEN THEMSELVES

YES
NO

Interpretation:
With financial independence most of the women have increased their knowledge
and increased their awareness levels about various investment avenues and have taken
their own investment decision. But still there are a big percentage of women who have
not been able to take independent decisions and rely on others for their own investment
decisions.



TABLE 7

FORMULATION OF A FINANCIAL PLAN


YES 5 10

NO 45 90

TOTAL 50 100



GRAPH 7

FORMULATION OF A FINANCIAL PLAN

YES
NO

Interpretation:
Most of the women have not made any formal plans regarding various financial
requirements and goals. So a majority of women have not planned for their finances and
other investment avenues and have invested as opportunities have come. With an absence
of financial plan they may lack focus on financial goals



TABLE 8

AGREEMENT ON FINANCIAL GOALS BY WOMEN AND THEIR
SPOUSE


YES 25 83.33

NO 5 16.67

TOTAL 30 100



GRAPH 8

AGREEMENT ON FINANCIAL GOALS BY WOMEN AND THEIR
SPOUSE

YES
NO

Interpretation:
Most of the women have a tendency to take guidance with their spouse if they are
married. So there will be a consensus on the financial goals and the various investment
decisions they take. A very less percentage of women don’t have an agreement with their
spouse over various investment decisions as some of them may not have consensus with
their spouse.



TABLE 9

RANKING OF FACTORS CONSIDERED WHILE TAKING
INVESTMENT DECISIONS

OPTIONS/RANKS NUMBER OF RESPONDENTS/ TOTAL
PERCENTAGE
1 2 3 4 5
Long term 4 6 18 20 2 50
Growth
Percentage 8 12 36 40 4 100
Risk 8 25 10 3 4 50
Percentage 16 50 20 6 8 100
Return 5 6 17 19 3 50
Percentage 10 12 34 38 6 100
Retirement 5 23 9 5 8 50
income

Percentage 10 46 18 10 16 100
Liquidity 19 16 6 5 4 50
Percentage 38 32 12 10 8 100



GRAPH 9

RANKING OF FACTORS CONSIDERED WHILE TAKING
INVESTMENT DECISIONS

60

50
Long term growth
40
Risk
30 Return
Retirement income
20
Liquidity
10

0
Rank 1 Rank 2 Rank 3 Rank 4 Rank 5
Ranks

Interpretation:
Majority of the women are of the opinion that liquidity is the most important
factor to be considered while taking investment decisions. Risk is the next important
factor to be considered as women avoid taking high risk. As women take the decision
regarding the education and marriage of children, long term growth is the next important
factor to be considered. Their main concern is not return; it has been ranked 4 as they are
happy with moderate returns and low risk. As most of the respondents were in the age
group of 30yearsto 40 years, it is evident that retirement income is at the end of the
priority list.



TABLE 10

KNOWLEDGE ABOUT INVESTING AND VARIOUS
OPTIONS AVAILABLE

No investment experience - 0

Basic understanding about 35 70
investing
Investing for long time 10 20

Experienced investor 5 10
TOTAL 50 100



TABLE 10
DESCRIPTION OF INVESTMENT OBJECTIVES

80
70
Percentage of Investment

60
50
40
30
20
10
0
No expeience Basic Some Expeience Experienced
Understanding
Experience in Investing

Interpretation:
Most of the women have a basic understanding about investing which is a good
trend to encourage more participation in investments. A lesser percentage has been
investing in different types of assets for some years so there is a slow increase in
participation of women in investment portfolio. But a very low percentage of women who
are experienced as many women don’t take active participation in investment avenues.
But there are no respondents who have no investment experience at all. Therefore all the
women have invested one or the other of the investment avenues.



TABLE 11

Investing in safer 39 78
investments

Overall high returns 7 14

High returns without 4 8
concern for decrease in
investments

TOTAL 50 100



GRAPH 11
90

80
70
60
50
40
30
20
10
0
Investing in safer Overall high returns High returns w ithout
investment concern for decrease in
investments
Investm ent objectives

Interpretation:
As the majority of the women prefer investing in safer investments, they are
conservative. Next few of the women are willing to take some risk for long term return so
they are moderate investors. Very less percentage of women are aggressive investors who
are not concerned about short term decreases in their investment for high, long term
returns. So it can be inferred that most of the women are conservative investors.



TABLE 12
REACTION OF WOMEN INVESTORS DUE TO DECREASE IN
PORTFOLIO VALUE
Transfer of money 27 54
Immediately
Concerned but wait for 18 36
Improvement
Leave the investments 5 10
with expectation of
improvement
Invest more funds - -
TOTAL 50 100



GRAPH 12
REACTION OF WOMEN INVESTORS DUE TO DECREASE IN
PORTFOLIO VALUE

Interpretation:
Most of the women cannot take risk and so they cannot wait for improvement as
they are not very high risk takers with decrease in portfolio value. Few of them will be
concerned and very few will wait for improvement by leaving them. So it can be inferred
that they cannot afford to take risk. As they don’t invest often, they have less experience.

TABLE 13



INVESTMENT AVENUES ALREADY INVESTED IN
OPTIONS NUMBER PERCENTAGE
Yes No Total Yes No Total
Govt Securities 15 35 50 30 70 100

Equity 10 40 50 20 80 100
Bonds 5 45 50 10 90 100
Mutual funds 6 44 50 12 88 100
Company deposits - 50 50 - 100 100
Bank deposits 39 11 50 78 22 100
Post office deposits 37 13 50 74 26 100
Insurance 32 18 50 64 36 100
Real estate 43 7 50 86 14 100
Gold 9 41 50 18 82 100



GRAPH 13

INVESTMENT AVENUES ALREADY INVESTED IN

120
100
80
60
40
20
0
P
d
p
o
g
n
s
a
c
e
r
f
t

Investment avenues

Interpretation:
Most of the women have invested in low risk investments as they are low risk
takers. They have invested in bank deposits, post office deposits, insurance, provident
fund which have low risk and low returns. But they have avoided investing in shares,
bonds, company deposits which could be due to their high risk involvement and less
knowledge of women regarding various instruments.



TABLE 14
OVERALL INVESTMENT OBJECTIVE

Growing assets 9 18

Growing assets with
current income 30 60

Income and preserving 11 22
Capital
TOTAL 50 100



GRAPH 14
OVERALL INVESTMENT OBJECTIVE
70
60

50
Overall Investment Objective
40

30

20

10

0
Growing assets Growing assets with Income and preserving
current income capital
Investment objectives

Interpretation:
Most of the women have financial goals of generating assets which grow along
with generation of income. So they want financial security with long term growing assets
with income. A lesser percentage of women want growing assets even if doesn’t generate
current income as it involves risk. Women in this category have a very low percentage.



TABLE 15

USE OF FUNDS IN THE PORTFOLIO IN YEARS


Above 10 years 6 12

6 to 10 years 33
66

0 to 5 years 11 22

TOTAL 50 100


A study on investment behavior of women investors at asit c mehta, ltd, hassan

A study on investment behavior of women investors at asit c mehta, ltd, hassan

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