A STUDY ON INVESTMENT AVENUES FOR INVESTOR WITH SPECIAL REFERENCE TO BUSINESS PEOPLE AT TIRUVANNAMALAI TOWNWORD‟S WORTH “High investment is possible through high savings which in turn,is due to thehigh disposable income of the people” Finance Minister P.Chidambaram.1.1 INTRODUCTION Wealth creation is not an art. It is an attribute of one‟s attitude towardsmoney. How does one know whether have the right kind of attitude towardsmoney? To answer this question, this topic that “A Study on Investment Avenuesfor a Investor” focus on two basic, money-related aspects and activitiesviz.,avenues and institution available for investment. Now-a-days,investmentavenues are widen in the world to create positive sources of income, one can investdisposable income in domestic or offshore market. People in society are investingtheir savings in a systematic manner and many are in a unsystematic manner.Many do not have financial education. A systematic investment plan always yieldsa fair return.
Investment is the most important things today. People are earninghandsomely, but they do not know where, when and how to invest. Everyoneshould realize that financial planning is a must today in order to know where onestands financially and also to focus to one‟s financial efforts in the right direction.A proper understanding of money, its value, the available avenues for investment,various financial institutions, the rate of return/risk etc., are essential to successfulmanage one‟s finance for achieving life‟s goal. There are large numbers of investment available today. To make ourlives easier they would classify or grouped under 4 main types of InvestmentAvenue. The terms are named as follows:1.Financial Securities:- These investment instruments are tradable and negotiable these would includeequity shares, preference shares, convertible debentures, non convertibledebentures, public sector bonds, savings certificates, gift-edged securities andmoney market securities.2. Non-secured financial securities:- These investment instruments are not tradable, transferable, non negotiable.And would include bank deposit, post office deposit, company fixed deposit,provident fund schemes, national savings schemes and life insurance.
3.Mutual fund schemes:- If an investor does not directly want to invest in the markets,they could buyunits/shares in a mutual fund schemes. These schemes are mainly grouth (orequity) oriented, income (or debt) oriented or balanced (i.e. both grouth and debt)dchemes.4.Real Assets:- Real assets are physical investment. This would include real estate, gold andsilver,precious stones,rare coins &stamps and art objects. Increasingly, over the past several years, with competitive pressures havetriggered massive shifts in the style and speed of business across the glibe. In thissituation financial sector have developed through various avenues forinvestment.Market whether organized or unorganized various financialinstruments/avenues to enable the investors to invest their disposable incomefreely. This financial institutions are clearly stated their disposable incomefreely.The financial institutions are clearly stated their conditions and regulationssubject to market risk to the investors. Under these circumstances,investors havetheir own time to invest and have their own choice to invest their investment inavailable avenues like, bank deposits,postal savings schemes,public providentfund, share market both primary and secondary, life insurance policies,government
security or bonds(like NSC), mutual funds,real estate,gold,company deposits andother avenues for investment. Therefore, investors can choose their choice amongvarious available avenues for investment. The key to successful investing is to know what level of future financialperformance is embedded in today,stock‟s price and to be able to revise one‟sexpectations. What‟s going on today is not important but what will happen in thefuture is important. Investment constantly peers into an uncertain future andanticipate change. Although,Specifically for investment for practitioner, studentsand other groups such as individual investors will that this dissertation will enablethem to have information about available avenues for investment and alternativeforms of financial institutions.1.2. NEED FOR THE STUDY Investment is the most important thing today. Business men‟s are earninghandsomely. They have all right to invest and spend to some extent. But lack offinancial education, put them in much more difficult situation. At present lot ofinvestment avenues are available market with investor education. Investors canchoose from a varity of instruments and assets. While making the choice, theyshould also consider the rate of return and risk that on their investment.
Comparatively this study reveals investor‟s mantality on investment and itsimplications. There are institutions which offer attractive packages toinvestors.Medias like TV,Newspaper,Magazines etc., help the investors to accesstheir available avenues for investment. Majority of investor being educated elitesin this study, know the available avenues of investment and institutions. Thus, toascertain business men‟s psychology over investment and financial institutions, anattempt has been made to project the various available avenues for investment andthe need for government‟s suitable action in their business.1.3. STATEMENT OF THE PROBLEM In the investment process, that the investor should have knowledge about theinvestment alternatives and the markets. The rate of return on investment is highlyfluctuation but at the sane time, investors have to analyze the rate of return/risk oninvestment. Financial institutions have been playing a key role to attractinvestors.Investors are being affected because of the middle agents like broker,jobber etc., Business men‟s earn profit handsomely but they don‟t know to access invarious available avenues of investment. Lack of financial education, set asidetheir disposable income in low safety, profitability and marketability of investmentAs investore, they also expect a good rate of return from their investment. For all
these, they need adequate flow of information. Hence, the present study entitled“INVESTMENT AVENUES FOR A INVESTORS” has been taken up.1.4. REVIEW OF LITERATURE Gold, property and financial papers constitute some of the more popular optionspeople make use of for wealth enhancement and preservation. However, a trulyeffective investment portfolio must include some other avenues for investment. Assuch new avenues available for investment are Mutual Funds, Venture Capital,Derivatives, Share Market Funds, Bank Deposit Scheme,Postal Scheme,LIC, andGovernment Bonds etc. These things are innovated/introduced by research scholarsin various occasions. In this way literature on investment got developed in thefinancial sector to some extent.M.Sellan-Senior Lecturer in Commerce-Cuddalore(2007) in his study entitled as“A STUDY ON AVENUES AVAILABLE FOR INVESTMENT ATCUDDALORE TOWN SPECIAL REFERENCE TO TEACHINGPROFESSIONALS AT COLLEGE LEVEL” Portrayed the behavior of teachingprofessionals at college level in terms of planning their investment. He has takensalaried class in general and study also analyzed of investment behavior ofteaching prifessionals, examined the popularity of different types of investment
avenues, found the factors that motivate to invest by the individual investor such astax avoidance, good return with less risk, safety, marketability etc., A survey was conducted for Reader‟s Digest by market Analysis and ConsumerResearch Organization(MACRO). The survey “”The Investment habits of india‟sUnder -40s” was sonducted with the objective of analyzing how young Indian inthe 25 to 40 age invest, examining their debt managament capacity and knowingtheir savings habits. The study found the various reasons to invest city wise,percentage of income invest and percentage of people investing. It concluded thattax saving as a major reason to invest followed by education, marriage and finallycreating wealth.TABLE1-1Percentage of earnings invested by young Indians % OF INCOME INVESTED % OF PEOPLE INVESTING 1 to10% 27 % 11 to 20% 38% 21 to 30% 21% 31 to 40% 8%
TABLE 1-2City wise, the 3 bigger reasons why young Indians invest 1. Mumbai 1. Buy a House 2. Save tax 3. Kids education 2. Delhi 1. Save tax 2. Create Wealth 3. Kids education 3. Kolkata 1. Save tax 2. Retirement 3. Medical expenses 4. Jaipur 1. Save tax 2. Kits education 3. Create wealth5.Kanpur 1. Kit‟s Education 2. save tax 3. retirement 5. Coimbator 1. Buy a House 2. Kit‟s education 3. Kid‟s MarriageSource: Readers Digest – March 2007
1.5. OBJECTIVES OF THE STUDYFollowing are the objectives of the present study1.To study the awareness about available avenues for a investors.2.To examine the knowledge and problem about available avenues for investment.3.To develop awareness on investment among business People‟s4.To Analyze the investing habits of business People‟s5.To know the expected rae of return in investment amoung business people6.To offer suggestions on the basis of findings.1.6. RESEARCH METHODOLOGYDefinition of population and sanpling frame work Tituvannamalai District came into existence on 30th September 1989 afterthe bifurcation of the erstwhile North Arcot District. The District lies between11.55* and 13.15* North latitude and 78* 20‟ to 79* 50‟ East longitude. Thedistrict is bounded on the north and west Vellore District, on the southwest byKrishnagiri District, on the south by Villupuram District and on the east byKanchipuram District. The total population of this district 21,81,859 comprising of
10,93,191 Men and 10,88,662 womem as per 2001 census(Provisional figure). Theurben population is 4,00,549 constituting 18% of the total Population,theremaining 82% ie.17,81,304 is rural population. The density of the population is352 per sq.km. Tiruvannamalai town business people run the various type business(like Super market, Shopping Centre, Paints, Hard wares, Tile and Sanitary warew,Plywood, Auto Mobile and Agencies etc.,)Small Scale Industries:Food and Food Production-1198Cotton textile-131Readymade Garments-1940Bricks& mosaic tiles-104Blue metal-31Xerox-280Electrical motor rewinding-540Total No. of Factories-251Services and other astivities-146 Approximately Tiruvannamalai town having 21% Above Business/industriesActivities. Therefore 970 Shops/Showrooms.(ANNUAL EMPLOYMENT REPORT OF TIRUVANNAMALAI DISTRICT)
Sources of data The study uses both primary data and secondary data. The primary werecollected by using a structure questionnaire method. A questionnaire, containingtwenty three(23) question was framed with utmost care to fulfill the objectives ofthe study. Secondery data were collected from books, journals, magazines, dailies,reports of various agencies, relevant web sites etc.,Sample sizeThe questionnaire was administered to 200 Business People‟s at various businessactivities at Tiruvannamalai Town. Hence, the sample size is 200 which accountsfor 20% of populationSampling methodConvenient sampling method was followed, because it is non probabilitysampling.Data analysisStatistically to arrive at meaningful conclusions, data were analyzed by using thefollowing statistical tools.
For quantitative aspects Simple percentage with ranksFor the qualitative aspects, the simple percentage with ranks was adopted.Percentages used in this study, have been not rounded off.1.6. LIMITATION OF THE STUDYFollowing are the limitations of the present study 1. The study confines only to the Business People at Tiruvannamalai Town. Hence, the finding cannot by generalized. 2. Due to shortage of time the sample size is limited to 200 only 3. The information provided by the respondents in spontaneous and they may not be consistent. 4. Accuracy of the primary data collected depends upon the authenticity of the information filed by the respondents of questionnaires.
1.8.CHAPTERIZATIONChapter-1 Contains a brief introduction relating to available avenues forinvestment, need for the study, statement of the problem, review of literature,objectives, research methodology and limitations of the present study.Chapter-2 Deals with conceptual frame work of investment in generalChapter-3 Gives details of avenues for investment available in India to theBusiness people.Chapter-4 Focus the analysis of views expressed by business men‟s inTiruvannamalai town.Chapter-5 Presents summary of findings and offers suggestions, conclusion.
CHAPTER-2INVESTMENT-A CONCEPTUAL FRAME WORKINTRODUCTION The word „Investment‟ has many interpretations as it means differentthings to different persons. For a person who as lent money to another, it may bean investment for a return. Similarly, if a person purchases shares of a company,bullion or real estate for the purpose of price appreciation, it is also an investmentfor him. Likewise, an insurance plan or a pension plan is an investment to itspurchaser. From these illustrations, it is clear that investment is a commitment offunds for earning additional income. In other words, investment is considered thesacrifice of certain present value of money in anticipation of a rewardDEFINITION OF INVESTMENT The following are some important definitions of investment: “An investment is a commitment of funds made in the expectation of somepositive rate of returns. If the investment is properly undertaken, the returns willcommensurate with risk the investor assumes”. - Donald E. Fischer and Ronald J.Jordan
“The purchase by an individual or institutional investor of a financial or realasset that produces a return in proportion to the risk assumed over some futureinvestment period”.-F Amling According to the above definition the current commitment of funds for a periodof time in order to derive a future flow of funds that will compensate the investingunit. - For the time the funds are committed - For he expected rate of inflation. - For the uncertainty / risk involved in the future flow of fundsInvestment is the employment of funds on assets with aim of earning income orcapital appreciation. Investment has two attributes namely time and risk. Presentconsumption is scarified to get a return in the future. The sacrifice that has to beborne in certain but the return in the future may be uncertain. It will therefore, beuseful to understand all the important meanings of the term investment before onecan have its clear concept in mind. There are basically three concepts ofinvestment. They are,1. Economic investment2. Business investment
3. Financial investment4. Gambling1. Economic investment: According to Economists, the term investmentrefers to the additions to the capital stock of the society. The capital stockincludes goods which are used in the production of other goods (buildings,equipment, investment etc.,)2. Business investment: This refers to putting money or money held in a privatebusiness. For example, if a men puts Rs.1,00,000 in a newly opened general store,it will be said that his investment in the business amounts to Rs.1,00,000.3. Financial investment: This refers to putting money into securities, i.e. sharesdebentures, Mutual Funds, bonds, life insurance, postal, bank deposit schemes etc.,However, the term financial investment is generally used for investment in, shares,bonds, postal, insurance, bank deposit schemes, real estate, gold, derivates, mutualfunds etc., Therefore, this study gives more concentration to financial investment.4. Gambling: Gambling is an act of creating artificial and unnecessary risks forexpected increased return. A gamble is a very short term investment base onrumours and hunches. Gambling is undertaken just for thrill and excitement. Inshort, gambling involves acceptance of extraordinary risks even without a through
knowledge about them for pecuniary gains. Horse racing, playing cards, lotteryetc., are some typical examples of gambling.PORTPOLIO MANAGEMENT The portfolio management deals with the process of selection of investmentfrom the number of opportunities / avenues with different expected returns andcarrying different levels of risk and selection the investment is made with a view toprovide the investors the maximum yield for a given level of risk or ensureminimum be risk for a given level of return. Hence, investment and portfoliomanagement has emerged as one of the importand and specialized branches offinancial management.FACTORS INFLUENCING SLELECTION OF INVESTMENT Selection of investments should rather be based on research of variousfactors. The fundamental consideration for investment should be a growth orientedcompany with substantial future potential. The major objectives of investment areincreasing the rate of return and reducting the risk. Other objectives like safely,liquidity and profitability against inflation can be considered on subsidiaryobjectives.
Return Investors are always expected a good rate of ruturn from theirinvestment. The investment should earn reasonable and expected return on theinvestment before the selection of investment the investor should keep in mind thatthe form of return. The return expectiong from investments in securities are of twotypes. They are, 1. Periodic cash receips. 2. Capital gain.1.Periodic Cash Receips: Cash dividends are payable as and when the company‟safter tax earning that its board of directors divides to distribute to the shareholders.In care of debentures, bonds, bank deposits, bublic deposits etc., the coupon rate ispayable at the end of each specified period..2. Capital Gain: The second component of return is the change in the price of theinvestment called the capital gain or loss. This element of return is the differentbetween the purchase of price and the price at which the asset can be or is sold.Therefore, it can be a gain or loss.The combination of the periodic cash receipts and capital gain made on theinvestments constitutes the total return on particulars investment as shown belowin equation(1)
Cash payment recived + Price change over the periosTotal Return = -------------------------------------------------------------------- Purchase price of the sucurityCapital appreciation The other important objective of investment is appreciation of capitalinvested over a period. The expectation of apppreciation in sucurities is in thefollowing three ways. i. Conservative growth ii. Aggressive growth iii. Speculation.Conservative growth: Investors with a goal to achieve conservative conservative growthseek to build an investment portpolio that will make money over the long-term bycapical appreciation known as wealth building over time.Aggressive growth: Investor with a goal to achieve short-term and long-term capital gainsopts for aggressive growth in stock. Current income from dividends is of a lowpriority and the investors are risk seekers.
Speculation: Both investment and speculation are somewhat interrelated. It is saidthat speculation requires investment and investments are to some extentspeculative. Speculation is the purchase or sale of anything in the hope of profitfrom anticipated change in price.Accouding to Emery, „Speculation consits in buying and selling commodities orsecurities or other property in the hope of a profit from anticipated changes ofvalue‟. As speculation involves high risks, in order to take advantage of pricefluctuations, stock brokers furnish a separate list of sucurities for speculationpurposes alone.Safety and security of funds The selected investment avenue should be under the legal andregulatory frame work. If it is not under the legal frame work, it is difficult torepresent the grievances, if any. Apporaval of the law if self adds a flovor ofsafety. Even though approved by law, the safety of the principal differs from onemode of investment to another. Investment made in government assures moresafety than with private party. From the safety point of view investment can beranked as follows bank deposits government bonds, UTI Units, debentures, sharesand deposits with the non-banking financial company.(NBFCS)
Risk The lever of risk depends on the objective of investment. Theinvestors expect greater return should also be prepares to carry higher risk. Alsoan investors should assure that “High risk - high reward and low-risk, low-reward”.By careful planning and periodical review of the market situation, the investor canminimize their risk on the portfolio. Risk avoidance and risk minimization are theimportant objectives of securities analysiss.Risk and Uncertainty: Some times, a decision can lead to more than one possible outcome,such siturations are best with uncertainly when it is not known exactly what willhappen in future, but the variance possiblities are neglected by their assumedprobability of occurrence is called risk. The difference between risk anduncertainty has been than uncertainty cannot be quantified while risk can bequntified of the likelihood of future out comes.Represented as follows:
Types of RiskThe risk is categorized into two types 1. Systematic Risk 2. Unsystematic RiskThis is represented as follows: CHART 2.2 The various types of risk Risk
Systematic Risk: Systematic risk refers to that portion of variation in return caused by factorsthat affect the price of all securities. This movement is generally due to theresponse to economic, social and changes. The systematic risk cannot be avoided.Market Risk: Variation is prise sparked off due to real social, political and economicevents is referred to as market risk.Interest Rate Risk: The uncertainty in future market values and the size of future incomes,caused by fluctuations in the general level of interest is known as interest rate risk.Inflation Risk: An uncertainty of purchasing power is regarted to as an risk due toinflation.
Unsystematic Risk: Unsystematic risk refers to that portion of the risk which is caused due tofactors unique or related to a firm or industry. For examples, if excise duty orcustoms duty on goods increases, the share price of the industry declines. Theunsystematic risk will arise due to the following reasons.External and Internal business risk: Such as business cycle, govt. policies and firm‟s operations etc.,Financial Risk: Financial Risk is associated with the capital structure of a firm. A firm withno debt financing has no financial risk.Liquidity: The liquidity of investment is the prime concern for investment prime madeby an investor. Before making investment, the investor should keep in mind thedegree of liquidity required. The investor should prefer for securities which ensureliquidity or marketability.
Tax Considerations The investor, before selecting the securities for investment will take intoconsideration the provision of income tax, Capital gains tax, and wealth tax tominimize tax burden and avail all tax examption available.FINANCE Vs INVESTMENT Investment decision and finance decision interact with each other like thetwo blades of a pair of scissors, the investment (and savings) decision interactswith the finance (and spending) decision to cut the pie (called total income) intomutually satisfactory (optional) proportions. For many years finance andinvestment have encompassed the three major areas of spending in the aggregateeconomy as stated in equation –(2)CHART 2-3FOUNDATION OF INVESTMENT
INVESTMENT MANAGEMENT AND OTHER DISCIPLINESInvestment principles are base on elements developed in a number of academisdispline. This may classified as basis (Luxury items & furniture, Consumableproducts, Paint, sanitary wares, tiles, items etc.,) and applied (Dealership andDistributor) as depicted in the above chart. Trade/business is assigned a specialclassification since it is unnecessary to some parts of the investment process butcritical to some others.The above disciplines are interacts with each other while investing in modernconcepts, the above mentioned disciplines are widely used while taking andinvestment decisions.INVESTMENT PROCESSThe investment process involves a series of operations guiding to the purchase ofinvestment avenues in the market. The flowchart shows the stages and factorsconnected thereof.
CHAPTER 3 INVESTMENT AVENUES AVAILABLE IN INDIA Investing in the financial markets, arguably a subject of interest for scores, neverformed part of all discipline in our curriculam. A subject that would have shapedthe monetary destiny of each of us was never even considered. The concept ofinvestor education never existed a decade ago, and crystallized only after the IPOscam in 1994-95. Fundamantal and technical analysis, which are the key toparticipating in the market were made available only to the privileged sections ofthe society then. The investor‟s intention relating to disposable income makes the question thatwhere, when and how to invest. In the past, investment avenues were limited toprecious assets,schemes o the post office and bank. At present investors can choosefrom a variety of instruments and assets. While making the choice, they shouldconsider the expected rate of return and available risk on their investment.Financial education and knowledge about the different avenues enable theinvestors to choose investment intelligently. Investment avenues are of severalkinds. Many types of investment channels are also available. Therefore, theinvestor‟s protection and awareness on investment are becoming a necessity. To
view above all, the securities and exchange board of India (SEBI) to the lead inmaking the Indian retail investor well informed.The various investment avenues can be classified under the following categories. CHART 3-1 INVESTMENT MEDIA
The financial investment avenues are further classified with negotiablesecurities that the transferable and non negotiable securities that are nottransferable. The negotiable securities may yield variable income or fixed income.These are equity shares. Bonds, debentures, government securities and moneymarket securities. The non negotiable securities are not transferable. They yield only fixedincome. They are deposits schemes of post offices, banks, companies and nonbankin financial institution, etc. There are tax-banefit schemes such as publicprovident fund, GPF, National savings certificate etc., are also available. Mutual fund, chit fund, and venture capital etc., are another types offinancial investment avenues. They are of recent in India. At present there are 1500plus MF schemes in the market. In the last decade, the MF industry has grownsubstantially and today MFs. Are the best suited vehicles for individual investing.The non financial investment avenues also known as real precious assets which arealso part of the portfolio. They are gold, silver, arts, property etc.,
CHAPTER V SUMMARY OF FINDINGS, SUGGESSIONS AND CONCLUTIONThe liberalization of Indian economy opened up several new investmentopportunities and the growing disposable income made Indian less averse to risk.India has a relatively high nationsl savings rate compared with other countries.Indians are among the highest savers in the world but do not save wisely.Anybody with a job earns money but investing wisely to make earnings grow is avery sifferent game. Most of the Business People unaware of various investmentavenues available in the market they park their disposable income in unsystematicinvestment plans. The Business People intention relating to disposable incomemakes the question that where, when and how to invest. With that in mind, theresearcher coined that topic and it is decided to find out,how Business People atTiruvannamalai are investing, savings and managing their finance. The studyclearly point out the followong findings.GENERAL FINDINGS People invest but do not invest wisely Objectives for invest and the choice of instruments are not matched. Need for understanding of financial management and planning People do not have a clear view over investment opportunities in the market.
Lack of knowledge to build a balance portfolio management. Investors perceptions on investment are very across all age group. Respondents feel that administered rate of return on investment is not enough. Inflated rate on investment put the investors in dilemma. Awareness about a particular avenues for investment set aside the investors to continue as it is. Need of financial literacy on the avenues for investment and financial instutions. A large majority of business people‟s are investing mainly to meet financial amergency and regular income. Business people‟s in the annual income range up to Rs.100000 is poor savings. A large majority of business people‟s prefer to invest in financial institutions, bank, others. Venture capital and derivatives are unpopular avenues for investment. Some of the business people are used to put their investment in Real estate, mutual funds, shares and chit funds.
SPECIFIC FINDINGS An overwhelming majority (73%) of respondents had awareness about insurance followed by bank deposits, gold, real estate, chit funds, shares and postal savings schemes. Venture capital and derivatives were the most unpopular category of investments among respondents. Most of the young business people developing them business, so they are earn very low annual income, hence their investment habits are very poor. The lower level of respondent 10% business people‟s earn monthly income range of 300000-500000. 9% of respondents in this area use investment to avoid income tax. 18% of the respondents have invested their investment to capital appreciations and 29% of them to make regular income. 2.5% of the respondents have invested their investment to just for parking excess cash and 2% others (like children education children marriage etc.,) 27% of respondents prefer to invest in bank deposits and 23% keep their money at financial institutions followed by 18% others (like gold, real estate and chit fund etc.,)
The majority 52% of respondents have invest in two types of investment (like bank deposit-Insurance, gold-real estate, shares-debentures) A large majority of respondents bank deposits, insurance, Real estate, postal savings schemes and gold etc., were perceived as the most safety, most profitability and most marketability investment. The majority 43% of the respondents prefer medium term investment i.e., from one year to five years. 78% respondents don‟t‟s prefer reinvestment plan but their expected rate of return range of investment is 15% to 30%. The respondents felt that the problems on current investment avenues are “not profitable”, “not safe”, followed by “not marketable”, “poor documentation, cumbersome procedure”. At the time of investing majority 38% of the respondents take their own decisions after getting information from investment consultant, relation and friends, banker and media. At the time of taking future investment majority 36% of the respondents take decision through investment consultant after getting information from media, banks, own idea and relation and friends.
SUGGESTIONS The following suggestions are based on the business people‟s response whichmay be considered by the policy markers, the finance institutions and theinvestors. Some business people know the awareness about investment avenues but most of the respondents they don‟t have sufficient knowledge. Financial institutions should create awareness sbout available avenues for investment and have to tell the people what is the meaning of risk and how it could be mitigated. Government should stress the financial institutions to conduct investor guidance workshops about available avenues for investment. Financial sector i.e., banking, financial services and life insurance industries will have to work with government. There is a need for financial literacy and instilling confidence among investors. Industry associations and NGOs to educate the investor on the need for savings and savings wisely. They should also educate the Indian population both on ways of meeting their financial objectives through financial protection and wealth creation. To overcome the problem faced by the investors, adequate policy reforms in financial sector is the need of the hour. Hence, the study may be considered that the awareness about the avenues for investment which will lead the investor in the future.
CONCLUTION Over the years, much of the mystery about financial markets have beenremoved “layer by layer”. Besides, Indian market are now one of the best regulatedmarkets in the world. Hence, it is also time that along with increasing the overallliteracy, we as a country also focus on increasing financial literacy. This wouldturn India from a country of good savers to a country of wise savers and help buildfinancially strong and secure India.