Employee's Portfolio Management

CHAPTER 1
INTRODUCTION OF THE STUDY & METHODOLOGY
1.1 Introduction
1.2 Management Problem
1.3 Statement of Research Problem
1.4 Objective of the Study
1.5 Scope of the Study
1.6 Importance of Study
1.7 Research Methodology
1.8 Chapter Scheme

KBPIMSR, SATARA MBA PROJECT
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SHIVAJI UNIVERSITY, KOLHAPUR
CHAPTER 1
INTRODUCTION TO THE STUDY AND
METHODOLOGY
1.1 Introduction: -
Portfolio Management is as the art and science of making decisions about the
investment mix and policy, matching investments to objectives, asset allocation for
individuals and institutions, and balancing risk against performance Simply put it,
someone has given you their hard-earned money and you need to help them increase the
capital in the best of diversified ways. This should be in a way in which the risk-return
ratio is aptly maintained considering the profits in mind and the holding period of
investments.
National Insurance Company Limited was incorporated on 5 December 1906
with its registered office in Kolkata. Consequent to passing of the General Insurance
Business Nationalization Act in 1972, 21 Foreign and 11 Indian Companies were merged
with it and National became a subsidiary of General Insurance Corporation of India
(GIC) which is fully owned by the Government of India. After the notification of the
General Insurance Business and its India's largest General Insurance Company
(Nationalization) Amendment Act, on 7 August 2002, National has been de-linked from
its holding company GIC and presently operates as an independent insurance company
wholly owned by Govt of India.
Portfolio management guarantees the growth of capital by reinvesting in growth
securities or by the purchase of the growth securities. A portfolio shall appreciate in
value, in order to safeguard the investor from any erosion in purchasing power due to
inflation and other economic factors A portfolio must consist of those investments,
which tend to appreciate in real value after adjusting for inflation.
The national insurance company limited needs to identify existing employee's
portfolio management and their scenario of employees.

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1.2 Management Problem: -
Existing employees selecting Motor Insurance Policy on compulsory basis apart from
this they added Health Insurance, Miscellaneous Insurance, Fire Insurance, Marine
Insurance, Engineering Insurance and Rural Insurance policies of the company in their
portfolios. Best upon their current investment options and their expectations towards
new products, the Company want to design new products which fulfill the investment
options of salaried employees in similar types of employees.
Table No. 1.1 The table shows company employees insurance policy.
Products Motor Health Miscellaneous Fire Marine Engineering Rural
No. Of
employees
(N=44)
44 26 12 00 00 00 05
(Source: Field Data)
In the above table it is shown that the company can sell their insurance policy on a
compulsory basis for their employees. The company products are Health Insurance,
Miscellaneous Insurance, Fire Insurance, Marine Insurance, Engineering Insurance and
Rural Insurance policies. It is mandatory for all employees to take motor insurance, that
is why all the 44 employees take motor insurance policy. And 26 employees are taking
health insurance policy and 12 employees are taking Miscellaneous insurance policy and
5 employees are taking rural insurance policy and anyone cannot take the fire, marine
and engineering insurance policy.
The company wants to find a new insurance policy. They don’t want to make it
compulsory, but they want to launch a policy which full fill employee's expectations.
That’s why the company wants to know about the investment behavior and portfolio
management of their employees. Therefore, I selected this topic for study.

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1.3 Statement of research problem: -
The researchers aim to find out the employees' existing investment options for the
company and they want to design new products to fulfill the investment options of
salaried employees. Hence the title of study is “A STUDY OF EMPLOYEES
PORTFOLIO MANAGEMENT WITH REFERENCE TO NATIONAL INSURANCE
COMPANY LIMITED, SATARA.”
1.4 Objectives of the study: -
Present study has been undertaken with the following objectives.
1. To study the concept of portfolio management.
2. To Analyze the current scenario of portfolio for existing employees of the
company.
3. To evaluate the current portfolio of employees.
4. To suggest a new source of investment for employees of the company.
1.5 Scope of the study: -
The following is the scope of the study undertaken.
• Geographical scope –
The geographical scope is limited to “NATIONAL INSURANCE
COMPANY LIMITED, 172, Ravivar Peth, Ganesh Chamber Apartment,
Pawainaka, near IDBI Bank, Satara, Maharashtra 415001”.
• Conceptual scope -
The study is based on the concept of portfolio management, investment,
hedge funds, equity share market, private equity investment and forex market.
• Analytical scope -
The analytical Scope is restricted to percentage, average and correlation.
• Periodical scope -
For this study, the periodical scope for the current year FY 2022-2023.

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1.6 Importance of Study: -
The Study will help to know the concept of portfolio management and the current
scenario of employees. It helps to find the awareness of portfolio management. The
company wants to design a new insurance policy product for their employees, and it
gives a benefit for employees. The study will help to identify which type of sources
companies employees prefer for investment purposes and this study will help the
employees to understand the management approach against new insurance policy
product. This study helps management to know behavior of employees to company
insurance policy product.
1.7 Research Methodology: -
Methodology is the process of collecting the information and help to find out the solution
to project select by research, whereas research helps to study and finds out Techniques
with proper process. To collect the required information for the project.
1.7.1 Type of Research: -
The type of research is descriptive in nature.
1.7.2 Data Required: -For this research project required such as company employee's
sheet, financial sheets, HR scenario, company journals and data, various books,
questionnaire for existing employees.
1.7.3 Data Sources: -
• Primary-
The primary data is collected through the survey by making questionnaire
of all existing employees of the company.
• Secondary-
The secondary data obtained from company journals and collected from
various books and sites, The financial statements of company and the Human
resource scenario.

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1.7.4 Sampling Design: -
1) Sampling units- The National Insurance Company Limited, Satara selected for
research. And we select the companies all existing employees for the sampling
unit.
2) Population for the study is 44 employees of the company.
3) Sampling method- For the research we take census sampling method
4) Sampling Size- Researcher selects samples for the study is 44.
1.8 Chapter Scheme
Chapter 1-Introduction to the study and methodology-
This chapter introduces study, management problems, statement of research problem,
objective, scope, research methodology, importance of study.
Chapter 2 – Theoretical Background –
This chapter includes the introduction and meaning of Portfolio management, objectives,
importance, process, and the investment avenue.
Chapter 3 – Organizational Profile –
This chapter is related to introduction & history of organization, product and service,
vision, Mission, achievement& awards, etc. of organization.
Chapter 4 - Data Analysis and Interpretation –
In this chapter, the data collected by researcher is analyzed and interpreted with the help
of percentage, correlation analysis and graph.
Chapter 5- Finding and suggestion -
In this chapter, the researcher must mention findings, suggestions, and conclusions
besides, they must attach bibliography.

CHAPTER 2
THEORETICAL BACKGROUND
2.1 Introduction of investment
2.2 Meaning of investment
2.3 Types of investment
2.4 Investment avenues
2.5 Introduction of portfolio management
2.6 Meaning of portfolio management
2.7 objective of the portfolio Management
2.8 Importance of portfolio Management
2.9 Portfolios Management Process

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CHAPTER 2
CONCEPTUAL FRAMEWORK
2.1 Introduction of Investment:
An investment is an asset or item acquired with the goal of generating income or
appreciation. Appreciation refers to an increase in the value of an asset over time. When
an individual purchases a good as an investment, the intent is not to consume the good
but rather to use it in the future to create wealth. An investment always concerns the
outlay of some resource today—time, effort, money, or an asset—in hopes of a greater
payoff in the future than what was originally put in. For example, an investor may
purchase a monetary asset now with the idea that the asset will provide income in the
future or will later be sold at a higher price for a profit.
2.2 Meaning of investment:
Investment means employment of funds in a productive manner to create more
income. The word investment means many things to many people. Investment is
financial assets lead to further production and income. It is lending of funds income and
commitment of money for creation of assets, producing further income. Investment also
means buying securities, financial instruments or claims on future income. Investment is
made out of income and savings credit or borrowings and out of wealth. It is a reward for
waiting for money.
2.3 TYPE OF INVESTMENT:
1) Economic Investment: The concept of economic investment means additions to
the capital stock of the society. The capital stock of society is the goods used in
producing other goods. The term investment implies the formation of new and
productive capital in the form of new construction and producer’s durable
instruments such as plant and machinery, investment and human capital are also
included in this concept. Thus, an investment in economic terms means an
increase in building, equipment, and inventory.

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2) Financial Investment: This is an allocation of monetary resources to assets
expected to yield some gain or return over a given period. It is a general or
extended sense of the term. It means an exchange of financial claims such as
shares and bonds, real estate, etc. in their view; investment is a commitment of
funds to derive future income in the form of interest, dividends, rent premiums,
pension benefits and the appreciation of the value of their principal capital.
2.4 Investment avenues:
A) Marketable Financial Asset
2.4.1 Equity shares:
Equity investment represents ownership in a running company. By ownership, we
mean share in the profits and assets of the company but generally, there are no fixed
returns. It is considered a risky investment but also the most liquid investment due to
stock markets. Equity shares of companies can be classified as follows:
1. Blue chip scrip- A blue chip stock is a huge company with an excellent
reputation. These are typically large, well-established, and financially sound
companies that have operated for many years and that have dependable earnings,
often paying dividends to investors.
2. Growth scrip- A growth stock is any share in a company that is anticipated to
grow at a rate significantly above the average growth for the market. These
stocks generally do not pay dividends.
3. Income scrip- A scrip is a substitute or alternative to legal tender that entitles the
bearer to receive something in return. Scrips come in many different forms,
usually as a form of credit.
4. Cyclical scrip- A cyclical stock typically moves up or down depending on the
upward or downward movement in the economy. These stocks are usually traded
heavily as investors try to buy them at the low point of a business cycle and sell
at the high point of the same cycle.
5. Speculative scrip- A speculative stock is a stock that a trader uses to speculate.
The fundamentals of the stock do not show an apparent strength or sustainable

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business model, leading it to be viewed as very risky and trade at a comparatively
low price, although the trader is hopeful that this will one day change.
2.4.2 Debentures or Bonds:
Debentures or bonds are long-term investment options with a fixed stream of
cash flows depending on the quoted rate of interest. They are considered relatively less
risky. The amount of risk involved in debentures or bonds is dependent upon which the
issuer is. For example, if the issue is made by a government, the risk is assumed to be
zero. The following alternatives are available under debentures or bonds:
1. Government securities- These come with exceptionally low risk, and they also
provide the advantage of guaranteed returns. Government securities (G-Sec), for
instance, offer a high level of safety through risk-free rate of return.
2. Savings bonds- Savings Bonds are guaranteed by the Government of India,
Savings
3. Bonds have a sovereign guarantee. This means the Government is obligated to
return the amount you invested on maturity. This makes the 7.75% Government
of India Savings Bond a very safe investment option.
4. Public Sector Units bonds- PSU bonds are issued by government entities and
hence it is considered one of the safest investment options. The return on
investment is also an attraction for many of the investors.
5. Debentures of private sector companies- these are secured, on winding up of the
company, these are repayable before payment is made to the shareholders. Also,
a fixed amount of interest on debentures is payable, whether there is any profit or
not.
6. Preference shares- preference shares generate substantial earnings makes it a
viable option for risk-takers. Based on differences in their structure, type of
dividend pay-outs, maturity period and shareholder's participation.

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2.4.3 Money Market Instruments:
Money market instruments are just like the debentures, but the time period is very
short. It is generally less than 1 year. Corporate entities can utilize their idle working
capital by investing in money market instruments. Some of the money market
instruments are
1. Treasury Bills- are money market instruments issued by the Government of India
as a promissory note with guaranteed repayment at a later date. Funds collected
through such tools are typically used to meet short term requirements of the
government, hence, to reduce the overall fiscal deficit of a country.
2. Commercial paper- CPs are unsecured instruments issued and are not backed by
any assets. Hence, the yields on CPs are slightly higher compared to other forms
of short-term funding options. That is the reason; the market demand exists only
for CPs of highly rate companies.
3. Certificate of Deposits- CDs are government-backed securities, an investor's
capital or principal investment is safe, making them one of the least risky
investment options. CDs offer a comparatively higher interest rate and better
returns than traditional bank savings accounts.
2.4.4 Mutual Funds:
Mutual funds are an easy and tension free way of investment and it automatically
diversifies the investments. A mutual fund is an investment mix of debts and equity and
on the scheme. They provide benefits such as professional approach, depending on
benefits of scale and convenience. In mutual funds also, we can select among the
following types of portfolios:
1. Equity Schemes- An Equity Fund is a Mutual Fund Scheme that invests
predominantly in shares/stocks of companies. They are also known as Growth
Funds.
2. Balanced Schemes- To qualify as equity-oriented schemes and to get long-term
capital gains tax benefit, it is mandatory to invest at least 65% in Indian stocks.
So, these schemes used to invest mostly in equity.

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3. Debt Schemes- A debt fund is a Mutual Fund scheme that invests in fixed income
instruments, such as Corporate and Government Bonds, corporate debt securities,
and money market instruments etc. that offer capital appreciation. Debt funds are
also referred to as Fixed Income Funds or Bond Funds.
4. Sector Specific Schemes- These are the funds/schemes which invest in the
securities of only those sectors or industries as specified in the offer documents.
e.g., Pharmaceuticals, Software, Fast Moving Consumer Goods (FMCG),
Petroleum stocks, etc.
2.4.5 Life Insurance and General Insurance:
They are one of the important parts of good investment portfolios. Life insurance is an
investment for the security of life. The main objective of other investment avenues is to
earn a return, but the primary objective of life insurance is to secure our families against
unfortunate event of our death. It is popular among individuals. Other kinds of general
insurance are useful for corporations. There are different types of insurance which are as
follows:
1. Endowment Insurance policy- It is an amazing investment avenue available to
the people as it provides both, insurance, and savings. This policy is also
considered low risk as the insured or the beneficiary (in case of demise of the
insured) receives a guaranteed return, known as an endowment, which can be
helpful in times of need.
2. Money Back policy- Money back plans protect your family's financial interests
from circumstances such as death or critical illness of the policyholder. Periodic
payouts create wealth for meeting financial commitments at key stages in life.
3. Whole Life Policy- provides permanent death benefit coverage for the life of the
insured. In addition to paying a death benefit, whole life insurance also contains a
savings component in which cash value may accumulate. Interest accrues at a
fixed rate and on a tax-deferred basis.
4. Term Insurance Policy- Term Insurance is the simplest and purest form of life
insurance. It provides financial protection to your family at the most affordable

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rates. With term insurance, you can get a large amount of life cover (i.e., sum
assured) at a relatively low premium rate.
5. General Insurance for any kind of assets- General insurance covers home, your
travel, vehicle, and health (non-life assets) from fire, floods, accidents, man-made
disasters, and theft.
2.4.6 Real Estate:
Every investor has some part of their portfolio invested in real assets. Almost every
individual and corporate investor invests in residential and office buildings respectively.
Apart from these, others include:
1. Agricultural Land- An agricultural land plot can guarantee long-term returns if it
is in an area where the government has planned some infrastructure project soon.
2. Semi- Urban Land- Urban land not just buildings, but also undeveloped lots – is
considered a good investment at a time when financial markets are shaky.
3. Commercial Property- Commercial real estate investment is one of the most
rewarding forms of investment. The Indian real estate sector is booming for the
first time since the pandemic. Tier 2 and Tier 3 cities are contributing a
significant proportion to the commercial real estate market.
4. Raw House- Row houses are built in such a way that there is an effective use of
the land since the units share a common wall. This is very beneficial for both the
buyer and the developer.
5. Farmhouse- People investing in farmhouses are mostly those looking for luxury
or second homes. Investors opt for farmhouses by choice, especially since land is
cheaper outside major cities.
B) Non-Marketable Financial Assets:
A good portion of the financial assets of an individual is held in the form of
nonmarketable financial assets like bank deposits, post office deposits company deposits,
and provide fund deposits. The important nonmarketable financial assets held by
investors are briefly described below.

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2.4.1 Bank Deposits:
Perhaps the simplest of investment avenues is opening a bank account and de-positioning
money in it, one can make a bank deposit. There are various kinds of bank accounts:
current accounts, savings account and fixed deposit account. While a deposit in a current
does not earn any interest, deposits in other kinds of bank accounts earn interest.
2.4.2 Company Deposits:
Any companies, large and small, solicit fixed deposits from the public fixed deposits
mobilized by manufacturing companies are regulated by RBI key features of co. deposits
are as:
1. For a manufacturing co, the term of deposits can be one to three years, whereas for a
non-banking finance co. it can vary between 25 months (about 2 years) to 5 years.
2. The interest rate on it is higher than those on bank deposits.
3. Company deposit represents unsecured loans.
4. It offers the facility for premature withdrawal to attract deposits.
2.4.3 Public provident fund schemes:
Individuals and HUFS can participate in this scheme. A PPF a/c may be opened at any
branch of the SBI (state bank of India) or its subsidiaries or at specified of other
nationalized banks The subscriber to a PPF a/c is required to make a min deposit of Rs.
100 per year.

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(Source: Paisabazar.com)
Above diagram shows that the different types of investment. There are fixed deposits,
bonds, gold, stocks, mutual fund, public provident fund, exchange traded funds, national
pension scheme, real estate, etc.
2.5 Introduction of Portfolio Management:
A portfolio is a group of financial assets such as shares, bonds, debt instruments, mutual
funds, cash equivalents, etc. A portfolio is planned to stabilize the risk of non-
performance of various pools of investment. A portfolio refers to a collection of
investments tools such as stocks, shares, bonds, mutual funds, cash and soon depending
on the investor’s income (meaning, objective of portfolio management), budget and
convenient time frame.
The art of selecting the right investment policy for individuals in terms of minimum risk
and maximum return is called portfolio management. Portfolio management refers to

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managing an individual investment in the form of bonds, shares, cash, mutual funds so
that he earns the maximum profit within the stipulated time frame. Portfolio management
refers to managing money of an individual under the expert guidance of the portfolio
manager.
2.6 Meaning of Portfolio Management:
Portfolio Management is defined as the art and science of making decisions about the
investment mix and policy, matching investments to objectives, asset allocation for
individuals and institutions, and balancing risk against performance Simply put it,
someone has given you their hard-earned money and you need to help them increase the
capital in the best of diversified ways. This should be in a way in which the risk-return
ratio is aptly maintained considering the profits in mind and the holding period of
investments.
Portfolio Management refers to managing an individual's investments in the form of
bonds, shares, cash, mutual funds etc. so that he earns the maximum profits within the
stipulated time frame It is the art of managing the money of an individuals under the
expert guidance of portfolio managers It is the detailed SWOT analysis (strengths,
weaknesses, opportunities, and threats) of an investment avenue, which could be in the
form of debt/equity, domestic/international, with the goal of maximizing return at a
given appetite for risk.
2.7 Importance of portfolio Management:
1. Portfolio Management is a perfect way to select the Best Investment Strategy
based on age, income, risk taking, the capacity of the individual and investment
budget.
2. It helps to keep a gauge on the risk taken as the process of PM keeps Risk
Minimization as the focus.
3. Customization is possible because an individual's needs and choices are kept in
mind when the person needs the return, how much return expectation a person
has and how much investment period an individual selects.

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2.8 objective of the portfolio Management:
(Source: Paisabazar.com)
2.8.1 Security of principal Investment:
Investment safety or minimization of risks is one of the most Important objectives of
portfolio management portfolio management not only involves keeping the investment
intact but also contributes towards the growth of its purchasing power over the period.
The motive of financial portfolio management is to ensure that the investment is safe.
Other factors such as income growth, etc., are considered only after the safety of
investment is ensured.
2.8.2 Consistency of Returns:
Portfolio management also ensures to provides the stability of returns by reinvesting the
same earned returns in profitable and good portfolios. The portfolio helps to yield steady
returns. The returns earned should compensate for the opportunity cost of the funds
invested.

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2.8.3 Capital Growth:
Portfolio management guarantees the growth of capital by reinvesting in growth
securities or by the purchase of the growth securities. A portfolio shall appreciate in
value, in order to safeguard the investor from any erosion in purchasing power due to
inflation and other economic factors A portfolio must consist of those investments,
which tend to appreciate in real value after adjusting for inflation.
2.8.4 Marketability:
Portfolio management ensures flexibility in the investment portfolio. A portfolio consists
of such investment, which can be marketed and traded Suppose, if your portfolio
contains too many unlisted or inactive shares, then there would be problems to do
trading like switching from one investment to another. It is always recommended to
invest only in those shares and securities which are listed on major stock exchanges, and
which are actively traded.
2.8.5 Liquidity:
Portfolio management is planned in such a way that it facilitates taking maximum
advantage of various good opportunities upcoming in the market. The portfolio should
always ensure that there are enough funds available at short notice to take care of the
investor's liquidity requirements.
2.8.6 Diversification of portfolio:
Portfolio management is purposely designed to reduce the risk of loss of capital and /or
income by investing in different types of securities available in a wide range of
industries. The investors shall know that there is no such thing as zero risk investment.
Moreover, relatively low risk investment gives correspondingly a lower return to their
financial portfolio.
2.8.7 Favorable Tax Status:
Portfolio management is planned in such a way to increase the effective yield an investor
gets from his surplus invested funds. By minimizing the tax burden, yield can be

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effectively improved. A good portfolio should give a favorable tax shelter to the
investors. The portfolio should be evaluated after considering income tax, capital gains
tax, and other taxes.
2.9 Portfolios Management Process:
This is the most crucial step as it lays down the foundation of the entire process. It
comprises of these tasks:
1. Identification of objectives and constraints: The identification of client's
investment objectives and any constraints is the foremost task in the planning
stage. Any desired outcomes that the client has regarding return and risk are the
investment objectives. Any limitations on the decisions or choices are the
constraints Both are specified at this stage.
2. Investment Policy Statement: once the objectives and constraints are identified,
the next task is to draft an investment policy statement
3. Capital Market Expectations: The third step in the planning stage is to form
expectations regarding capital markets. Risk and return of various asset classes
are forecasted over a long term to choose portfolio that maximizes the expected
return for certain levels of risk or minimizes the portfolio risk for certain levels of
expected return.
4. Allocation Strategy: This is the last task in the planning stage
a) Strategic Asset Allocation: The investment Policy statement and the capital
market expectations are combined to determine the long-term weights of the
target asset classes, also known as strategic asset allocation.
b) Tactical Asset Allocation: Any short-term change in the portfolio strategy
because of the change in circumstances of the investor or the market expectations
is a tactical asset allocation If the changes become permanent and the policy
statement is updated to reflect the changes, there is a chance that the temporary
tactical allocation becomes the new strategic portfolio allocation.

CHAPTER 3
COMPANY PROFILE
3.1 Introduction of the Organization
3.2 Historical Background
3.3 Strategic intent of Organization
3.4 Product
3.5 Services
3.6 Awards and Achievements
3.7 Human Resource Scenario
3.8 Financial Scenario
3.9 Corporate social responsibility
3.10 Ratings
3.11 Corporate Management Team
3.12 Organizational Structure

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CHAPTER 3
COMPANY PROFILE
3.1 Introduction of the organization: -
National Insurance Company Limited was incorporated on 5 December 1906
with its registered office in Kolkata. Consequent to passing of the General Insurance
Business Nationalization Act in 1972, 21 Foreign and 11 Indian Companies were
merged with it and National became a subsidiary of General Insurance Corporation of
India (GIC) which is fully owned by the Government of India. After the notification of
the General Insurance Business and its India's largest General Insurance Company
(Nationalization) Amendment Act, on 7 August 2002, National has been de-linked from
its holding company GIC and presently operates as an independent insurance company
wholly owned by Govt of India. National Insurance Company Ltd (NIC) is one of the
public sector insurance companies of India. It transacts a non-life insurance business.
Headquartered in Kolkata, NIC's network of about 2000 offices is spread over the
country. NIC's foreign operations are carried out from its branch offices in Nepal. The
paid-up share capital of National is ₹1 billion. Starting off with a premium base of ₹50
crores in 1974, NIC's gross direct premium income has steadily grown to about ₹160
billion rupees in the financial year 2017–18. National transacts general insurance
business of Fire, Marine and Miscellaneous insurance. As of 2010, NICL has a AAA
rating from Indian rating agency, CRISIL, a subsidiary of Standard and Poor's Company.
The gross premiums from underwriting by the company grew by 32.22% to over ₹61
billion during the Financial Year 2010–2011. And Gross Premium grew up to 100 billion
during the financial year 2013–2014. With this, the company was ranked second among
general insurance companies operating in India, behind New India Assurance, at the end
of the 2014 Financial Year. With about 2000 offices and approximately 11,000
employees and many more agents, the company operates in all of India, and neighboring
Nepal. In 2008, the company signed a deal with HCL Technologies worth almost ₹4
billion to outsource the company's information technology requirements over 7 years. On
the 2nd of February 2018, the Government of India announced the merger of National

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Insurance Company Limited with United India Insurance Company and Oriental
Insurance.
After nationalization in 1972, NICL operated as a subsidiary of General
Insurance Corporation of India (GIC). National Insurance Company Limited was spun
off as a distinct company under the General Insurance Business (Nationalization)
Amendment Act in 2002. In April 2004, NIC signed an agreement with Nainital Bank
for distribution of its general insurance products through the bank's branches in
Uttarakhand, Haryana and New Delhi.
 Type - Public
 Industry - Insurance
 Founded - 1906
 Founder - Gordhan Das Dutia
 Headquarter - Kolkata, West Bengal, India
 Area Serve - India and Nepal
 Key People - Suchitha Gupta (Chairman & MD)
 Owner - Government of India
 Employees - 10669
 Parent - Ministry of Finance, Government of India
3.2 Historical Background: -
The current system of National Insurance has its roots in the National Insurance
Act 1911, which introduced the concept of benefits based on contributions paid by
employed people and their employer. William Martin-Smith was issued with the First NI
number A1. The chosen means of recording the contributions required the employer to
buy special stamps from a Post Office and affix them to contribution cards. The cards
formed proof of entitlement to benefits and were given to the employee when the
employment ended, leading to the loss of a job often being referred to as being given
your cards, a phrase which endures to this day although the card itself no longer exists.
Initially there were two schemes running alongside each other, one for health and
pension insurance benefits (administered by "approved societies" including friendly

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societies and some trade unions) and the other for unemployment benefit which was
administered directly by Government. The Beveridge Report in 1942 proposed
expansion and unification of the welfare state under a scheme of social insurance. In
March 1943 Winston Churchill in a broadcast entitled "After the War" committed the
government to a system of "national compulsory insurance for all classes for all purposes
from the cradle to the grave."
After the Second World War, the Attlee government pressed ahead with the
introduction of the Welfare State, of which an expanded National Insurance scheme was
a major component. As part of this process, responsibility passed in 1948 to the new
Ministry of National Insurance. At that point, a single stamp was introduced which
covered all the benefits of the new Welfare State.
3.3 Strategic Intent of Organization: -
3.3.1 Mission: -
To be the most preferred choice of customers for General Insurance by building
Relationships and grow profitably.
3.3.2 Vision: -
• Leveraging technology to integrate people and processes.
• To excel in service and performance.
• To uphold the highest ethical standards in conducting our business.
3.4Products: -
1) Motor Insurance:
Motor Insurance Contracts are subject to the basic principles applicable to
property and liability insurance in general. The owner of the vehicle must be a
registered owner of the vehicle whereby he or she stands to benefit by the safety
of the vehicle, right, interest or freedom from liability and stands to lose by any
loss, damage, injury or creation of liability.
• Private Car

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• Commercial Vehicle
• Two-Wheeler
2) Health Insurance:
National Group Mediclaim Policy is a group indemnity health insurance
product designed specifically to address basic health insurance need of both
employer-employee and non-employer–employee groups. The Policy covers
Hospitalization Expenses for In-Patient Care (allopathic, Ayurveda and
homeopathy) or Day Care Treatment Reasonably and customarily incurred for
treatment of an Illness contracted/Injury sustained during the Policy Period.
3) Miscellaneous Insurance:
Miscellaneous Insurance refers to contracts of insurance other than those
of Life, Fire and Marine insurance. It covers a variety of risks, the chief of which
is: - Personal Accident insurance.
4) Fire Insurance:
Buying a house or setting up a business is a dream of Individuals. But
have we ensured that the huge investments made is protected with adequate
insurance. There is always a chance of these precious investments being damaged
by unfortunate and unexpected events like fire, explosions, natural calamities or
riots, etc. NIC’s SFSP policy is a comprehensive policy available at low cost to
indemnify the financial loss in the event of damage to buildings and contents
within.
5) Marine Insurance:
Marine insurance covers the loss or damage of ships, cargo, terminals,
and any transport by which the property is transferred, acquired, or held between
the points of origin and the final destination. Cargo insurance is the sub-branch of
marine insurance, though Marine insurance also includes Onshore and Offshore
exposed property, (container terminals, ports, oil platforms, pipelines), Hull,
Marine Casualty, and Marine Liability. When goods are transported by mail or
courier, shipping insurance is used instead.

22
6) Engineering Insurance:
The rapid industrialization of our country has led to increasing use of
machines in industry. Though use of machinery results in increased production
capacities, in the event of accident and breakdowns, they can be potential sources
of financial loss and could even result in the closure of business. Despite proper
care and maintenance of machinery, mishap may yet occur. Sometimes the extent
of damage may be quite high and may also lead to fatal or non‐fatal injuries to
human beings nearby. The remedy for such losses is offered by Engineering
Insurance policies.
7) Rural Insurance:
Rural Insurance generally refers to insurance related to rural people, their
business (farming, cattle, poultry etc.) and their families.
3.5 Services: -
• Personal Insurance policies include medical insurance, accident, property and
auto insurance coverage
• Rural Insurance policies provide protection against natural and climatic disasters
for agriculture and rural businesses
• Industrial Insurance policies provide coverage for the project, construction,
contracts, fire, equipment loss, theft, etc.
• Commercial Insurance policies provide protection against loss and damage of
property during transportation, transactions, etc.
3.6Awards & Achievements: -
• National insurance is the first Company to introduce office on wheels in India.
• It is a pioneer in Bancassurance and Auto tie ups in India and is a leading insurer
for Social Schemes.
• It also provides 24x7 live chat support.
• The Company has also been awarded several national and international awards
like Economic Times Iconic Brands 2018 (General Insurance Category), SKOCH
order of merit 2017 for General Insurance Company of the year and The Asset
Asian awards 2017 for cash management solutions.

23
3.7 Human Resource Scenario: -
Table no. 2.7.1. Shows Human Resource Scenario of organization.
Sr. No. Department Officer/Manager Workers Total
1 HR 1 - 1
2 Finance 1 2 3
3 Agent 1 38 39
4 Staff - 2 2
Total 3 41 44
(Source: Field Data)
Above Table 2.7.1 shows the total number of employees with respect to department.
Human resource department have 1 employee, Finance department have 1 manager and
2 accountants. There are 39 agents in that agency and the ground staff of 2 employees.
Organization has total 44 employees in Satara branch.
3.8 Financial Scenario: -
Table no. 2.8.1. Shows Financial Scenario of National Insurance Company Limited, for
Last two years.
Particulars Year 2019-20 Year 2020-21
Turnover 12,87,46,091 14,32,56,056
Gross Profit -2,78,74,132 16,16,937
Net Profit -4,10,83,359 -56,18,573
Current Liability 28,73,19,407 27,68,98,120
Non-Current Liability -25,49,87,375 -26,55,01,999
Current Assets 8,42,95,440 8,00,68,175
Non-Current Assets 37,20,619 50,91,177
Capital 2,50,00,000 5,67,50,000
(Source: Annual report)

24
3.9Corporate social responsibility: -
The National Insurance Company takes up CSR activities to operate in an
economically, socially and environmentally sustainable manner. Its priority and thrust
areas have been - education and vocational training, health and sanitation including
drinking water projects and rehabilitation and welfare of underprivileged differently
abled person etc. with the current focus being Swacch Bharat projects.
3.10Ratings: -
National Insurance Company Limited has been awarded ‘AAA’ rating for its claims
paying ability by CRISIL (Credit Rating Information Services of India Limited) for the
third successive year.
3.11Corporate Management Team: -
 Chairman cum managing Director - Smt. Suchita Gupta
 General Manager - Shri Navneet Doda
 General Manager - Smt. Sophia Singh
 General Manager & CIO - Smt. Sunita Tuli Nagpal
 General Manager - Shri Peter Chittaranjan
 General Manager & Appointed Actuary - Shri Ashok Kumar Lahoty
 General Manager - Shri P.C. Gothwal
 General Manager - Shri Debasis Das
 Chief Vigilance Officer - Ms. Mamata Sarangi
 Deputy General Manager - Shri Chiranjib Das
 Deputy General Manager - Smt. S M Geetha
 Chief Manager - Shri Debabrata Kar
 Chief Manager - Smt. Rina Madia

25
3.12 Organization Structure: -
Office Hierarchy
Regional Office
Divisional Office
Branch Office
Head Office
Administration Hierarchy
General Manager
Deputy General Manager
Chief Manager
Manager
Deputy Manager
Assistant Manager
Administrative Officer
Chairman cum managing
Director

CHAPTER 4
ANALYSIS AND INTERPRETATION OF DATA
4.1 Introduction
4.2 Data Analysis and Interpretation

26
CHAPTER 4
ANALYSIS AND INTERPRETATION OF DATA
4.1 Introduction: -
The data has been collected through primary data. The data after collection has been
processed and analyzed with the help of simple statistical tools. Interpretation is the
result of analysis which enables the conversion of data into statement and conclusion
which ultimately achieve the research objective. This chapter includes data processing
tabulation, presentation, analysis, and interpretation of data.
4.2 Data Analysis: -
Data analysis deals with analysis of data collected through various techniques.
Researchers have analyzed the data with the help of tables.

27
4.2.1 Gender:
Table No. 4.2.1 The table shows respondents gender.
Gender (N=44) Responses Percentage
Male 29 65.9%
Female 15 34.1%
(Source: Field data)
The above table no. 4.2.1 shows that male and female employees in the company. The
total number of employees in organization is 44in that male employees of the company
are 65.9% and the female employees is 34.1%. Hence, the female is less than the male.
4.2.2 Age groups:
Table No. 4.2.2 The table shows respondents age groups.
Age (N=44) Responses Percentage
Below 20 3 6.8%
21-30 11 25%
31-40 23 52.3%
Above 40 7 15.9%
The above table no. 4.2.2 shows the employees age groups, and the age group is
classified in four groups. Those age groups are below 20, 21-30,31-40 and above 40. 44
respondent response the questionnaire in that 6.8% respondent is below 20 age group
,25% of the respondent are in the 21-30 age group,52.2% of respondent is in the 31-40
age group and last 15.9% of the respondent are in the above 40 age group. In the age
group 31-40 have more employees in that company.

28
4.2.3 Qualification:
Table No. 4.2.3 The table shows respondents qualification.
Qualification (N=44) Responses Percentage
Undergraduate 30 68.2%
Postgraduate 14 31.8%
The above table no. 4.2.3 depicts the qualifications of employees. In this undergraduate
percentage is 68.2% and postgraduate percentage is 31.8%. In the company having more
undergraduate employees.
4.2.4 Annual Income:
Table No. 4.2.4 The table shows respondents annual Income
Annual income (N=44) Responses Percentage
Below 2,00,000 7 15.9%
2,00,000-4,00,000 18 40.9%
4,00,000-6,00,000 13 29.5%
Above 6,00,000 6 13.6%
The above table no. 4.2.4 depicts that annual income of company employees. The annual
income below 200,000 have 15.9% employees and in income 200,000-400,000 have
40.9% employees, and in income 400,000-600,000 have 29.5% employees, and in
income above 600,000 have 13.6% of employees. In above 600000 income 13.6% of
employees are there.

29
4.2.5 Awareness about investment avenues:
Table No. 4.2.5 The table shows respondents awareness about investment avenues.
Investment Avenue Responses Percentage Mean
Standard
Deviation
Savings account 44 100% 1 0
Bank fixed deposits 44 100% 1 0
Public provident fund 8 18.2% 0.1590 0.0557
National savings 14 31.8% 0.3181 0.0710
National saving
certificate
4 9.1% 0.0909 0.0483
Government
securities
16 36.4% 0.3636 0.0733
Equity share market 33 75% 0.75 0.0660
Commodity market 9 20.5% 0.2045 0.0615
Forex market 5 11.4% 0.1136 0.0483
Gold/Silver 44 100% 1 0
Chit fund 20 45.5% 0.4545 0.0759
Virtual real estate 10 22.7% 0.2272 0.0639
Hedge fund 0 00% 00 0
Private equity
investments
8 18.2% 0.1818 0.0588
Art & Passion 5 11.4% 0.1136 0.0483
The above table no. 4.2.5 depicts the awareness about investment avenues. There are 15
types of investment avenues. Every employee knows about the savings account as well
as having proper information about fixed deposits and gold/silver, that’s why it shows
the 100%. Public provident fund is 18.2%, National savings is 31.8%, National savings
certificate is 9.1%, Government securities is 36.4%, equity share market is 75%,
commodity market is 20.5%, forex market is 11.4%, chit fund is 45.5%, virtual real

30
estate is 22.7%, private equity investment is 18.2%, art & passion is 11.4%, and there is
no awareness about hedge fund. The most of employees ware about savings account,
bank fixed deposits, gold/silver and equity share market as compared to other investment
avenue. Since the mean of all parameters is between 0 to 1 and standard deviation
ranging from 0 to 0.075. That means the majority of responses have similar opinions.
4.2.6 In past invested mostly:
Table No. 4.2.6 The table shows respondents invested mostlyin past.
Standard
Deviation
Savings account 44 100% 1 0
Bank fixed deposits 44 100% 1 0
National saving
certificate
2 4.5% 0.0454 0.0317
Government securities 10 22.7% 0.2272 0.0639
Equity share market 19 43.2% 0.4318 0.0755
Forex market 2 4.5% 0.0454 0.0317
Gold/Silver 44 100% 1 0
Chit fund 7 15.9% 0.1590 0.0557
Private equity
investments
4 9.1% 0.0909 0.0438
Art & Passion 2 4.5% 0.0454 0.0317
The above table no. 4.2.6 shows investment of employees in the past. There is maximum
investment which is 100% in saving account, fixed deposit, and gold/silver. National
saving certificate, commodity marketing, forex marketing and art & passion show the

31
same percentage of investment i.e., 4.5%. In public provident fund 20.5% investment
was made. National savings had 15.9% of investment whereas government securities and
equity share market held 22.7% and 43.2% respectively. There was 15.9% of investment
in chit fund and in private equity investment it was 9.1%. Since the mean of all
parameters is between 0.04 to 1 and standard deviation ranges from 0 to 0.075. That
means the majority of responses have similar opinions.
4.2.7 Sectors prefer to investment:
Table No. 4.2.7 The table shows respondents prefer sectors to investment.
Sector Responses Percentage
Private Sector 10 22.7%
Public sector 20 45.5%
Foreign sector 1 2.8%
All of these 13 29.5%
The above table no. 4.2.7 depicts that employees prefer some sectors to invest in. There
are three sectors which are private, public, and foreign. 22.7% of employees invested in
the private sector. Likewise, 45.5% of employees preferred to invest in the public sector.
The foreign sector shows 2.8% investment. 29.5% of employees preferred to invest in all
sectors.

32
4.2.8 Key factors for investment decision:
Table No. 4.2.8 The table shows respondents key factors for investment decision.
Key Factors Responses Percentage Mean
Standard
Deviation
Return 18 40.9% 0.4090 0.0749
Safety of principal 28 63.6% 0.6363 0.0733
Diversification 7 15.9% 0.1590 0.0557
Progressive value 13 29.5% 0.2954 0.0695
Risk 5 11.4% 0.1136 0.0483
The above table no. 4.2.8 depicts that key factor for investment decision. Considering the
above responses maximum investment decisions are dependent on safety of principal
i.e., 63.6%. Whereas 40.9% decisions were dependent on returns on investment. 11.4%
of investment decisions were taken by considering risk factors. 15.9% of respondents
diversify their investment decisions from one source to another which means they
consider diversification factor as primary factor. 29.5% of respondent priorities
progressive value to take investment decisions. Since the mean of all parameters is
between 0.1 to 0.7 and standard deviation ranging from 0.048 to 0.075. There is little bit
difference in the respondent opinion.

33
4.2.9 Savings objectives:
Table No. 4.2.9 The table shows respondents savings objectives.
Purpose Responses Percentage Mean
Standard
Deviation
Children’s education 15 34.1% 0.3409 0.0722
Retirement plan 23 52.3% 0.5227 0.0761
Home purchase 20 45.5% 0.4545 0.0759
Children marriage 5 11.4% 0.1136 0.0483
Health care 17 38.6% 0.3863 0.0742
The above table no. 4.2.9 shows the saving objective. The purpose of saving objective is
classified into five options. First is 34.1% responses choose children education as saving
objective same as 52.3% responses choose retirement plan, 45.5% responses choose
home purchase, 11.4% employees choose children marriage and 38.6% of responses
choose health care as a saving objective. Hence the table depicts that employees choose
most retirement plans and home purchase is a saving objective. Since the mean of all
parameters is between 0.1 to 0.5 and standard deviation ranging from 0.048 to 0.076.
There is little bit difference in the respondent opinion.

34
4.2.10 Purpose behind investment:
Table No. 4.2.10 The table shows respondents purpose behind investment.
Purpose Responses Percentage
Wealth creation 10 22.7%
Tax saving 5 11.4%
Earn return 21 47.7%
Future expenses 8 18.2%
Other 0 00%
The above table no. 4.2.10 shows that purpose behind investment. The purpose behind
investment is classified into five options. 22.7% responses select wealth creation as an
investment purpose.11.4% responses select the tax saving, 47.7% responses select earn
returns, 18.2% responses select the future expenses and no one response the other option
as an investment purpose. There are most of the responses choose the earn returns as
investment purpose.
4.2.11 Rate of Investment to grow:
Table No. 4.2.11 The table shows respondents rate of Investment to grow.
Rate Responses Percentage
Steadily 11 25%
At an average rate 28 63.6%
Fast 5 11.4%
The above table no. 4.2.11 depicts that rate of investment to grow. The table shows the
mindset of the respondent for growth of his or her investment. means how respondent
wants the return from his or her investment. Because of that researcher give them three

35
options. Steadily return, at an average rate return and fast return. Out of 44 respondents
11 means 25% respondent want to steadily return mean this respondent need stability in
their investment strategy. 28 means 63.6% of many respondents want at average rate
return. means they want a medium rate of return and some stability in their investment
strategy. And only 5 means 11.4% respondents want only high return for that they ready
take so much of risk.
4.2.12 Factor consider before investment:
Table No. 4.2.12 The table shows respondents consider factor before investment.
Factors Responses Percentage
Safety of principal 21 47.7%
Low risk 11 25%
High returns 12 27.7%
Maturity period 0 0%
The above table no. 4.2.12 shows the which factors respondents consider before
investment. This table shows the mindset of the respondent before investment. In this
table researchers classified the factors in four parts first is Safety of principal, second is
Low risk, third is High returns and last is Maturity period. Out of 44 respondents 21
means 47.7% respondents consider safety of their principal amount before making an
investment; they highly worried about their principal amount. and 11 means 25% of the
respondents consider low risk factors before their investment. They are ready to take low
risk before investment.

36
4.2.13 Percentage of income investment:
Table No. 4.2.13 The table shows respondents percentage of income for investment.
Income Percentage investment Responses Percentage
0-15% 20 45.5%
15-30% 23 52.3%
30-50% 1 2.2%
The above table no. 4.2.13 shows how much percentage of income is used for
investment. Out of 44 respondent 20 means 45.5% invest 0-15% from the income;
Whereas 23 respondent means 52.3% invest 15-30% from their income. 1 respondent
means 2.2% invest 30-50% of their income. It shows that maximum i.e., 52.3% prefer to
invest 15-30% of their income as investment.
4.2.14 Period of investment:
Table No. 4.2.14 The table shows respondents period of investment.
Period Responses Percentage
Short-term(0-1year) 4 9.1%
Medium-term(1-5years) 22 50%
Long-term(>5years) 18 40.9%
The above table no. 4.2.14 shows the period preferred for the investment. 9.1%, which
means 4 respondents out of 44 preferred to invest in the short term. 22 respondents out
of 44, which means 50% of total respondents preferred to invest in the medium term. 18
respondents out of 44 respondents which means 40.9% of respondents preferred to invest
in long term investment. Less respondents preferred to invest in short-term investment.
A large number of respondents preferred to invest in the medium term.

37
4.2.15 Investment objective:
Table No. 4.2.15 The table shows respondents investment objective.
Objectives Responses Percentage
Income & capital preservation 10 22.7%
Short-term growth 10 22.7%
Long-term growth 10 22.7%
Growth & income 14 31.8%
The above table no. 4.2.15 shows the objective of investor from considering which
objectives respondent invest their income. Out of 44 respondents 10 respondents which
means 22.7% invest their income considering income and capital preservation. The same
percentage of respondents consider short term growth as well as long term growth while
taking investment decisions. 33.8%, which means 14 respondents consider growth and
income while investing their income.

38
4.2.16 Source of investment advice:
Table No. 4.2.16 The table shows respondents source of investment advice.
Source of advice Responses Percentage Mean
Standard
Deviation
Newspaper 13 29.5% 0.2954 0.0695
Certified market
professional/Financial planners
21 47.7% 0.4772 0.0761
Advisors 14 31.8% 0.3181 0.0710
Books 5 11.4% 0.1136 0.0483
Magazines 5 11.4% 0.1136 0.0483
Internet 21 47.7% 0.4772 0.0761
Family & Friends 17 38.6% 0.3863 0.0742
News channels 13 29.5% 0.2954 0.0695
The above table no. 4.2.16 shows the source from which respondent took advice or
decisions related to investment of their income. 29.5% of total respondents took advice
from newspapers and news channels at the time of investment decisions. A large number
of respondents, i.e., 47.7% took advice from Certified market professional/Financial
planners and Internet. 31.8% of total respondents took advice from advisors whereas
38.6% took advice from family and friends. Less amount of respondent which means
11.4% of total prefer to take advice from books and magazines. Since the mean of all
parameters is between 0.1 to 0.47 and standard deviation ranging from 0.048 to 0.076.
There is little bit difference in the respondent opinion.

39
4.2.17 Best option for investing money:
Table No. 4.2.17 The table shows respondents best option for investing money
Standard
Deviation
Savings account 22 50% 0.5 0.0762
Bank fixed deposits 23 52.3% 0.5227 0.0761
National saving
certificate
1 2.3% 0.0227 0.0227
Government securities 15 34.1% 0.3409 0.0722
Equity share market 30 68.2% 0.6818 0.0710
Forex market 5 11.4% 0.1136 0.0483
Gold/Silver 30 68.2% 0.6818 0.0710
Chit fund 9 20.5% 0.2045 0.0615
Virtual real estate 9 20.5% 0.2045 0.0615
Private equity
investments
14 31.8% 0.3181 0.0710
Art & Passion 3 6.8% 0.0681 0.0384
The above table no. 4.2.17 depicts the best option for investing money. There are 15
types of investment avenues. Maximum no of respondent i.e., 68.2% of total prefer
Equity share market and Gold/Silver. 20.5% of total respondents, i.e., 9 respondents
think thatChit fund and Virtual real estate is the best option for investment. 50% of the
total prefer saving account as the best option for investment. 23 respondents out of total
which means 52.3% think that bank fixed deposit is best option for investment. 15.9%
and 13.6% prefer Public provident fund and National savings respectively as a best
option for investment. 34.1% of the total think that Government securities are the best
option for investment. Out of all

40
15.9% of respondents prefer commodity marketing as an investment option. 5
respondents i.e., 11.4% consider the Forex market as the best option for investment.
31.8% which means 14 respondents prefer Private equity investments is the best option
for their investment. Minimum amount of respondent i.e.,2.3% and 6.8% consider
National saving certificate and Art & Passion respectively as a best option for investing
their income. Since the mean of all parameters is between 0.1 to 0.68 and standard
deviation ranging from 0.022 to 0.072. That means the majority of respondents have
similar opinions.
4.2.18 Reasons for selecting the best options:
Table No. 4.2.18 The table shows respondents reasons for selecting the best options.
Reasons Responses Percentage Mean
Standard
Deviation
Grow your money
24 54.5% 0.5454 0.0759
Save for retirement 22 50% 0.5 0.0762
Earn higher returns 26 59.1% 0.5905 0.0749
Reach financial goals 9 20.5% 0.2045 0.0615
Build on pre-tax dollars 1 2.3% 0.0227 0.0227
Qualify for employer
matching programs
2 4.5% 0.0454 0.0317
Start and expand a
business
9 20.5% 0.2045 0.0615
Support others 8 18.2% 0.1818 0.0588
Reduce taxable income 1 2.3% 0.0227 0.0227
Be part of a new venture 5 11.4% 0.1136 0.0483
Source: (Field data)

41
The above table no. 4.2.18 shows the reasons for selecting the best option for investing.
24 respondents out of 44 i.e., 54.5% respondent selecting the option of grow his money
this is the reason behind the investment. And 22 respondents out of 44 invest their
money for saving for their retirement purpose. From all the respondents 26 respondents
selected the option of earning the higher return means they are invested to get maximum
returns. 9 respondents want to reach their financial objective with the help of investment
and 1 respondent reason behind its investment build on pre-tax dollars and 2 respondents
want to qualify for employer matching programs. 9 respondents invested their money to
start and expand their business. 8 responses out of 44 respondents, reason behind the
investment is support others means support their family. There is only 1 respondent
whose investment reason is reduced taxable income and the 5 respondents, reason behind
their investment is part of a new venture. The most of respondents having mainly three
reasons to invest their money. Since the mean of all parameters is between 0.1 to 0.6 and
standard deviation ranging from 0.022 to 0.076. There is a majority of respondents
having similar opinions.

CHAPTER 5
FINDINGS, SUGGESTIONS AND CONLUSION
5.1 Introduction
5.2 Findings
5.3 Suggestions
5.4 Conclusion

42
CHAPTER 5
FINDINGS, SUGGESTION AND CONCLUSION
Introduction:
This chapter is abstract of overall study of project report. Means this chapter includes part
of study and suggestions if any occurred during the research. This chapter mainly focused
on the fourth chapter. In this chapter, the researcher explains some observations which he
observed during the overall study.
Findings:
The findings of the study are based on the analysis and interpretation of collected data.
1) It is found that 65.9% total respondents are male, and 34.1% respondents are
female. It shows that company having more male employees than female
employees. (ReferenceTable no.4.2.1)
2) It is found that employees between 20 to 40 age group are independent to take
their financial decision. (ReferenceTable no.4.2.2)
3) It is found that most of the employees are undergraduates, and the remaining are
postgraduates; it shows that all the employees of the company are qualified.
Therefore, all the employees are aware about investment. (ReferenceTable
no.4.2.3)
4) It was found that 40% of respondents out of total respondent are in income group
of the 200,000 to 400,000 and 29% respondents in 400,000 to 600,000 income
group. The above 600,000 income group is 13% respondents, and the remaining
16% respondent are in below 200,000 income group. It shows that the majority
of employees are in the income group of 200,000 to 600,000 means they have
lots of scope for investment. Therefore, portfolio management is important for all
the respondents. (ReferenceTable no.4.2.4)
5) It was found that all the respondents know about saving account, fixed deposits,
and gold/silver. Many respondents know national saving, government securities,
chit funds and the equity share market. (ReferenceTable no.4.2.5)

43
6) The table shows the in which option respondents use for making investment in
past. Researchers found that all the respondents make investments in saving, gold
and silver and bank fixed deposit. 43.7% of respondents are making investment
in equity. Most of the respondents don’t know about another investment sources
and they need to know about this source. (ReferenceTable no.4.2.6)
7) The table shows which sector respondents prefer for their investment. 45.5% of
respondents prefer public sector because mostly public sector investment is in the
hand of government and respondents fill secured in public sector about their
investment. 22.7% and 29.5% respondents invest in the Private sector and all the
three sectors respectively. It shows that respondents did not trust that much on
other sector like public sector therefore it’s important to aware the respondents of
all sectors. (ReferenceTable no.4.2.7)
8) The table shows which key factor respondents consider before making any
investment. 63.6 % and 40.9% respondents consider safety of their investment
and return on their investment respectively. The mindset of respondents is very
clear they want safety and a high return for their investment therefore most of
them consider only this factor. (ReferenceTable no.4.2.8)
9) The table shows the object of the respondents to making investment. All the
respondents are mostly in the middle of their working life therefore they made
the investment for their future. 52.3% respondents make investment for their
investment plans. 45.5% of respondents make their investment for their home
purchase. All the respondents vision is big about their investment and that is why
they make an investment. (ReferenceTable no.4.2.9)
10) The table shown that purpose behind the investment. 47.7% of total respondents
to make investment for earning high and high return means the half of the
respondents want high return. (ReferenceTable no.4.2.10)
11) The table shown that rate of investment to grow at which rate respondents want
to grow it’s, investment. 63.6% respondents want to grow their investment at
average rate means the majority respondents want stable growth in their
investment it shows respondents are rational and they’re thinking not about
returns but also security of investment. (ReferenceTable no.4.2.11)

44
12) The table shows which factors respondents consider before their investment. 47.7
of all the respondents considering safety before it’s investment and 25℅ &
27.7℅ respondents considering low risk and high returns factor respectively.
Means most of the respondents considering safety factor before investment.
(ReferenceTable no.4.2.12)
13) The table shows how much percentage of income respondents invest their
money. 52℅ from out of respondents invest 15-30℅ of their income. It means
respondents invest their money after their day-to-day expenses. (ReferenceTable
no.4.2.13)
14) The table shows that period of investment is preferred by respondents. 90℅ of all
the respondents invest for medium term & long term it shows that the
respondents patience is high for their investment. The high patience is good sign
for their future investment plans. (ReferenceTable no.4.2.14)
15) The table shows that the investment objectives 22.7℅ of all the respondents
invest for income and capital preservation and 22.7℅ respondents invest for short
term growth & other 22.7℅ respondents invest for long term growth & 31.8℅
respondents invest for growth and income it means most of the respondents target
for growth. (ReferenceTable no.4.2.15)
16) The table shows which source they know about investment advice. Most of the
respondent’s source for their investment advice is the internet, financial planner,
newspaper & family, and friends. Means they use authorized and unauthorized
sources for taking advice. (ReferenceTable no.4.2.16)
17) The table shows that best options for investing money. According to Most of the
respondents thinking saving account, bank fixed deposit, government security,
equity share market, gold & silver, private equity investment are best options for
investment. (ReferenceTable no.4.2.17)
18) The table shows that reason for selecting the best options. According to most of
the respondents want to grow their money, save for retirement, and earn higher
returns. It’s a reason for selecting the best options for investment. (Reference
Table no.4.2.18)

45
Suggestions:
1. As per the above analysis it is Bund that investors are more interested in Gold as
it gives stable return and also Investors feels that it is secured investment source;
as well as investors are more interested in plans which have medium term
maturity period. Thus, company should consider this Facts While designing new
product of investment.
2. Organization should develop an application which will provide options like
equity share market, fixed deposits, savings account, gold/silver, private equity
investment and government securities to investors which will help them to know
more policies/services provided by organization.
3. As per the above analysis it is found that investors are not aware about all
policies provided by the origination so they should take steps to make investors
more aware about policies by organizing programs like live-webinar, workshops,
guidance form expert.
Conclusion:
Research study focuses on portfolio management of the employees. The company
want to launch an insurance policy for the employees for that company want to know
“What type of investment sources employee prefers for their investment” it will help
the company to design the new insurance policy therefore this study is important.
After the study we find more people don’t know about the various new
investment sources like Forex market, Hedge fund, Art & Passion, National saving
certificate very few people know about this source. By taking into consideration the
company should develop new policies considering sources which are known to
employees so that employees will purchase more policies.
The present financial position of the company is satisfactory now, but the
company should consider the above suggestions before developing & introducing the
new insurance policy, this will help to achieve future targets. The company is doing well,
and financial position is viable, and I wish company for their wonderful future.

46
QUESTIONNAIRE
Name:
Gender:
Designation:
Age: 1) Below 20 2) Between 20-30 3) Between 30-40 4) Above 40
Qualification: 1) Undergraduate 2) Postgraduate 3) Other....................
Annual Income: 1) Below Rs 2,00,000 2) Rs 2,00,000-4,00,000
3) Rs 4,00,000-6,00,000 4) Above Rs 6,00,000
1. Are you aware of the following investment avenues? (Tick whichever
applicable).
1. Savings Account
2. Bank Fixed Deposits
3. Public Provident Fund
4. National Savings
5. National Saving Certificate
6. Government Securities
7. Equity Share Market
8. Commodity Market

47
9. FOREX Market
10. Gold/Silver
11. Chit Funds
12. Virtual Real Estate
13. Hedge Fund
14. Private Equity Investments
15. Art and Passion
2. In the past, you have invested mostly in (write as many as applicable).
1. Savings Account
4. National Savings
8. Commodity Market
9. FOREX Market
10. Gold/Silver
11. Chit Funds
13. Hedge Fund
15. Art and Passion
3. In which sector do you prefer to invest your money?
1. Private Sector
2. Public Sector
3. Foreign Sector
4. All the Above

48
4. What are the key factors guiding your investment decisions?
1. Return
2. Safety Of Principal
3. Diversification
4. Progressive Value
5. Risk
5. What are your savings objectives?
1. Children's Education
2. Retirement Plan
3. Home Purchase
4. Children Marriage
5. Health Care
6. Other.....................
6. What is the purpose behind investment?
1. Wealth Creation
2. Tax Saving
3. Earn Returns
4. Future Expenses
7. At which rate do you want your investment to grow?
1. Steadily
2. At an Average Rate
3. Fast

49
8. Which factor do you consider before investing?
1. Safety of Principal
2. Low Risk
3. High Returns
4. Maturity Period
9. What percentage of your income do you invest?
1. 0-15%
2. 15-30%
3. 30-50%
10. What is the period you prefer to invest in?
1. Short-term (0-1yrs)
2. Medium-term (1-5yrs)
3. Long-term (>5yrs)
11. Do you take the risk of losing your principal investment amount?
1. Yes
2. No
(If yes: What percentage? ___________)
12. What is your investment objective?
1. Income and Capital Preservation
2. Short-term Growth
3. Long-term Growth
4. Growth and Income

50
13. What is your source of investment advice?
1. Newspapers
2. Certified Market Professional/Financial Planners
3. Advisors
4. Books
5. Magazines
6. Internet
7. Family or Friends
8. News Channels
14. What do you think are the best options for investing your money?
1. Savings Account
4. National Savings
8. Commodity Market
9. FOREX Market
10. Gold/Silver
11. Chit Funds
13. Hedge Fund
15. Art and Passion

51
15. Reasons for selecting these options.
1. Grow your money
2. Save for retirement
3. Earn higher returns
4. Reach financial goals
5. Build on pre-tax dollars
6. Qualify for employer-matching programs
7. Start and expand a business
8. Support others
9. Reduce taxable income
10. Be part of a new venture
11. Other_________________

52
BIBLIOGRAPHY
Reference books:
Chand, S. (2007). Fundamental of Investment Management. Delhi.
Chandra, P. (2006). Investment Analysis and Portfolio Management. New Delhi:
McGraw Hill .
S.kevin. (2010). Portfolio Management. Delhi: PHI Learning pvt ltd.
S.kevin. (2009). Security Analysis and Portfolio Management. Delhi: PHI
Learning pvt ltd.
Reference Website:
1. www.investopedia.com
2. Guides.library.georgetown.edu
3. www.nseindia.com
4. Economictimes.indiatimes.com
Report:
1. Annual report 2019-20
2. Annual report 2020-21

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