This document discusses factors that influence investors' preferences for different investment options. It notes that savings are important for individuals and nations. Key reasons for investing include meeting inflation costs, safety of principal, liquidity, income stability, and appreciation. Common investment avenues are savings accounts, mutual funds, stocks, real estate, and gold. Regulatory bodies in India include SEBI, IRDA, and AMFI. A survey found that most investors were male, educated, invested for retirement or long-term goals, preferred low-risk options like government sectors or gold, got advice from news sources, invested a low percentage of income periodically, and wanted steady or average returns.

1. Investor’s
preference
regarding
various
investment
alternatives
Presented By : Karan
Manocha

2. Savings form an important part of the economy
of any nation.
• One needs to invest and earn return on their
idle resources and generate a specified sum
of money for a specific goal in life and make
a provision for an uncertain future
One of the important reasons why one
needs to invest wisely is to meet the cost of
inflation.
• Implies the information of new and
productive capital in the form of new
construction, new producers’ durable
equipment

3. Why go for an investment
?
– Safety of principal (To ensure safety of
principal, the investor should consider
diversification of assets)
– Liquidity (To meet emergencies)
– Income stability
– Appreciation and purchasing power stability
– Legality and freedom from care
– Tangibility (Tangible properties like building,
machinery and land)

4. SEBI - Securities and Exchange Board of India
is one of the regulatory authorities for India's
capital market.
• IRDA – Insurance regulatory and
development authority in India regulates all
the insurance companies in India.
AMFI – Association of mutual funds in India
regulates all the mutual fund companies in
India.
• FIPB – Foreign investments promotion
board regulates all the foreign direct
investments made in India.
The supreme authority and regulatory body for all the
monetary transactions in India.

5. • Savings Account
• Public Provident fund
• Post office saving
Low Risk
Avenues
• Mutual Funds
• Life Insurance
Moderate
Risk Avenues
• Equity Share MarketHigh Risk
Avenues
• Real Estate
• Gold/Silver.
Traditional
Avenues
• Art and PassionEmerging
Avenues

6. OBJECTIVES OF THE
STUDY
To find out the needs of the current and future
investors and to give recommendations to the
investors that where they should invest.
– To understand in depth about different investment
avenues
– The type of financial instruments, they would prefer to
invest
– The duration for which they would prefer to keep their
money invested.
– What are the factors that they consider before investing?
– To develop a profile of simple Indian individual investor
in terms of their demographics.

7. RESEARCH
METHODOLOGY
 Research methodology deals with the method of
study I. e. how the study was carried out and
what were the various techniques used for the
collection and analysis of data.

8. 22
8654
38
Number Of Respondents
18-25
25-35
35-50
50 and above
Q1.What is your age?
The major number of potential investors were among middle
aged group.

9. Q2. Distinction
0
20
40
60
80
100
120
140
Female Male
No. of Respondent
No. of Respondent
Among total potential investors males were the dominating.

10. Q3. Qualification?
40
60
80
20
0
20
40
60
80
100
0 1 2 3 4 5
Number of respondents
Number of
respondents
Most of the investors were post graduates

11. Q4. What is your Occupation?
0
10
20
30
40
50
60
40
60
50
30
20
No. of Respondent
No. of Respondent
Data shows that most of the investors were in the category
of other investors

12. Q5. Annual income?
80
40
60
20
0 20 40 60 80 100
Below Rs. 2, 00,000
Rs. 2, 00,000 - 4, 00,000
Rs. 4, 00,000 - 6, 00,000
Above Rs, 6, 00,000
Number of respondents
Number of
respondents
Most of the investors are below 4 lacs annual earnings.

13. Q6. Type of investors?
Number of…0
100
200
New
Hereditary
80 120
Number of respondents
Number of
respondents
The type of investors that correspond to the maximum
number of respondents are ‘Hereditary’

14. Q7. Category of investors?
80
120
Number of respondents
Daily Traders
Long Term
It’s interesting to know that many of the investors are those who
have invested their money over a long period of time.

15. Q8. In which sector do you
prefer to invest your money?
0 50 100
Private Sector
Government Sector
Foreign Sector
80
100
20
Number of respondents
Number of
respondents
Statistics show that most of the people like to invest in
Government Sector.

16. Q9. Do you have a financial
advisor?
0
20
40
60
80
100
120
Yes No
120
80
Number of respondents
Number of
respondents
Some of the investors never approached an advisor for their
financial needs, the reason may be inadequate income and
excess expenditure.

17. Q10. Are you aware of the
following investment avenues?
30
60
50
40
20
No. of Respondent
Safe/Low Risk
Investment Avenues
High Risk
Investment Avenues
Moderate Risk
Investment Avenues
Traditional
Investment Avenues

18. Q11. Reasons for selecting these
options:
0
10
20
30
40
50
60
60
40
50
34
16
No. of Respondent
No. of Respondent
Most of the people are interested in High Return Investments.

19. Q12. What are the important
factors guiding your investment
decisions?
No. of respondent
0
20
40
60
80 64
46
36
34
20
No. of respondent
No. of respondent
The important factors guiding their investment decisions
many of them have voted for return and safety of principal.

20. Q13. What is your source of
investment advice?
0 20 40 60
Newspapers
News Channels
Family or Friends
Internet
Magazines
Financial Planners
39
50
33
20
28
30
No. of Respondent
No. of Respondent
It was found out that the main sources of investment advice
are News Channels and Newspapers

21. Q14. What percentage of your
income do you invest?
11070
20
Respondents
0-15%
15-30%
30-50%
Most of the people like to invest 0 – 15% of their income.

22. Q15. What is the time period you
prefer to invest?
80
100
20
0
20
40
60
80
100
120
Short-term (0-
1yrs)
Medium-term
(1-5yrs)
Long-term
(>5yrs)
Respondents
Respondents
It’s interesting to know that many of the investors prefer to
invest their money for medium term

23. Q16. What are your savings
objectives?
0
10
20
30
40
50
35 50
25 30 40
20
No. of Respondent
No. of Respondent
The savings objectives of the sample investors, First rank is given t
retirement.

24. Q17. How often do you monitor
your investment?
0 50 100
Daily
Monthly
Occasionally
30
70
100
Respondents
Respondents
The majority investors are monitoring their investments occasionally.

25. Q18. In the past, you have
invested mostly in (write as many
as applicable)
50
35
25
30
40
20
0
20
40
60
Gold/Silver
Public
Providen…
FOREX
Market
Bank Fixed
Deposits
Life
Insurance
Art and
Passion
No. of Respondent
No. of Respondent
Gold/Silver which is the most preferable avenue for majority of
the investors.

26. Q19. Do you have a savings and
investment target amount you
aim for each year?
75
125
Respondents
Yes
No
It’s fascinating to know that almost all of the investors have
an investment target every year

27. Q20. At which rate do you want
your investment to grow?
40
60
100
Respondents
Steadily
At an Average Rate
Fast
Most of the people like their investment to grow at a fast rate.

28. Findings
 The study reveals that male investors dominate
the investment market in India.
 Most of the investors possess higher education
like graduation and above.
 Majority of the active and regular Investors
belong to accountancy and related employment,
non-financial management and some other
occupations are very few.
 Most investors opt for two or more sources of
information to make investment decisions.

29.  Most of the investors discuss with their family
and friends before making an investment
decision
 Percentage of income that they invest depend
on their annual income, more the income more
percentage of income they invest.
 The investors’ decisions are based on their own
initiative.
 The investment habit was noted in a majority of
the people who participated in the study.

30.  Most Investors prefer to park their funds in
avenues like Life insurance, FD, Gold and Real
Estate.
 Most of the investors get their information related
to investment through electronic media (TV) next
to print media (News paper/ Business news
paper/ Magazines)
 Most of the investors are financial illiterates.
 Women are attracted towards investing gold
than any other investment avenue.

31. Conclusion
The study has showed important implications for
investment managers as it has come out with certain
interesting facets of an individual investor. The
individual investor still prefers to invest in financial
products which give risk free returns. This confirms
that Indian investors even if they are of high income,
well educated, salaried, independent are conservative
investors prefer to play safe. The investment product
designers can design products which can cater to the
investors who are low risk tolerant and use TV as a
marketing media as they seem to spend long time
watching TVs.

32. Queries Invited…