A STUDY ON INVESTMENT AVENUES FOR INVESTOR

WITH SPECIAL REFERENCE TO BUSINESS PEOPLE

AT TIRUVANNAMALAI TOWN

WORD’S WORTH

“High investment is possible through high savings which in turn,is due to the

high 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 towards

money. How does one know whether have the right kind of attitude towards

money? To answer this question, this topic that “A Study on Investment Avenues

for a Investor” focus on two basic, money-related aspects and activities

viz.,avenues and institution available for investment. Now-a-days,investment

avenues are widen in the world to create positive sources of income, one can invest

disposable income in domestic or offshore market. People in society are investing

their savings in a systematic manner and many are in a unsystematic manner.

Many do not have financial education. A systematic investment plan always yields

a fair return.

Investment is the most important things today. People are earning

handsomely, but they do not know where, when and how to invest. Everyone

should realize that financial planning is a must today in order to know where one

stands 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 successful

manage one’s finance for achieving life’s goal.

There are large numbers of investment available today. To make our

lives easier they would classify or grouped under 4 main types of Investment

Avenue. The terms are named as follows:

1.Financial Securities:-

These investment instruments are tradable and negotiable these would include

equity shares, preference shares, convertible debentures, non convertible

debentures, public sector bonds, savings certificates, gift-edged securities and

money 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 buy

units/shares in a mutual fund schemes. These schemes are mainly grouth (or

equity) 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 and

silver,precious stones,rare coins &stamps and art objects.

Increasingly, over the past several years, with competitive pressures have

triggered massive shifts in the style and speed of business across the glibe. In this

situation financial sector have developed through various avenues for

investment.Market whether organized or unorganized various financial

instruments/avenues to enable the investors to invest their disposable income

freely. This financial institutions are clearly stated their disposable income

freely.The financial institutions are clearly stated their conditions and regulations

subject to market risk to the investors. Under these circumstances,investors have

their own time to invest and have their own choice to invest their investment in

available avenues like, bank deposits,postal savings schemes,public provident

fund, share market both primary and secondary, life insurance policies,government

security or bonds(like NSC), mutual funds,real estate,gold,company deposits and

other avenues for investment. Therefore, investors can choose their choice among

various available avenues for investment.

The key to successful investing is to know what level of future financial

performance is embedded in today,stock’s price and to be able to revise one’s

expectations. What’s going on today is not important but what will happen in the

future is important. Investment constantly peers into an uncertain future and

anticipate change. Although,Specifically for investment for practitioner, students

and other groups such as individual investors will that this dissertation will enable

them to have information about available avenues for investment and alternative

forms of financial institutions.

1.2. NEED FOR THE STUDY

Investment is the most important thing today. Business men’s are earning

handsomely. They have all right to invest and spend to some extent. But lack of

financial education, put them in much more difficult situation. At present lot of

investment avenues are available market with investor education. Investors can

choose from a varity of instruments and assets. While making the choice, they

should also consider the rate of return and risk that on their investment.

Comparatively this study reveals investor’s mantality on investment and its

implications. There are institutions which offer attractive packages to

investors.Medias like TV,Newspaper,Magazines etc., help the investors to access

their available avenues for investment. Majority of investor being educated elites

in this study, know the available avenues of investment and institutions. Thus, to

ascertain business men’s psychology over investment and financial institutions, an

attempt has been made to project the various available avenues for investment and

the 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 the

investment alternatives and the markets. The rate of return on investment is highly

fluctuation but at the sane time, investors have to analyze the rate of return/risk on

investment. Financial institutions have been playing a key role to attract

investors.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 in

various available avenues of investment. Lack of financial education, set aside

their disposable income in low safety, profitability and marketability of investment

As 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 options

people make use of for wealth enhancement and preservation. However, a truly

effective investment portfolio must include some other avenues for investment. As

such new avenues available for investment are Mutual Funds, Venture Capital,

Derivatives, Share Market Funds, Bank Deposit Scheme,Postal Scheme,LIC, and

Government Bonds etc. These things are innovated/introduced by research scholars

in various occasions. In this way literature on investment got developed in the

financial sector to some extent.

M.Sellan-Senior Lecturer in Commerce-Cuddalore(2007) in his study entitled as

“A STUDY ON AVENUES AVAILABLE FOR INVESTMENT AT

CUDDALORE TOWN SPECIAL REFERENCE TO TEACHING

PROFESSIONALS AT COLLEGE LEVEL” Portrayed the behavior of teaching

professionals at college level in terms of planning their investment. He has taken

salaried class in general and study also analyzed of investment behavior of

teaching prifessionals, examined the popularity of different types of investment

avenues, found the factors that motivate to invest by the individual investor such as

tax avoidance, good return with less risk, safety, marketability etc.,

A survey was conducted for Reader’s Digest by market Analysis and Consumer

Research Organization(MACRO). The survey “”The Investment habits of india’s

Under -40s” was sonducted with the objective of analyzing how young Indian in

the 25 to 40 age invest, examining their debt managament capacity and knowing

their savings habits. The study found the various reasons to invest city wise,

percentage of income invest and percentage of people investing. It concluded that

tax saving as a major reason to invest followed by education, marriage and finally

creating wealth.

TABLE1-1

Percentage 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 1-2

City 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 wealth

5.Kanpur 1. Kit’s Education

2. save tax

3. retirement

5. Coimbator 1. Buy a House

2. Kit’s education

3. Kid’s Marriage

Source: Readers Digest – March 2007

1.5. OBJECTIVES OF THE STUDY

Following are the objectives of the present study

1.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’s

4.To Analyze the investing habits of business People’s

5.To know the expected rae of return in investment amoung business people

6.To offer suggestions on the basis of findings.

1.6. RESEARCH METHODOLOGY

Definition of population and sanpling frame work

Tituvannamalai District came into existence on 30th September 1989 after

the bifurcation of the erstwhile North Arcot District. The District lies between

11.55* and 13.15* North latitude and 78* 20’ to 79* 50’ East longitude. The

district is bounded on the north and west Vellore District, on the southwest by

Krishnagiri District, on the south by Villupuram District and on the east by

Kanchipuram 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). The

urben population is 4,00,549 constituting 18% of the total Population,the

remaining 82% ie.17,81,304 is rural population. The density of the population is

352 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-1198

Cotton textile-131

Readymade Garments-1940

Bricks& mosaic tiles-104

Blue metal-31

Xerox-280

Electrical motor rewinding-540

Total No. of Factories-251

Services and other astivities-146

Approximately Tiruvannamalai town having 21% Above Business/industries Activities. Therefore 970 Shops/Showrooms.

(ANNUAL EMPLOYMENT REPORT OF TIRUVANNAMALAI DISTRICT)

Sources of data

The study uses both primary data and secondary data. The primary were

collected by using a structure questionnaire method. A questionnaire, containing

twenty three(23) question was framed with utmost care to fulfill the objectives of

the study.

Secondery data were collected from books, journals, magazines, dailies,

reports of various agencies, relevant web sites etc.,

Sample size

The questionnaire was administered to 200 Business People’s at various business

activities at Tiruvannamalai Town. Hence, the sample size is 200 which accounts

for 20% of population

Sampling method

Convenient sampling method was followed, because it is non probability

sampling.

Data analysis

Statistically to arrive at meaningful conclusions, data were analyzed by using the

following statistical tools.

For quantitative aspects

Simple percentage with ranks

For 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 STUDY

Following 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.CHAPTERIZATION

Chapter-1 Contains a brief introduction relating to available avenues for

investment, 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 general

Chapter-3 Gives details of avenues for investment available in India to the

Business people.

Chapter-4 Focus the analysis of views expressed by business men’s in

Tiruvannamalai town.

Chapter-5 Presents summary of findings and offers suggestions, conclusion.

CHAPTER-2

INVESTMENT-A CONCEPTUAL FRAME WORK

INTRODUCTION

The word ‘Investment’ has many interpretations as it means different

things to different persons. For a person who as lent money to another, it may be

an 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 investment

for him. Likewise, an insurance plan or a pension plan is an investment to its

purchaser. From these illustrations, it is clear that investment is a commitment of

funds for earning additional income. In other words, investment is considered the

sacrifice of certain present value of money in anticipation of a reward

DEFINITION OF INVESTMENT

The following are some important definitions of investment:

“An investment is a commitment of funds made in the expectation of some

positive rate of returns. If the investment is properly undertaken, the returns will

commensurate with risk the investor assumes”. - Donald E. Fischer and Ronald J.

Jordan

“The purchase by an individual or institutional investor of a financial or real

asset that produces a return in proportion to the risk assumed over some future

investment period”.-F Amling

According to the above definition the current commitment of funds for a period

of time in order to derive a future flow of funds that will compensate the investing

unit.

- For the time the funds are committed

- For he expected rate of inflation.

- For the uncertainty / risk involved in the future flow of funds

Investment is the employment of funds on assets with aim of earning income or

capital appreciation. Investment has two attributes namely time and risk. Present

consumption is scarified to get a return in the future. The sacrifice that has to be

borne in certain but the return in the future may be uncertain. It will therefore, be

useful to understand all the important meanings of the term investment before one

can have its clear concept in mind. There are basically three concepts of

investment. They are,

1. Economic investment

2. Business investment

3. Financial investment

4. Gambling

1. Economic investment: According to Economists, the term investment

refers to the additions to the capital stock of the society. The capital stock

includes 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 private

business. 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. shares

debentures, 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, mutual

funds etc., Therefore, this study gives more concentration to financial investment.

4. Gambling: Gambling is an act of creating artificial and unnecessary risks for

expected increased return. A gamble is a very short term investment base on

rumours and hunches. Gambling is undertaken just for thrill and excitement. In

short, gambling involves acceptance of extraordinary risks even without a through

knowledge about them for pecuniary gains. Horse racing, playing cards, lottery

etc., are some typical examples of gambling.

PORTPOLIO MANAGEMENT

The portfolio management deals with the process of selection of investment

from the number of opportunities / avenues with different expected returns and

carrying different levels of risk and selection the investment is made with a view to

provide the investors the maximum yield for a given level of risk or ensure

minimum be risk for a given level of return. Hence, investment and portfolio

management has emerged as one of the importand and specialized branches of

financial management.

FACTORS INFLUENCING SLELECTION OF INVESTMENT

Selection of investments should rather be based on research of various

factors. The fundamental consideration for investment should be a growth oriented

company with substantial future potential. The major objectives of investment are

increasing the rate of return and reducting the risk. Other objectives like safely,

liquidity and profitability against inflation can be considered on subsidiary

objectives.

Return

Investors are always expected a good rate of ruturn from their

investment. The investment should earn reasonable and expected return on the

investment before the selection of investment the investor should keep in mind that

the form of return. The return expectiong from investments in securities are of two

types. They are,

1. Periodic cash receips.

2. Capital gain.

1.Periodic Cash Receips: Cash dividends are payable as and when the company’s

after 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 is

payable at the end of each specified period..

2. Capital Gain: The second component of return is the change in the price of the

investment called the capital gain or loss. This element of return is the different

between 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 the

investments constitutes the total return on particulars investment as shown below

in equation(1)

Cash payment recived + Price change over the perios

Total Return = --------------------------------------------------------------------

Purchase price of the sucurity

Capital appreciation

The other important objective of investment is appreciation of capital

invested over a period. The expectation of apppreciation in sucurities is in the

following three ways.

i. Conservative growth

ii. Aggressive growth

iii. Speculation.

Conservative growth:

Investors with a goal to achieve conservative conservative growth

seek to build an investment portpolio that will make money over the long-term by

capical appreciation known as wealth building over time.

Aggressive growth:

Investor with a goal to achieve short-term and long-term capital gains

opts for aggressive growth in stock. Current income from dividends is of a low

priority and the investors are risk seekers.

Speculation:

Both investment and speculation are somewhat interrelated. It is said

that speculation requires investment and investments are to some extent

speculative. Speculation is the purchase or sale of anything in the hope of profit

from anticipated change in price.

Accouding to Emery, ‘Speculation consits in buying and selling commodities or

securities or other property in the hope of a profit from anticipated changes of

value’. As speculation involves high risks, in order to take advantage of price

fluctuations, stock brokers furnish a separate list of sucurities for speculation

purposes alone.

Safety and security of funds

The selected investment avenue should be under the legal and

regulatory frame work. If it is not under the legal frame work, it is difficult to

represent the grievances, if any. Apporaval of the law if self adds a flovor of

safety. Even though approved by law, the safety of the principal differs from one

mode of investment to another. Investment made in government assures more

safety than with private party. From the safety point of view investment can be

ranked as follows bank deposits government bonds, UTI Units, debentures, shares

and deposits with the non-banking financial company.(NBFCS)

Risk

The lever of risk depends on the objective of investment. The

investors expect greater return should also be prepares to carry higher risk. Also

an 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 can

minimize their risk on the portfolio. Risk avoidance and risk minimization are the

important 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 will

happen in future, but the variance possiblities are neglected by their assumed

probability of occurrence is called risk. The difference between risk and

uncertainty has been than uncertainty cannot be quantified while risk can be

quntified of the likelihood of future out comes.

Represented as follows:

Types of Risk

The risk is categorized into two types

1. Systematic Risk

2. Unsystematic Risk

This 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 factors

that affect the price of all securities. This movement is generally due to the

response to economic, social and changes. The systematic risk cannot be avoided.

Market Risk:

Variation is prise sparked off due to real social, political and economic

events 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 to

inflation.

Unsystematic Risk:

Unsystematic risk refers to that portion of the risk which is caused due to

factors unique or related to a firm or industry. For examples, if excise duty or

customs duty on goods increases, the share price of the industry declines. The

unsystematic 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 with

no debt financing has no financial risk.

Liquidity:

The liquidity of investment is the prime concern for investment prime made

by an investor. Before making investment, the investor should keep in mind the

degree of liquidity required. The investor should prefer for securities which ensure

liquidity or marketability.

Tax Considerations

The investor, before selecting the securities for investment will take into

consideration the provision of income tax, Capital gains tax, and wealth tax to

minimize tax burden and avail all tax examption available.

FINANCE Vs INVESTMENT

Investment decision and finance decision interact with each other like the

two blades of a pair of scissors, the investment (and savings) decision interacts

with the finance (and spending) decision to cut the pie (called total income) into

mutually satisfactory (optional) proportions. For many years finance and

investment have encompassed the three major areas of spending in the aggregate

economy as stated in equation –(2)

CHART 2-3

FOUNDATION OF INVESTMENT

INVESTMENT MANAGEMENT AND OTHER DISCIPLINES

Investment principles are base on elements developed in a number of academis

displine. This may classified as basis (Luxury items & furniture, Consumable

products, Paint, sanitary wares, tiles, items etc.,) and applied (Dealership and

Distributor) as depicted in the above chart. Trade/business is assigned a special

classification since it is unnecessary to some parts of the investment process but

critical to some others.

The above disciplines are interacts with each other while investing in modern

concepts, the above mentioned disciplines are widely used while taking and

investment decisions.

INVESTMENT PROCESS

The investment process involves a series of operations guiding to the purchase of

investment avenues in the market. The flowchart shows the stages and factors

connected thereof.

CHART 2-4

INVESTMENT PROCESS

CHAPTER 3

INVESTMENT AVENUES AVAILABLE IN INDIA

Investing in the financial markets, arguably a subject of interest for scores, never

formed part of all discipline in our curriculam. A subject that would have shaped

the monetary destiny of each of us was never even considered. The concept of

investor education never existed a decade ago, and crystallized only after the IPO

scam in 1994-95. Fundamantal and technical analysis, which are the key to

participating in the market were made available only to the privileged sections of

the society then.

The investor’s intention relating to disposable income makes the question that

where, when and how to invest. In the past, investment avenues were limited to

precious assets,schemes o the post office and bank. At present investors can choose

from a variety of instruments and assets. While making the choice, they should

consider the expected rate of return and available risk on their investment.

Financial education and knowledge about the different avenues enable the

investors to choose investment intelligently. Investment avenues are of several

kinds. Many types of investment channels are also available. Therefore, the

investor’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 in

making 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 negotiable

securities that the transferable and non negotiable securities that are not

transferable. The negotiable securities may yield variable income or fixed income.

These are equity shares. Bonds, debentures, government securities and money

market securities.

The non negotiable securities are not transferable. They yield only fixed

income. They are deposits schemes of post offices, banks, companies and non

bankin financial institution, etc. There are tax-banefit schemes such as public

provident fund, GPF, National savings certificate etc., are also available.

Mutual fund, chit fund, and venture capital etc., are another types of

financial investment avenues. They are of recent in India. At present there are 1500

plus MF schemes in the market. In the last decade, the MF industry has grown

substantially and today MFs. Are the best suited vehicles for individual investing.

The non financial investment avenues also known as real precious assets which are

also part of the portfolio. They are gold, silver, arts, property etc.,

CHAPTER V

SUMMARY OF FINDINGS, SUGGESSIONS AND CONCLUTION

The liberalization of Indian economy opened up several new investment

opportunities 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 a

very sifferent game. Most of the Business People unaware of various investment

avenues available in the market they park their disposable income in unsystematic

investment plans. The Business People intention relating to disposable income

makes the question that where, when and how to invest. With that in mind, the

researcher coined that topic and it is decided to find out,how Business People at

Tiruvannamalai are investing, savings and managing their finance. The study

clearly 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 which

may be considered by the policy markers, the finance institutions and the

investors.

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 been

removed “layer by layer”. Besides, Indian market are now one of the best regulated

markets in the world. Hence, it is also time that along with increasing the overall

literacy, we as a country also focus on increasing financial literacy. This would

turn India from a country of good savers to a country of wise savers and help build

financially strong and secure India.