DECLARATION

I “NAME OF THE STUDENT” declare that, I have completed Industry

Oriented Dissertation project titled as “TITLE OF THE PROJECT” which

is submitted in partial fulfillment of the requirements for the degree of Master

in Management Studies (Marketing) of University of Mumbai during 2017-

2019

The information presented in this project is original work and does not form

any part of the project undertaken previously to the best of my knowledge.

DATE: Signature

NAME OF THE STUDENT

ROLL NO.___________
 CERTIFICATE

This is to certify that the Industry Oriented Dissertation Project titled as

“TITLE OF THE PROJECT” submitted by “NAME OF THE

STUDENT” in partial fulfillment of the requirements for the degree of

Master in Management Studies (Marketing) of University of Mumbai during

2017-2019 is his/her original work & does not form any part of the project

undertaken previously to the best of our knowledge.

PROF. Dr.SWATI PADOSHI

FACULTY GUIDE DIRECTOR

DATE:

Institute
Seal
ACKNOWLEDGEMENT

NAME OF THE STUDENT

EXECUTIVE SUMMARY
 TABLE OF CONTENTS

CHAPTER PAGE
PARTICULARS
NO. NO.

COVER PAGE I
ACKNOWLEDGEMENT II
COMPANY CERTIFICATE(ORIGINAL) III
CERTIFICATE – Signed by your Internal Guide & DIRECTOR IV
DECLARATION V
EXECUTIVE SUMMARY VI
1. PART - I (SYNOPSIS OF THE PROJECT)
1.1 Introduction
1.2 Need of the Project
1.3 Objectives of the Study
1.4 Research Methodology
1.5 Literature Review
1.6 Expected Scope and Outcome of the Project
1.7 Limitation of the Project
2. PART - II
2.1 Company Profile
2.2 Organization Chart
3. PART – III
3.1 Theoretical Background of the project
3.2 Data Analysis & Interpretations
3.3 Findings
3.4 Recommendations
3.5 Conclusion
3.6 Bibliography
3.7 Annexure (Questionnaire, forms)
1.1 INTRODUCTION

Introduction to Investment:
Investment is the employment of funds with the aim of getting return on it. In general terms,
investment means the use of money in the hope of making more money. In finance, investment
means the purchase of a financial product or other item of value with an expectation of
favourable future returns. Investment of hard earned money is a crucial activity of every human
being. Investment is the commitment of funds which have been saved from current consumption
with the hope that some benefits will be received in future. Thus, it is a reward for waiting for
money. Savings of the people are invested in assets depending on their risk and return demands.
Investment refers to the concept of deferred consumption, which involves purchasing an asset,
giving a loan or keeping funds in a bank account with the aim of generating future returns.
Various investment options are available, offering differing risk-reward trade-offs. An
understanding of the core concepts and a thorough analysis of the options can help an investor
create a portfolio that maximizes returns while minimizing risk exposure. The “Investor” can be
an individual, a government, a pension fund, or a corporation. Similarly, this definition includes
all types of investments, including investments by corporations in plant and equipment and
investments by individuals in stocks, bonds, commodities, or real estate. This text emphasizes
investments by individual investors. In all cases, the investor is trading a known rupee amount
today for some expected future stream of payments that will be greater than the current outlay.

Investment Objectives Investing is a wide spread practice and many have made their fortunes in
the process. The starting point in this process is to determine the characteristics of the various
investments and then matching them with the individuals need and preferences. All personal
investing is designed in order to achieve certain objectives. These objectives may be tangible
such as buying a car, house etc. and intangible objectives such as social status, security etc.
similarly; these objectives may be classified as financial or personal objectives. Financial
objectives are safety, profitability, and liquidity. Personal or individual objectives may be related
to personal characteristics of individuals such as family commitments, status, dependents,
educational requirements, income, consumption and provision for retirement etc.
Elements of investments are Risk and Return relationship, Time, Liquidity, Tax savings.
Diversification of funds is an important principle of investment for earning higher rate of
interest.
Investment Alternatives Wide varieties of investment avenues are now available in India. An
investor can himself select the best avenue after studying the merits and demerits of different
avenues. Even financial advertising, newspaper supplements on financial matters and investment
journals offer guidance to investors in the selection of suitable investment avenues.
The following investment avenues are popular and used extensively in India:
1) Investment in shares, debentures and bonds of different types issued by companies,
corporations and public sector organizations.
2) Postal Savings Schemes.
3) PF, PPF and other Tax sheltered savings schemes such as national saving scheme, national
saving certificates and tax saving schemes of LIC, ICICI, Infrastructure bonds and so on.
4) Investment in investment intermediaries such as mutual funds.
5) Deposits in companies, fixed deposit, recurring deposits.
6) Life insurance investment i.e. investment in different life policies such as whole life policy,
endowment policy, annuity plans and so on.
7) Investment in gold, silver, precious metals and antiques.
8) Investment in real estates.
9) Investment in gilt-edged securities and securities of government and semi-government
organizations. (e.g. Bonds, treasury bills, etc.) There are some avenues/investment schemes
where tax benefits are available. Such schemes are called Tax Savings Schemes of Investment. A
tax payer can take the benefit of such schemes and bring down his total tax liability. The basic
purpose of such schemes is to encourage investment in certain investment avenues. In some
schemes, the entire investment is made tax free, i.e. it is deducted from yearly taxable income.

Introduction to Portfolio Management :

“Portfolio means combined holding of many kinds of financial securities i.e. shares, debentures,
government bonds, units and other financial assets.”* The term investment portfolio refers to the
various assets of an investor which are to be considered as a unit. It is not merely a collection of
unrelated assets but a carefully blended asset combination within a unified framework. It is
necessary for investors to take all decisions as regards their wealth position in a context of
portfolio. Making a portfolio means putting ones eggs in different baskets with varying element
of risk and return. The object of portfolio is to reduce risk by diversification and maximise gains.
Thus, portfolio is a combination of various instruments of investment. It is also a combination of
securities with different risk-return characteristics. A portfolio is built up out of the wealth or
income of the investor over a period of time with a view to manage the risk-return preferences.
The analysis of risk-return characteristics of individual securities in the portfolio is made from
time to time and changed that may take place in combination with other securities are adjusted
accordingly. The object of portfolio is to reduce risk by diversification and maximize gains.
Portfolio management is an art and science of making decisions about investment mix and
policy, matching investments to objectives, asset allocation for individuals and institutions, and
balancing risk against performance.

Portfolio Management Process Portfolio management is on-going process involving the

following basic tasks:
i. Identification of the investor’s objectives, constraints and preferences.
ii. Strategies are to be developed and implemented in tune with investment policy formulated.
iii. Review and monitoring of the performance of the portfolio.
iv. Finally the evaluation of the portfolio and make some adjustments for the future.
In today’s world everybody is running for money and it is considered as a root of happiness. For
secure life and for bright future people start investing. Every time investors are confused with
investment avenues and their risk return profile. So, even if we focus on past, present or future,
investment is such a topic that needs constant up gradation as economy changes. The research
study will be help full for the investors to choose proper investment avenue and to create
profitable investment portfolio.
 NEED OF THE PROJECT
1. To study the investors attitude on the profitability of investment portfolio.
2. To crate the awareness about the portfolio management.
3. To study the problem of investors
 OBJECTIVES OF THE STUDY
1) To identify the portfolio and investment pattern that has to be managed, monitored and
controlled by the individual investors.
2) To identify a sense of general awareness about portfolio management.
3) To get to know the contemporary trends and issues in designing portfolio.
4) To study the impact of investors attitude on the profitability of investment portfolio.
5) To identify the major types of investment avenues available in India and how one can invest
in it, to earn profit.
6) To understand the problems faced by various income groups due to not proper diversification
of funds.
7) To suggest measures for creating profitable investment portfolio.
RESEARCH METHODOLOGY
Research design is the conceived plan and structure of investigation to obtain answers to the
research questions. This research is organized in the following manner. Initial step is to analyze
the past, present of investment. How and why and where people invest their hard earn money,
and How investment portfolio is constructed.
Research Design Used: In this case, a descriptive research and casual research design study will
be used to study the relationships in question. Descriptive research facilitates the study to obtain
accurate and complete information regarding a concept or a situation or a practice. Therefore
survey method will be followed for the study.
Data Collection: Here, both primary and secondary data will be considered. Primary data will be
gathered using questionnaire as a tool for data collection. Secondary data will be collected from
books, journals, magazine, reports and websites. For this purpose the use of library and internet
will be made.
Sampling Technique: Stratified random sampling method will be used for selection of
respondents.
Sampling population (Place selected): The respondents will be selected from Kalyan. Therefore,
the population of sample will be the investors in Kalyan.
Sample size: Total 100 respondents will be surveyed in Kalyan.
LITERATURE REVIEW:
A P Pati and D. Shome in their article “Do Households Still Prefer Bank Deposits? An Analysis
of shift in Savings and Savings Determinants” Published in The IUP Journal of Bank
Management, Feb-2011 concluded that Financial reforms have, in the recent years, opened up
several avenues for the households for savings. The study suggest that despite the reform,
households are still preferring the safe channels of bank deposit schemes rather than switching
over to high yielding but risky channels of savings. However, between the two phases (pre- and
post-liberalization period) a significant structural shift of savings in bank deposit is observed.
Variables like income and inflation are found to be statistically significant determinants of
savings in bank deposit of Indian households.

A. Lalitha and M. Surekha in their article “Retail Investor in Indian Capital Market : Profile,
Pattern of Investment and Profitability” published in The Indian journal of commerce, July-
September 2008 concluded that the retail investor is here to stay and the capital markets may
well emerge as strong contenders for traditional investment avenues like bank/post office
deposits. They also focused on investor’s education and investment decision of retail investors.
Alex Wang in his article “Younger Generations’ Investing Behaviors in Mutual Funds: Does
Gender Matter?” published in The Journal of Wealth Management, Spring 2011 concluded that
knowledge, experience, and income are important factors that influence younger generations’
investing behaviours in mutual funds. Moreover, gender emerges as the most important factor
that differentiates younger generations’ investing behaviours in mutual funds. Wealth advisors
are also urged to consider helping their clients manage their wealth by being aware of gender
predicted differences in client situations.

BBS Parihar, Rajeev Sharma, and Deepika Singh Parihar in their article “Analysing
Investors Attitude Towards Mutual Funds as a Investment Option” published in The ICFAI an
Journal of Management Research, July 2009 concluded that the factors responsible for
investment in mutual funds are, ‘return potential’ has got first rank, ‘liquidity’ has got second
rank and ‘flexibility’, ‘affordability’ and ‘transparency’ have been ranked third, fourth and
fifth, respectively. Majority of investors have still not formed any attitude towards mutual fund
investments. The main reason behind this has been observed to be lack of awareness of investors
about the concept and working of the mutual funds.

Charlotte B. Beyer in his article “Investor Education: What’s Broken and How to Fix It”
published in The Journal of Wealth Management, Summer 2010 In this article, the
author argues that the traditional approach to investor education has failed and that radical
reform is needed. After observing how one group of investors learned far more in experiential
settings, the author submits that these investors might be convincing proof that experiential
investor education is superior. Signalling good news for the investment advisory industry, the
hiring, use, and retention of advisors by these same better-educated investors is stable. This
group also expressed positive views of how well served they are by the industry overall. While
the ultrawealthy arguably might have easier access to superior advisors, the author believes that
overhauling investor education will benefit all investors, not just the wealthiest.
Dhananjay Rakshit, in his article “Capital Market in India and Abroad – A Comparative
Analysis”, published in Indian Journal of Accounting, December, 2008 concluded that Indian
Market is being continuously preferred by the foreign investors and the only cause of concern is
its high analysed volatility.

Dr. G. V. Chalam in his article “Investors Behavioral Pattern of Investment and Their
Preferences of Mutual Funds.” Published in SOUTHERN ECONOMIST, Feb 1, 2003 concluded
that off all the sections of the society, the household group contributes much of the capital,
forming the lifeblood for the economy. According to his analysis, the mutual fund business in
India is still in its embryonic form as they currently account for only 15 % of the market
capitalisation. The success of mutual funds business largely depends on the product innovation,
marketing, customer service, fund management and committed manpower. The investment
pattern of the investors reveals that a majority of the investors prefer real estate investments
followed by mutual fund schemes, gold and other precious metals.

Dr. S. P. Agarwal in his article “Public Provident Fund Account – A Matchless Investment
Scheme.” Published in SOUTHERN ECONOMIST, Feb 15, 2001 concluded that Public
Provident Fund (PPF) account is most beneficial investment for all categories i.e. salaried class,
retired persons or businessmen either tax-payers or non-taxpayers.
1.6 EXPECTED SCOPE AND OUTCOME OF THE PROJECT
1.7 LIMITATION OF THE PROJECT
1.8 BIO-DATA OF EXTERNAL EXPERT GUIDE
 CHAPTER 2

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REFERENCES:
ANNEXURES: