Project Report on “Investment Avenues”
PROJECT REPORT
ON
“INVESTMENT AVENUES”
INTRODUCTION ON VARIOUS INVESTMENT AVENUES
INVESTMENTS
The dictionary meaning of investment is to commit money in order to earn a financial return or to make use of the money for future benefits or advantages. People commit money to investments with an expectation to increase their future wealth by investing money to spend in future years. For example, if you invest Rs. 1000 today and earn 10 %over the next year, you will have Rs.1100 one year from today.
An investment can be described as perfect if it satisfies all the needs of all investors. So, the starting point in searching for the perfect investment would be to examine investor needs. If all those needs are met by the investment, then that investment can be termed the perfect investment. Most investors and advisors spend a great deal of time understanding the merits of the thousands of investments available in India. Little time, however, is spent understanding the needs of the investor and ensuring that the most appropriate investments are selected for him.
The Investment Needs of an Investor
By and large, most investors have eight common needs from their investments: 1. Security of Original Capital; 2. Wealth Accumulation 3. Comfort Factor; 4. Tax Efficiency; 5. Life Cover; 6. Income; 7. Simplicity; 8. Ease of Withdrawal;
Types of investment -
[pic]
Fixed Deposits – They cover the fixed deposits of varied tenors offered by the commercial banks and other non-banking financial institutions. These are generally a low risk prepositions as the commercial banks are believed to return the amount due without default. By and large these FDs are the preferred choice of risk-averse Indian investors who rate safety of capital & ease of investment above all parameters. Largely, these investments earn a marginal rate of return of 6-8% per annum.
Government Bonds – The Central and State Governments raise money from the market through a variety of Small Saving
ON
“INVESTMENT AVENUES”
INTRODUCTION ON VARIOUS INVESTMENT AVENUES
INVESTMENTS
The dictionary meaning of investment is to commit money in order to earn a financial return or to make use of the money for future benefits or advantages. People commit money to investments with an expectation to increase their future wealth by investing money to spend in future years. For example, if you invest Rs. 1000 today and earn 10 %over the next year, you will have Rs.1100 one year from today.
An investment can be described as perfect if it satisfies all the needs of all investors. So, the starting point in searching for the perfect investment would be to examine investor needs. If all those needs are met by the investment, then that investment can be termed the perfect investment. Most investors and advisors spend a great deal of time understanding the merits of the thousands of investments available in India. Little time, however, is spent understanding the needs of the investor and ensuring that the most appropriate investments are selected for him.
The Investment Needs of an Investor
By and large, most investors have eight common needs from their investments: 1. Security of Original Capital; 2. Wealth Accumulation 3. Comfort Factor; 4. Tax Efficiency; 5. Life Cover; 6. Income; 7. Simplicity; 8. Ease of Withdrawal;
Types of investment -
[pic]
Fixed Deposits – They cover the fixed deposits of varied tenors offered by the commercial banks and other non-banking financial institutions. These are generally a low risk prepositions as the commercial banks are believed to return the amount due without default. By and large these FDs are the preferred choice of risk-averse Indian investors who rate safety of capital & ease of investment above all parameters. Largely, these investments earn a marginal rate of return of 6-8% per annum.
Government Bonds – The Central and State Governments raise money from the market through a variety of Small Saving
Bibliography: A. Books 1) Kothari C.R. (1990) ‘Research Methodology’, Second Edition, B. Websites 1. www.businessweek.com 2. www.google.com 3. www.karvy.com C. Newspapers 1. Business line 2. Economic Times