INVESTMENT AWARENESS AND RISK BEARING CAPACITY ON THE BASIS OF AGE GROUPS

-SHRUTI MULAYMBA-II

OBJECTIVES To analyze the investors awareness and perception

regarding investment in mutual funds. Amount of investment made out of the total saved salary. Factors affecting the investment decision. How much risk can investors take.

SCOPE AND LIMITATIONS: This survey has been carried out for Pune city and is

evaluated using Age parameter.

METHODOLOGY

Research Design: Descriptive study Population Definition: investors and non-investors of Pune

city. Sampling Size: 100 Sampling Method: convenience sampling method. Approach: Survey approach using questionnaire.

DATA ANALYSIS

INTERPRETATION Age (below 25yrs) -Average knowledge about investment. -Save 1-4% of annual gross salary and invest less than half

of it. -Invest to get high returns and tax benefits -Invest by identifying their objectives. -Can take moderate risk.

Age (25-35yrs) -Average knowledge about investment. -Save 10 + % of annual gross salary and invest less than

half of it. -Invest on the basis of diversification. -Invest by finding about past performance. -Can take moderate risk.

Age (36-45yrs) -Average knowledge about investment. -Save 15 + % of annual gross salary and invest three times

or more of annual gross salary. -Invest on the basis of high returns and regular income. -Invest by finding about past performance. -Can take moderate risk.

Age (46-55yrs) -Below Average knowledge about investment. -Save 10-14 % of annual gross salary and invest less than

half of annual gross salary. -Invest on the basis of getting regular income. -Invest by finding about past performance. -Can take high risk.

Age (above 55yrs) -Below Average knowledge about

investment. -Save 15 + % of annual gross salary and

invest three times more than annual gross salary.

-Invest on the basis of getting professional management(assistance).

-Invest by finding about past performance. -Can take low risk.

FINDINGSObjective/Parameter

High Low

Knowledge Age(26-35yrs) Age(Below 25yrs)

Savings and Investments

Age(Above 55yrs) Age(Below 25yrs)

Purpose of Investment

High returns and Tax benefits

Regular income

Risk bearing Age(46-55yrs) Age(above 55yrs)

SUGGESTIONS1. Mutual fund industry should try to make people

understand regarding the risk element associated with the instrument so that it will increase preference of mutual fund.

2. Mutual fund providing company should target on investors from the age group of 35-45 and having government service, private job and business men.

3. Mutual Fund companies should try to promote mutual fund awareness by more and more campaigning and offers.

4. Mutual Fund companies should try to target low income group by introducing more scheme which require less amount of investment.

5. Mutual Fund companies should promote the concept of online trading.

6. Mutual Fund companies should target higher income group who are ready to take more risk.

7. Mutual Fund companies should target females as untapped market.

THANK YOU!