c

In this present economical scenario, Industrialisation is the process

of social and economic change whereby a human group is
transformed from a pre-industrial society into an industrial one. It
is a part of a wider modernization process, where social change
and economic development are closely related with
industrializations, particularly with the development of large-scale
energy and metallurgy production. It is the extensive organization
of an economy for the purpose of manufacturing.

Developing country like India where industrialization is a ongoing

process investment means a lot. Due to over populations this
country is facing a problem called Unemployment. Which causes
to earn less national income than it is capable of . Also people are
not aware of the whole of investment policies. Though Govt. &
Non Govt. organizations both are in the market and they carry
different images.

Indian economic structure shows that 65% of national income

belong to7% where 35% of national income belong to rest.
Keeping this in mind those organizations have designed their
products.
Among the total of employed only 12.83% are govt. employee and
rest belongs to non govt. organizations, business and professionals
and supply the most in the market of finance. A trend has been
found that govt employees invest less. And who invests, they look
for security and invests only in banks where they get a little
interest (3.5% -7%). Where there are highly growing firms are
lying in the market.


ccan be done in different way. Different

organizations do these on their own ways. After observing this
habit of employers in a locality I have discovered that people not
aware of This present scenario of making money or the right way
to utilize money in most of the cases. People are fond of savings
into their local govt. banks like  c

  c
c c
ccwhere they are given only a little interest @ 3.5%-
7.25%. the reason to this only the security of their money.

I very much thankful to SPA CAPITAL, that they allow me to

know about the capital market and also to gather some practical
experience by a field work, not only that, they also allow me to
make people know what I have learn. People saves what they find
 extra after attaining all the expenses and deposit into the banks.
Now what do these banks do

with their money? They invest in different investment policies like

MUTUAL FUNDS, FDS, EQUITY etc. and earn high. Though
different renowned financial organizations are there working with
capital market but no one has taken such any step like SPA
CAPITAL to share knowledge.

MONEY, though it is not everything but it is the purchasing

power. It is not a crime to grow your power in a right path.
Manufacturing industries need capital to increase their production
volume thy need capital. This capital is supplied by these financial
institutes who collect the money from investors and invest there.

Savings, now a days is not all, and if we can work harder to earn
money then why our money work a little harder to grow up soon ?
there is the need of investment. Now a days it is not a part of
money market but also a efficient tool to earn and utilize what we
have in our pocket than to send it to bank.

Ä c

c
c
Investment tools are those plans or may be called as scheme in
which investment is made. US-64 bond was a popular one
launched by UTI Bank in earlier time.

Though non Govt. and Govt. organizations are in the field, their
motives are different. Kishan Bikash Patra, Fixed Deposit, PPF,
NSC these were

the traditional investment options. Now a days Mutual Funds,

Stock/Equity, ULIP, NPS Commodities are the most popular
options to invest.

Any Bank, Post Office, Insurance Company is a investment sector.

Many people do not even know they though unwillingly are
investing.

„c c A guarantee to assist financially behalf of some

terms against some fees(premium). Here we have to par premium
for a certain period, obviously scheme sensitive, to reach the
maturity level. Then as per contract we get benefit. LIC, SBI LIFE
are govt, organizations who sale policies.there are many private
organization too,i.e. KOTAK, IFFKO TOKYO, BAJAJ, TATA
etc.
Life insurance, wealth insurance, car insurance are the popular
insured terms.

INSURANCE REGULATORY BOARD OF INDIA (IRDA)

controls this sector.

Life insurance has three types of plans, Term insurance,

endowment plans, Unit linked Insurance plans (ULIPs).
c
c
@c 
 UNIT LINKED INSURANCE PLAN (ULIP) is a
policy, which provides for life insurance where the policy value at
time varies according to the value of the underlying assets at that
time. Investors can also take a route of investment. ULIP
distinguishes itself through the multiple benefits that it provides to
the customer. Very well known and popular investment tool now
days. It gives the facility to choose the option where you want to
invest your money, which no other plan gives. Simply to say that
here one can know or can track his money. It has a transparency,
and this the one unique feature it has. As it is a insurance plan, so
only insurance companies can sale this.

@c Investment and savings

@c Life protection
@c Flexibility

@c Adjustable life cover

@c Tax benefit

@c Transparency

@c Option to take additional cover against

-c death due to accident
-c disability
-c critical illness
-c surgeries

@c 
c 
c  Mutual fund is an instrument where a
number of investors contribute money to form a common pool of
that. This pool of money is invested in accordance with a pre-
determined objective.c

@c All the fund managers are themselves experts of investment and

they are supported by an able team of analyst. c

@c Allocating the invested amount in mutually in different

companies fund is called mutual funding or Mutual Fund. It is less
risky than equity. Always provide a average profit also if the
market goes a long way down.c
@c Mutual funds are fast catching up the imagination of common
people who want to have a share of stock market prosperity but do
not have the sufficient fund to invest on their own.c c

@c Any time you want money, you can withdraw. Just one day¶s
notice is sufficient.c

@c Provides the services of experienced and skilled professionals

backed by a dedicated research team.c

@c Since the investment in stock market is complex and require

some special knowledge which is often not available with common
people.c

@c Each mutual fund scheme has its own pre-determined objective

and the entire investment is made keeping the view same.c

@c Since the pool of fund is generally larger, the expenses to each

unitholder is comparatively smaller, since the expenditure gets
distributed across all the holders.c

@c This funds needs to disclose their investment details on regular

basis. This transparency is helpful for the investors.c
Before investing in mutual funds a question may arise why we
should invest in mutual funds ? the answer is here.

@c Mutual funds provides the services of experienced and skilled

professionals supported by dedicated research team.

@c It enables efficient risk management by diversifying across a

wide variety of sectors and companies.

@c Less expensive like direct investment to equity as they seek to

reap the benefits of economies of scale.

@c Performance and other investment details of individual schemes

are disclosed on regular basis, hence, transparent.

@c Facilitate investment of small amounts in a number of schemes

to suit the investors¶ risk-return framework.

@c And due to its liquidity you can withdraw when you need funds.

cc c!c"cc

c
 


  Fund house


  

 
 
 
c

c#$%c&c# 'cc( &%c&c !cc)c

* +cCompany shares are called equity. Higher rate of return

at higher risk is its characteristic. It is totally effected by market
condition. Company issue shares to raise capital for their business.
The money subscribed by various investors in the equity shares of
a company is an investment for the investor. If the company
performs better the investor gets his/her investment amount
appreciated.c

@c Potential to significant increase in value over longer period

(5-7 years).c
@c High risk high return.c

@c Choice of selecting fund that means freedom.c

@c Transaction can be made through IPO or secondary market.c

@c Demat account required.c

If someone have subscribed in 100 shares of any company with

face value of Rs. 100 in 1980«c

@c In 1981 company declared 1:1 bonus = you have 200 shares.c

@c In 1985 company declared 1:1 bonus=you have 400 shares.c

@c 1986 company split the share to Rs. 10= you have 4000
shares.c

@c 1987, 1989, 1992, 1995 company repeatedly declared 1:1

bonus. Now you have 64000 shares.c

@c In 1995 company gave 1:2 bonus, now you have 192000

shares.c

@c In 1999 company again split the shares into Rs. 2, and you
have 960000 shares.c

@c After declaring two more bonus in 2004 and 2005 repeatedly

you have 57,60,000 shares.c
Do you have any guess about the company and present valuation ?


ccone type of investment tool, a contract with organization

for a period for investing for share of profit.c

„cs   cc company deposit scheme, a process to invest directly

in any organization where company gives a higher rate of return. A
new type of CDS is awaiting to be marketised by HDFC soon.c

@c sc  financial certificates that gives a authority to have

ownership in company or may be a govt. bond. It¶s a very much
secured investment tool that though less return but high security of
the original capital. c

„c   We should start saving with our first incoming. If we

start investing early and keep this practice with religious
regularity, we can create a sizeable corpus of money.c

@c A systematic investment plan is a vehicle offered by

mutual funds to help us save regularly.c

@c It is similar to a recurring deposit with bank or post office

where we put in small amount every month. The difference here is
that the amount is invested in mutual funds.c
@c An SIP allows us to take part in stock market without
trying to second-guess its movements. It means we commit
ourselves to investing a fixed amount every month. Let¶s say it is
RS 1,000.c

@c When the NAV is high, we will get fewer units. When it

drops, we will get more units.c

@c If, however we sell our units within a year then we are

charged an exit load. So it pays to stay invested for a long-run.c

@c The best way to enter a mutual fund is via an SIP. But to

get the benefit c

A MATHEMATICAL ILLUSTRATION OF THE

ADVANTAGE OF SIP

Systematic Purchase price Unit bought

investing
 100 20 5

100 10 10

100 5 20

100 10 10

100 20 5

500 65 50

Fluctuating market

Average NAV : Rs 13.00 (65/5)

Average Unit cost : Rs 10.00 (500/5)

Systematic Purchase price Units bought

investing

100 25 4

100 20 5
 100 12.50 8

100 10 10

100 5 20

500 72.50 47

Declining market

Average NAV : Rs 14.50 (72.50/5)

Average Unit cost : 10.64 (500/47)

Systematic Purchase price Units bought

investing

100 5 20

100 10 10
 100 20 5

100 20 5

100 25 4

500 80 44

Rising market

Average NAV : Rs 16.00 (80/5)

Average unit of cost : 11.36 (500/44)

So this is how SIP works, depending upon the market situation.

Though it matters a lot but a growth in money can always be find
in this type of investment scheme.

Though the items discussed above are the popular terms of capital
market but there are also some other popular items too. Now days
gold, land, oil, paintings, commodities are very famous .

c
s 
cc

c

A organization need capital to continue its production system and

supply to market, but it do not have sufficient that much of huge
capital in their hand so they need to borrow capital. Investors
provide them that capital and against which get interest. So more
investment means more capital -more production - less cost - more
profit - more national income - development. This is only tool to
fight back economical threat like recession, inflation etc.

As this investment helps the organization, it also helps to build

good infrastructure, developed society. It also provides tax benefits
too. One can get upto 1lac. Rupees rebate upon income tax. And
one more thing, with the upcoming financial year there will be
another type of bond in the market that will provide 20% more tax
benefit.

has been found that, since 1979-1987 this market has totally It
turned around. Before that time this was not so much popular like
it is now. Few companies like Wipro,Cipla introduced a new trend
in market. Those who invested in 1000shares/ 10000 rupees in
those companies then now their investment grown to more 2cr. ±
250cr.. though it sounds strange but it is true.

, c sc
-+
 ,
c
s 
c

There are several ways of collecting and understanding information

and finding answers to the questions- research is one way. The
research process involves firstly identifying the broad area of
research. For this project research area is about investment. Then
selection of the topics, research strategy and method is the
questionnaire. Then data collection is done through primary and
secondary sources. Then Analysis is done to derive information and
lastly findings and recommendations are given.