Description
ABSTRACT: The project “ANANLYSIS OF INVESTMENT OPTIONS” gives the brief idea regarding the various investment options that are prevailing in the financial markets in India.
Analysis of Investment Decisions
Submitted
By
Project submitted in partial fulfillment for the award of degree of
MASTER OF BS!"ESS A#M!"!STRAT!O"
B$
1
#E%&ARAT!O"
I hereby declare that this project report titled A"A&'S!S OF !"(ESTME"T #E%!S!O"S
submitted by me to the Department of ))))))) is a bonafide work undertaken by me and it
is not submitted to any other University or Institution for the award of any degree diploma
certificate or published any time before!
"
ABS#$A%#
#he project &A'A'()SIS *+ I',-S#.-'# */#I*'S0 gives the brief idea regarding the
various investment options that are prevailing in the financial markets in India! 1ith lots of
investment options like banks2 +i3ed Deposits2 4overnment bonds2 stock market2 real estate2
gold and mutual funds the common investor ends up more confused than ever! -ach and every
investment option has its own merits and demerits! #his project I have discussed about few
investment options available!
Any investor before investing should take into consideration tae safety2 li5uidity2 returns2
entrye3it barriers and ta3 efficiency parameters! 1e need to evaluate each investment option on
the above6mentioned basis and then invest money! #oday investor faces too much confusion in
analy7ing the various investment options available and then selecting the best suitable one! In the
present project2 investment options are compared on the basis of returns as well as on the
parameters like safety2 li5uidity2 term holding etc! thus assisting the investor as a guide for
investment purpose!
8
A%9'*1(-D4-.-'#
I would like to give special acknowledgement to :::: for his consistent support and
motivation!
I am grateful to :::::2 Associate professor in finance2 :::::2 for his technical e3pertise2
advice and e3cellent guidance! ;e not only gave my project a scrupulous critical reading2 but
added many e3amples and ideas to improve it!
I am indebted to my other faculty members who gave time and again reviewed options of this
project and provide many valuable comments!
I would like to e3press my appreciation towards my friends for their encouragement and support
throughout this project!
A final word of thanks goes to everyone else who made this project possible! )our contributions
have been most appreciated!
<
#AB(- *+ %*'#-'-#S
%*'#-'#S /A4- '*!
(ist of tables =
(ist of +igures >
%;A/#-$61
1!I'#$*DU%#I*' ?
"!*B@-%#I,- *+ #;- S#UD) A
8!.-#;*D*(*4) 1B
Intrinsic ,alue
A companyFs intrinsic value2 or underlying value2 is closely tied to its prospects for future
success and increased earnings! +or that reason2 a companyFs future as well as its current assets
contributes to the value of its stock!
)ou can calculate intrinsic value by figuring the assets a company e3pects to receive in the future
and subtracting its long6term debt! #hese assets may include profits2 the potential for increased
efficiency2 and the proceeds from the sale of new company stock! #he potential for new shares
affects a companyFs intrinsic value because offering new shares allows the company to raise
more money!
Analysts looking at intrinsic value divide a companyFs estimated future earnings by the number
of it s e3isting shares to determine whether a stockFs current price is a bargain! #his measure
allows investors to make decisions based on a companyFs future potential independent of short6
term enthusiasm or market hype!
Stock Splits
If a stockFs price increases dramatically the issuing company may split the stock to bring the
price per share down to a level that stimulates more trading! +or e3ample2 a stock selling at N1BB
a share may be split " for 1 doubling the number of e3isting shares and cutting the price in half!
#he split doesnFt change the value of your investment2 at least initially! If you had 1BB shares
when the price was N1BB a share2 youFll have "BB shares worth NCB a share after the split! -ither
way2 thatFs N1BBBB! But if the price per share moves back toward the pre6split price2 as it may do
your investment will increase in value! +or e3ample if the price goes up to N>C a share your
stock will be worth N1CBBB2 a CBL increase!
Investors who hold a stock over many years2 through a number of splits2 may end up with a
substantial investment even if the price per share drops for a time!
A stock may be split " for 12 8 for 12 or even 1B for 1 if the company wishes2 though " for 1 is the
most common!
1?
Stock $esearch and -valuation
Before investing in a stock2 its important to research the issuing company and understand how
the investment is likely to perform2 for e3ample2 youFll want to know ahead of time whether you
should anticipate a high degree of volatility2 or more stable slower growth!
A good place to start is the companyFs 1B k report2 which it must file with the Securities and
-3change %ommission IS-%J each year! Its e3tremely detailed and 5uite dry2 but it is through!
)ouFll want to pay attention to the footnotes as well as the main te3t2 since they often provide
hints of potential problems!
%ompany 'ews and $eports
%ompanies are re5uired by law to keep shareholders up to date on how the business is doing!
Some of that information is provided in the firmFs annual report2 which summari7es the
companyFs operations for individual investors! A summary of current performance is also
provided in the companyFs 5uarterly reports!
Buying and Selling Stock
#o buy or sell a stock you usually have to go through a broker! 4enerally the more guidance you
want from your broker the higher the brokerFs fee! Some brokers usually called full6service
brokers provide a range of service beyond filling buy and sell orders for clients such as
researching investments and helping you develop long and short6term investment goals!
Discount brokers carry out transactions for clients at lower fees than full6service brokers but
typically offer more limited services! And for e3perienced investors who trade often and in large
blocks of stock there are deep6discount brokers whose commissions are even lower!
*nline #rading is the cheapest way to trade stocks! *nline brokerage firms offer substantial
discounts while giving you fast access to your accounts through their 1eb Sites! )ou can
research stocks track investments and you to trade before and after normal market hours! .ost of
todayFs leading full6service and discount brokerage firm make online trading available to their
customers! *nline trading is an e3tremely cost6effective option for independent investors with a
solid strategy who are willing to undertake their own research! ;owever the ease of making
trades and the absence of advice may tempt some investors to trade in and out of stocks too
5uickly and magnify the possibility of locking in short6term losses!
1A
,olatility
*ne of the risks youFll need to plan for as a stock investor is volatility! ,olatility is the speed with
which an investment gains or loses value! #he more volatile an investment is the more you can
potentially make or lose in the short term!
.anaging $isk
*ne thing for certainH )our stock investment will drop in value at some point! #hatFs what risk is
all about! 9nowing how to tolerate risk and avoid selling your stocks off in a panic is all part of a
smart investment strategy!
Setting realistic goals allocating and diversifying your assets appropriately and taking a long6
term view can help offset many of the risks of investing in stocks! -ven the most speculative
stock investment with its potential for large gains may play an important role in a well6
diversified portfolio!
"B
All AB*U# B*'DS I',-S#.-'#
;ave you ever6borrowed moneyQ *f course you have whether we hit our parents up for a few
bucks to buy candy as children or asked the bank for a mortgage most of us have borrowed
money at some point in our lives!
@ust as people need money so do companies and governments! A company needs funds to e3pand
into new markets2 while governments need money for everything from infrastructure to social
programs! #he problem large organi7ations run into is that they typically need far more money
than the average bank can provide! #he solution is to raise money by issuing bonds Ior other debt
instrumentsJ to a public market! #housands of investors then each lend a portion of the capital
needed! $eally a bond is nothing more than a loan for which you are the lender! #he organi7ation
that sells a bond is known as the issuer! )our can think of a bond as an I*U given by a borrower
Ithe issuerJ to a lender Ithe investorJ!
*f course2 nobody would loan his or her hard6earned money for nothing! #he issuer of a bond
must pay the investor something e3tra for the privilege of using his or her money! #his Ee3traF
comes in the form of interest payments2 which are made at a predetermined rate and schedule!
#he interest rate is often referred to as the coupon! #he date on which the issuer has to repay the
amount borrowed Iknown as face valueJ is called the maturity date! Bonds are known as fi3ed6
income securities because you know the e3act amount of cash youFll get back if you hold the
security until maturity! +or e3ample2 say you buy a bond with a face value of N1BBB a coupon of
?L and a maturity of 1B years! #his means youFll receive a total of N?B IN1BBBR?LJ of interest
per year for the ne3t 1B years! Actually because most bonds pay interest semi6annually youFll
receive two payments of N
#hus the lure of this yellow metal continues!
*ne the other hand2 it is interesting to note that apart from its aesthetic appeal gold has no
intrinsic value! )ou cannot eat it2 drink it2 or even smell it! #his aspect of gold compelled ;enry
+ord2 the founder of +ord .otors2 to conclude that Egold is the most useless thing in the world!F
1hy /eople Buy 4old
IAJ Industrial applications take advantage of goldFs high resistance to corrosion2 its
malleability2 high electrical conductivity and its ability to adhere firmly to other metals!
#here is a wide range of industries from electronic components to porcelain2 which use
gold! Dentistry is an important user of gold! #he jewellery industry is another!
IBJ Ac5uisition of gold because of its long6proven ability to retain value and to appreciate in
value!
I%J /urchases by the central banks and international monetary organi7ations like the
International .onetary +und II.+J!
Investment *ptions
#here has been a shift in demand from jewellery IornamentationJ to coins and bars
IinvestmentsJ! %oins cost less when compared to jewellery Iwhich has additional making
chargesJ! Assayed2 certified coins and bars are available through authori7ed banks! Demand for
jewellery remains strong in traditional circles though gold6plated jewellery is also becoming
popular!
4old futuresH $ight now2 >CL of Indians demand is for jewellery2 the rest is for coins and bars!
Investors can also dabble in gold futuresS with demat delivery on stock e3changes! #his is low
cost and physical delivery is at B!AAC purity! 4old futures trading clocked a recent turnover of
$s? = "!"B
"BB" 8A
"BBC C1> >A 1?!B8
"BB= C1> >A 1?!B8
"BB> =8= 11A "8!B1
"BB? AAC 8CA 8=!B?
0
200
400
600
800
1000
1200
2000 2001 2002 2003 2004 2005 2006 2007 2008
R/rice indicates December end prices of that particular year
.utual +unds return at a glance
-DUI#) #A: SA,I'4 'A, 1 )$ " )$ 8 )$
C1
.agnum #a3 4ain !> 1B>!>B A8!8!>B
;D+% #a3 Saver 18?!CB 1BB
9otak Balanced
"8!?B >1!1B < ? " > A
-ntry barrier =B A C C 1 ? >
#a3
-fficiency
"B 8 = 8 A > ?
%ash +low
-ffectiveness
"B ? 8 A < ? A
(ong #erm
4oals
;olding
(i5uidation
cost
=B C A 8 " > ?
'oteH A K indicates highest positive value on a parameter and 1 K indicates the lowest positive
value on a parameter!
=1
%*'%(USI*'
#here are several investments to choose from these include e5uities2 debt2 real estate and gold!
-ach class of assets has its peculiarities! At any instant2 some of those assets will offer good
returns2 while others will be losers! .ost investors in search of e3traordinary investments try
hard to find a single asset! Some look for the ne3t infosys2 other buys real estate or gold! .any
of them deposit their savings in the /ublic /rovident +und I//+J or post office deposits2 others
plump for debt mutual funds! ,ery few buy across all asset classes or diversify within an asset
class! #herefore it has been widely said that &DonFt put all your eggs in one basket0! #he idea
is to create a portfolio that includes multiple investments in order to reduce risk!
#hings changed in early may "BB= since then the stock market moved up more than >BL2 while
many stocks have moved more! $eal estate prices are also swinging up2 although it is difficult to
map in this fragmented market! 4old and Silver prices have spurted!
Bonds continue to give reasonable returns but it is no longer leads in the comparative rankings!
$ight now e5uity looks the best bet2 with real state coming in second! #he 5uestion is how long
will this lastQ If it is a short6term phenomenon2 going through the hassle of switching over from
debt may not be worth it! If itFs a long6term situation2 assets should be moved into e5uity and real
estate! #his may be long6term situation! #he returns from the market will be good as long as
profitability increases! Since the economy is just getting into recovery mode2 that could hold
true for several years! $eal estate values2 especially in suburban areas or small towns could
improve further! #he improvement in road networks will push up the value of far6flung
development! #here is also some attempt to amend tenancy laws and lift urban ceilings2 which
have stunted the real estate market!
.y gut feeling is that a large weightage in e5uity and in real estate will pay off during "BB>6
"BB?! But donFt e3it debt or sell off your gold! #ry and buy more in the way of e5uity and
research real estate options in small townssuburbs!
$egardless of your means of method2 keep in mind that there is no generic diversification model
that will meet the needs of every investor! )our personal time hori7on2 risk tolerance2 investment
="
goals2 financial means2 and level of investment e3perience will play a large role in dictating your
investment e3perience will play a large role in dictating your investment mi3! Start by figuring
out the mi3 of stock2 bonds and cash that will be re5uired to meet your needs! +rom there
determine e3actly which investments to in completing the mi32 substituting traditional assets for
alternatives as needed!
=8
BIB(I*4$A/
1ebsites
www,bseindia,com
www,mutualfundsindia,com
www,crisil,com
www,gold,org,com
www,mone$control,com
www,in+estopedia,com
www,licofindia,com
#e3t Books
Investment Analysis and /ortfolio .anagement 6 /rasanna %handra
Investments 6 Sharpe M Ale3ander
Security Analysis and /ortfolio .anagement6 +ischer M @ordan
.aga7ines
Business world
Business #oday
=<
doc_254399160.doc
ABSTRACT: The project “ANANLYSIS OF INVESTMENT OPTIONS” gives the brief idea regarding the various investment options that are prevailing in the financial markets in India.
Analysis of Investment Decisions
Submitted
By
Project submitted in partial fulfillment for the award of degree of
MASTER OF BS!"ESS A#M!"!STRAT!O"
B$
1
#E%&ARAT!O"
I hereby declare that this project report titled A"A&'S!S OF !"(ESTME"T #E%!S!O"S
submitted by me to the Department of ))))))) is a bonafide work undertaken by me and it
is not submitted to any other University or Institution for the award of any degree diploma
certificate or published any time before!
"
ABS#$A%#
#he project &A'A'()SIS *+ I',-S#.-'# */#I*'S0 gives the brief idea regarding the
various investment options that are prevailing in the financial markets in India! 1ith lots of
investment options like banks2 +i3ed Deposits2 4overnment bonds2 stock market2 real estate2
gold and mutual funds the common investor ends up more confused than ever! -ach and every
investment option has its own merits and demerits! #his project I have discussed about few
investment options available!
Any investor before investing should take into consideration tae safety2 li5uidity2 returns2
entrye3it barriers and ta3 efficiency parameters! 1e need to evaluate each investment option on
the above6mentioned basis and then invest money! #oday investor faces too much confusion in
analy7ing the various investment options available and then selecting the best suitable one! In the
present project2 investment options are compared on the basis of returns as well as on the
parameters like safety2 li5uidity2 term holding etc! thus assisting the investor as a guide for
investment purpose!
8
A%9'*1(-D4-.-'#
I would like to give special acknowledgement to :::: for his consistent support and
motivation!
I am grateful to :::::2 Associate professor in finance2 :::::2 for his technical e3pertise2
advice and e3cellent guidance! ;e not only gave my project a scrupulous critical reading2 but
added many e3amples and ideas to improve it!
I am indebted to my other faculty members who gave time and again reviewed options of this
project and provide many valuable comments!
I would like to e3press my appreciation towards my friends for their encouragement and support
throughout this project!
A final word of thanks goes to everyone else who made this project possible! )our contributions
have been most appreciated!
<
#AB(- *+ %*'#-'-#S
%*'#-'#S /A4- '*!
(ist of tables =
(ist of +igures >
%;A/#-$61
1!I'#$*DU%#I*' ?
"!*B@-%#I,- *+ #;- S#UD) A
8!.-#;*D*(*4) 1B
Intrinsic ,alue
A companyFs intrinsic value2 or underlying value2 is closely tied to its prospects for future
success and increased earnings! +or that reason2 a companyFs future as well as its current assets
contributes to the value of its stock!
)ou can calculate intrinsic value by figuring the assets a company e3pects to receive in the future
and subtracting its long6term debt! #hese assets may include profits2 the potential for increased
efficiency2 and the proceeds from the sale of new company stock! #he potential for new shares
affects a companyFs intrinsic value because offering new shares allows the company to raise
more money!
Analysts looking at intrinsic value divide a companyFs estimated future earnings by the number
of it s e3isting shares to determine whether a stockFs current price is a bargain! #his measure
allows investors to make decisions based on a companyFs future potential independent of short6
term enthusiasm or market hype!
Stock Splits
If a stockFs price increases dramatically the issuing company may split the stock to bring the
price per share down to a level that stimulates more trading! +or e3ample2 a stock selling at N1BB
a share may be split " for 1 doubling the number of e3isting shares and cutting the price in half!
#he split doesnFt change the value of your investment2 at least initially! If you had 1BB shares
when the price was N1BB a share2 youFll have "BB shares worth NCB a share after the split! -ither
way2 thatFs N1BBBB! But if the price per share moves back toward the pre6split price2 as it may do
your investment will increase in value! +or e3ample if the price goes up to N>C a share your
stock will be worth N1CBBB2 a CBL increase!
Investors who hold a stock over many years2 through a number of splits2 may end up with a
substantial investment even if the price per share drops for a time!
A stock may be split " for 12 8 for 12 or even 1B for 1 if the company wishes2 though " for 1 is the
most common!
1?
Stock $esearch and -valuation
Before investing in a stock2 its important to research the issuing company and understand how
the investment is likely to perform2 for e3ample2 youFll want to know ahead of time whether you
should anticipate a high degree of volatility2 or more stable slower growth!
A good place to start is the companyFs 1B k report2 which it must file with the Securities and
-3change %ommission IS-%J each year! Its e3tremely detailed and 5uite dry2 but it is through!
)ouFll want to pay attention to the footnotes as well as the main te3t2 since they often provide
hints of potential problems!
%ompany 'ews and $eports
%ompanies are re5uired by law to keep shareholders up to date on how the business is doing!
Some of that information is provided in the firmFs annual report2 which summari7es the
companyFs operations for individual investors! A summary of current performance is also
provided in the companyFs 5uarterly reports!
Buying and Selling Stock
#o buy or sell a stock you usually have to go through a broker! 4enerally the more guidance you
want from your broker the higher the brokerFs fee! Some brokers usually called full6service
brokers provide a range of service beyond filling buy and sell orders for clients such as
researching investments and helping you develop long and short6term investment goals!
Discount brokers carry out transactions for clients at lower fees than full6service brokers but
typically offer more limited services! And for e3perienced investors who trade often and in large
blocks of stock there are deep6discount brokers whose commissions are even lower!
*nline #rading is the cheapest way to trade stocks! *nline brokerage firms offer substantial
discounts while giving you fast access to your accounts through their 1eb Sites! )ou can
research stocks track investments and you to trade before and after normal market hours! .ost of
todayFs leading full6service and discount brokerage firm make online trading available to their
customers! *nline trading is an e3tremely cost6effective option for independent investors with a
solid strategy who are willing to undertake their own research! ;owever the ease of making
trades and the absence of advice may tempt some investors to trade in and out of stocks too
5uickly and magnify the possibility of locking in short6term losses!
1A
,olatility
*ne of the risks youFll need to plan for as a stock investor is volatility! ,olatility is the speed with
which an investment gains or loses value! #he more volatile an investment is the more you can
potentially make or lose in the short term!
.anaging $isk
*ne thing for certainH )our stock investment will drop in value at some point! #hatFs what risk is
all about! 9nowing how to tolerate risk and avoid selling your stocks off in a panic is all part of a
smart investment strategy!
Setting realistic goals allocating and diversifying your assets appropriately and taking a long6
term view can help offset many of the risks of investing in stocks! -ven the most speculative
stock investment with its potential for large gains may play an important role in a well6
diversified portfolio!
"B
All AB*U# B*'DS I',-S#.-'#
;ave you ever6borrowed moneyQ *f course you have whether we hit our parents up for a few
bucks to buy candy as children or asked the bank for a mortgage most of us have borrowed
money at some point in our lives!
@ust as people need money so do companies and governments! A company needs funds to e3pand
into new markets2 while governments need money for everything from infrastructure to social
programs! #he problem large organi7ations run into is that they typically need far more money
than the average bank can provide! #he solution is to raise money by issuing bonds Ior other debt
instrumentsJ to a public market! #housands of investors then each lend a portion of the capital
needed! $eally a bond is nothing more than a loan for which you are the lender! #he organi7ation
that sells a bond is known as the issuer! )our can think of a bond as an I*U given by a borrower
Ithe issuerJ to a lender Ithe investorJ!
*f course2 nobody would loan his or her hard6earned money for nothing! #he issuer of a bond
must pay the investor something e3tra for the privilege of using his or her money! #his Ee3traF
comes in the form of interest payments2 which are made at a predetermined rate and schedule!
#he interest rate is often referred to as the coupon! #he date on which the issuer has to repay the
amount borrowed Iknown as face valueJ is called the maturity date! Bonds are known as fi3ed6
income securities because you know the e3act amount of cash youFll get back if you hold the
security until maturity! +or e3ample2 say you buy a bond with a face value of N1BBB a coupon of
?L and a maturity of 1B years! #his means youFll receive a total of N?B IN1BBBR?LJ of interest
per year for the ne3t 1B years! Actually because most bonds pay interest semi6annually youFll
receive two payments of N
#hus the lure of this yellow metal continues!
*ne the other hand2 it is interesting to note that apart from its aesthetic appeal gold has no
intrinsic value! )ou cannot eat it2 drink it2 or even smell it! #his aspect of gold compelled ;enry
+ord2 the founder of +ord .otors2 to conclude that Egold is the most useless thing in the world!F
1hy /eople Buy 4old
IAJ Industrial applications take advantage of goldFs high resistance to corrosion2 its
malleability2 high electrical conductivity and its ability to adhere firmly to other metals!
#here is a wide range of industries from electronic components to porcelain2 which use
gold! Dentistry is an important user of gold! #he jewellery industry is another!
IBJ Ac5uisition of gold because of its long6proven ability to retain value and to appreciate in
value!
I%J /urchases by the central banks and international monetary organi7ations like the
International .onetary +und II.+J!
Investment *ptions
#here has been a shift in demand from jewellery IornamentationJ to coins and bars
IinvestmentsJ! %oins cost less when compared to jewellery Iwhich has additional making
chargesJ! Assayed2 certified coins and bars are available through authori7ed banks! Demand for
jewellery remains strong in traditional circles though gold6plated jewellery is also becoming
popular!
4old futuresH $ight now2 >CL of Indians demand is for jewellery2 the rest is for coins and bars!
Investors can also dabble in gold futuresS with demat delivery on stock e3changes! #his is low
cost and physical delivery is at B!AAC purity! 4old futures trading clocked a recent turnover of
$s? = "!"B
"BB" 8A
"BBC C1> >A 1?!B8
"BB= C1> >A 1?!B8
"BB> =8= 11A "8!B1
"BB? AAC 8CA 8=!B?
0
200
400
600
800
1000
1200
2000 2001 2002 2003 2004 2005 2006 2007 2008
R/rice indicates December end prices of that particular year
.utual +unds return at a glance
-DUI#) #A: SA,I'4 'A, 1 )$ " )$ 8 )$
C1
.agnum #a3 4ain !> 1B>!>B A8!8!>B
;D+% #a3 Saver 18?!CB 1BB
9otak Balanced
"8!?B >1!1B < ? " > A
-ntry barrier =B A C C 1 ? >
#a3
-fficiency
"B 8 = 8 A > ?
%ash +low
-ffectiveness
"B ? 8 A < ? A
(ong #erm
4oals
;olding
(i5uidation
cost
=B C A 8 " > ?
'oteH A K indicates highest positive value on a parameter and 1 K indicates the lowest positive
value on a parameter!
=1
%*'%(USI*'
#here are several investments to choose from these include e5uities2 debt2 real estate and gold!
-ach class of assets has its peculiarities! At any instant2 some of those assets will offer good
returns2 while others will be losers! .ost investors in search of e3traordinary investments try
hard to find a single asset! Some look for the ne3t infosys2 other buys real estate or gold! .any
of them deposit their savings in the /ublic /rovident +und I//+J or post office deposits2 others
plump for debt mutual funds! ,ery few buy across all asset classes or diversify within an asset
class! #herefore it has been widely said that &DonFt put all your eggs in one basket0! #he idea
is to create a portfolio that includes multiple investments in order to reduce risk!
#hings changed in early may "BB= since then the stock market moved up more than >BL2 while
many stocks have moved more! $eal estate prices are also swinging up2 although it is difficult to
map in this fragmented market! 4old and Silver prices have spurted!
Bonds continue to give reasonable returns but it is no longer leads in the comparative rankings!
$ight now e5uity looks the best bet2 with real state coming in second! #he 5uestion is how long
will this lastQ If it is a short6term phenomenon2 going through the hassle of switching over from
debt may not be worth it! If itFs a long6term situation2 assets should be moved into e5uity and real
estate! #his may be long6term situation! #he returns from the market will be good as long as
profitability increases! Since the economy is just getting into recovery mode2 that could hold
true for several years! $eal estate values2 especially in suburban areas or small towns could
improve further! #he improvement in road networks will push up the value of far6flung
development! #here is also some attempt to amend tenancy laws and lift urban ceilings2 which
have stunted the real estate market!
.y gut feeling is that a large weightage in e5uity and in real estate will pay off during "BB>6
"BB?! But donFt e3it debt or sell off your gold! #ry and buy more in the way of e5uity and
research real estate options in small townssuburbs!
$egardless of your means of method2 keep in mind that there is no generic diversification model
that will meet the needs of every investor! )our personal time hori7on2 risk tolerance2 investment
="
goals2 financial means2 and level of investment e3perience will play a large role in dictating your
investment e3perience will play a large role in dictating your investment mi3! Start by figuring
out the mi3 of stock2 bonds and cash that will be re5uired to meet your needs! +rom there
determine e3actly which investments to in completing the mi32 substituting traditional assets for
alternatives as needed!
=8
BIB(I*4$A/
1ebsites
www,bseindia,com
www,mutualfundsindia,com
www,crisil,com
www,gold,org,com
www,mone$control,com
www,in+estopedia,com
www,licofindia,com
#e3t Books
Investment Analysis and /ortfolio .anagement 6 /rasanna %handra
Investments 6 Sharpe M Ale3ander
Security Analysis and /ortfolio .anagement6 +ischer M @ordan
.aga7ines
Business world
Business #oday
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doc_254399160.doc