INVESTORS’ ATTITUDE TOWARDS INVESTMENT IN GOLD COINS

Submitted By:-Gurmeen KaurM100700015

COMPANY PROFILE

IndusInd Bank Limited is a Mumai based Indian new generation bank established in 1994.

It was incorporated in April 1994 by Dr. Manmohan Singh the then Union Finance Minister.

Its name is derived from the rich and vivid Indus Valley Civilisation.

The bank started its operations with a capital amount of Rs.1,000 million .

Slogans:-We Care... Dil Se and We Make You Feel Richer.

INTRODUCTION TO PROJECT

Investors generally buy gold as a hedge or harbor against economic, political, or social fiat currency crises .

The gold market is subject to speculation as are other markets.

Since 1919 the most common benchmark for the price of gold has been the London gold fixing.

INVESTMENT VEHICLES

Bars :-The most traditional way of investing in gold is by buying bullion gold bars. Bars are available in various sizes.

Coins:-Bullion coins are priced according to their fine weight, plus a small premium based on supply and demand.

Certificates:- Gold certificates allow gold investors to avoid the risks and costs associated with the transfer and storage of physical bullion.

Accounts:-Many banks offer gold accounts where gold can be instantly bought or sold just like any foreign currency on a fractional reserve.

INVESTMENT STRATEGIES

Fundamental analysis:- Investors using fundamental analysis

analyze the macroeconomic situation, which includes international economic indicators, such as GDP growth rates, inflation, interest rates, productivity and energy prices. They would also analyze the yearly global gold supply versus demand.

CONTD…

Technical analysis:- Typically, this involves analyzing chart

patterns, moving averages, market trends and/or the economic cycle in order to speculate on the future price.

Using leverage:- Bullish investors may choose to leverage

their position by borrowing money against their existing assets and then purchasing gold on account with the loaned funds.

CONTD…

Taxation:-

Gold maintains a special position in the

market with many tax regimes. For example,

in the European Union the trading of

recognised gold coins and bullion products

are free of VAT.

OBJECTIVES

To know the awareness among investors

regarding gold coins.

Perception regarding investment on gold

coins vis a vis other instruments of

investment.

Investment pattern of investors.

Satisfaction level of investors

RESEARCH METHODOLOGY

RESEARCH DESIGN:-Exploratory Research.

Population:- All types of investors.

Sample unit:- Investors only.

Sample size:- 70 Respondents.

Sampling technique:-Non-probability

sampling technique.

FINDINGS AND

ANALYSIS

Q 1. HOW LONG ARE YOU INVESTING ?

9%

30%

37%

24%

1 year2 year5 yearmore than 5 year

Q2. HOW MUCH DO YOU INVEST?

Below 1 lac 15 22%

1 lac – 2 lac 22 31%

2 lac – 5 lac 19 27%

More than 5 lac 14 20%

Q3. HOW FREQUENTLY DO YOU INVEST?

30%

19%20%

31%

monthly

quarterly

half-yearly

yearly

Q4. WHICH INVESTMENTS YOU OWN OR HAVE OWNED?

23%

37%

3%

4%

33% propertysharesdiamondsantiquesothers

Q5. HOW DO/WOULD YOU SEARCH INFORMATION BEFORE MAKING INVESTMENT DECISION? RANK THEM.

0

5

10

15

20

25

30

35

40

45

50

rank 1rank 2rank 3rank 4rank 5rank 6rank 7

Q6. RATE THE FOLLOWING INFORMATION SOURCES ACCORDING TO THE ROLE THEY PLAY IN YOUR INVESTMENT DECISION.

Do not consider Consider a little Consider a lot

Family and friends --- 2.38 ---

Investment seller--- 2.1 ---

Familiar specialist --- --- 2.6

Unfamiliar specialist 1.42 --- ---

Journalism --- 1.77 ---

Q7. DO YOU INVEST IN GOLD COINS?

59%

41%

yes no

Q8.. IF YES WHAT ENCOURAGES YOU TO INVEST IN GOLD COINS? 

0%

10%

20%

30%

40%

50%

60%

Q9. HOW WOULD THE FOLLOWING INFLUENCE YOUR DECISION TO INVEST INTO GOLD COINS?

Factors No influence Little influence

Large influence

Family/friends opinion --- --- 2.53

Specialist opinion --- --- 2.56

Opinion of the local press --- 1.97 ---

CONTD…Factors Negative

influenceNo influence

Positive influence

Wider negative image of the investment

1.29 --- ---

Investment is very popular --- --- 2.78

Price of the investment has recently declined (cheaper than usual)

1.5 --- ---

Price of the investment has recently increased (expected to increase more)

--- 2.51 ---

Available information is insufficient or hard to obtain

1.34 --- ---

Previous negative personal experience with investing

1.19 --- ---

Acquaintances' previous negative experience with investing --- 1.78 ---

Q10. WHICH RISK IS HIGHER IN YOUR OPINION?

63%

37%

Sales

risk of stealagerisk of demolish

Q11. WHICH BENEFITS ARE YOU SEEKING BY INVESTING INTO GOLD COINS?

56%29%

15%

returns on investmentsecurityany other

Q12. IF NO, WHAT HOLDS YOU BACK FROM MAKING THE ACTUAL INVESTMENT EVEN THOUGH YOU HAVE DECIDED THAT GOLD IS A GOOD INVESTMENT FOR HIM?

unstability of returns security others0%

10%

20%

30%

40%

50%

60%

SUGGESTIONS

Most of the investors who do not invest in gold coins states the reason of security. So investment companies have to assure them that it is fully secured.

Gold prices mostly go up, so return on investment is certain. So companies should create awareness regarding this problem.

Investment companies should provide locker facilities to keep gold coins over there, to avoid the risk of stealage.

Investors should invest for longer period(more than 1 year) for better returns.

THANK YOU