Title : Types of Investment
Author : Sahil Kawale (021330124036)
Introduction : When choosing between FD (fixed deposit), Equity shares, Mutual funds, Commodities as investment options, each has unique benefits and risks. Equity shares offer high returns but come with significant volatility, making them ideal for risk-tolerant investors seeking long-term growth. Fixed Deposit, traditionally safe, provides stability during economic downturns, though it may not generate as high returns as equities over time. Mutual funds offer diversification, allowing investors to benefit from equities, bonds, and other assets, reducing risk compared to direct stock investments. Commodities, while often providing steady returns but come with significant volatility through appreciation. The best choice depends on individual risk tolerance, investment horizon, and financial goals.
Objective : To find out if all are same or any one of them is different between four investment options.
Data Collection : Data is collected by using random sample method. Circulated form to collect the response ‘s from classmates and family members. Their preference of choosing the investment options got considered while filling the form.
Data Analysis :
|
ANOVA |
||||||
|
Source of Variation |
SS |
df |
MS |
F |
P-value |
F crit |
|
Between Groups |
52.7083333 |
3 |
17.5694444 |
11.9511193 |
0.00000112 |
2.70359404 |
|
Within Groups |
135.25 |
92 |
1.4701087 |
|||
|
Total |
187.958333 |
95 |
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Null Hypothesis (H0): There are no significant differences in the means of the groups (FD (fixed deposit), Equity shares, Mutual funds, Commodities). Alternative Hypothesis (H1): At least one group mean is significantly different from the others. F-value: 11.9511193 P-value: 0.00000112, F critical value: 2.70359404 If the P-value is less than the significance level (commonly 0.05), we reject the null hypothesis. Alternatively, if the F-value is greater than the F critical value, we also reject the null hypothesis. P-value: 0.00000112< 0.05 (significant),F-value: 11.9511193 > 2.70359404 (also significant)
Conclusion: Since both the P-value is less than 0.05 and the F-value exceeds the F critical value, we reject the null hypothesis. This indicates that there is a statistically significant difference in the means of at least one of the FD (fixed deposit), Equity shares, Mutual funds, Commodities.