Winter Pro.1 Final

A
Report On
“A STUDY ON SAVING AND INVESTMENT PATTERN
AMONGST ACADEMICIAN WITH SPECIAL
REFERENCE TO SURAT CITY"
SUBMITTED BY
BHAKTI MEHTA
UNDER THE GUIDANCE OF
MRS. CHETA DESAI
IN PARTIAL FULFILLMENT OF THE REQUIREMENT
OF THE SUBJECT IN THIRD YEAR B.B.A.
PROGRAMME
SUBMITTED TO
BHAGWAN MAHAVIR COLLEGE OF BUSINESS
ADMINISTRATION
VESU, SURAT
AFFILIATED TO
VEER NARMAD SOUTH GUJARAT UNIVERSITY
ACADEMIC YEAR 2017-2018

A STUDY ON SAVING AND INVESTMENT PATTERN AMONGST
ACADEMICIANS
DECLARATION
I BHAKTI MEHTA hereby declare that the project entitled. “A study on saving and
investment pattern of academicians with special reference to Surat city.” is based
on research work and has been carried out under the guidance Mrs. Cheta Desai, I/C
principal, Bhagwan Mahavir College of Business Administration.
Submitted in partial fulfillment of the requirement for the award of the degree of
Bachelor of Business Administration to Veer Narmad South Gujarat University,
Surat is my original work-research study-carried out during for two months during
academic year 2017-2018 and not submitted to any other degree/diploma/fellowship
or any other similar titles or prizes to any other institutions/organization or university
by any other person.
Place: Surat
Date:
BHAKTI MEHTA
T.Y.B.B.A (6TH SEM)
FINANCE
BHAGWAN MAHAVIR COLLEGE OF BUSINESS ADMINISTRATION Page 2

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ACKNOWLEDGEMENT
Every mature person in professional life is keenly aware of his/her sense of indebtness
to many people, who have motivated and influenced his/her intellectual development
ordinarily. This feeling is formally expressed in gestures of acknowledgement.
Therefore, it seems right to acknowledge my gratitude with the sense of veneration to
Almighty God and various people who helped me during this course of investigation.
This valuable guidance and wise direction has enabled me to complete my
investigation in a systematic and smooth manner, obeying the norms of scholastic
research.
I am also thankful to Ms. Cheta Desai, I/C Principal of Bhagwan Mahavir college of
business administration, Veer Narmad South Gujarat University, Surat for her support
and co-operation during the study.
It is my privilege to express my deep sense of gratitude to Ms. Cheta Desai for her
efforts guidance, valuable comments and suggestions for making this project report.
She helped me to complete my report on the partial study and gave contribution to
improve and expand my knowledge.
I am also thankful to all the respondents who have filled the questionnaires with their
sincere efforts and also for sparing their valuable time to fill up the questionnaires,
without whose contribution it was impossible to come out with findings.
Finally, I also express my sincere thanks to all my respondents for their co-operation
and all those people who are directly or indirectly helped me for the completion of my
project work.
BHAKTI MEHTA

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PREFACE
Savings and Investments form an integral part of one’s life. Investments refer to the
employment of funds with an objective of earning a favourable return on it. In other
words, investment is a Process, where money is being utilized with a hope of making
more money.
Investment is the commitment of money that have been saved by deferring the
consumption and purchasing an asset, either real or financial with an expectation that
it could yield some positive future returns.
The Indian economy is growing at a faster pace, which has resulted in has resulted in
higher disposable income level and a plethora of investment avenues. Government
savings deposits, banks, financial institutions and mutual fund houses are vying for a
share in the savings of investors. Investors new have varied options for making
investments like debt instruments, stocks, mutual funds, gold etc.
Investment is an acquisition of a financial product or other item of value with an

anticipation of favourable future returns. Investing is a serious subject that can have a
major impact on investors of risk, return, safety, security, regular income and various
other parameters. The investor has to choose proper investment avenue, depending
upon his specific need, risk preference and expected returns.
There is a plethora of investment avenues; each associated with varied risk-return

trade-offs. Every investment avenue is distinct in its characteristic, which makes the
investment decision fascinating. The investor thus needs to carefully analyze each of
its characteristics and build a basket of assets that suits his risk profile and compiles
with his objectives and goals. Hence, investment decision making is a fascinating task
for the investor.
Investment per share is a risky proposition. Investment is certain, but returns are risky
and uncertain. The problem is further comprehended due to the fact that there is a
plethora of investment avenues that is available for investments.

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Teaching Community is busy with their own assignments of teaching, examinations,

evaluations, new syllabus, new subjects, etc. As such, they do not have enough time
and scope for study into investment analysis and avenues. Now that, a majority of
teaching community is in private sector, they have very less appetite for investments.
Of course, even the teaching community in government sector is not guaranteed of
any retirement pension. This makes the situation worse and academicians are
desperately in need of good investments to plan their retirement life.
Hitherto, no survey is being made to address this issue. Hence, this project is
undertaken to study the investment and saving pattern of academicians in Surat city.
The investment pattern and the extent of investment awareness amongst them. The
study also aims to explore the risk return dynamics on the investment made by them.
The study mainly concentrates on the analysis of the investment pattern. The planned
sample was 150. Investor behavior and risk-return dynamics of saving and investment
made by academicians in surat city.
The study covers different asset classes including equity, debt, real estate, gold,
insurance, NPS, Etc.
The respondent profile is basically academicians or teaching community at the pre-

university, Under-graduate and post-graduate levels.

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EXECUTIVE SUMMARY
The theoretical framework for this study by including concept of investment, purpose
of the investors and their preferences. It also provides the conceptual background for
investment decision. After that it shows factors that influencing individual investment
behavior and investment avenues available for the investments. It also incorporates
the importance of risk tolerance ability and need for sources of information search in
the investment decision making is in-depth review of literature on studies related to
savings/investment motives and factors that influence the investment decision of
academicians. This section also includes review of studies those had measured the
association of demographic factors of academician with investment decisions. It also
incorporates the importance of risk tolerance ability and need for/sources of
information search in the investment decision making.
The methodological approach adopted for this research is presented in detail. The
initial part of this chapter talks about the statement of problem followed by the
research objectives under study. The descriptive and analytical research design is
used. The research design includes the explanation about population for which the
research is conducted followed by the data collection method, sampling techniques,
sample size, statistical tools for analysis, data collection instrument, data collection
method, scope under this study.
It concludes the whole research work carried out by the researcher. The discussion on
overall findings is presented in a systematic way. Based on the present work, the
suggestions are given to policy makers, investors and financial education providers
who are engaged in the financial systems. A discussion on opportunities for future
research and the limitations of the present research work are also noted at the end of
this work.

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INDEX
Ch No. Topic Page No
1. Introduction 9
 Global Investment Scenario 10
 Investment Scenario in India 11
 Status of women in India 12
 Factors affecting investment decision 13
 Saving and investment pattern of women
investors 16
 Investors preferences 18
 Need for the investment 19
 Saving 20
 Investment Pattern 21
 Significance of savings 22
 Available investment options 24
2. Literature Review 28
3. Research Methodology
 Statement of problem 36
 Objectives of study 37
 Research design 37
 Data collection method 38
 Tools and techniques for analysis 39
 Utility of the study 40
 Limitation of the study 41
4. Data Analysis and Interpretations 42

 Age 43
 Gender 44
 Marital status 45
 Educational Qualification 46
 Type of organization 47
 Location 48
 Working experience 49
 Monthly income 50
 Annual income 51
 Other income 52
 Have you invested your savings so far? 53

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 Which of the following avenues you opted? 54

 How frequently you change your investment? 56
 What level of risk you are ready to undertake? 57
 Formal Budget 58
 Investment target amount 59
 Monitor your investment 60
 Time period 61
 Percentage of income to invest 62
 Ways to invest 63
 Sources for collecting information 64
 Which investment has proved more beneficial to 68
you?
 Purpose of investment 70
 Average annual rate of return you get from 72
different types of investment you opt
 Level of risk and return 77
 Factors affecting investment before and after 81
demonetization
5. Findings & Conclusions 84
6. Suggestions 88
7. References 90
 Bibliography
 Appendix

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Chapter-1
INTRODUCTION

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INTRODUCTION
“If you do not know how to care for money, money will stay away from you” says
Robert T. Kiyosaki. From the above quote we come to know about the importance of
money in our day to day life. In today’s world earning of money is a difficult task for
everyone than spending the money. Everyone should work hard for earning the
money. India is one of fastest growing economies in the world. Proper funds are
needed for economic development. Economic growth of a country is very much
depended upon savings of the individuals. So, savings not only beneficial to
individuals but also benefits the economy as a whole.
Nowadays, people tend to save money rather than to spend. Instead of parking
savings, the saved money is used to make profit for their future. The peoples started to
invest their saved money in various investment avenues. One should be very careful
in investing their money. Making investment a successful one, investor should work
for it. Decision making plays a vital role in making investments in various investment
avenues. The investment decisions of investor should balance risk and return against
it.
There are various investment options includes government bonds, stocks, deposits in
banks, gold, insurance schemes, provident fund, postal schemes, silver, real estate etc.
The above alternative forms of investment are called investment vehicles. Savings and
investment are the two important variables which plays a significant role in the
economic growth.
GLOBAL INVESTMENT SCENARIO
India today enabled with digital technology in the current global environment, capital
is scarce and countries are competing for attracting capital. It is important to make
India an investor friendly destination for increasing the capital of the country. The
Indian government had facilitated the investors by establishing investor facilitation
cell to provide primary support for all investor protection for handholding and
liasioning services to investors.

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INVESTMENT SCENARIO IN INDIA
Foreign Direct Investment (FDI) and globalization is considered as an integral part of

all developed as well as developing countries. The growth of underdeveloped
countries is also depended on these factors. These factors equip the developing
nations with new skills and also provide smooth access to the markets and
introduction of the new technology. Today the whole world is looking for foreign and
overseas investors.
Foreign investment is important for the economic development. In recent trends, India
rank second to China in league of investment destination. India is considered the most
preferred investment destination by the foreign institutions and individual investors.
India’s macroeconomic prospectus have improved and reached the best position
among emerging market economies.
Investment scenario in India is getting better with each passing day due to high
confidence level of investors. Choosing the best investment option will varies, only if
the investor analysis and study the heterogeneous nature of the Indian market before
investing the earned money. Attracting global investors is the major factor considered
in today economy development.

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STATUS OF WOMEN IN INDIA

The status of women in India has been subject to many great changes over the past
few millennia. From equal status with men in ancient times through the low points of
the medieval period, to the promotion of equal rights by many reformers, the history
of women in India has been eventful. In modern India, women have adorned high
offices including that of the President, Prime minister, Speaker of Loksabha, etc.
In India, traditionally men have been the bread winners where as women typically
ran the household and saved for the rainy days. This was the scenario, till women
started working and took the command of financial matters. Today holds the key to
happiness; hence women should plan their finances and investment well. Women
have to save on a regular basis and smallest of the surplus income they like to invest
prudently. The role of women has changed from “Savers to Investors”. Most of the
working rural women have regular income because they work on the basis of wages.
Savings are seen as insurance against foreseeable future difficulties which are
completely unpredictable. Therefore women investors insure themselves against 19
future risks by saving in the form of various investments such as deposits, gold, lands,
and herds or by hoarding money.
A woman, if employed, she is the best asset of not only to her husband but also to
their entire family. Though money is a sole vital factor for a competent living, the
source of it is also equally much significant. Generally the source happens to be a job.
Hence, for a family man, his earnings alone are not copious for a happy life. Wife’s
employment, investment, in that sense, is a significant and inevitable source for a
better maintaining of a family.
The status and role of women is vacillating all over the world. Women’s stepping out
of the confines of the households multiplied their roles and responsibilities. They have
to shoulders their domestic responsibilities as well as say themselves in the
professional arena. But the balance between the two fronts is guileful exercise. The
tilt on any side to a state of conflict generated from the related role.

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FACTORS INFLUENCING INVESTMENT DECISION
Each and every person can be specially differentiated on various parameters. Their
investment decisions depend on various attributes. There are so many factors which
influence their investment decisions. Everyone has their own requirements. So,
accordingly they take decisions.
Personal investment is affected by the level of knowledge, an individual investor

possess about different investment instruments. The knowledge of the relationship
between risk and return along with the knowledge of industrial sectors, economic
indicators, companies performance analysis techniques, portfolio management
techniques etc., affect the investment decision of individuals.
The source of information regarding investment avenues also guides the investment
decisions. One of the most important factors affecting personal investment is the
availability of disposal funds. Apart from all these factors, invested money should be
convertible into cash in the hour of need and this is an important factor which affects
personal investment.
The success of every investment decision has become increasingly important in

recent times. Making sound investment decision requires both knowledge and skill.
Skill is needed to evaluate risk and return associated with an investment decision.
Knowledge is required regarding the complex investment alternatives available in the
economic environment.
We discuss below some of the relevant factors that affects investment decisions:
1. Management Outlook
lf the management is progressive and has an aggressively marketing and growth

outlook, it will encourage innovation and favor capital proposals which ensure better
productivity on quality or both. In some industries where the product being
manufactured is a simple standardized one, innovation is difficult and management
would be extremely cost conscious.

ACADEMICIANS
In contrast, in industries such as chemicals and electronics, a firm cannot survive, if it

follows a policy of ‘make-do’ with its existing equipment. The management has to be
progressive and innovation must be encouraged in such cases.
2. Competitor’s Strategy
Competitors’ strategy regarding capital investment exerts significant influence on the

investment decision of a company. If competitors continue to install more equipment
and succeed in turning out better products, the existence of the company not following
suit would be seriously threatened. This reaction to a rival’s policy regarding capital
investment often forces decision on a company’
3. Opportunities created by technological change
Technological changes create new equipment which may represent a major change in
process, so that there emerges the need for re-evaluation of existing capital equipment
in a company. Some changes may justify new investments. Sometimes the old
equipment which has to be replaced by new equipment as a result of technical
innovation may be downgraded to some other applications.
A proper evaluation of this aspect is necessary, but is often not given due
consideration. In this connection, we may note that the cost of new equipment is a
major factor in investment decisions. However the management should think in terms
of incremental cost, not the full accounting cost of the new equipment because cost of
new equipment is partly offset by the salvage value of the replaced equipment. In
such analysis an index called the disposal ratio becomes relevant.
Disposal ratio = (Salvage value, Alternative use value) / Installed cost
4. Market forecast
Both short and long run market forecasts are influential factors in capital investment
decisions. In order to participate in long-run forecast for market potential critical
decisions on capital investment have to be taken.

ACADEMICIANS
5. Fiscal Incentives
Tax concessions either on new investment incomes or investment allowance allowed

on new investment decisions, the method for allowing depreciation deduction
allowance also influence new investment decisions.
6. Cash flow Budget
The analysis of cash-flow budget which shows the flow of funds into and out of the
company may affect capital investment decision in two ways.
First, the analysis may indicate that a company may acquire necessary cash to
purchase the equipment not immediately but after say, one year, or it may show that
the purchase of capital assets now may generate the demand for major capital
additions after two years and such expenditure might clash with anticipated other
expenditures which cannot be postponed.
Secondly, the cash flow budget shows the timing of cash flows for alternative
investments and thus helps management in selecting the desired investment project.
7. Non-economic factors
New equipment may make the workshop a pleasant place and permit more socializing
on the job. The effect would be reduced absenteeism and increased productivity. It
may be difficult to evaluate the benefits in monetary terms and as such we call this as
non-economic factor.
Let us take one more example. Suppose the installation of a new machine ensures
greater safety in operation. It is difficult to measure the resulting monetary saving
through avoidance of an unknown number of injuries. Even then, these factors give
tangible results and do influence investment decisions.

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SAVINGS AND INVESTMENT PATTERN OF WOMEN

INVESTORS
In India the socio economic profile of the people changes dramatically. Today people
are not only spending on products and services, earlier considered a luxury but are
also looking at smarter ways of investing their money. This is mainly due to the fact,
that people today not only have a wider choice of investing in different saving 25
instruments, but are also more educated and aware about their choices. Women are
now moving beyond the traditional savings options of Fixed Deposits, Post office
savings to wider investment options in the form of Insurance, Mutual funds, Bonds,
Equities and even property.
Income minus expenditure is equal to Savings. In today’s rapidly changing financial

environment, it is critical that individuals not only protect and enhance their current
financial resources, but also prepare for future security and against lass of income.
This requires careful planning and prudent management of ones financial assets.
Savings is a natural human activity because some large purchases cannot be afforded
immediately. Financial planning is the key and the first step towards fulfilling ones
dreams and aspirations. Good planning ensures financial security for the family
throughout life. An important component of a sound financial plan is not only the
inclusion of life insurance coverage in the plan. It is therefore unique needs with
qualified financial planning advisers who can assist in determining the right plan and
amount of coverage required.
Saving and Investment are two key macro variables with micro foundations, which
play a significant role in economic growth. Savings enable people to manage
emergencies, to smooth out peak income and expenditure to make investment in
homes, families and businesses and to provide for old age. Savings encourages
cohesion among women investors and serve as a reserve for repayment of loan from
financial institutions. Even though the women investors are poor, they contribute 26
some amount of money as savings on a regular basis.

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Most of the women investors feel that savings is an important activity but the amount
they save every month is not uniform. Though some of the women investors are
uneducated, they come to know about various savings and investment avenues with
the help of agents, family members and friends. Regular savings and investment is
valuable in developing an informal rural financial system which can be a great benefit
of women. Systematic savings among women also helps to ensure good loan
repayment rates.
The savings of women in investors provides the source of funds to make small
investments such as LIC schemes, Post office savings schemes, Bank Deposits, Chit
Fund, Mutual Funds are some of the key saving instrument. With the advent of the
investment options in the market, consumers are now exposed to an array of modern
and innovative products. For example, depending on the needs of the customers, life
insurers have introduced customized products in the market. Women investors also
prefer Insurance policy because they have to pay only small amount of money every
year and they prefer savings in post office because they can withdraw their amount at
times of necessity.
Women in India now participate in all activities such as education, politics, media, art
& culture, service sectors, science and technology, etc. More investment improves lot
of rural women which creates a “virtuous circle” of better education, improved health
and higher income and women need to be given the right to have more control over
productive assets like land, water and credit.
INVESTMENT PATTERN
It indicates the choice of preferences in their investment in different assets. The

women investors may prefer to invest their money in physical and financial assets.
This investment pattern may differ according to the investor’s demographics and
behavior. The investment pattern in the present study covers various investment
patterns of savings both in the form of physical and financial assets.

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INVESTOR’S PREFERENCES
Women investor’s preferences are showing the willingness to invest in a particular or

a set of assets in the present situation. The Indian capital market has proved a fertile
ground for investors to make money. As a matter of fact, a great public
disenhancement with paper assets has begun during 1980s. Of late, the investor’s
preference seems to have shifted from equity to debt capital. The investor’s
preference may significantly differ according to their location. The rural and urban
background of the investors may lead to the investor’s preference among the various
choices.
REASON FOR INCREASING POPULARITY OF
INVESTMENTS
Investing has been an activity confined to the rich and business class in the past. This
can be attributed to the fact that availability of investable funds is a prerequisite to
deployment of funds. But today, we find that investment has become a household
world and is very popular with people from all walks of life.
The following are the reasons for increasing the popularity of investment;
 Increasing working population, larger family incomes and consequent higher

savings.
 Provisions of tax incentives in respect of investment in specified channels.
 Increasing tendency of people to hedge against inflation.
 Availability of large and attractive investment alteration.
 Increase in investment related publicity.
 Ability of investments to provide income and capital gains etc.

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NEED FOR THE INVESTMENT
Today, the entire nation is expecting a fast track growth. Very soon India will reach
top investment destination compared to our peers. Now a day’s majority of people
start to earn and save money for making profits by investing money in proper
investment avenues. Saving and investing money will shape the economy and lead
faster economic development.
The value inculcated in people’s mind will definitely affect the tomorrow’s picture.
The habit of individual financial planning and investment will surely shows sign of
development. The well informed investor has a potential to invest money in various
investment avenues. In the present day knowledge economy education had been
played an important role for individuals. The teachers are the pillars of the society and
the quality of education depends upon the knowledge, skills, creativity and
intelligence of the teachers.
Therefore financial education and awareness will definitely serve the purpose
effectively, if got started through college level study. Therefore study regarding
saving and investment pattern of college teachers become inevitable. The researcher
has chosen surat district for the present study which is called diamond city of India.
There are various state run universities, private universities, government colleges,
government aided colleges and unaided colleges, law and medical colleges are there
in the district. It is established fact that students from different parts of the country
pursuing their qualitative higher education through these colleges. There are number
of arts, commerce and science colleges registered in surat district and the college
teachers are paid good pay scales, like others they tend to save and invest saved
money in investment avenues. Hence a study is undertaken to know what are the
investment avenues preferred by the College teachers working in the district of Surat.

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SAVING
Savings refers to the amount of money which is kept aside from the current income
for future use. People able to save money by keeping a part from their revenue
every month and this is possible by cutting the unwanted expenditure, generating
higher income and by doing the both. The need for savings is to meet future expenses,
to meet unexpected contingencies or emergencies, to raise our standard of living, to
generate future income, also helps the nation to improve the economic development
etc.
INVESTMENT
Employment of current funds to earn benefits or securing growth in the future can be
termed as investment. It is sacrifice from current income to gain returns at a later
stage. Investment should be done to yield more return than rate of inflation. The
current income of an individual can be put aside for two thing – either consumption or
savings. The money once consumed is gone forever, whereas the savings bears fruit.
Major element of any investment is time and risk. It purely depends upon individual
capacity to give importance to either of the two elements, on the basis of one’s needs.

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INVESTMENT PATTERN
Investment pattern refers to the attitude, perception and willingness of the individuals
and institutions while placing their savings in various types of financial assets. An
investor is a person who sacrifices the present in order to reap the benefits for the
future. The benefit may be in the form of capital appreciation, income in the form of
dividends, bonus, retirement benefits and many other benefits. Generally an investor’s
objectives would be one among the following:
 To minimize the risk

 To maximize the returns
 To hedge against inflation
 Liquidity
NEEDS OF WEALTHY INVESTORS
Wealthy investors being aware of the emerging investment opportunities use

sophisticated investment strategies such as
 Leveraging on the professional advisors‟ capability to analyse market trends

and make appropriate investment.
 Searching for innovative products to enhance value
 Diversifying across various types of assets
 Investing across emerging geographies
 Consolidating financial information and assets.
 Young, educated and knowledgeable
 Smart looking for the best deal
 Willing to take risk
 Well informed about global trends
 Seeks information from various sources

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SIGNIFICANCE OF SAVING
To attain economic development for the comfortable life of people and for financial
organizations, saving is very important and an essential one. Regarding the decisions
to save, the main motives behind savings seems to be the following
 Provisions for a future period, when income is expected to be less or the need
for expenditure.
 Provisions against unpredictable decline in income.
 Acquisition of higher income either by improving business or by obtaining
interest, dividends, rent or other property income.
 Gain in social status by acquiring property.
(1) For Economic Development
Saving leads to increase in the national income of a country by increasing the level of
investment. To attain economic development, the national income of a country
should be high. Savings are vital to the development of an economy. An increase
in private savings helps to keep the economy in equilibrium by releasing resources for
exports and for additional investment, both at home and overseas.
(2)For People
The future is an unpredictable one, so in order to get the future requirements of

money, saving is essential. This is possible only, when they keep their money in
banks or in financial organizations. The requirements may be in the form of
unavoidable expenses, medical expenses, expenses for social functions, educational
and marriage expenses and so on. Without saving, an ordinary man cannot cover all
these expenses at a time. They need not allocate large amount of their income, but
they should allocate a small portion of income regularly. There are number of ways to
save money.

ACADEMICIANS
(3)For Investment
Investment is the sacrifice of certain present value for the uncertain future reward. It
entails arriving at numerous decisions such as type, mix, amount, timing, and grade.
An investment decision is a trade between risk and return. All investment choices are
made at points of time in accordance with the personal investment ends and in
contemplation of an uncertain future. In order to invest successfully, one should have
an investment and personal investment objectives like having a home, creating a
regular income after retirement, possessing money for the marriage of one’s children
and the likes. It must also be ensured that the purchasing power of the money saved is
not less than its present purchasing power.
(4)For The Bankers

The Amount deposited by the public and business concerns in banks also get
converted into investments or savings. The saving is created in the form of various
deposits of accounts in the banks. Thus, these investments are indirectly helpful to
increase the national income. Moreover, the savings will be helpful to create smooth
functioning or circulation of money. i.e., the deposits which are made by the public
are used for lending. This loan may be helpful to the entrepreneurs to start a new
business or expand their business. By this way, the bank can also earn reasonable
profit in the form of interest, which is paid by the customer. So, banks are trying to
get the money from those who are having surplus and give it to those who are in need.
Thus, banks are acting intermediary between the low income group and high income
group. This is more useful for the balance of regional development.

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AVAILABLE INVESTMENT OPTIONS

There are large number of investment instruments available today to make our lives
easier. Some of them are marketable and liquid while others are non marketable and
some of them also highly risky while others are almost risk less. The People has to
choose proper avenue among them, depending upon their specific need, risk
preference and return expected. Investment avenues can broadly categories under the
following heads.
 Equity
 Bank Fixed Deposit
 Company Fixed Deposit
 Corporate Debenture
 Public Provident Fund
 Post Office – NSC
 Life Insurance
 Mutual Fund
 Real Estate
 Gold/Silver
(1)Equity
Equity is one of the most risky areas. But, at the same time this is also a place where
an investor can earn high rates of returns that will push up the returns of the entire
portfolio. There is a need for the investor to separate the speculation from the
investment. Investment in equities can be made directly by the purchase of shares
from the market or it can be done through the mutual fund route, whereby the investor
buys the mutual fund units and the fund in turn buys equity shares for its portfolio.
There are various benefits as well as risks associated with both these routes and it is
upto the individual to make up his mind.
(2)Bank Fixed Deposit

Fixed deposits with banks are also referred to as term deposits. Minimum investment
period for the bank FDs is 30 days. Deposits in banks are very safe because of the
regulations of RBI and the guarantee provided by the deposit insurance corporation.

ACADEMICIANS
The interest rate on fixed deposits varies with term of the deposits. Bank deposits
enjoy exceptionally high liquidity. Loan can raised against bank deposits.
(3) Company Fixed Deposit

Company fixed deposit is the deposit placed by investors with companies for a fixed
term carrying a prescribed rate of interest. Company FDs are primarily meant for
conservative investors who don’t wish to take the risk of vagaries of the stock market.
(4) Corporate Debenture

Corporate debentures are normally backed by the reputation and general
creditworthiness of the issuing company. It is a type of debt instrument that is not
covered by the security of physical assets or collateral. Debentures are a method of
raising credit for the company and although the money thus raised is considered a part
of the company’s capital structure, it is not part of the share capital.
(5)Public Provident Fund [PPF]

A long term saving instrument with a maturity of 15 years, A PPF account can be
opened through a nationalized bank at anytime during the year and is open all through
the year for depositing money. Tax benefits can be availed for the amount invested
and interest accrued is tax free. A withdrawal is permissible every year from the
seventh financial year of the date of opening of the account.
(6) Post Office Savings

Post office monthly income scheme is a low risk saving instrument, which can be
availed through any post office. The interest rate on deposits is slightly higher than
banks. The interest is calculated half yearly and paid yearly.
(7)Life Insurance Policies
Insurance companies offer many investment schemes to investors. These schemes

promote savings and additionally provide insurance cover. LIC is the largest
insurance company in India. Some of the schemes are

ACADEMICIANS
 Life policies
 Endowment assurance policy
 Money back policy
 Unit link plan
 Term assurance
 Jeevan saathi
 Convertible whole life assurance policy
 Deferred annuity etc.
Insurance policies while catering to the risk compensation to be faced in the future by
investor, also have the advantage of earning a reasonable interest on their investment
insurance premiums.
(8) Mutual Fund

This is an emerging area for investment and there is a large variety of schemes in the
market to suit the requirements of a large number of people. In finance, in general,
you can think of equity as ownership in any asset after all debts associated with a that
asset are paid off. For example, a car or house with no outstanding debt is considered
the owner’s equity because he or she can readily sell the item for cash. Stocks are
equity because they represent ownership in a company.
(9) Real Estate

Investment in real estate also made when the expected returns are very attractive,
buying property is an equally strenuous investment decisions. Real estate investment
is often linked with the future development plans of the location.
At present investment in real assets is booming there are various investment source
are available for investment which are directly or indirectly investing real estate. In
addition to this, the more affluent investors are likely to be interested in other type of
real estate, like commercial property, agricultural land, semi urban land and resorts.

ACADEMICIANS
(10)Gold / Silver
The bullion offers investment opportunity in the form of gold, silver, art objects
(Paintings, Antiques) precious stones and other metals, specific categories of metals
are traded in the metal exchange.
OBJECTIVES OF THE STUDY

Primary Objective: To evaluate the saving and investment pattern of college teachers
at Surat city.
.

ACADEMICIANS
Chapter-2
LITERATURE
REVIEW

ACADEMICIANS
LITERATURE REVIEW
The literature review includes the academic books, journals, internet access,
magazines etc. Various studies on An Study of saving and investment pattern
amongst college teachers had been conducted in Indian context. Depending on
the various issues of investment, the review has been discussed in brief as
follows:
 Bhardwaj (2003) has stated the literature on globalization He found the

pervasiveness of the west’s perception of the world affect on Indian investors that
affects the trends in investor’s choice. They are hugely affected by the west’s
views and so changes in Indian trends occur.
 Shrotriya (2003) conducted a survey on investor preferences in which he

depicted the linkage of investment with the factor so considered while making
investment. He says “There are various factors and their linkage also. These
factors help us how to ensure safety, liquidity, capital appreciation and tax
benefits along with returns.”
 Walt A. Nelson (2006) made a study and the purpose of this case study is to
examine direct investment in commercial real estate from the perspective of the
individual. While most research is dominated by studies concerning direct
investment by institutions (REITs, pension funds, etc.), the bulk of direct
investment in commercial property is still conducted by individuals. The paper
presents accounting and financial data from the original purchase, management
and disposal of a small-scale office building. Cash flows, returns and risks are
measured and analyzed. The case demonstrates that successful direct investments
may be characterized by short-term time horizons involving older, small-scale
properties. This case illustrates the non-academic nature of real world direct
investment in commercial property. The case demonstrates that emotion and good
timing are just as important to a successful venture as are cash flows and thorough
risk estimates. The case also shows that successful direct investment in
commercial property may be limited to smaller, older properties held for short-

ACADEMICIANS
term time horizons. This case study is unique because it identifies the property,
the investor, the purchase price, the operating revenues and the sale price and net
proceeds. Most case studies conceal many of these facts in order to preserve
anonymity.
 Casey B. Mulligan and Yona Rubinstein (2008) studied the growing wage
inequality within gender that would cause women to invest more in their market
productivity and pull able women out of workforce. The study uses Heckman’s
two step estimator and identification at infinity on repeated current population
survey cross sections to calculate relative wage series for women since 1970 that
hold constant the composition of skills. They find that selection into the female
full time full year workforce shifted the narrowing of the gender wage gap reflect
changes in female work force composition. They find the same type of
composition changes by measuring husbands’ wages and the national longitudinal
survey IQ data as proxies for unobserved skills. The findings help to explain why
growing wage equality between genders coincide with growing inequality within
gender. This study concentrated on wage and productivity of employees and not
on their investment.
 Sunil Gupta (2008) the investment pattern among different groups in city had
revealed a clear as well as a complex picture. The complex picture means that the
people are not aware about the different investment avenues and they did not
respond positively, probably it was difficult for them to understand the different
avenues. The study showed that the more investors in the city prefer to deposit
their surplus in banks, post offices, fixed deposits, saving accounts and different
UTI schemes, etc. The attitude of the investors towards the securities in general
was bleak, though service and professional class is going in for investment in
shares, debentures and in different mutual fund schemes. As far as the investments
are concerned, people put their surplus in banks, past offices and other
government agencies. Most of the cities though being rich have a tendency of
investing then surpluses in fixed deposits of banks, provident funds, Post Office
savings, real estates, etc. for want of safety and suitability of returns.

ACADEMICIANS
 Archna v. Hegde, Deborah j. Cassidy (2009) interviewed twelve kindergarten

teachers in their study, and a constant comparative method was used to analyze
the interviews. This study included a focus on academics vs. play, the importance
of worksheets, the importance of groups for socialization, and the difficulties of
implementing a play-based curriculum.
 An empirical study of “Indian Individual Investors Behavior” by Syed Tabassum

Sultana (2010) was an attempt to know the profile of the investors and also to
know their characteristics so as to know their preference with respect to their
investments. The study also tried to unravel the influence of demographic factors
like gender and age on risk tolerance level of the investors.
 Karthikeyan (2010) in his study suggested that the world thrift day may be
celebrated not only by Government but also by voluntary organization to increase
savings. Interesting and attractive audio visual type of advertisements and
personal canvassing techniques could be used to increase investments. Existence
of agencies must be made known to investors. The rate of interest must be hiked
for investments. His study related to the savings pattern of employees.
 R.R.Rajamohan (2010) in his study records that the Indian Government has
introduced defined contribution pension plans to the newly recruited employees
from January 2004. 7 State governments have introduced the scheme for their
employees and others have shown interest. The new system calls for the
participants to manage their contribution by placing the responsibility of deciding
where their contribution should be invested and who should manage their
contribution etc. However the author feels that the work force is not equipped to
take such decision. Thus the study aims at looking in to this aspect by analyzing
the relationship between financial knowledge and the investment of households in
risky assets. The study found the existence of a significant and positive
relationship between the financial knowledge and ownership of risky assets,
which calls for the attention of the policy makers while proceeding further in
implementing the defined contribution pension plan. In this study utmost

ACADEMICIANS
importance was given to investment in pension funds, it also touches on the

investment in risky assets.
 Shilpa Agarwal (2010) studied the perceptions of the people about the investment
of their savings. The aim of her study was to understand the basic requirements of
the common man and his views on investments. She studied the various
investment avenues and the investors risk preference towards it and tried to
identify the general demographic factors of the investors dealing in capital
markets, her other aims were to find out the preference of investors for various
Capital Market instruments, to find out the type of risks which are considered by
the investors, and to find out the ways through which the investors minimize their
risk, but did not study about the pattern of investment in capital market.
 Bhardwaj Rajesh, Raheja Rekh and Priyanka (2011), propounded in their

study that saving and investment pattern of salaried class college teachers of govt.
and private colleges has depended upon income and they both get salary but the
scale of the salaries are different and saving patterns that’s why is so different.
Govt. teachers prefer to invest the money for emergency purposes and private
teacher’s emphasis on children marriage and education.
 Dr. S. Mathivannan and Dr. M. Selvakumar (2011) examined the saving and
investment patterns of salaried teachers of Sivakasi Taluka, Tamilnadu and they
found that there is great importance of money and money’s worth for them and
They are regularly preparing budgets for Expenditures and compare it with the
actual expenditure and take necessary actions if there are any deviations has
arrived so far and they are influenced by fashionable and costly items.
 Pestonjee (2011) attempted to study how far working women enjoy freedom to
take investment related decisions on their own and the pattern of investments in
the male dominated investment world in India. The questions related to
investment pattern and its decision maker with respect to working women was
studied by taking, 227 respondents from 3 cities: 108 in Ahmedabad, 60 in
Solapur, 59 in Gulbarga. A Questionnaire was administered and data were

ACADEMICIANS
collected on saving, types of investment, influencers, expenditure and decision-

makers. Data were analysed using, conventional and non-conventional statistical
tools. There is no significant difference among the respondents across the cities
with respect to age, family size, type of family, marital status, level of education,
occupation and annual income. No cultural and demographical patterns are
associated with decision making by working women.
 Lewellen (2011) found investor age, income, sex essentially in that descending
order of importance as the unquestionable character which over rode occupation,
marital status, family size and educational background as significant influences in
the explanation of different in investment styles and strategies. The last four were
found to make only occasional modest contributions.
 Meenakshi Chaturvedi and Shruti Khare (2012) analyses and suggests that
there is an explosion in the growth of middle class families due to double income
and increase in number of working women. Hence effort should be made to attract
women investors by providing right information and knowledge about the market
through advertisement· There is a dire need to initiate steps to inculcate saving
habit among the growing middle class families. The savings are to be pooled and
channelized into productive investments. Hence effort should be made to attract
women investors by providing right information and knowledge about the market
through advertisement.
 Dr. Dhiraj Jain and Parul Jain (2012) concluded that the majority of the
teachers the money plays a big role and they initiated to prepare budgets and
future forecasting for income and expenditure and there is comparison between
future and Standard budgets to find out the deviations to meet certain money
constraints It has been evident from the study that most of the college teachers are
saving their money for the purpose of their children’s education, marriage and as
security after retirement.
 Dr. Ananthapadhmanabha Achar (2012) studied “Saving and Investment

Behaviour of Teachers - An empirical study”. In the analysis individual
characteristics of teachers such as age, gender, marital status, and lifestyle

ACADEMICIANS
determined the savings and investment behaviour of teaching community in the

study region. They considered monthly family income, stage of family life cycle,
and upbringing status emerged as determinants of their savings and investment
behaviour.
 Murithi Suriya (2012) reported that majority of the investors are found to be
considering two or more sources of information to make investment decisions.
The investors discuss with their family and friend before making an investment
decision.
 Mr. K.E. Job (2012) in his article “A Study on Investment Planning with Special
Reference to State Government Officers in Palakkad District” identifies the
relationship between Income and Savings schemes of employees. This study also
analysis the reasons for preferring a particular investment scheme and utilisation
of tax concessions by the employees. The findings of the study are, a. The savings
are made to get regular income in future. b. Profitability, liquidity, safety, tax
concession and appreciation are the main reasons for investments.
 Brooke Harrington (2012) in his study examines the mass movement of

Americans into investing during the 1990s as both a consequence and a cause of
contested power between corporations and individuals. This movement was part
of a larger historical pattern of economically marginalized people consolidating
their power through associational strategies in the realm of finance. Using US
investment clubs as a case study, the chapter draws on Foucault's theories to
illuminate the bilateral power structure of modern capitalism, in which market
institutions and small groups at the grassroots level mutually influence one
another. While the investment club movement was in part a response to economic
domination by corporate and political elites, it also catalyzed genuine shifts in the
power dynamics between individuals and corporations.
 Veeramani G and M. Karthikeyan (2014), opines that previous studies mainly

concentrated on differences in individual investing pattern on the basis of gender
and have been carried out to determine the pattern of institutional investors
investment but studies dealing with Investment pattern of individual investors are

ACADEMICIANS
very few .Earlier studies conclude that women invest more conservatively than
their male counterparts. Their study concentrates on the investment pattern of the
investors in Mutual fund and Life insurance. To know what factors influence
investors while they choose a particular investment ,a particular company and in
which particular scheme they prefer to invest and to find out whether they are
satisfied with their investment decision or not.
 Hood Nofsinger and Varma (2014) examine the factor that influences the
investment decisions of socially responsible investors. The investor feels that
stock owned by individual investors should have social characteristics and
personal values.
 B.Thulasipriya (2015) had conducted the search on investment preference of

government employees on various investment avenues. The employees still
prefers to invest in financial products which give risk free returns.

ACADEMICIANS
Chapter-3
RESEARCH
METHODOLOGY

STATEMENT OF PROBLEM
The global economy went through one of its worst ever recession in the past. Financial
markets across the world have suffered with lack of liquidity to reduce the ill effects of
recession. Coincidentally, it was also the time when proportion of investment and saving also
started growing rapidly. Hence, it is felt appropriate to do research on the investment decision
of academicians. The research process began with a question “Is investment decision of
academicians are same as others?” in a general way. After the initial review of literature, it is
found that people are invest their money in various saving or investment. This prompted the
researcher to conduct an initial survey of academicians in the city of Surat in Gujarat and also
brainstorming session with personal financial planners which revealed that there are
numerous internal and external factors affecting saving and investment decision making. This
entire process led researcher to formulate the final research problem as to study about the
academician’s investor, the factors influencing the saving and investment decision of
academicians and the avenues attracted. So the researcher takes a topic “A Study on saving
and investment pattern of academicians with special reference to Surat city”.
“TITLE OF THE STUDY”

“A Study on saving and investment behavior amongst academicians with special reference to
Surat city”
REVIEWS OF ACADEMICIANS
The academic institutions are categorized into three broad categories, namely,
 University
 Colleges
 Stand-Alone Institutions
A STUDY ON SAVING AND INVESTMENT PATTERN AMONGST ACADEMICIANS
OBJECTIVES OF STUDY
Primary Objective: To evaluate the saving and investment pattern of academicians at Surat
city.
Secondary Objective:
1. To identify the preferred investment avenue of academicians.
2. To know the various investment patterns amongst the academicians.
3. To know which investments have proved to be more beneficial to the academicians.
4. To know the factors influencing the investment decision of academicians.
5. To study the perception of investment amongst academicians.
6. To analyze the awareness of the investment opportunities amongst the academicians
7. To study the satisfaction level of investment through academicians.
8. To study level of risk and return on various investment.
9. To find out various investment avenues selected by the investors.
RESEARCH DESIGN
 Researcher has used descriptive research design.
 As the first step, literatures relevant to the concepts are reviewed then objectives are
formulated and hypotheses are framed. Based on the objectives questionnaire is
formulated for the collection of primary data which is paramount for the study. Primary
data is collected by distributing questionnaire to the sample population. Collected primary
data rigorously analyzed using suitable techniques to obtain true and reliable results
which are interpreted to depict significant findings, offer valid suggestions and draw into
an appropriate conclusion.

DATA COLLECTION METHOD:
Since the present study is an analytical and descriptive type of analysis to survey the factors
influencing academician’s investors and the required data are collected from both the primary
and secondary sources.
The secondary data were collected from various sources such as journals, magazines,
websites and dissertations from libraries of reputed educational institutions.
The primary data which is the centric point of the study is collected through well-defined
questionnaire.
SAMPLING DESIGN
(A) Universe/population
The academicians of the Surat city are the universe of the study.
(B) Sampling techniques
There are several sampling techniques for getting samples from the universe. For this
study Non Probability convenient sampling technique is used to get samples from the
universe. Here from the universe the information about the respondents can be gathered
from different colleges, professionals, private and public colleges etc.
(C) Sample size
The total sampling size of the study is 150 samples.

TOOLS AND TECHNIQUES FOR ANALYSIS
In order to accomplish the objectives of the study, the collected data are classified, grouped
and resented in the forms of tables. These data are thoroughly analyzed using relevant
statistical tools viz, frequency analysis, factor analysis, normality test and kruskal Wallis test
with the help of SPSS and excel packages to generate meaningful results. Results are
interpreted to come out with findings and suggestions. Then conclusion is drawn based on the
findings and suggestion offered in the study.
SIGNIFICANCE OF THE STUDY
The study is quite significant to the target audience, since it tries to analyze various
investment strategies available in the real world. The investors would get to know the risk
exposure necessary to procure full capital gain potential, which can be implemented with
aggressive strategy as and when the opportunity arises.
SCOPE OF THE STUDY
The study mainly concentrates on the analysis of the investment pattern, investor behavior
and risk-return dynamics of investments made by the academicians in Surat. The study tries
to analyze the investment strategies taking into consideration the risk and return parameters.
The study covers different asset classes including equity, debt, real estate, gold, insurance,
shares, debenture etc. The respondent profile is basically academicians or teaching
community at the pre-university, under-graduate and post-graduate, PhD, M.Phil levels.

UTILITY OF THE STUDY
 The study is useful to the investing community for managing their investments and
meeting their financial goal.
 The study is useful to the management and commerce students to understand the
various investment asset classes, investment objectives and risk.
 The study shall also be useful to further researchers to build an investment model for
the investors.
CONTRIBUTION OF THE STUDY
 The study helps in better understanding of the various investment asset classes and
factors that determine the choice of asset classes. The study also tries to understand
the demographic characters like age, gender, annual income, family status, etc and
their impact on the investment pattern.
 One of the most important contributions of the study lies in understanding the
parameters that determine the choice of the asset class. The study also tries to analyze
the risk perception of the investors and its impact on investment pattern. The
significant contribution of the study lies in emphasizing the fact that academicians
need to understand the need, importance and objectives of the investments, so that
they could meet their future needs and plan for their requirement.

LIMITATION OF THE STUDY
The researcher humbly believe that present study will be helpful to all the concerned and be
an addition in the area of study. The limitation of the study are really of the researcher,
particularly time, geographical area and limited size of the sample.
The researcher hopes the present study would open many further area of the research,
particularly financial behavior of the person with reference to financial investment patterns.
The lack of available literature on the area of the study was the major limitations. There are
very few studies carried out in India were on the saving behavior rather than focusing on the
investment and portfolio construction of retail investors. The sampling process and sample
size determination was one major issue for the study though we have tried to select the
sample scientifically using some statistical tool but it was felt during survey that this was one
of the limitations of the study.
The purpose of the study ideally, was to know that how much investor are investing in
different kind of financial product and which type of product, investors prefer to invest; such
an analysis is really a very difficult task as the official data on investment is not easily
available in India. Such as other countries like UK, Netherlands, Japan and European
countries. The lack of secondary database in the area of research was the major limitation of
the studies.
During this survey researcher found that people are not ready to share their personal
information regarding investment and saving and it was felt that the respondent were so many
times not able to quantify most of the physical as well as financial assets. This response
biases can also be considered as one the limitation of the study.

Chapter- 4
DATA
ANALYSIS AND
INTERPRETATION

1. AGE
Age Frequency Percentage

21 - 30 73 49
31 - 40 43 29
41 - 50 27 18
Above 51 7 5
Total 150 100
Age
9%
10%
21 -30
23% 58% 31 - 40
41 - 50
Above 51
INTERPRETATION:
From the above table it is clear that 49% of respondents belonging to the age between 21 –
30, 29% belongs to 31 – 40, 18% belongs to 41 – 50, 5% belongs to 51 and above.
2. GENDER
Gender Frequency Percentage
Male 83 55
Female 67 45
Total 150 100
Gender
45%
55% Male
Female
INTERPRETATION
From the above chart it indicates that from 150 respondents 55% are male and 45% are
female.

3. MARITAL STATUS
Marital Status Frequency Percentage

Married 90 60
Unmarried 57 38
Widow 1 1
Divorced 2 1
Total 150 100
Marital Status
1%
1%
38%
Married
60% Unmarried
Widow
Divorced
INTERPRETATION
From the above chart 60% are married, 38% are unmarried, 1% are widow and 1% are
divorced.

4. EDUCATIONAL QUALIFICATION
Educational Frequency Percentage

Qualification
Under Graduate 51 34
Post Graduate 74 50
Professional 20 13
Others 5 3
Total 150 100
Educational Qualification
3%
13%
34%
Under Graduate
Post Graduate
Professional
50%
Others
INTERPRETATION
From the above chart of 150 respondents 34% are Under graduate, 50% are post graduate,
13% are professional and 3% are others.

5. TYPE OF ORGANISATION
Type of Organization Frequency Percentage
Self-Finance 124 83
Government 21 14
Semi Government 5 3
Total 150 100
Type of Organisation
3%
14%
Self-Finance
Government
83% Semi Government
INTERPRETATION
From the above chart it indicates that 83% respondents are from self finance organization,
14% are from government and 3% are from semi government.

6. RESIDENTIAL/LOCATION
Residential/Location Frequency Percentage
Rural 26 17
Urban 124 83
Total 150 100
Residential /Location
17%
Rural
Urban
83%
INTERPRETATION
From the above chart it indicates that 83% respondents belongs to urban area and 17%
respondents belongs to rural area.

7. WORKING EXPERIENCE
Working Frequency Percentage

Experience
Less than 5 65 44
5 to 10 47 31
10 to 15 29 19
More than 15 9 6
Total 150 100
Working Experience
6%
19%
44%
Less than 5
5 to 10
10 to 15
31% More than 15
INTERPRETATION
From the above chart it indicates that 44% respondents have working experience of less than
5 years, 31% have experience of 5 to 10 years, 19% have 10 to 15 years and 6% have more
than 15 years of experience.

8. MONTHLY INCOME (INDIVIDUAL)
Monthly Income Frequency Percentage

Less than Rs. 10000 22 15
Rs. 10,001 to Rs.30,000 57 38
Rs.30,001 to Rs.50,000 61 41
Above Rs. 50,001 10 7
Total 50 100
Monthly Income (Individual)
7% 15%
Less than Rs. 10000

40% Rs. 10,001 to Rs.30,000
38% Rs.30,001 to Rs.50,000
Above Rs. 50,001
INTERPRETATION
From the above chart it indicates that 15% respondents have income less than Rs. 10000,
38% have income between Rs. 10,001 to Rs. 30,000, 40% have between Rs. 30,001 to
Rs.50,000 and 7% have income above Rs. 50,001.

9. ANNUAL INCOME (FAMILY)
Annual Income (Family) Frequency Percentage

Less than Rs. 10,0000 27 18
Rs.10,0001 to Rs.30,0000 34 23
Rs.30,0001 to Rs.50,0000 48 32
Above Rs. 50,0001 41 27
Total 150 100
Annual Income (Family)
18%
27%
Less than Rs. 10,0000
23% Rs.10,0001 to Rs.30,0000
Rs.30,0001 to Rs.50,0000
32%
Above Rs. 50,0001
INTERPRETATION
From the above chart it indicates that 18% respondents have annual income less than
Rs.100000, 23% have between Rs. 100001 to Rs.300000, 32% have income between Rs.
300001 to Rs.500000 and 27% have income above Rs. 500001.

10.Do you have any other income than employment?
Other Frequency Percentage

Income
Yes 41 27
No 109 73
Total 150 100
Other Income
27%
Yes
No
73%
INTERPRETATION
From the above chart it shows that 27% respondents have other income and 73% respondents
not have any other income.

Q-1 Have you invested your savings so far?
Criteria Frequency Percentage
Yes 125 83
No 25 17
Total 150 100
Invested your savings so far?
17%
Yes
No
83%
INTERPRETATION
From the above chart it shows that 83% respondents have invested their savings and 17%
have not invested their savings.

Q-2 Which of the following avenues have you opted for?
Investment Avenues Frequency Percentage
Post Office Saving 85 15

Schemes (POMIS/PPF)
Insurance 97 17
Shares 63 11
Mutual Funds 61 11
National Saving 29 5
Certificate
Debentures and Bonds 6 1
Real Estate 35 6
Precious Metals 38 7
Derivative 14 2
Commodity 8 1
Systematic Investment 39 7
Planning
Fixed Deposits 99 17
Other 2 0
Total 576 100

Investment Avenues
18%
16%
14%
12%
Percentage
10%
8%
6%
4%
2%
0%
INTERPRETATION
 From the above chart it indicates that 17% maximum respondents invest in Fixed
deposits and Insurance stands at second category in investment by 17%, 15% invest in
post office saving schemes.
 11% respondents invest in shares which stands at first place and 11% invest mutual
funds which stands at second category.
 7% respondents invest in SIP and precious metals such as gold, silver etc.
 6% respondents invest in real estate, 5% invest in NSC, 2% invest in derivatives and
1% in debentures and bonds and 1% in commodity.

Q-3 How frequently you change your investment?
Time Period Frequency Percentage
1 Month 5 3
1 - 6 Month 35 23
6-12 Month 40 27
Above 1 Year 70 47
Total 150 100
How frequently you change your investment?

3%
23%
47%
1 Month
1 - 6 Month
6 - 12 Month
27% Above 1 year
INTERPRETATION
From the above chart it shows that 3% respondents frequently change their investment in 1
month, 23% respondents frequently change in 1 – 6 Months, 27% change their investment in
6 – 12 Months and 47% change their investment above 1 year.

Q-4 What level of risk are you ready to undertake for your
investment avenue?
Level of Risk Frequency Percentage

Less Risk 72 48
Moderate Risk 68 45
High Risk 10 7
Total 150 100
Level of Risk
7%
48%
Less Risk
45% Moderate Risk
HighRisk
INTERPRETATION
From the above chart it indicates that 48% respondents take less risk for investment, 45%
take moderate risk and 7% take high risk.

Q-5 Do you have a formal budget for family expenditure?
Yes 80 53
No 70 47
Total 150 100
Formal Budget
47%
53%
Yes
No
INTERPRETATION
From the above chart it indicates that 53% respondents prepare formal budget and 47% not
prepare budget for family expenditure.

Q-6 Do you have an investment target amount you aim for each
year?
Yes 82 55
No 68 45
Total 150 100
Investment Target Amount
45%
55% Yes
No
INTERPRETATION
From the above chart it indicates 55% respondents have investment target amount and 45%
have no target amount for investment.

Q-7 How often do you monitor your investment?
Daily 9 6
Monthly 41 27
Occasionally 100 67
Total 150 100
Monitor your investment
6%
27%
Daily
Monthly
67%
Occasionally
INTERPRETATION
From the above chart it indicates that 6% respondents daily monitor their investment, 27%
monthly monitor and 67% occasionally monitor their investment.

Q-8 What is the time period you prefer to invest?
Time Period Frequency Percentage
Short term (up to 1Yrs) 23 15
Medium term (2 - 3 yrs) 56 37
Long term (more than 3 yrs) 71 47
Total 150 100
Time Period
15%
48%
Short term (up to 1Yrs)
Medium term (2 - 3 yrs)
37%
Long term (more than 3 yrs)
INTERPRETATION
From the above chart it indicates that 15% respondents invest for short term, 37% invest for
medium term and 48% invest for long term time period.

Q-9 What percentage of your income do you invest?

0 - 15% 48 32
15 - 30% 71 47
31 - 50% 31 21
More than 50% 0 0
Total 150 100
Percentage of income to invest

0%
21%
32%
0 - 15%
15 - 30%
31 - 50%
More than 50%
47%
INTERPRETATION
From the above chart it indicates that 32% respondents invest their 0 – 15% income, 47%
invest their 15 – 30% income and 21% invest their 31 – 50% income.

Q-10 What is your preferred way to invest?
Online 41 27
Offline 109 73
Total 150 100
Ways to invest
27%
Online
Offline
73%
INTERPRETATION
From the above chart it indicates that 73% respondents prefer to invest offline and 27%
prefer to invest online.

Q-11 Before investing your savings, I prefer to collect the

information from:
1-Not preferred 2-Least 3- Neutral 4- Preferred 5-Most
preferred Preferred
Particulars N Minimum Maximum Mean Std. Deviation
Financial Planner 149 1.00 5.00 3.2886 1.11073

Annual Reports 147 1.00 5.00 2.9456 1.16326
Prospectus 147 1.00 5.00 2.8027 1.09569
Co. Website 149 1.00 5.00 3.1879 1.08658
Agents 146 1 5 3.59 1.087
Rating Agencies 145 1.00 5.00 2.8345 1.09299
Co. Representatives 146 1.00 5.00 2.4041 1.15418
Family Members 149 1 5 3.52 1.094
150 1.00 5.00 3.4400 1.07741
Friends & Relative
Conversation with colleagues 147 2.00 5.00 3.6871 .92012

News Paper 149 1.00 5.00 3.9396 .96722
Conversation with co. executive 147 1.00 5.00 3.2177 1.13184
Corporate Forecast 150 .00 5.00 2.9800 1.21219
147 1.00 5.00 3.2109 1.22324
Published Research Reports
Opinions from exiting investors 145 1.00 5.00 3.4966 1.06147

Brokers 148 1.00 6.00 3.8716 .97087
Internet 149 1.00 7.00 3.6913 1.01275
137
Valid N (listwise)

INTERPRETATION
Certified Financial Planner
Here, the researcher can say that, Certified financial investor is neutral sources for collecting
information regarding investment as per the mean value. (i.e. 3.2886)
Annual reports of the company
Here, the researcher can say that, Annual reports of the company is neutral sources for
collecting information regarding investment as per the mean value. (i.e. 2.9456)
Prospectus of the company
Here, the researcher can say that, prospectus of the company is neutral sources for collecting
Company’s Website
Here, the researcher can say that, company’s website is neutral sources for collecting
information regarding investment as per the mean value. (i.e.3.1879)
Distributers/Agents of financial product
Here, the researcher can say that, distributers or agents of financial product is preferred
sources for collecting information regarding investment as per the mean value (i.e. 3.59)
Rating agency reports
Here, the researcher can say that, rating agency reports is least preferred to neutral sources for
collecting information regarding investment as per the mean value. (i.e. 2.8345)
Company’s telephone representatives

Here, the researcher can say that, company’s telephone representatives is least preferred
sources for collecting information regarding investment as per the mean value. (i.e. 2.4041)
Family Members
Here, the researcher can say that, family members is preferred sources for collecting
information regarding investment as per the mean value. (i.e.3.52)
Friends and Relatives
Here, the researcher can say that, friends and relatives is neutral sources for collecting
Conversation/exchanges of views with professional colleagues
Here, the researcher can say that, conversation or exchange of views with professional
colleagues is preferred sources for collecting information regarding investment as per the
mean value (i.e. 3.6871)
Publication in the financial press, news paper and electronic media
Here, the researcher can say that, publication in the financial press, news paper and
electronic media is preferred sources for collecting information regarding investment as per
the mean value (i.e.3.9396)
Conversation/ exchanges of views with company executive and sector experts
Here, the researcher can say that, conversation or exchanges of views with company
executive and sector experts is neutral sources for collecting information regarding
investment as per the mean value (i.e.3.2177)
Corporate forecast prepared by independent investment company
Here, the researcher can say that, corporate forecast prepared by independent investment
company is neutral sources for collecting information regarding investment as per the mean
value (i.e.2.9800)
Published reports from research agencies
Here, the researcher can say that, published reports from research agencies is neutral sources
for collecting information regarding investment as per the mean value (i.e.3.2109)
Opinions from existing investors of various instruments
Here, the researcher can say that, opinions from existing investors of various instruments is
preferred sources for collecting information regarding investment as per the mean value (i.e.
3.4966)
Financial advisors/Broker and analyst’s recommendation
Here, the researcher can say that, financial advisors or broker and analyst’s recommendation
is preferred sources for collecting information regarding investment as per the mean value
(i.e. 3.8716)
Internet
Here, the researcher can say that, internet is preferred sources for collecting information
regarding investment as per the mean value (i.e. 3.6913)

Q-12 Which investment has proved more beneficial to you so far?

(Please write the number in order of preference)
Investment Avenue Frequency Rank
Post Office Saving Schemes 435 2

(POMIS/PPF)
Insurance and Pension Plans 429 1
Shares 728 7
Mutual Funds 641 4
National Saving Certificate 652 5
Debentures and Bonds 837 10
Real Estate 718 6
Precious Metals (Gold & Silver) 766 8
Derivatives 936 11
Commodity 954 12
SIP 810 9
Fixed Deposits 518 3
INTERPRETATION
 From the above table it indicates that, among 150 respondents first rank preference for
investment avenue by respondents prefer to insurance as it has less risk and more
reliable and useful in emergency situations like accidents, contingencies etc.
 Respondents prefer second rank for investment avenue is post office savings schemes
as it has long term investment and has very less risk and give more return as
compared to other avenues.
 Respondents prefer third rank to fixed deposits for investment as it includes very less
risk and high return and more reliable for long term investment.

 Respondents prefer fourth rank to mutual funds for investment as it diversify risk by
creating a group of different securities and create optimal portfolio which gives more
return.
 Respondents prefer fifth rank to national saving certificate and sixth rank to real estate
for investment of long term and NSC is beneficial to old aged people.
 Respondents prefer seventh rank to shares for investment as it had high risk and high
return characteristics so constant analysis of stock market is necessary as prices goes
on changing.
 Respondents prefer eight rank to precious metals like gold and silver for investment
and and ninth rank to systematic investment planning (SIP) and tenth rank to
debentures and bonds.
 Respondents least prefer to derivatives and commodity for investment as it includes

very high risk.

Q-13 Why do you want to invest in the various invest categories?
Purpose N Minimum Maximum Mean Std. Deviation
Liquidity 121 1.00 11.00 5.3967 3.05908

Less transaction 136 1.00 11.00 5.25 3.76091
cost
Regular income 142 1.00 11.00 5.4437 3.81212
Safety 149 1.00 11.00 4.1544 3.24813
Risk protection 143 1.00 11.00 3.7483 3.22068
Less procedure 133 1.00 12.00 5.9098 3.69163
Less maintenance 131 1.00 11.00 5.5954 3.21242
expense
Long term 146 1.00 11.00 5.3836 3.47853
investment
High return 138 1.00 11.00 4.0072 2.63191
Chances for 142 1.00 11.00 4.4296 3.29710
savings
Old Age Security 142 1.00 11.00 3.6479 3.28158
Tax benefit 127 1.00 11.00 4.126 3.12946
Emergency need 131 1.00 11.00 3.4656 3.04403
Child education 138 1.00 11.00 5.2681 4.38900

Purpose Frequency/N Percentage Mode

Liquidity 121 6.305367 3
Less transaction cost 136 7.087024 3
Regular income 142 7.399687 11
Safety 149 7.764461 1
Risk protection 143 7.451798 2
Less procedure 133 6.930693 11
Less maintenance 131 6.826472 3
expense
Long term investment 146 7.608129 1
High return 138 7.191245 3
Chances for savings 142 7.399687 2
Old Age Security 142 7.399687 2
Tax benefit 127 6.61803 1
Emergency need 131 6.826472 2
Child education 138 7.191245 11
Total 1919 100
INTERPRETATION
 From the above table we know that 6.31% invested for the purpose of liquidity and
they invested in shares as shares are easily convertible in cash in emergency.
 Maximum respondents invested for the purpose of safety i.e. 7.76% in post office
saving schemes and second purpose is long term investment i.e. 7.60%.
 7.46% respondents invest for the purpose of risk protection in Insurance and pension
plans.
 7.40% respondents invest for chances for savings and old age security in insurance
and pension plans.
 7.19% respondents invest for purpose for high return and child education in shares
and fixed deposits respectively.
 7.09% respondents invest for the purpose of less transaction cost in shares.

Q-14 What is the average annual rate of return you get from
different types of investment you opt?
1 <=5% 2 5-8% 3 8-10% 4 10-15% 5 16<=%
Investment Avenue N Minimum Maximum Mean Std.

Deviation
Post Office Saving Schemes 138 1.00 5.00 2.2464 0.86126
(POMIS/PPF)
Insurance and Pension Plans 137 1.00 5.00 2.5766 0.82000
Shares 130 1.00 5.00 3.1 1.04807
Mutual Funds 134 1.00 5.00 2.7090 1.03926
National Saving Certificate 119 1.00 5.00 2.6050 1.01027
Debentures and Bonds 113 1.00 5.00 2.3009 1.09287
Real Estate 130 1.00 5.00 2.3615 1.09971
Precious Metals (Gold & 129 1.00 5.00 2.2093 0.92428
Silver)
Derivatives 119 1.00 5.00 1.9328 0.92728
Commodity 116 1.00 5.00 1.9828 0.98672
SIP 126 1.00 5.00 2.6667 0.94657
Fixed Deposits 140 1.00 5.00 3.1357 0.85840
INTERPRETATION
Post Office Saving Schemes
Here, the researcher can say that, post office saving schemes gives 5-8% average annual rate
of return as per the mean value. (i.e. 2.2464)
Insurance and Pension Plans

Here, the researcher can say that, insurance and pension plans gives 8-10% average annual
rate of return as per the mean value. (i.e. 2.5766)

Shares
Here, the researcher can say that, shares gives 8-10% average annual rate of return as per the
mean value. (i.e.3.1)
Mutual Funds
Here, the researcher can say that, mutual funds gives 8-10% average annual rate of return as
per the mean value. (i.e. 2.7090)
National Saving Certificate
Here, the researcher can say that, national saving certificate gives 8-10% average annual rate
of return as per mean value. (i.e. 2.6050)
Debentures and Bonds
Here, the researcher can say that, debentures and bonds give 5-8% average annual rate of
return as per the mean value. (i.e.2.3009)
Real Estate
Here, the researcher can say that, real estate gives 5-8% average annual rate of return as per
the mean value. (i.e.2.3615)
Precious Metals (gold & Silver)
Here, the researcher can say that, precious metals give 5-8% average annual rate of return as
per the mean value. (i.e.2.2093)
Derivatives
Here, the researcher can say that, derivatives give 5-8% average annual rate of return as per
the mean value. (i.e. 1.9328)
Commodity
Here, the researcher can say that, commodity gives 5-8% average annual rate of return as per
the mean value. (i.e.1.9828)
Systematic Investment Planning (SIP)
Here, the researcher can say that, systematic investment planning gives 8-10% average
annual rate of return as per the mean value. (i.e. 2.6667)
Fixed Deposits
Here, the researcher can say that, fixed deposit gives 8-10% average annual rate of return as
per the mean value. (i.e. 3.1357)

Q-15 Before making specific investment decisions, how often do

you do the following?
1-Never 2-Seldom 3-Sometime 4-Often 5-Always
Statement N Minimum Maximum Mean Std.

Deviation
Review overall investment goal 146 1.00 5.00 2.9315 0.9872
Assess your risk tolerance level 149 1.00 5.00 3.4295 0.9246
Determine your return objective for 148 1.00 5.00 3.3514 0.9750
the investment
Consider a variety of investment 146 1.00 5.00 3.3425 0.9573
options?
Check current financial market 148 1.00 5.00 3.4662 1.1513
condition
Talk with family or friends who are 149 1.00 5.00 3.7047 1.0168
knowledgeable about investing?
Consult a financial advisor 148 1.00 5.00 3.5541 1.0254
INTERPRETATION
Review overall investment goal
Here, the researcher can say that, respondents review overall investment goal sometime
before making specific investment decision as per the mean value. (i.e. 2.9315)
Assess risk tolerance level
Here, the researcher can say that, respondents assess risk tolerance level sometime before
making specific investment decision as per the mean value. (i.e. 3.4295)

Determine your return objective for investment
Here, the researcher can say that, respondents determine return objective for investment
sometime to often before making specific investment decision as per the mean value. (i.e.
3.3514)
Consider variety of investment options
Here, the researcher can say that, respondents consider variety of investment options
sometime before making specific investment decision as per the mean value. (i.e.3.3425)
Check current financial market condition
Here, the researcher can say that, respondents check current financial market condition
sometime before making specific investment decision as per the mean value. (i.e. 3.4662)
Talk with family and friends
Here, the researcher can say that, respondents talk with family and friends often before
making specific investment decision as per the mean value. (i.e. 3.7047)
Consult a financial advisor
Here, the researcher can say that, respondents consult a financial advisor often before making
specific investment decision as per the mean value. (i.e.3.5541)

Q-16 (A) State the level of risk and return associated with the
following investments.
1-Very high 2-High 3-Low 4-Very Low
Level of risk
Investment N Minimum Maximum Mean
Post Office Saving Schemes 144 2.00 4.00 3.5417

(POMIS/PPF)
Insurance and Pension Plans 145 1.00 4.00 3.1517
Shares 140 1.00 4.00 1.9857
Mutual Funds 143 1.00 4.00 2.6993
National Saving Certificate 136 1.00 4.00 3.1618
Debentures and Bonds 129 1.00 4.00 2.3101
Real Estate 136 1.00 4.00 2.6103
Precious Metals (Gold & Silver) 139 1.00 4.00 2.7554
Derivatives 131 1.00 4.00 2.2595
Commodity 128 1.00 4.00 2.4375
SIP 132 1.00 4.00 3.1970
Fixed Deposits 142 1.00 4.00 3.6268

Level of return
Investment N Minimum Maximum Mean

Post Office Saving Schemes 145 1.00 4.00 2.2483
(POMIS/PPF)
Insurance and Pension Plans 147 1.00 3.00 2.2381
Shares 139 1.00 4.00 1.8489
Mutual Funds 143 1.00 4.00 2.1888
National Saving Certificate 138 1.00 4.00 2.2246

Debentures and Bonds 132 1.00 4.00 2.2500
Real Estate 138 1.00 4.00 2.4855
Precious Metals (Gold & Silver) 136 1.00 4.00 2.6618
Derivatives 131 1.00 4.00 2.3740
Commodity 131 1.00 4.00 2.5878
SIP 131 1.00 4.00 2.1221

Fixed Deposits 141 1.00 4.00 2.0638
INTERPRETATION
Post Office Saving Schemes (POMIS/KVP/PPF)
Here, the researcher can say that, post office saving schemes have very low level of risk and
level of return is high as per the mean value 3.5417 and 2.2483 respectively.
Insurance and pension plans
Here, the researcher can say that, insurance and pension plans have low level of risk and high
return as per the mean value 3.1517 and 2.2381 respectively.
Shares
Here, the researcher can say that, shares have high level of risk and return as per the mean
value 1.9857 and 1.8489 respectively.

Mutual Funds
Here, the researcher can say that, mutual funds have low level of risk and high return as per
the mean value 2.6993 and 2.1888 respectively.
National Saving Certificates
Here, the researcher can say that, national saving certificate have low level of risk and high
Here, the researcher can say that, debentures and bonds have high level of risk and high
Real Estate
Here, the researcher can say that, real estate have low level of risk and high to low return as
per the mean value 2.6103 and 2.4855 respectively.
Precious Metals (Gold & Silver)
Here, the researcher can say that, precious metals have high to low risk and low return as per
the mean value 2.7554 and 2.6618 respectively.
Derivatives
Here, the researcher can say that, derivatives have high level of risk and return as per the
mean value 2.2595 and 2.3740 respectively.
Commodity
Here, the researcher can say that, commodity have high level of risk and low return as per the
mean value 2.4375 and 2.5878 respectively.

Systematic Investment Planning (SIP)
Here the researcher can say that, systematic investment planning have low level of risk and
high return as per the mean value 3.1970 and 2.1221 respectively.
Fixed Deposits
Here the researcher can say that, fixed deposits have very low level of risk and high return as

Q-16 (B) Factors affecting investment before and after

demonetization:
1-High 2- Moderate 3- Low

Before Demonetization
Factors N Minimum Maximum Mean

Safety 150 1.00 3.00 2.3800
Profitability 147 1.00 3.00 2.2177
Liquidity 138 1.00 3.00 2.4348
Risk 150 1.00 3.00 2.4533
Non Payment Risk 133 1.00 3.00 2.3459
Business Risk 146 1.00 3.00 2.3973
Inflation Risk 145 1.00 3.00 2.2966
Political Risk 142 1.00 3.00 2.2113
Social Risk 142 1.00 3.00 2.2183
Initial Investments 146 1.00 3.00 1.8973
Tax Benefits 149 1.00 3.00 2.0805
After Demonetization
Factors N Minimum Maximum Mean

Safety 150 1.00 3.00 1.6600
Profitability 148 1.00 3.00 2.1689
Liquidity 144 1.00 3.00 2.1111
Risk 148 1.00 3.00 1.9392
Non Payment Risk 140 1.00 3.00 2.0500
Business Risk 145 1.00 3.00 1.8621
Inflation Risk 143 1.00 3.00 1.8811
Political Risk 143 1.00 3.00 1.9161
Social Risk 143 1.00 3.00 1.9650
Initial Investments 146 1.00 3.00 1.8356
Tax Benefits 149 1.00 3.00 2.4430

INTERPRETATION
Safety
Here, the researcher can say that, safety before and after demonetization was moderate and
then high to moderate as per the mean value 2.38 and 1.66 respectively.
Profitability
Here, the researcher can say that, profitability before and after demonetization was moderate
as per the mean value 2.2177 and 2.1689 respectively.
Liquidity
Here, the researcher can say that, liquidity before and after demonetization was moderate as
Risk
Here, the researcher can say that, risk before and after demonetization was moderate and then
high to moderate as per the mean value 2.4533 and 1.9392 respectively.
Non Payment risk
Here, the researcher can say that, non-payment risk before and after demonetization was
moderate as per the mean value 2.3459 and 2.0500 respectively.
Business risk
Here, the researcher can say that, business risk before and after demonetization was moderate
and then high to moderate as per the mean value 2.3973 and 1.8621 respectively.

Inflation risk
Here, the researcher can say that, inflation risk before and after demonetization was moderate
Political risk
Here, the researcher can say that, political risk before and after demonetization was moderate
Social risk
Here, the researcher can say that, social risk before and after demonetization was moderate
Initial Investments
Here, the researcher can say that, initial investments before and after demonetization was
moderate as per the mean value 1.8973 and 1.8356 respectively.
Tax Benefits
Here, the researcher can say that, tax benefits before and after demonetization was moderate

Chapter-5
FINDINGS AND
CONCLUSIONS

1. It has found that the 49% of respondent belonging the age between 21-30, 29% belongs to
31-40, 18% belongs to 41-50, 5% belongs to 51 and above.
2. It was find that 45% are female, while 55% are male.
3. Here 60% respondents are married, 38% are unmarried, 1% are divorced, while 1%
widow.
4. 34% of respondents are under graduate, 50% are post graduate, 13% are professional and
3% are others like ca, law etc.
5. 83% of respondents are from self finance.
6. 17% of respondents are from rural area, while 83% are from urban area.
7. 44% of respondents are experienced from less than 5 years, 31% are experienced from 5-
10 years.
8. 15% have monthly income less than 10000 Rs, while 7% have income above 50001 Rs.
9. 18% have annual income less than 1 lakhs, while 27% have income above 5 lakhs.
10. 27% have other income other than employment while 73% have no other income.
11. 83% invested money for long period, while 17% have not invested money.
12. 17% maximum respondents have invested in fixed deposits and insurance, while 1% have
invested in debenture and bonds and commodity.
13. 47% change their investment for above 1 year, while 3% change their investment after 1
month.
14. 48% of respondents take less risk, while 7% take high risk for investment avenue.
15. 53% have formal budget for family expenditure, while 47% have no formal budget.
16. 55% of respondents have investment target amount, while 45% have no target amount for
investment.
17. 67% of respondents monitor investment occasionally, while 6% monitor investment daily.
18. 47% of respondents prefer to invest for long term period, while 15% invest for short term
period.
19. 32% of respondents invest their 0-15% of income, while 21% invest their 31-50% of
income.
20. 73% of respondents prefer offline to invest, while 27% prefer online to invest.
21. Certified financial investor is neutral sources for collecting information regarding
investment.
22. Distributers or agents of financial product is preferred sources for collecting information
regarding investment.

23. Company’s telephone representatives is least preferred sources for collecting information
regarding investment.
24. First rank preference for investment avenue by respondents prefer to insurance as it has
less risk and more reliable.
25. Respondents prefer second rank for investment avenue is post office savings schemes as
it has long term investment and has very less risk.
26. Respondents least prefer to derivatives and commodity for investment as it includes very
high risk.
27. Maximum respondents invested for the purpose of safety i.e. 7.76% in post office saving
schemes and second purpose is long term investment i.e. 7.60%.
28. Post office saving schemes gives 5-8% average annual rate of return, while insurance and
pension plans gives 8-10% annual rate of return.
29. Respondents assess risk tolerance level and return objective sometime before making
specific investment decision.
30. Post office saving schemes have very low level of risk and level of return is high, while
shares have high level of risk and return.
31. Profitability, safety and liquidity before and after demonetization was moderate.

CONCLUSION
A balanced and disciplined investment plan is a pre-requisite for a sustainable financial

health and should be looked on priority basis in order to achieve personal goals and
objectives with financial implications. The investor needs to focus on asset allocation and
concentrate on selection of right securities and right investment avenue.
The investment goals need to be properly defined and the investor must match the investment
with these pre-defined goals. The goals could be either to receive a regular periodical income
or to build a corpus or a mixture of both. Hence investment pattern should certainly match the
investment goals.
Diversification is the most important key to the scientific and systematic investment plan. As
the old adage goes, “Don’t put all your eggs in one basket”, the investor should not invest
entire money in a certain asset class. He/she should rather put the hard earned money in a
diversified portfolio. At the same time, he should neither over-diversify nor under-diversify.
The right mix of asset classes is the most important step in an investment plan.
The investor should understand the risk-return dynamics of the various asset-classes.
Different assets have different risk attributes and investor should thoroughly analyze these
parameters. Though higher risks yield higher returns, the investor should make sure that
undue risks beyond his capabilities are unwarranted for. Professional assistance could be
sought before investing and thorough research needs to be carried out in this regard.

Chapter-6
SUGGESTIONS

SUGGESTIONS
I would like to give some suggestions to improve the investment pattern and investor
preferences among the working women.
 Financial awareness programs need to be organized by the institutions to enhance the

investment knowledge of the investing community.
 There is a real need to stimulate investing habit amongst the people. This can be done
by initiating various schemes by the Government both at State-level and Central-level
that encourages the investing community to invest a part of their income.
 Investment-cells could be placed to provide various information with regard to
investment avenues, risk-return dynamics, tax-planning, marketability, liquidity,
safety etc.
 Tax planning has to be widened and many more tax-friendly investment avenues must
be included.
 SIP investment must be aggressively promoted, since it enhances savings and
investment culture and acts as an excellent mode of systematic and continuous
investment.
 Investors need to personally appraise, evaluate, understand the investment that he
makes and he should not be just carried away by peer pressure/broker’s advise/media
etc.
 Inflation management should be the priority governance area to the Government.
Lesser inflation more disposable income, which can ultimately be translated into
increased investments. It also helps economy to grow as a whole.

Chapter-7
REFERENCES

Bibliography
BOOKS:
 V.K. Bhalla, Investment Management, S. Chand & Company Ltd., Eleventh Edition,
2004.
 Cooper R. Donald and Pamela S. Schindler (2006). Business Research Methods (9th Ed.).
New Delhi: Tata McGraw Hill Publishing Company Ltd.
ARTICLES:
1. Bhardwaj Rajesh, Raheja Rekh and Priyanka (2011), Analysis Of Income And
Savings Pattern Of Government And Private Senior Secondary School Teachers, Asia
Pacific Journal of Research in Business Management, 2011, Volume : 2, Issue : 9 pp
44-56
2. Dr. Ananthapadhmanabha Achar (2012) ―Saving and Investment Behaviour Of
Teachers - An empirical study, International Journal of Physical and Social Sciences,
August 2012, pp 263-286
3. Dr. Dhiraj Jain and Parul Jain (2012) Savings and Investment Pattern of School
Teachers -a study with reference to Udaipur District, Rajasthan, International Journal
Of Research In Commerce, Economics and Management, Volume no. 2 (2012), Issue
no. 6 (JUNE 2012)
WEBSITES:
 www.indianjournals.com
 (http://en.wikipedia.org/wiki/Warren_Buffett
 www.icmrr.org
 www.researchgate.net
 www.ijsr.net
 www.indiamoney.com
 www.business-standard.com
 www.indiatimes.economictimes.com
 www.nseindia.com

APPENDIX
QUESTIONNAIRE
“A STUDY ON SAVING AND INVESTMENT PATTERN OF ACADEMICIAN WITH
SPECIAL REFERENCE TO SURAT CITY”
Demographic Profile:
1. Name :__________________________
2. Name of Organization :__________________________
3. Designation :__________________________
4. Age : a) 21 – 30 Yrs. b) 31 – 40 Yrs. c) 41 – 50 Yrs. d) Above 51Yrs
5. Gender: 1. Male 2. Female
6. Marital Status: 1. Married 2. Unmarried 3. Widow 4.Divorced
7. Educational qualification : a) UG b) PG c) Professional d) Others
8. Type of Organization : 1. Self-Finance 2.Government 3.Semi Government
9. Residential/Location : 1. Rural 2. Urban
10. Working Experience(Year): a) Less than 5 b) 5 – 10 c) 10 – 15 d) More than
15
11. Monthly Income (Individual): (Rs.)
1) Less than Rs.10, 000 2) Rs.10, 001 to Rs.30, 000
3) Rs.30, 001 to Rs.50, 000 4) above Rs.50, 001
12. Annual Income (Family): (Rs.)
1) Less than Rs.100000 2) Rs.100001 to Rs.300000
3) Rs.300001 to Rs.500000 4) above Rs.500001
13. Do you have any other income other than employment?
1) Yes 2) No
1. Have you invested your savings so far? 1) Yes 2) No

2. Which of the following avenues have you opted for?

Post Office Saving Schemes Real Estate
(POMIS/NSC/KVP/PPF etc.) Precious Metals (Gold & Silver)
Insurance and Pension Plans derivatives
Shares commodity
Mutual Funds SIP
National Saving Certificates/KVP Fixed deposits
Debentures and Bonds other ______________
3. How frequently you change your investment?

1. 1 Month 2.1-6 Months 3. 6-12 months 4.above 1 Year
4. What level of risk are you ready to undertake for your investment avenue?
1) Less Risk 2) Moderate Risk 3) High Risk
5. Do you have a formal budget for family expenditure?
1) Yes 2) No
6. Do you have an investment target amount you aim for each year?
1) Yes 2) No
7. How often do you monitor your investment?
1) Daily 2) Monthly 3) Occasionally
8. What is the time period you prefer to invest?
1) Short term (up to 1Yrs) 2) Medium term(2-3 yrs) 3) Long term
(more than 3 Yrs.)
9. What percentage of your income do you invest?
1) 0-15% 2) 15-30% 3)31-50% 4) More than 50%
10. What is your preferred way to invest
1) Online 2) offline

11. Before investing your savings, I prefer to collect the information from:
1 – Not Preferred 2 – Least Preferred 3 – Neutral 4 – Preferred 5 – Most Preferred

Particulars NP LP N P MP
1. Certified Financial Planner
2. Annual reports of the company
3. Prospectus of a company
4. Company’s website
5. Distributers/agents of financial product
6. Rating agencies reports
7. Company’s telephone
representatives
8. Family members
9. Friends and relatives
10. Conversation/exchanges of views with
professional colleagues
11. Publication in the financial press, news
papers & electronic media
12. Conversation/ exchanges of views with
company executive and sector experts
13. Corporate forecast prepared by
independent investment company
14. Published reports from research
agencies
15. Opinions from existing investors of
various instruments
16. Financial advisors/Broker and analyst’s
recommendation
17. Internet

12. Which investment has proved more beneficial to you so far? (Please write the number in
order of preference)
Sr. No. Investment Avenue Rank
1. Post Office Saving Schemes (POMIS/NSC/KVP/PPF etc.)
2. Insurance and Pension Plans
3. Shares
4. Mutual funds
5. National Slaving Certificates/KVP
6. Debentures and Bonds
7. Real Estate
8. Precious Metals (Gold & Silver)
9. Derivatives
10. Commodity
11. SIP
12. Fixed deposits
13. Why do you want to invest in the various invest categories?

Post Office
Metals (Gold
and Pension
Real Estate
C/KVP/PPF
(POMIS/NS
Fix deposits
Commodity
Insurance
Debentures
Derivatives
& Silver)
Precious
and Bonds
Mutual
Plans
funds
Schemes
Purpose/motive
Shares
Saving
etc.)
SIP
Liquidity
Less transaction
Cost
Regular income
Safety
Risk Protection
Less Procedure
Less Maintenance
Expenses
Long term investment
High Return
Chances for
Savings
Old Age Security
Tax Benefit
Emergency need
Child education

14. What is the average annual rate of return you get from different types of investment you
opt?
Sr. No. Investment Avenue <=5% 5-8% 8-10% 10-15% 16 <= %
1. Post Office Saving Schemes
(POMIS/NSC/KVP/PPF etc.)
2. Insurance and Pension Plans
3. Shares
4. Mutual funds
5. National Slaving Certificates/KVP
6. Debentures and Bonds
7. Real Estate
8. Precious Metals (Gold & Silver)
9. Derivatives
10. Commodity
11. SIP
12. Fix deposits
15. Before making specific Investment decisions, how often do you do the following?
Sr. No. Statement Never Seldom Sometime Often Always
1 Review your overall investment goals?
2 Assess your risk tolerance level?
3 determine your return objective for the
Investment
4 Consider a variety of investment options?
5 Check the current financial market
condition?
6 Talk with family or friends who are
Knowledgeable about investing?
7 Consult a financial advisor?

16. State the level of risk and return associated with the following investments.
Level of Risk Level of Return
Very Very Investment Very Very

High Low High Low
High Low High Low
Post Office Saving
Schemes
(POMIS/NSC/KVP/PPF
etc.)
Insurance and Pension
Plans
Shares
Mutual funds
National Slaving
Certificates/KVP
Real Estate
Precious Metals (Gold &
Silver)
Derivatives
Commodity
SIP
Fix deposits
FACTORS AFFECTING INVESTMENT BEFORE AND AFTER

DEMONETIZATION:
Before Demonetarization After Demonetarization
Factor
High Moderate Low High Moderate Low
Safety
Profitability
Liquidity
Risks
Non Payment Risk
Business Risk
Inflation Risk
Political Risk
Social Risks
Initial Investments
Tax Benefits

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A

ACADEMIC YEAR 2017-2018

T.Y.B.B.A (6TH SEM)

BHAGWAN MAHAVIR COLLEGE OF BUSINESS ADMINISTRATION Page 2

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Investment is an acquisition of a financial product or other item of value with an

There is a plethora of investment avenues; each associated with varied risk-return

BHAGWAN MAHAVIR COLLEGE OF BUSINESS ADMINISTRATION Page 4

Teaching Community is busy with their own assignments of teaching, examinations,

The respondent profile is basically academicians or teaching community at the pre-

BHAGWAN MAHAVIR COLLEGE OF BUSINESS ADMINISTRATION Page 5

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Ch No. Topic Page No

4. Data Analysis and Interpretations 42

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 Which of the following avenues you opted? 54

5. Findings & Conclusions 84

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BHAGWAN MAHAVIR COLLEGE OF BUSINESS ADMINISTRATION Page 9

GLOBAL INVESTMENT SCENARIO

BHAGWAN MAHAVIR COLLEGE OF BUSINESS ADMINISTRATION Page 10

INVESTMENT SCENARIO IN INDIA

Foreign Direct Investment (FDI) and globalization is considered as an integral part of

BHAGWAN MAHAVIR COLLEGE OF BUSINESS ADMINISTRATION Page 11

STATUS OF WOMEN IN INDIA

BHAGWAN MAHAVIR COLLEGE OF BUSINESS ADMINISTRATION Page 12

FACTORS INFLUENCING INVESTMENT DECISION

Personal investment is affected by the level of knowledge, an individual investor

The success of every investment decision has become increasingly important in

lf the management is progressive and has an aggressively marketing and growth

BHAGWAN MAHAVIR COLLEGE OF BUSINESS ADMINISTRATION Page 13

In contrast, in industries such as chemicals and electronics, a firm cannot survive, if it

Competitors’ strategy regarding capital investment exerts significant influence on the

3. Opportunities created by technological change

Disposal ratio = (Salvage value, Alternative use value) / Installed cost

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Tax concessions either on new investment incomes or investment allowance allowed

6. Cash flow Budget

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SAVINGS AND INVESTMENT PATTERN OF WOMEN

Income minus expenditure is equal to Savings. In today’s rapidly changing financial

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It indicates the choice of preferences in their investment in different assets. The

BHAGWAN MAHAVIR COLLEGE OF BUSINESS ADMINISTRATION Page 17

Women investor’s preferences are showing the willingness to invest in a particular or

REASON FOR INCREASING POPULARITY OF

 Increasing working population, larger family incomes and consequent higher

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NEED FOR THE INVESTMENT

BHAGWAN MAHAVIR COLLEGE OF BUSINESS ADMINISTRATION Page 19

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 To minimize the risk

NEEDS OF WEALTHY INVESTORS

Wealthy investors being aware of the emerging investment opportunities use

 Leveraging on the professional advisors‟ capability to analyse market trends

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(1) For Economic Development

The future is an unpredictable one, so in order to get the future requirements of

BHAGWAN MAHAVIR COLLEGE OF BUSINESS ADMINISTRATION Page 22

(4)For The Bankers

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AVAILABLE INVESTMENT OPTIONS

(2)Bank Fixed Deposit

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