INVESTMENT PRACTICES OF YOUNG PROFESSIONALS

A Research Presented to the Faculty of the College of

Accountancy and Business Administration
Urdaneta City University

In Partial Fulfilment of the Requirements for the Degree

Bachelor of Science in Business Administration
Major in Financial Management

By

Neil Patrick V. Solis

Jassmine Joy T. Navarro
Jomark C. Lopez
Edna B. Valera

May 2019
 APPROVAL SHEET

This is to certify that this research entitled “INVESTMENT PRACTICES

OF YOUNG PROFESSIONALS”, prepared and submitted by Neil Patrick V. Solis,

Jassmine Joy T. Navarro, Jomark C. Lopez, Edna B. Valera, was successfully

defended and approved on May 18, 2019 with a final rating of 89.52%.

JOCELYN R. MIRANDA NOEL C. RAMIREZ, MBA

Critic Reader Statistician

JOHN CHRISTOPHER V. GARCES, MBA

Adviser

VIRGINIA L. BONGOLAN M.A.ED. LADI GEORGE L. GASCON, MDM

Panel Member Panel Member

JOCELYN V. ESPINO, M.A.ED.

External Panel

LINDBERGH LENDL S. SORIANO, CPA

Chairman

This research is hereby accepted in partial fulfillment of the course

requirement in Financial Research 2 for the degree of Bachelor of Science in

Business Administration major in Financial Management.

REMEDIOS A. PALAGANAS, CPA, MBA

Dean, College of Accountancy and Business Administration

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 ACKNOWLEDGEMENT

The researchers would like to express their deepest gratitude and sincerest

appreciation to the following on making this study success:

Lindbergh Lendl S. Soriano, CPA, Chairman – Panel of Evaluators, for his

constructive criticism, corrections and suggestions in order to improve the study;

Jocelyn V. Espino, M.A. Ed., External - Panel of Evaluators, for sharing her

ideas, motivation, inspiration, and for encouraging the researchers to finish the

study.

Virginia L. Bongolan, M.A. Ed., Member – Panel of Evaluators, during the

defense, for suggesting improvements and encouraging the researchers;

Ladi George L. Gascon, MDM, Member – Panel of Evaluators, during the

defense, for correcting and suggesting for the improvement of the study;

John Christopher V. Garces, MBA, Research Adviser, for sharing, inspiring

and guiding the researchers on conducting this study;

Noel C. Ramirez, MBA, Statistician, for sharing his knowledge in statistics;

Jocelyn R. Miranda, Critic Reader, for improving the grammar, concision of

words and for reviewing the manuscript;

Arly N. Visperas, DBA, research validator, for sharing his expertise in

validating the questionnaire and suggesting for the improvement of this study

despite of his hectic schedules;

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 Richard R. Murao, MBA, research validator, for checking the questionnaire

and suggesting for the improvement of this study;

Ryma Donna S. Milar, MA.COMM.ARTS, research validator, for validating

the questionnaire and checking every used term to improve this study;

Antonio A. Velicaria Jr. BPLO Chief, Head of Business Permit and

Licensing Office, for giving the list of banks located in Urdaneta City, Pangasinan;

To their loving Parents, for their support during the difficult times that the

researchers encountered during the conduct of study;

Remedios A. Palaganas, CPA, MBA, Dean of College of Accountancy and

Business Administration, for her suggestions and improving the study through her

good insights;

To researchers’ friends, classmates and other people for giving their

support and moral advises to encourage the researchers;

Above all, to the Almighty God, for giving them guidance, faith, strength,

peace of mind, wisdom and endurance to accomplish the task despite the

hindrance that they encounter on their study.

N.P.V.S
J.J.T.N
E.B.V
J.C.L

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 DEDICATION

The researchers would like to dedicate this piece of work, first and especially to

our Heavenly Father for His unending grace and shower of blessings, to their

beloved parents,

Mr. and Mrs. Edgardo A. Solis

Mr. and Mrs. Pedro R. Navarro

Mr. and Mrs. Edwin C. Valera

Mr. and Mrs. Marlo B. Lopez

Who patiently shows their love, support, guidance and services

as an inspiration to overcome those difficulties and finishing

this research work; and to their professors and

advisers, who give instruction and advice

and to have faith in God, and

also to those people who

had contributed their

time and effort.

Edna
Jomark
Neil Patrick
Jassmine Joy

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 TABLE OF CONTENTS
Page

TITLE PAGE i

APPROVAL SHEET ii

ACKNOWLEDGEMENT iii

DEDICATION v

TABLE OF CONTENTS vi

LIST OF TABLES ix

LIST OF FIGURE x

ABSTRACT xi

Chapter

1 THE PROBLEM

Background of the Study 1

Statement of the Problem 4

Assumptions of the Study 5

Significance of the Study 5

Scope and Delimitation of the Study 6

Definition of Terms 7

2 REVIEW OF RELATED LITERATURE AND STUDIES

Foreign Literature 8

Local Literature 13

Foreign Studies 14

Local Studies 30

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 Synthesis of the Study 32

Theoretical Framework 35

Conceptual Framework 36

Conceptual Paradigm 38

3 RESEARCH METHODOLOGY 39

Research Design 39

Subject of the Study and Sampling Scheme 40

Data Gathering Instrument 40

Collection of Data 40

Statistical Treatment of Data 41

4 PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA 43

5 SUMMARY, CONCLUSIONS AND RECOMMENDATIONS 59

Summary 59

Salient Findings 60

Conclusions 61

Recommendations 62

BIBLIOGRAPHY 65

APPENDICES 70

A LETTER TO THE PROGRAM HEAD 71

B LETTER TO THE ADVISER 72

2

C LETTER TO THE CRITIC READER 73

D LETTER TO THE STATISTICIAN 74

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 E LETTER TO THE VALIDATOR 75
RYMA S. MILAR, MA.Comm.Arts.

F LETTER TO THE VALIDATOR 76

RICHARD D. MURAO, MBA

G LETTER TO THE VALIDATOR 77

ARLY N. VISPERAS, DBA

H LETTER TO THE BPLO 78

I LETTER TO THE RESPONDENTS 79

J VALIDATION SHEET 80

K RESULT OF THE VALIDITY TEST OF INSTRUMENTS 81

L QUESTIONNAIRE 82

M OFFICIAL RECEIPT OF THE PANEL FEE 86

N DEFENSE SCHEDULE APPLICATION 87

O RATING OF RESEARCH PROPOSAL 88

DOCUMENTATIONS 89

CURRICULUM VITAE 92

Lopez, Jomark C. 93

Navarro, Jassmine Joy T. 94

Solis, Neil Patrick V. 95

Valera, Edna B. 96

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 LIST OF FIGURE

Figure Page

1 Conceptual Paradigm 38

ix
 LIST OF TABLES

Table Page

1 Respondents’ Profile in terms of Age, Sex, Civil Status, 44

Highest Educational Attainment, and Position
2 Respondents’ Profile in terms of Employment Status, Monthly 46
Salary, Type of Bank, and Sources of Investment Decision
3 Investment Practices of Young Professionals in terms of 48
Savings
4 Investment Practices of Young Professionals in terms of 50
Investing
5 Investment Practices of Young Professionals in Risk 52
Tolerance
6 Respondents’ Overall Assessments on their Practices 55

7 Proposed Tactical Plan to Improve the Investment 57

Practices of Young Professionals

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 ABSTRACT

Name of Researchers: Neil Patrick V. Solis

Jassmine Joy T. Navarro
Jomark C. Lopez
Edna B. Valera

Name and Address of Institutions: Urdaneta City University

San Vicente West,
Urdaneta City, Pangasinan,
2428 Philippines

Course: Bachelor of Science in Business

Administration major in
Financial Management

Semester and School year: Second Semester S.Y.

2018-2019

Name of Adviser: John Christopher V. Garces

Title of Thesis: Investment Practices of Young

Professionals

Key Terms: Banks, Financial Management,

Risk Tolerance, Investment
Practices, Liquid Investment

This study determined the investment practices of young professionals in

Urdaneta City. Specifically, this study sought to answer 1) the profile of the

respondents in terms of age, sex, civil status, highest educational attainment,

position, employment status, monthly salary, type of bank, sources of investment

decisions and types of investment; 2) what are the practices of young

professionals in terms of saving, investing and risk tolerance; 3) what plan can be

proposed to increase the knowledge and awareness of the young professionals.

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 Based from the gathered data from the respondents, the following are the

salient findings: 1) Most of the respondents are females; majority of them are

between 21-23 years old; most of the respondents are single, majority of the

respondents have bachelor’s degree; most of the respondents are employed,

majority of the respondents are permanent on their employment; most of them

earn below P21,000 per month; majority of them are working on a private bank;

and most of the respondents look through internet for their sources of investment

decision. 2) The findings of the study when it comes to investment practices of

young professionals regarding saving can be described “Practiced” wherein the

highest rank was interpreted as “Practiced” with regards to budgeting their

allowances and salaries. These findings stated that young professionals in

Urdaneta City University are really aware on their future in the financial aspect. In

investing, the Grand Overall Weighted mean was 2.50 with a descriptive

equivalent of “Moderately Practiced”. This indicates that the investing practices of

young professionals in terms of investing is “Moderately Practiced”. The highest

rank was interpreted as “Moderately Practiced” when it comes to the

purchasing liquid investments. In risk tolerance, the Grand Overall Weighted Mean

was 3.32 interpreted as “Moderately Practiced”. The highest rank which was

interpreted as “Practiced” pertains the practice of examining first the investment if

it has a potential to earn a favourable income before making decision by the

young professionals.

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 Based on the findings and conclusion of the study, the following

recommendations are presented for considerations: 1) Results revealed that

majority of the respondents are literate in the concept of saving and investing,

there are still number of respondents who have sufficient knowledge regarding

financial ideas, therefore, trainings and seminars designed to enhance young

professional’s financial knowledge. Financial literacy should be included in the

goals of the training and development program for young professionals. 2) A well

prepared budget plan for allocation of allowances and salaries are needed. 3)

They should learn more about the different investment instruments and what are

the risks involved on such different investments as shown in the top problem that

hinders them to invest more. The internet can help to learn more about investing.

One of the best ways to learn about investing is the use of internet, you can

develop your skills where your mistakes won’t cost you. 4) Track their expenses

and decide exactly how much to allocate to each expenses. 5) Ask for Expert

Advice. Talking to an experienced advisor can help people understand how to

budget and save. 6) Utilize your network to help you achieve your goals. 7) Invest

more on financial education. 8) Invest in a mutual funds. A fund manager that is

an expert in investing will be the one that will invest your money to different types

of financial instruments.

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