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Analysis of Investment Pattern of Different Class of People: A Review

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DOI: 10.21088/jswm.0975.0231.11219.10

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Original Article Journal of Social Welfare and Management
Volume 11 Number 2 (Special Issue), April - June 2019
DOI: http://dx.doi.org/10.21088/jswm.0975.0231.11219.10

Analysis of Investment Pattern of Different Class of People: A Review

Abhinandan1, Aiman AL-Asbahi2, Ebrahim Al-Gamal3

How to cite this article:

Abhinandan, Aiman Alasbahi, Ebrahim. Analysis of Investment Pattern of Different Class of People: A Review. J Soc Welfare
Manag. 2019;11(2):135-140.

Abstract

In India, investors have a lot of investment avenues to invest their savings. The risk and returns involved in each
of these investment avenues differ from one to another. The investors are ready to invest after evaluating the main
features of investments such as security of principal amount, liquidity, income stability, easy transferability, etc.
Shares, bank, gold and silver, life insurance, postal savings, etc. are the available investment avenues. This paper
tries to review the investment pattern of different class of people based on previous research. This paper focus on
investment pattern of working women, salaried employees and teachers. Data were collected various journals,
websites and research articles.
Keywords: Investment pattern; Working women; Salaried employees; Teachers.

Introduction future reward. Investment entails arriving at

Investment is employment of funds with the
aim of the achieving additional income growth in
value. The essential qualities of and investment are
that it involves waiting for a reward. It involves the
commitment of resources, which have been saved
or put away from current consumption in the hope
that some benets will accrue in future. Investment
is the allocation of monetary resources to assets that
are expected to yield some gain or positive return
over a given period of time. Investment is the
sacrice of certain present values for the uncertain
Author’s Affiliation: 1-3Research Scholar, Departement of
Commerce, Mangalore University, Karnataka 574199, India.
Coressponding Author: Abhinandan, Research Scholar,
Departement of Commerce, Mangalore University, Karnataka
574199, India.
E-mail: ebrahimalgamal@gmail.com
numerous decisions relating to type, mix, amount,
timing and grading of investment. An investment
decision is a trade off between risk and return.
All investment choices are made in accordance with
the personal investment ends and in contemplation
of an uncertain future. Investments are both
important and useful in the context of present day
condition.
Different class of People
This paper explains investment pattern of
different class of people. These classes of people
are identied based on previous research. Here
researcher selected different class of people on
whom research conducted in previous research.
They may differ from their gender, domicile,
professions or other factors. This paper reviews the
investment pattern of working women, households,
rural people, salaried employees, Teachers and
other class of people.

© Red Flower Publication Pvt. Ltd.

136 Abhinandan, Aiman AL-Asbahi, Ebrahim Al-Gamal
Objective of the Study
• To review the investment pattern
different class of people.
• To give major ndings in investment
pattern of different class of people.
• To give conclusion based on research.
Review of literature
Investment pattern of Working women
• Schmidt & Sevak, (2006) studies on the
Women’s investment suggest that has
women’s investment volume has historically
been lower than men’s for several reasons,
including socio – cultural and various
demographic concerns. However the
differences continue to be signicant
even after controlling for individual
Characteristics.
• D. Julie R. Agnew, (2003) suggested through
their research that there is substantiation
proving Women to be more risk averse
then men in general and this means that
women would invest in less risky assets in
their investment plans. Also, the differences
in nancial literacy between men and
women may also explain differences in their
investment decisions. There is some research
on individual investors.
• Vasagadekar Priya (2014) examined that
women working in various industrial
sector in Pune. The investment habits,
the role in investment decision making,
preferable investment avenues and risk
bearing capacity are studied. It is clear from
this study; women generally prefer to invest
in safe investment avenues like Post Ofce
savings scheme and xed deposits in banks.
• Singh Balwinder, Ms. Sharma Ruchika (2011)
studied the investment pattern of working
women and the factors responsible for
investment behaviour of married and
unmarried working women and found
that working women rank basic savings
purpose to be the foremost consideration
while investing. The facility to encase the
investments whenever required is also an
important objective while deciding to invest.
• According to Prof. Priya Vasagadekar’s (2014)
research on working women she conclude
Journal of Social Welfare and Management / Volume 11 Number 2 (Special Issue)/ April - June 2019
that because of high level education, today’s
women are getting the best job offers with
of high take home pay packages. It has become
the present day need for working women in
India to increase their wealth. As most of
the women are low in nancial literacy, it
becomes hardly possible for them to manage
their portfolios on their own. Also the risk
bearing capacity of working women in India
is low. This is due to lack of sound nancial
knowledge.
Investment pattern of Households
• C. K. Osondu et al. (2015) studied that
household’s reserves play an signicant part
in the economic progress of both developed
and developing nations, owing to its
noteworthy inuence on the globular ow of
earnings in the nancial system.
• Stefan Hochguertel et al. (1997) studied
Netherlands households’ portfolio allocation
and found that income, education, and tax
have positive impact on the proportion of
nancial wealth held in risky assets, while
age had a hump relationship.
• Luigi Guiso and Tullio Jappelli (1999) studied
the of 8000 Italian households and found
that wealth, college education and index of
nancial information had signicant effect
on the risky assets ownership and share in
their portfolio, while age showed a hump
shaped prole.
• Rob Alessie et al. (1999) studied the household
portfolio heterogeneity and found that non-
capital income, total net worth, interest
on nancial matters; employment status
had positive impact on the ownership of
different asset classes. Household size was
found to have a negative impact, while age
followed a hump shaped prole.
• Rajarajan (1999) studied Chennai investors
and found that life cycle stage of individual
investors is an important variable in
determining the size of the investments in
assets and the of nancial
category.
• SEBI-NCAER (2000) study found that
households’ investment in Shares &
Debentures and in Mutual Funds ranges
from 7% to 9%. Majority of the Equity
investor households portfolio was found
to be undiversied and of relatively small
value of less than Rs. 25000. It also found
 Analysis of Investment Pattern of Different Class of People: A Review
that one set of households, in spite of their
lower income & lower penetration level of
consumer durables, are in the securities
market, while another set of household with
higher income and higher penetration
level of consumer durables do not have
investments in securities market.
Investment pattern of rural people
• Kapil Kapoor (2016) research conducted to nd
out the investment pattern of rural and urban
investors regarding various investment
alternatives. Researcher examined the
attitude of rural and urban investors
towards different investment avenues.
Investors irrespective to the area to which
they belong, are very much inclined towards
the investment in real estate. Investors
believe that there may be uctuations or
ups and downs in the investment amount
due to change in economic scenario but the
real estate always shows an upward trend.
Villagers were inclined towards purchasing
agricultural farms. Many prefer to purchase
plots and ats in urban areas. This research
concluded that investors whether belonging
to rural areas or urban areas should look in
all avenues while investing their funds. Some
investments are risky and some are not,
so as per the age of investors they should
decide about risky or less risky investments.
• J. Amudha, V. Aravamudhan Varathan (May
2015) this study analyzed the determinants
and patterns of saving behaviour in
rural household of Salem. The saving
determinants are analyzed empirically by a
linear regression method. The income, level
of expenditure, consumption pattern and
saving behaviour is taken as the criteria for
depicting the samples. The study found that
the savings does not depend upon income
alone rather on the consumption pattern
of the individuals also. Income grows the
population is encouraged to save and the
dis-saving occurs with the old generation as
due to no or less income.
• T. Maheswari (2016) research conducted on
savings and investment behaviour of rural
households. The study reveals that only 19%
of the respondent’s investments in physical
assets and remaining 81% of the respondents
invested in low risk nancial assets of bank
deposits, post ofce saving scheme, life
insurance etc and no respondents invested
Journal of Social Welfare and Management / Volume 11 Number 2 (Special Issue)/ April - June 2019
137
in shares, debentures, bonds, mutual fund
and government securities even if the
respondents are highly educated. Those who
had an income of more than Rs.30,000 also
invested in bank deposits. Rural investors are
not well educated, not well employed, lower
income, risk perception, lack of awareness on
new schemes and opportunities in nancial
assets leads to reduce the investments in
higher risk nancial assets.
• Haruni Jeremia Mapesa (2015) conducted
research on shaping the saving behaviour of
the rural poor: Experiences of rural nance
programme in Tanzania. The study also
aimed at understanding the determinants
of savings/investments in nancial assets
offered by micronance. The study was
conducted in Iringa Region of Tanzania, and
involved 210 small holder farmers. Results
show that rural nance programs have
signicantly managed to mobilize savings
of rural farm households. Results suggest
that household access to MFIs has a positive
and signicant impact on nancial savings
of farm household and also shows that rural
farm households are able to save/invest in
nancial assets (Deposits, shares and other
securities).
• Dr. Elangbam Nixon Singh (2011) analyzed
rural saving and its investment in Manipur
and he tried to identify some of the important
issues relating to the formal nance. The
study reveals that almost everybody is of the
opinion that formal mechanism for savings
and investment shall be expanded to all the
rural masses for a better climate conditions
for saving and investment.
Investment pattern of Salaried Employees other than
Teacher
• V.R. Palanivelu & K. Chandrakumar (2013)
highlights that certain factors of salaried
employees like education level, awareness
about the current nancial system, age of
investors etc. make signicant impact while
deciding the investment avenues.
• V.R. Palanivelu & K. Chandrakumar (2013)
studied the investment preferences of
salaried class in Namakkal Taluk, Tamil
Nadu. It highlight’s that certain factors
like age, educational level, knowledge about
nancial system affect the decision regarding
the choice of investment avenues.
138 Abhinandan, Aiman AL-Asbahi, Ebrahim Al-Gamal
• Somasundaram (1998) had conducted
the research to evaluate the saving and
investment pattern of salaried people in
Coimbatore District. He found that chit
funds and bank deposits were the most
excellent known modes of saving amidst
investors. At the same time, UTI schemes
and plantation schemes are least branded
modes. Investor’s attitudes were highly
positive and depicted their objective to save
for their potential requirements.
• Pandiyan & Aranganathan (2012) studied that
Saving and investment are made by different
types of investors. The study described the
attitude of the salaried person towards
investments. Investment is very important
factor in the economic development of any
country. The salaried person needs security
and guaranty of the investments he made out
of his salary. Many new salaried people make
wrong decision regarding their investments.
The need appropriate guidelines for the
proper investments. Government should use
proper measure to assure the investments
and increase the saving habits among
salaried persons.
Investment Pattern of Teachers
• Dr. S. Mathivannan and Dr. M. Selvakumar
(2011) conducted research on Saving And
Investment Pattern Of School Teaches – A
Study With Reference To Sivakasi Taluka,”
Tamil Nadu. They noticed in their research
is that the teaching community has stated
realizing the importance of money and
money‘s worth. They are initiated to prepare
a budget for the proposed expenses and
compare it with the actual expenses met by
them, so that they are not inuence by other
tempting and fashionable expenses.
• Dr. Dhiraj Jain and Parul Jain (2012) examine
―savings and investment pattern of school
teachers -a study with reference to Udaipur
District, Rajasthan. The study concluded that
in today‘s world money play vital role in
one’s life and that the importance of money
has been started being recognized by the
school teacher’s community. They know the
importance of money so they are initiated
themselves to prepare the budget and lessen
down their expenses to meet the future
consequences. It has been evident from
the study that most of the school teachers
are saving their money for the purpose of
Journal of Social Welfare and Management / Volume 11 Number 2 (Special Issue)/ April - June 2019
their children’s education, marriage and as
security after retirement.
• Dr. Anathapadhmanabha Achar (2012) research
focused on the savings and investment
patterns of primary, high school, college
and university teachers in Udupi district of
Karnataka State. The savings and investment
act of teaching population is determined by
the distinctiveness such as age, gender, life
style and marital status.
• Dr. Varsha Virani (2012) propounded in her
study on savings and investment model
of school teachers in Gujarat in which
data is collected from 100 school teachers
and conducted that a large amount of the
school teachers are saving funds as bank
deposits and government securities as their
investment preference.
Investment pattern of General People (Other category
of peoples other than above classes of people)
• Gaurav Kabra (2010) concluded that the
modern investor is a mature and adequately
groomed person. In spite of the phenomenal
growth in the security market and quality
Initial Public Offerings (IPOs) in the market,
the individual investors prefer investments
accordingly which again depends on the
investors’ demographic characteristics.
Hence, it becomes very vital to assess and
understand the investor.
• Kasilingam and Jayapal (2010) called attention
to that the decision of individual investors
is inuenced by family income, timing of
investment and savings motives.
• Keshvan, Chidambaram and Ramchandran
(2012) noticed that age, gender, educational
qualication, occupation and annual income
do not inuence the type of investment
avenues. It is to be noticed that very little
research contemplates have been led on the
mindfulness level of provincial investors and
their example of interest in India. Finding
the gap, the present study was intended
to comprehend the relationship amongst
education and investment mindfulness level
and inclinations of rural investors.
• Kavita Shah and Dr. Mamta Brahmbhatt (2018)
has conducted research on Investment pattern
of individual investor and noticed that
investment decisions irrespective of what is
the amount, does require a denite amount of
knowledge, information and acumen. There
 Analysis of Investment Pattern of Different Class of People: A Review
are several factors that direct the investment
decision spread across avenue chosen
ranging from gender and income to investor’s
personality and risk appetite. Investors, before
making investments, need to collect investment
related information from the internet and
consult with friends, peers and investment
experts before making investments.
• A study by B. Thulasipriya (2014), shows
that majority of the respondents are saving
money as Bank Deposits for the safety of
an unpredictable future. The main avenues
of investment are Bank Deposits and the
main purpose of investment is for children
education, marriage and security after
retirement.
• Avinash Kumar Singh (2006) the study
analyzed the investment pattern of people
in Bangalore city and Bhubaneswar &
analysis of the study was undertaken with
the help of survey method. After analysis
and interpretation of data it is concluded
that in Bangalore investors are more aware
about various investment avenues & the
risk associated with that. All the age groups
give more important to invest in equity &
except people those who are above 50 give
important to insurance, xed deposits and
tax saving benets.
• Karthikeyan (2001) has conducted research
on Small Investors Perception on Post
ofce Saving Schemes and found that there
was signicant difference among the four
age groups, in the level of awareness for
kisan vikas patra (KVP), National Savings
Scheme (NSS), and deposit Scheme for
Retired Employees (DSRE), and the Overall
Score Conrmed that the level of awareness
among investors in the old age group was
higher than in those of young age group.
Results and Discussion
• The most important forms of urban nancial
investment were bank deposits, shares and
securities.
• Investors with be provided with adequate
and reliable information so that they can
make sound investment decisions.
• Investors are mostly inuenced by family
members while taking decisions on
investment.
Journal of Social Welfare and Management / Volume 11 Number 2 (Special Issue)/ April - June 2019
139
• The visual and print media and training
programs will help investors make well
informed decisions.
• Female investors tend to display less
condence in their investment decisions and
hence have lower satisfaction levels in their
investment.
• The main investment avenues of individual
investors are Bank Deposits and the main
purpose of investment is for children
education, marriage and security after
retirement.
• Women invest fewer amounts than men due
to various reasons.
• Women are more risk averter than men.
• Women are purposefully kept away from
nancial decision makers because they
cannot understand investment.
• The probability of a household owning a
home increases, while the of
in
additional child.
• The savings does not depend upon income
alone rather on the consumption pattern
of the individuals also.
• The rural households have low educational
status which is resulting in less awareness of
the people towards the benets of saving.
• Most of the school teachers are opined
that saving funds as bank deposits and
government securities as their investment
preference.
• The investment knowledge directly affected
the risk taking behaviour.
Conclusion
From the above study it may conclude that the
investment behaviour of one class of people is
different from another class of people, it may be
in the form of risk perception level, awareness of
various investment. Bank deposits are the one of
the preferred investment avenues of all class of
people. This points states that in India still people
are depending on traditional investment avenues.
Knowledge is the key power to invest in stock
market, therefore by conducting several Investors’
awareness programmes can remove fear in the
minds of potential investors.
 140 Abhinandan, Aiman AL-Asbahi, Ebrahim Al-Gamal
Future Scope
Investment pattern of Teacher has potential scope
for future research. Previous study was conducted
only on primary and high school level teachers.
There is need for study of investment pattern of
teaching faculty of higher education in order to
nd out what proportion of teachers are investing
in stock market and what proportion of faculty
investing in banking investment avenues. There is a
scope for comparative study of investment pattern
of teaching faculty in banking and share market.
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