CHAPTER 1

INTRODUCTION

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1.1 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.

Teaching is the one the most popular profession across the globe. Teachers are an important force
in our society, not only because of their sheer numbers but much more because they are guarantors of the
education of future generations, especially in the developing countries like India. A teacher enjoys the
privileged position of unleashing the human potential of students (learners) within the formal education
system and thereby transforming the individuals, families, communities and society-at-large. The
competency of the teacher is a major determinant of the quality of the education. Teacher’s professional
advancement is decided by many factors. One of the main factors which strongly influence the efficiency of
teacher is his quality of life.

The quality of one’s life is closely tied to the level or standard of living maintained by
that person. The management of personal finance i.e., income, consumption saving and investment has a
great impact on standard of living. Thus, attitude of teachers towards consumption, savings and investment
would reflect their economic behaviour, which would influence quality of life and in turn influence their
profession and the education system.

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1.2 STATEMENT OF THE PROBLEM

The people save the money in order to meet the financial requirement in future because the future is
unpredictable. So, savings are required in order to meet the financial requirements. There is a vast scope of
savings and investment because of the presence of a large number of industrialists, businessman,
government and private employees in Pathanamthitta district and the money circulation is also very high.

The most important factor considered for overall growth and development of the economy is
availability of capital formation. Capital formation is not enough for the country to meet its economic needs
it may leads to underdevelopment of economy. Meanwhile capital formation is considered as the important
key drivers for growth of economy. Capital formation resulting in increasing output and economic
expansion to country. Productive capacity increase productive potential to the economy. It brings positive
relationship between processes of capital formation and its economic growth to the country. It is clearly
stated that growth of economy depends upon capital accumulation.

Capital accumulation requires direct and indirect investment and current savings. Stimulating
investment will increase level of savings will be challenging task for developing country like India for
meeting financial requirement to the economy mobilization of financial assets and physical savings are
important. To achieve desired saving and investment rate, there would need to raise large resources
domestically. In India the major part of fund is from house hold sector. Indian households undertake savings
in form of both financial and non-financial form. House hold sector savings is linked with growth. The
saved money should invest in proper investment avenues.

The country’s savings and investment have to increase in positive way for development. It is clear
from above that savings is backbone of investment. The Indian house hold sector is divided into many class
people. Salaried class people play an important role. People from salaried segments had fixed source of
income. Salaried class people will have the mentality of savings for future emergencies. With minimum risk
people tend to invest the money in proper investment avenues to maximize the return. From the various
classes of salaried class people college teachers are subset of household segment. Teachers build valuable
pillars to society. They serve as potential guide for youngsters of today and investors of future.

A teacher serves as maker of mankind and builds future architect of society. College teachers are
one of elite income group segment in society. Importance is given to resource mobilization keeping in mind
for future requirements. Their aim is to save money after spending their income. College teachers know
trick of maximizing their savings. They end to invest saved money in proper investment avenues after
making deep analysis about investment avenues in which they are interested to invest the money. Analysis
is made to avoid risk, maximize its return and capital appreciation. In this juncture study is under taken to
know savings and investment pattern of college teachers working in Pathanamthitta district.

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1.3 OBJECTIVES OF THE STUDY
1. To study the investment pattern among college teachers in Pathanamthitta district.
2. To identify the various investment options preferred by the college teachers.
3. To analyze the various factors that influences the investment options.

1.4 NEED AND SIGNIFICANCE OF THE STUDY

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. Thus, the study
regarding saving and investment pattern of college teachers become inevitable. The researcher has chosen
Pathanamthitta district. The district is famous for scenic beauty, fairs and festival activities.

Teachers play a very important and influential role in the life of every student. They are like
beacons of light, guiding us in the formative years of our life. Teachers act as foundation for creating
responsible citizens and good human beings. It is impossible to imagine our lives without teachers. They are
the cornerstone of our future. Teachers may not be an expert on finances and unable to assist their own
financial situation to develop and grow over time.

The understanding of the relationship between the savings and investment pattern is essential as
savings forms the basis for the development of the economy. If the savings and investment pattern among
the teachers is good, then it results in the development of both money and capital market and in turn the
economy. The present study is an empirical study to identify the extent, nature and preferences of the
investors in Pathanamthitta district and to ascertain their investment habits. The study area is featured by a
good number of teachers belonging to the Government and aided colleges who have the ability to save and
invest. This study will help the teachers to plan savings and investment towards maximizing the returns.
The in-depth analysis of the preference and risk perception will help the Government to work out the
various feasible schemes to mobilize finance from salaried class investors.

Studying the behavior of anyone will help us to deal sensible with them, which in turn leads to scope of
mutual benefit. Understanding the Investment behavior of the college teachers would be very useful as they
fall under formal sector of India and also have the potential to save and invest in various financial products
that will accelerate the economic growth of our country. Being salaried, college teachers have the capacity

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to support the economic system consistently. With better awareness about investments, college teachers can
help themselves building wealth and can serve building our nation.

1.5 SCOPE OF THE STUDY

The present study has been confined to Pathanamthitta District. The study is confined to the factors
considered by the Teachers/Professors (investors) while their investment in different investment avenues.
Their level of preference, satisfaction, awareness and intensity of problem were about the various aspects of
investment avenues available in the study area is considered.

1.6 RESEARCH METHODOLOGY

 RESEARCH DESIGN:
This project work is based on descriptive research design. This study will be quantitative as well as
qualitative in nature for interpreting the issue in a comprehensive way.

 SAMPLING TECHNIQUE:

Convenience Sampling Technique is used for the study so as to have an adequate representation of
Investment and savings pattern of college teachers in Pathanamthitta region of Kerala state.

The target population for the study is regular teaching faculty members in the affiliated government and
aided colleges of Mahatma Gandhi University which consists of guest lecturers, assistant professors and
professors. Simple random sampling method was adopted for choosing the sample respondents. As per the
target population listed above, the researcher has chosen100 respondents randomly.

 SAMPLE SIZE:
The sample size is limited to 100 number of college teachers selected from various region of
Pathanamthitta district.
 SAMPLE SELECTION:
The selection of sample respondents were as follows:
Sl. No. Name of the College No. of sample
respondents
1 Government Arts and Science College, 14
Elanthoor
2 St. Thomas College, Kozhencherry 21
3 St. Thomas College, Ranni 18
4 Catholicate College, Pathanamthitta 20
5 Marthoma College, Thiruvalla 14
6 B.A.M. College, Thuruthicadu 13

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 Total 100
Source: Pilot method
 DATA COLLECTION:
Both Primary data and secondary data were used for this study.
Primary data: Primary data for this study was collected from college teachers of Pathanamthitta district
who have invested their fund in various avenues of in India.

Secondary data: The secondary data for the study was collected from published reports and websites (DES
Kerala, KSPB and other relevant sites), books, magazines, newspapers and journals.

 TOOL FOR DATA COLLECTION:

Primary data for this study was collected by using structured questionnaire prepared in Google form.

 TOOLS FOR ANALYSIS:

The collected data were analysed with the help of graphs, diagrams and tables. It includes:
1. Percentage Analysis
2. Chart Analysis

1.7 LIMITATIONS OF THE STUDY

 Due to lack of time the study is restricted to Pathanamthitta district only.

 The accuracy of the study depends on the information provided by the respondents.
 Convenience sampling method has been used for data collection; thus, inherent limitations of the
method may limit the study.

1.8 ORGANIZATION OF THE REPORT

The present study is divided into 5 chapters:

Chapter 1: INTRODUCTION
This chapter deals with an introduction, statement of the problem, objectives of the study, need and
significance, scope of the study, research methodology, and limitations of the study.
Chapter 2: REVIEW OF LITERATURE
This chapter contains the various literature reviews of earlier researches related to savings and investment
pattern of college teachers and professors.
Chapter 3: THEORETICAL FRAMEWORK
This chapter present detailed theoretical framework about the savings and investment pattern.

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Chapter 4: DATA ANALYSIS AND INTERPRETATION
This chapter contains the analysis of data collected and its interpretation and presentation of results through
tables and figures.
Chapter 5: FINDINGS, SUGGESTIONS AND CONCLUSION
This chapter presents the summary of findings, suggestions and conclusion of the study.

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 CHAPTER 2
REVIEW OF LITERATURE

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REVIEW OF LITERATURE
Literature review of near or related topics are act as platform for any researcher to clearly understand the
actual research problem and helps to frame suitable methodology by which the study is to be conducted.
The present study is about the savings and investment pattern of college teacher in Kerala with special
focus on Pathanamthitta district. Various research papers and work done earlier which is related to
investment, savings and investment behaviour and investment decisions, college teachers’ remuneration etc.
included in this Chapter. The literature includes books, publications, reports of Govt. and non-government
agencies, magazines, Ph.D. theses, etc. These studies have been reviewed carefully and briefly incorporated
in this chapter.

1.M. Yasodha, Dr. G. Ravindran (2017) in their study “Savings and Investment Pattern of
Teachers Working in Arts and Science Colleges in Coimbatore District” Investors are sensitive about their
safety of their investments made. They need safety and reliability for their investments. Current trend had
not affected investment. College teachers invest their money in safer environment, need regular income
from their investment made with lower risk. The investment preference is influenced by creating awareness,
information factors and features to invest instruments. This will bring the changes in investment pattern of
respondents in the years to come.

2.Bindu (2017) in the study captioned “Analysis of Investment pattern of college teachers in Kerala”
based on their research Project explored the fact that the flow of Individual investor’s investments is backed
by benefits and money. Individual investor still prefers to invest in financial products which give risk free
returns. The study shows that all the teachers have a provident Fund, but the rate of investment in bonds and
company shares are less. The main influencing factors for investment are liquidity, high returns, capital
appreciation and tax benefit.

3.Manasi Kulkarni (Killedar) and Rawal (2016) in her study titled “Investment Patterns of
College Teachers with Respect to Navi-Mumbai city” So from above research it is clear that money plays a
vital role in every individual ‘s life. Teacher’s community also started recognizing the importance of
investment and savings. From the above research study researcher came to know about how much teaching
community is aware about investment knowledge. Their most preferred avenues are all traditional
investments like bank deposits, government securities, bullions (gold, silver) and then real estate.

4.B. Thulasipriya (2015) had conducted the research on investment preference of government
employees on various investment avenues. The employees still prefer to invest in financial products which
give risk free return some.

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5.Sood and Kaur (2015) in their study specified that majority of the teachers prefer bank depoits and
government securities for their investment and their awareness level is very less in equity and mutual funds.

6.Sathiyamoorthy. C and Krishnamurthy (2015) we can clearly understand that salaried group is
safety conscious when it comes to investments rather than the profits. Most of the time their decisions are
influenced by their qualifications, age & their family size. Their main intention of saving or investing
money is to take care of their welfare of their kids and themselves after retirement.

7.Murugan G. Dura and Chandrasekaran. G (2014), Lack of financial planning awareness

plays a vital role among salaried people that leads them not to invest in share market or in chit funds run by
private finances. It seems government needs to fill the huge gap in educating people about grievances
process arising on their investments like approaching the concerned authorities or bodies with appropriate
evidences and the investors rights. So salaried class focus their investments on lands, government bonds

8. Patil. S and Nandawar. K (2014) We can also see, Salaried people know about all the possible
investments options available for them but as they want safer and consistent returns on their investments,
they opt for investing their hard-earned money in gold, real estate, fixed deposits in their banks.

9.Prakash and Sundar (2013), the study tiltled on “Analysis of investor perception and prefernce
Investment avenues” concludes that most of the investors discuss with their family and friend before
making an investment decisions and investment prefer for bank deposit, gold/silver.

10. B. N. Panda & J.K. Panda (2013) made a comparative study on the relevance of demograpic
factors in investment decision with respondents from education sector. The study analyzed that there is a
significant relationship between the demographic factors such as gender, age, education, occupation, annual
income and savings with the sources of awareness with the analysis of investment avenues. Many studies
highlighted the savings and investment pattern of the teaching faculty in various districts of India. Apart
from analyzing the savings and investment pattern of the teaching faculty in the present study focus its
attention towards the various factors that determine the savings and investment pattern in the chosen study
area.

11. Dr. Ananthapadhmanabha Achar (2012) studied titled on “Saving and Investment
Behavior of Teacher- An empirical study” proves most of the teachers prefer life insurance and bank
deposits and PPF. Most of the teachers purpose the investment to children education and tax benefit.

12. Dr. Varsha Virani (2012) propounded in her study that In spite of low income the teachers have
been saving for future needs. The major impact on savings is due to the level of income of the school
teachers. The research shows that majority of the respondents are saving money as Bank deposits for the

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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.

13. 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 school teachers are saving their money for the
purpose of their children’s education, marriage and as security after retirement.

14. Bhardwaj Rajesh, Raheja Rekh and Priyanka (2011) propounded in their study that
saving and investment pattern of salaried class school teachers of govt. and private schools 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.

15. Dr. S. Mathivannan and Dr. M. Selvakumar (2011) studied on “Saving and investment
pattern of school teachers- a study with reference to Sivakasi Taluk of Tamilnadu”. The study colcludes that
today, 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 influence by other tempting and fashionable expenses.

REFERENCE
1. M. Yasodha, Dr. G. Ravindran (2017) “Savings and Investment Pattern of Teachers
Working in Arts and Science Colleges in Coimbatore District”
2.Bindu (2017) “Analysis of Investment pattern of college teachers in Kerala”
3.Manasi Kulkarni (Killedar) and Rawal (2016) “Investment Patterns of College Teachers
with Respect to Navi-Mumbai city”
4. B. Thulasipriya (2015)
5. Sood and Kaur (2015)
6. Sathiyamoorthy. C and Krishnamurthy (2015)
7. Murugan G. Dura and Chandrasekaran. G (2014),
8. Patil. S and Nandawar. K (2014)
9. Prakash and Sundar (2013) “Analysis of investor perception and prefernce Investment
avenues

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 10. B. N. Panda & J.K. Panda (2013)
11. Dr. Ananthapadhmanabha Achar (2012) “Saving and Investment Behavior of Teacher-
An empirical study”
12. Dr. Varsha Virani (2012)

13. Dr. Dhiraj Jain and Parul Jain (2012):

14. Bhardwaj Rajesh, Raheja Rekh and Priyanka (2011)

15. Dr. S. Mathivannan and Dr. M. Selvakumar (2011), “Saving and investment pattern of
school teachers- a study with reference to Sivakasi Taluk of Tamilnadu”.

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 CHAPTER 3
THEORETICAL FRAMEWORK

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INTRODUCTION
Saving is an income not spent, or deferred consumption, Savings refers to the amount left over after an
individual's consumer spending is subtracted from the amount of disposable income earned in a given period
of time. Savings can be used to increase income through investing.

An investment is an asset or item acquired with the goal of generating income or appreciation. An
investment always concerns the outlay of some asset today—time, money, or effort—in hopes of a greater
payoff in the future than what was originally put in.

KEY TAKE AWAYS OF SAVINGS AND INVESTMENT

• Savings refers to the amount left over after an individual's consumer spending is subtracted from the
amount of disposable income earned in a given period of time.

• Savings can be used to increase income through investing.

• An investment is an asset or item that is purchased with the hope that it will generate income or
appreciate in value at some point in the future.
• An investment always concerns the outlay of some asset today (time, money, effort, etc.) in hopes of
a greater payoff in the future than what was originally put in.
• An investment can refer to any mechanism used for generating future income, including bonds,
stocks, real estate property, or a business, among other examples.

SAVING VS INVESTMENT- AN OVERVIEW OF DEFFERENCES

The words “saving” and “investing” are sometimes used interchangeably, but when it comes right down to
it, we should be engaged in both to secure our financial future.
 Saving money typically means it is available when we need it and it has a low risk of losing value.
 Investing typically carries a long-term horizon, such as our children’s college fund or retirement.
 The biggest and most influential difference between saving and investing is risk.

TYPES OF SAVINGS AND INVESTMENT OPTION:

* TYPES OF SAVING OPTIONS

A savings account can be a safe place to keep money you don’t intend to spend right away. Savings
accounts are useful when planning for short-term needs, such as an emergency fund or longer-term goals
like stashing away a down payment for a home.

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 But there are several types of savings accounts, and it’s important to choose the one that’s right for
your financial needs. The choices include traditional or regular savings accounts, high-yield savings
accounts, money market accounts, certificates of deposit, cash management accounts and specialty savings
accounts, knowing how the various savings account options compare can make it easier to select the right
place to keep your money.

1. TRADITIONAL OR REGULAR SAVINGS ACCOUNT

Good for People who need to save money for the short or long term and aren’t as concerned about getting
the best interest rate, expressed as the annual percentage yield (APY). Traditional Savings Account are what
you may immediately think of when you consider where to save. These are the savings accounts you
typically find at traditional banks or credit unions.Regular or basic savings accounts generally allow you to
earn interest on your money, although they usually pay lower rates than other savings products. Many banks
and credit unions allow you to open a regular savings account with a low minimum deposit.
Traditional savings accounts typically allow you to make up to six withdrawals per month (not
including ATM withdrawals or in-person withdrawals at a branch) before incurring a penalty. Recent
relaxation of the Regulation D restrictions removes the six-withdrawal limit, although your bank or credit
union still has the right to charge you a fee for exceeding the monthly limit. Banks and credit unions may
allow you to manage your account online, via mobile banking, by phone or at a branch.

If your bank is insured by the Federal Deposit Insurance Corporation (FDIC), then your deposits are
insured for up to $250,000 per depositor, per account ownership category, in the event of a bank failure.
The National Credit Union Administration (NCUA) provides similar insurance for federally chartered and
most state-chartered credit unions.

Merits:
 It’s usually easy to open a regular savings account at a branch, and some banks allow you to do so
online.
 You can earn interest on your savings to grow your money.
 You can visit a branch if you need help or want to deposit cash.
Demerits:
 The interest rates are usually on the low side, compared to other savings options.
 Monthly maintenance fees may cancel out interest earnings.
 Additional fees may apply for excess withdrawals.

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 2. HIGH – YIELD SAVINGS ACCOUNT
It is good for people who want to earn a more competitive rate on savings while minimizing fees. High-
yielding savings account are savings accounts that offer a higher APY, compared to regular savings
accounts.
Online banks often offer high-yield savings accounts to attract savers who want to earn a better interest rate
than what is found at brick-and-mortar banks and credit unions. This type of savings account may be
appealing if you’re comfortable managing your account through online or mobile banking versus visiting a
branch.

High-yield savings accounts can be FDIC or NCUA insured, just like traditional savings accounts. In
addition to offering better rates, online banks tend to charge fewer or lower fees, including monthly
maintenance or excess withdrawal fees.

Merits:
 You could earn a much higher interest rate, compared to traditional savings accounts.
 Online banks typically have lower minimum deposit requirements to open an account.
 You’re less likely to be charged a monthly fee at an online bank.
Demerits:
 No branch banking access means you can’t deposit cash directly into your account at a branch.
 Transferring money between an online savings account and accounts at another bank can take up to
a few days to process.
 You may or may not have access to your money via ATM, depending on the bank.

4. MONEY MARKET ACCOUNT

This account is good for people who want to earn interest on savings while having more options for
accessing their money.
Money Market Accounts (MMAs) combine features of a regular savings account with features of a
checking account. You can find these accounts at both brick-and-mortar banks and online banks.

These accounts, which may also be called money market savings accounts or MMAs, allow you to earn
interest on your savings. Rates are typically better than regular savings accounts. You may also be able to
write checks from your account or access funds with an ATM or debit card.

Similar to regular or high-yield savings accounts, banks can impose a fee if you make more than six
withdrawals per month, even though the relaxation of the federal Regulation D restrictions now allow for
readier access to your funds. Going over the monthly limit could trigger a fee or result in the bank’s closing
your account if it happens frequently.

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Merits:
 Money market accounts can offer better rates than traditional savings accounts.
 You may be able to write checks from your account or access your money using a debit or ATM
card.
 You can open money market accounts at traditional banks or online banks.

Demerits:
 A higher minimum deposit may be required to open a money market account.
 You’ll need a higher balance to earn the best rates.
 Banks may charge a monthly fee for money market accounts.
4. CERTIFICATE OF DEPOSIT ACCOUNT
This avenue is good for people who want to earn competitive rates and won’t need to access their savings
right away.
Certificates of deposits (CDs) are time deposits, meaning you agree to leave your money in the account for
a set period. During that time, your money earns interest and, when the CD matures, you can withdraw your
savings or roll it into a new CD.

You can find CDs at traditional banks and online banks. Between the two, online banks tend to offer better
interest rates. CD terms typically range from as short as 30 days or as long as 60 months, with longer terms
usually boasting higher rates—although not always, especially in a lower interest rate environment.

CDs are best for money you know you won’t need immediately, since banks can charge an early withdrawal
penalty if you withdraw your savings before the maturity date. Creating a CD ladder of multiple CDs with
varying maturity dates can offer a work-around for this issue.

Merits:
 CDs can offer above-average interest rates for savers pursuing short- or longer-term goals.
 There are typically no monthly maintenance fees involved with CD accounts.
 CDs at online banks may offer lower initial deposit requirements.
Demerits:
 Withdrawing money from a CD ahead of its maturity date may trigger an early withdrawal penalty.
 CDs traditional banks tend to offer lower interest rates than those offered by online banks.
 Putting your savings into a longer-term CD makes it harder to capitalise on future interest rate
increases.

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5. CASH MANAGEMENT ACCOUNT
This avenue is good for people who want to keep cash available to invest in their brokerage or retirement
account. Cash management accounts aren’t savings accounts instead, these accounts let you hold cash you
may plan to invest in a taxable brokerage account or a retirement account.
Online brokerages and robo-advisor platforms may offer cash management accounts to their investors. The
money held in the account can earn interest, often at a higher rate than what you’d get at a bank.

Depending on the brokerage, you may get all the standard features you’d expect with a checking account as
well. For example, you may be able to write checks, pay bills or transfer funds to accounts at your bank.

Merits:
 They’re a convenient way to earn interest on money you plan to invest.
 Cash management accounts can offer benefits and features of both checking and savings account.
 Accounts can be FDIC insured when offered by a third-party bank.

Demerits:
 High-yield savings accounts could offer better interest rates on the money you’re saving.
 Since they’re attached to online brokerage accounts, you may not have access to branch banking.
 These accounts aren’t always covered by FDIC insurance.

6. SPECIALITY SAVINGS ACCOUNT

This account is suitable for people who want accounts tailored to specific savings goals. Speciality savings
accounts are designed to help you reach specific savings goals, rather than being a catch-all for money you
don’t plan to spend. And, in some cases, they can be intended for a specific type of person, rather than a
goal.
Examples of specialty savings accounts include:

 Kid’s savings account

 Custodial savings accounts

 Student savings accounts

 Christmas Club savings accounts

 Home down payment savings accounts

 529 college savings account

 Traditional and Roth Individual Retirement Accounts

 Health Savings Accounts (HSAs)

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 You can find these accounts at some banks, credit unions, brokerages or investment companies.
In the case of a Health Savings Account, you’d only have access to one of those if you have a high
deductible health plan. Opening a specialty savings account might make sense if you have a singular
purpose for saving money. Just keep in mind that there may be restrictions on when and how you can
withdraw those funds later.

Merits:
 They can help you save money for a variety of specific financial goals.
 Specialty accounts can earn interest to help you grow your money, just like other savings accounts.
 Depending on the account, you may pay low or no monthly maintenance fees.

Demerits:
 Some specialty accounts, such as IRAs, 529s and HSAs, have strict tax rules for making
withdrawals.
 The interest rates you earn for things like child savings accounts, student accounts or Christmas Club
accounts may be lower than high-yield or even regular savings accounts.
 Specialty accounts may have restrictions on who can open them.
7. MULTIPLE SAVINGS ACCOUNTS
Multiple Savings Accounts for Multiple Goals. When choosing a savings account, it’s important to
remember that you don’t have to pick just one. Depending on what you want to achieve financially, you
may decide to open multiple savings accounts, CD accounts, money market accounts or specialty accounts.
Just be sure to pay attention to the interest rate you could earn and the fees you may pay, to be sure you find
the best accounts for your needs.
* TYPES OF INVESTMENT OPTIONS

As an investor, you have a lot of options for where to put your money. It’s important to weigh types of
investments carefully. Investments are generally bucketed into three major categories: stocks, bonds and
cash equivalents. There are many different types of investments within each bucket. You might consider for
long-term growth, and what you should know about each. We won’t get into cash equivalent things like
money markets, certificates of deposit or savings accounts as those types of investment accounts are less
about growing your money and more about keeping it safe. Think of the various types of investments as
tools that can help you achieve your financial goals. Each broad investment type—from bank products to
stocks and bonds—has its own general set of features, risk factors and ways in which they can be used by
investors.
1. STOCKS
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A stock is an investment in a specific company. When you purchase a stock, you’re buying a share — a
small piece — of that company’s earnings and assets. Companies sell shares of stock in their businesses to
raise cash; investors can then buy and sell those shares among themselves.
Stocks sometimes earn high returns but also come with more risk than other investments.

Companies can lose value or go out of business. Stock investors make money when the value of the stock
they own goes up and they’re able to sell that stock for a profit. Some stocks also pay dividends, which are
regular distributions of a company’s earnings to investors.

2.BONDS
A bond is a loan you make to a company or government. When you purchase a bond, you’re allowing the
bond issuer to borrow your money and pay you back with interest.

Bonds are generally considered less risky than stocks, but they also may offer lower returns. The primary
risk, as with any loan, is that the issuer could default. U.S. government bonds are backed by the “full faith
and credit” of the United States, which effectively eliminates that risk. State and city government bonds are
generally considered the next-less-risky option, followed by corporate bonds. Generally, the less risky the
bond, the lower the interest rate. Bonds are a fixed income investment, because investors expect regular
income payments. Interest is generally paid to investors in regular installments — typically once or twice a
year — and the total principal is paid off at the bond’s maturity date.

3. MUTUAL FUNDS
If the idea of picking and choosing individual bonds and stocks isn’t your bag, you’re not alone.
In fact, there’s an investment designed just for people like you: the mutual fund. Mutual funds allow
investors to purchase a large number of investments in a single transaction. These funds pool money from
many investors, then employ a professional manager to invest that money in stocks, bonds or other assets.
Mutual funds follow a set strategy — a fund might invest in a specific type of stocks or bonds, like
international stocks or government bonds. Some funds invest in both stocks and bonds. How risky the
mutual fund is will depend on the investments within the fund. When a mutual fund earns money — for
example, through stock dividends or bond interest — it distributes a proportion of that to investors. When
investments in the fund go up in value, the value of the fund increases as well, which means you could sell
it for a profit. Note that you’ll pay an annual
fee, called an expense ratio, to invest in a mutual fund.
5. INDEX FUNDS
An index fund is a type of mutual fund that passively tracks an index, rather than paying a manager to pick
and choose investments. For example, an S&P 500 index fund will aim to mirror the performance of the
S&P 500 by holding stock of the companies within that index. The benefit of index funds is that they tend
to cost less because they don’t have that active manager on the payroll. The risk associated with an index
20
fund will depend on the investments within the fund. Index funds may earn dividends or interest, which is
distributed to investors. These funds may also go up in value when the benchmark indexes they track go up
in value; investors can then sell their share in the fund for a profit. Index funds also charge expense ratios,
but as noted above, these costs tend to be lower than mutual fund fees.

6. EXCHANGE TRADED FUND

ETFs are a type of index fund. They track a benchmark index and aim to mirror that index’s performance.
Like index funds, they tend to be cheaper than mutual funds because they are not actively managed.
The major difference between index funds and ETFs is how ETFs are purchased: They trade on an
exchange like a stock, which means you can buy and sell ETFs throughout the day and an
ETF’s price will fluctuate throughout the day. Mutual funds and index funds, on the other hand, are priced
once at the end of each trading day — that price will be the same no matter what time you buy or sell.
Bottom line: This difference doesn’t matter to many investors, but if you want more control over the price
of the fund, as with a mutual fund and an index fund, your hope as an investor is that the fund will increase
in value and you’ll be able to sell it for a profit. ETFs may also pay out dividends and interest to investors.
6. OPTIONS
An option is a contract to buy or sell a stock at a set price, by a set date. Options offer flexibility, as the
contract doesn’t actually obligate you to buy or sell the stock. As the name implies, doing so is an option.
Most options contracts are for 100 shares of a stock. When, you buy an option you’re buying the contract,
not the stock itself. You can then either buy or sell the stock at the agreed-upon price within the agreed-
upon time; sell the options contract to another investor; or let the contract expire. Options can be quite
complex, but at a basic level, you are locking in the price of a stock you expect to increase in value. If your
crystal ball is right, you benefit by purchasing the stock for less than the going rate. If it is wrong, you can
forgo the purchase and you’re only out the cost of the contract itself.
7. ANNUITIES
Many people use annuities as part of their retirement savings plan. When you buy an annuity, you purchase
an insurance policy and, in return, you get periodic payments.
Annuities come in numerous verities. They may last until death or only for a predetermined period of time.
They may require periodic premium payments or just one up-front payment. They may be linked partially to
the stock market or they may simply be an insurance policy with no direct link to the markets. Payments
may be immediate or deferred to a specified date. They may be fixed or variable. While annuities are fairly
low risk, they aren’t high-growth. They make a good supplement to retirement savings, rather than an
integral source of funding.

8. CRYPTO CURRENCY

21
 Crypto currencies are a fairly new investment option. Bitcoin is the most famous crypto currency, but
there are countless others, such as Lite coin and Ethereum. Cryptocurrencies are digital currencies that don’t
have any government backing. You can buy and sell them on cryptocurrency exchanges. Some retailers will
even let you make purchases with them. Cryptos often have wild fluctuations, making them a very risky
investment. Importance of savings and investments.

IMPORTANCE OF SAVINGS AND INVESTMENT

We do not live in a world where we take each day as it comes. Financial emergency may arise at
any time. It is needless to say that having a savings/investment portfolio is important. Money is something
that is exchanged also something that is saved. Money matters and is important for survival.

Here are a few reasons why it’s important to have savings and investments:

 Transaction Motive-People save cash to bridge the interval between receiving the income and
expenditure. The amount depends on the interval at which money is received. Businessmen and
entrepreneurs have to keep some part of the income to meet the current needs. Amount held in liquid
will depend on the business turnover. Transaction demand for money stays constant at all levels.
 Precautionary motive- This means taking precautions. People hold cash to deal with
contingencies like unemployment, health issues etc. They want to keep a part of contingency
liability aside to us it in case of an emergency. Speculative motive- People also hold cash to use it in
the financial market. They want to take advantage of the movement in the financial market regarding
future changes in price and rate of interest. The ROI and people’s tendency to spend money are
inversely proportional.
 Children’s education- The most important thing for a person is to educate his children and send
them to the best school and college. It’s important to have savings for that so that you can provide
your children with the best education.
 Self-reliance- When you save, you get a feeling of self-reliance and power to do things. It gives
you a feeling of independence. For Family’s security- If something happens to you, your family
should be well taken care of. Having a savings and an investment portfolio ensures that. Savings and
investments are mutually connected. It is important to have a savings nest so that you are more in
control of your future and life. Invest in HDFC Life’s various savings plans to your future.

FEATURES OF SAVING AND INVESTMENT

1) SAFETY OF PRINCIPAL
Safety of funds invested is one of the essential ingredients of a good investment programmed.
22
Safety of principal signifies protection against any possible loss under the changing conditions. Safety of
principal can be achieved through a careful review of economic and industrial trends before choosing the
type of investment. It is clear that no one can make a forecast of future economic conditions with utmost
precision. To safeguard against certain errors that may creep in while making an investment decision,
extensive diversification is suggested.

The main objective of diversification is the reduction of risk in the loss of capital and income. A diversified
portfolio is less risky than holding a single portfolio.

Diversification refers to an assorted approach to investment commitments. Diversification may be of two

types, namely,

i. Vertical diversification; and

ii. Horizontal diversification.

Under vertical diversification, securities of various companies engaged in different stages of production
(from raw material to finished products) are chosen for investment.

On the contrary, horizontal diversification means making investment in those securities of the companies
that are engaged in the same stage of production.

2) LIQUIDITY AND COLATERIAL VALUE

A liquid investment is one which can be converted into cash immediately without monetary loss. Liquid
investments help investors meet emergencies. Stocks are easily marketable only when they provide
adequate return through dividends and capital appreciation. Portfolio of liquid investments enables the
investors to raise funds through the sale of liquid securities or borrowing by offering them as collateral
security. The investor invests in high grade and readily saleable investments in order to ensure their
liquidity and collateral value.

3) STABLE INCOME

Investors invest their funds in such assets that provide stable income. Regularity of income is consistent
with a good investment programme. The income should not only be stable but also adequate as well.

4) CAPITAL GROWTH

One of the important principles of investment is capital appreciation. A company flourishes when the
industry to which it belongs is sound. So, the investors, by recognizing the connection between industry
growth and capital appreciation should invest in growth stocks. In short, right issue in the right industry
should be bought at the right time.

5) TAX IMPLICATIONS
23
While planning an investment programmed, the tax implications related to it must be seriously considered.
In particular, the amount of income an investment provides and the burden of income tax on that income
should be given a serious thought. Investors in small income brackets intend to maximize the cash returns
on their investments and hence they are hesitant to take excessive risks. On the contrary, investors who are
not particular about cash income do not consider tax implications seriously.
6) STABILITY OF PURCHASING POWER

Investment is the employment of funds with the objective of earning income or capital appreciation. In other
words, current funds are sacrificed with the aim of receiving larger amounts of future funds. So, the investor
should consider the purchasing power of future funds.In order to maintain the stability of purchasing power,
the investor should analyze the expected price level inflation and the possibilities of gains and losses in the
investment available to them.

7) LEGALITY

The investor should invest only in such assets which are approved by law. Illegal securities will land the
investor in trouble. Apart from being satisfied with the legality of investment, the investor should be free
from management of securities. In case of investments in Unit Trust of India and mutual funds of Life
Insurance Corporation, the management of funds is left to the care of a competent body. It will diversify the
pooled funds according to the principles of safety, liquidity and stability.

8) THE BASE FORE CARRYING FINANCIAL TRANSACTIONS

A savings account can be used to send and receive payments and it serves as a base for all transactions.
Every transaction in a saving account can be done either by net banking, debit card, cheque or withdrawal
slip. Financial transactions can also be carried out swiftly by using NEFT/RTGS/IMPS facilities.

9) NOMINAL INTEREST RATE

Savings accounts offer a nominal interest rate ranging from 3 to 7 per cent. Interest in this account is
calculated on a half-yearly basis by most banks. The interest rates of most savings accounts are determined
by the Reserve Bank’s decision on repo and reverse repo rates.

However, keep in mind that the interest from your account if exceeds Rs.10, 000 in a financial year is
subjected to taxation.

10) MINIMUM AVERAGE BALANCE

You need to maintain a minimum average balance in your savings account, failing which subjects you to a
penalty. The minimum average balance differs across banks and so does the penalty. However, the
requirement is more for accounts held in a private bank than public on ratio.
24
ADVANTAGES OF SAVINGS AND INVESTMENT
Saving money is advantageous because it provides people the opportunity to earn interest while keeping
their money safe. Investing money can be risky, but it offers higher returns than bank savings accounts and
can help people build wealth over the long-term.

 Interest

Savings accounts and other savings vehicles such as certificates of deposit are advantageous because they
provide the account holder with the opportunity to earn interest on his savings while having little to no risk.
While the interest rates are typically low, the amount earned in interest is incentive for saving. Savings
accounts and money market accounts are designed to provide the account holder with anytime access to his
money. Certificates of deposit, or CDs, impose a penalty if the funds are withdrawn before the expiration
date of the certificate, but generally have higher interest rates than savings accounts.

 FDIC Protection
Bank accounts are protected by the Federal Deposit Insurance Corp., or FDIC. The FDIC is an
independent governmental agency that provides deposit insurance on bank accounts in the United States.
The FDIC provides $250,000 of deposit insurance for each depositor at each bank, provided the bank is
insured by the FDIC.
 Investment variety
The advantage of investing is the opportunity it provides for building wealth over the long-term.
Diversification is a risk-minimizing concept that spreads money between different types of investments,
which can offset losses in one investment type with gains in another. Traditional investments include
stocks, mutual funds and bonds. These are securities that are issued by companies and governmental units
for the purpose of raising capital. Real estate is another effective type of investment, as it is generally
considered to be safe and conservative. Some people invest in collectible items, such as rare sports
memorabilia and other items such as coins and stamps. Investing money in stocks, bonds and real estate,
however, does come with risk and is not guaranteed a return. Because of this risk, the returns on these
investments are typically higher than with savings accounts.
 Historical investment returns
The historical return of stock markets in the U.S. makes them an attractive place to invest. Personal finance
coach Dave Ramsey recommends that investors place their money in mutual funds, which are pooled
investments that typically buy stocks and bonds. The historical return of the S&P 500 Index, a broad
measure of stock market performance, is nearly 12 percent as of 2010. Ramsey states that while the market
is volatile in the short-term, it has almost always settled near the 12 percent threshold over time.

DISADVANTAGE OF SAVINGS AND INVESTMENT

High Expense Ratios and Sales Charges. ...
25
• Management Abuses. ...

• Tax Inefficiency. ...

• Poor Trade Execution. ...

• Volatile Investments. ...

• Brokerage Commissions Kill Profit Margin. ...

• Time Consuming.

CHAPTER 4

DATA ANALYSIS AND

INTERPRETATION

26
  DEMOGRAPHIC PROFILE OF THE RESPONDENTS

Table No. 4.1

Gender wise classification

Gender No. of respondents Percentage
Male 52 52%
Female 48 48%
Total 100 100%
Source: Primary Data

Figure No. 4.1

Gender wise classification

27
INTERPRETATION:
From the table 4.1, it was found that 52% of the respondents are male and remaining 48% are female.

Table No. 4.2

Age-wise Classification
Age No. of respondents Percentage
21-30 years 45 45%
31-40 years 30 30%
41-50 years 17 17%
Above 50 years 8 8%
Total 100 100%
Source: Primary Data

Figure: 4.2
Age-wise Classification

28
INTERPRETATION:
Table 4.2 shows that, the age group 21-30 years is leading with 45 respondents out of the total 100
respondents. 30 respondents belong to 31-40 years, age group of 41-50 years with 17 respondents, and the
remaining 8 respondents belongs to above 50 years age group.

Table No. 4.3

Marital Status of the respondents

Marital Status No. of respondents Percentage

Married 44 44%
Unmarried 56 56%
Total 100 100%
Source: Primary Data

Figure: 4.3
Marital Status of the respondents

INTERPRETATION:
Table 4.3 reveals that, 56% of the respondents are married and the remaining 44% are unmarried.
29
 Table No. 4.4
Educational Qualification
Qualification No. of respondents Percentage
PG only 32 32%
PG with Net/ Set 22 22%
M.Phil. and above 18 18%
Ph.D. 24 24%
Others 4 4%
Total 100 100%
Source: Primary Data

Figure: 4.4
Educational Qualification

INTERPRETATION:

30
Table 4.4 shows that most of the respondents i.e., 32 % have PG as their highest qualification and 24
respondents have Ph.D. and followed by 22 respondents with PG and NET/SET qualification.

Table No. 4.5

Experience of the respondents
Experience No. of respondents Percentage
Below 1 year 25 25%
1-5 years 28 28%
5-10 years 32 32%
Above 10 years 15 15%
Total 100 100%
Source: Primary Data

Figure: 4.5
Experience of the respondents

31
INTERPRETATION:
From the table 4.5 it was found that majority (32%) of the respondents have 5 to 10 years of experience.
28% of the respondents have 1 to 5 years of experience. 25% have below 1 year of experience and the
remaining 15% have above 10 years of experience.

Table No. 4.6

Monthly income wise classification

Monthly income No. of respondents Percentage

Below Rs. 20,000 19 19%
Rs. 20,000-50,000 37 37%
Rs. 50,000-1,00,000 35 35%
Above Rs. 1 Lakh 9 9%
Total 100 100%
Source: Primary Data

Figure: 4.6
Monthly income wise classification

INTERPRETATION:

32
Table 4.6 reveals that majority pf the respondents have monthly income of Rs. 20,000-50,000 and followed
by 35% with monthly income of Rs. 50,000-1,00,000. 19% of the respondents have monthly income less
than Rs. 20,000. Only 9% have monthly income above Rs. 1,00,000.

Table No. 4.7

Category of College

Category of college No. of respondents Percentage

Government 14 14%
Aided 75 75%
Self-financing 11 11%
Total 100 100%
Source: Primary Data

Figure:4.7
Category of college

Category of college

11% 14%

75%

Government Aided Self-financing

33
INTERPRETATION:
Table 4.7 shows that majority (75%) of the respondents are working in Aided colleges and 14% of the
respondents are from Govt. college and the remaining 14% of the respondents are working in Self-financing
colleges.

Table No.: 4.8

Monthly savings of the respondents

Monthly saving No. of respondents Percentage

Below Rs.10,000 24 24%
Rs.10,000-25,000 29 29%
Rs.25,000-50,000 40 40%
Above Rs. 50,000 7 7%
Total 100 100%
Source: Primary Data

Figure:4.8
Monthly savings of the respondents

INTERPRETATION:

34
Table 4.8 shows that majority of the respondents have monthly savings in range of Rs. 25,000-50,000 and
29% of the respondents have monthly savings in range of Rs. 10,000 - 25,000. 24% save below Rs. 10,000
monthly and only 7% save above Rs.50,000 monthly.

Table No. 4.9

Most Preferred Investment Options

Investment options No. of respondents Percentage

Bank deposit 30 30%
Mutual fund 7 7%
Post office fund 14 14%
Chit fund 10 10%
Real estate 3 3%
Gold / precious metals 21 21%
Shares / Bonds 10 10%
Insurance 3 3%
Others 2 2%
Total 100 100%
Source: Primary Data

Figure: 4.9
Most Preferred Investment Options

35
INTERPRETATION:
From the above Table 4.9, it was found that 30% of the respondents preferred Bank deposit. Those who
preferred Gold / precious metals, Post office fund, Chit funds, Shares / Bonds amounted to 21%, 14%, 10%
and 10% of the respondents respectively. It is concluded that most of the college teachers more preferred to
bank deposits.

Table No. 4.10

Purpose for Investment

Investment options No. of respondents Percentage

Future emergency contingencies 5 5%
Plan for retirement 15 15%
Health Care 6 6%
Purchase property 1 1%
Tax Benefit 1 1%
Long term capital appreciation 20 20%

Regular interest income 15 15%

High return 34 34%
Total 100 100%
Source: Primary Data

Figure: 4.10
Purpose for Investment

36
INTERPRETATION:
Table 4.10 reveals that majority of the respondents (i.e.,34%) prefer investment for the purpose of high
return. Long term capital appreciation, plan for retirement and regular interest income are also considered as
the main purpose of investment with 20%,15% and15% respondents respectively.

Table No: 4.11

Risk factor experienced in investment
Risk factor No. of respondents Percentage
Market risk 40 40%
Credit risk 15 15%
Inflation risk 24 24%
Interest rate 10 10%
Political risk 5 5%
Liquidity 6 6%
Total 100 100%
Source: Primary Data

Figure:4.11

37
 Risk factor experienced in investment

INTERPRETATION:
Table 4.11 shows that, 40% of the respondents have chosen market risk as the risk factor experienced in
their investment and followed by inflation risk with 24% of the respondents.

Table No. 4.12

Proportion of Savings and Expenditure

Saving and expenditure No. of respondents Percentage

10:90 24 24%
20:80 18 18%
30:70 30 30%
40:60 18 18%
50:50 10 10%
Total 100 100%
Source: Primary data

Figure: 4.12
Proportion of Savings and Expenditure

38
INTERPRETATION:
From the Table 4.12, it was found that, majority (30%) of the respondents’ proportion of savings and
expenditure is 30:70. The ratio between savings and expenditure is 10:90 for 24% of the respondents.

Table No. 4.13

Mode of Management of Investment
Mange your investment No. Of respondents Percentage
Self-management 36 36%
Through stock brokers 23 23%
Through banks 33 33%
Others 8 8%
Total 100 100%
Source: Primary Data

Figure: 4.13
Mode of Management of Investment

39
INTERPRETATION:
Table 4.13 shows that most of the respondents self-manage their investments. 33% of the respondents
managed their investments through banks. Only 23% of the respondents managed their investment through
stock-brokers.

Table No. 4.14

Factors influencing Decision
Opinion No. of respondents Percentage

Past performance consideration 26 26%

Economic scenario 40 40%
Industry analysis 14 14%
Credit rating 10 10%
Company analysis 10 10%
Source: Primary Data

Figure :4.14
40
 Factors influencing Decision

45

40

35

30

25

20

15

10

0
Past performance Economic scenario Industry analysis Credit rating Company analysis

Rank 1

INTERPRETATION:
Table 4.14 shows that majority of the respondent’s decision to invest depends upon Economic scenario. The
remaining 26% depends on past performance consideration, 14% on industry analysis, 10% on credit rating
and 10% on company analysis.

Table No. 4.15

Nature of Investment pattern
Investment pattern No. of respondents Percentage
Monthly 27 27%
Quarterly 27 27%
Half-yearly 32 32%
Yearly 14 14%
Total 100 100%
Source: Primary Data

Figure: 4.15
Nature of Investment pattern

41
INTERPRETATION:
Table 4.15 reveals that 32% of the respondents have a half yearly investment pattern. Monthly and quarterly
investment pattern was followed by 27% of the respondents each.

Table No. 4.16

Preference of Risk level of Investments
Level of Risk No. of respondents Percentage
Low risk 30 30%
Moderate risk 52 52%
High risk 18 18%
Total 100 100%
Source: Primary Data

Figure: 4.16

42
 Preference of Risk level of Investments

INTERPRETATION:
Table 4.16 shows that majority (52%) of the respondents preferred the investment which have moderate risk.
30 % of the respondents preferred low risk investments. Only 18% preferred high level of risk in their
investment pattern.

Table No: 4.17

Timing of investment monitoring

Monitoring time No. of respondents Percentage

Daily 13 13%
Weekly 42 42%
Monthly 45 45%
Total 100 100%
Source: Primary Data

Figure: 4.17
43
 Timing of investment monitoring

INTERPRETATION:
Table 4.17reveals that 45% of the respondents monitor their investments monthly and 42% monitor their
investments weekly and the remaining 13% of the respondents monitor their investment daily.

Table No. 4.18

Ready to take the risk of losing principal investment amount
Opinion No. of respondents Percentage

Yes 67 67%
No 33 33%
Total 100 100%
Source: primary Data

Figure: 4.18
44
 Ready to take the risk of losing principal investment amount

INTERPRETATION:
Table 4.18 shows that majority (67%) of the respondents are willing to take the risk of losing their principal
investment amount while the remaining 33% are not ready to take the risk of losing the principal amount of
investment.

Table: 4.19
Expectation towards investment growth
Level of growth No. of respondents Percentage
Steadily 18 18%
At an average 34 34%
Medium level 33 33%
High level 15 15%
Total 100 100%
Source: Primary data

Figure: 4.19
Expectation towards investment growth
45
INTERPRETATION:
Table 4.19 reveals that 34% of the respondents prefer to grow their investment at an average level and 33%
of the respondents expect a medium level of growth in their investment. Only 15% of the respondents expect
a high level of growth in their investments.

Table: 4.20
Preference of Time duration

Term of investment No. of respondents Percentage

Short term (0-1) year 15 15%
Medium term (1-5) years 67 67%
Long-term (above 5 years) 18 18%
Total 100 100%
Source: Primary Data

Figure:4.20
Preference of Time duration

46
INTERPRETATION:

Table 4.20 shows that 67% of the respondents preferred medium-term investments which lasts for 1-5
years, 18% of the respondents preferred long-term investments which lasts for more than 5 years and the
remaining 15% preferred short-term investments.

Table 4.21(A)
Knowledge regarding stock market

Opinion No. of respondents Percentage

Yes 71 71%
No 29 29%
Total 100 100%
Source: Primary Data

Figure: 4.21(A)

47
 Knowledge regarding stock market

INTERPRETATION:

Table 4.21 (A) shows that 71% of the respondents have thorough knowledge about the stock market and
its operations and the remaining 29% does not have thorough knowledge regarding stock market.

Table: 4.21(B)
Option selected while stock price drops

Options No. of respondents Percentage

Rebalance your portfolio 13 18%
Set a stop-loss order 16 22%
Withdraw your money 24 34%
Buying more to average 18 26%
Total 71 100%
Source: Primary Data
48
 Figure: 4.21(B)
Option selected while stock price drops

INTERPRETATION:
Table 4.21(B) reveals that most of the respondents withdraw their money if stock price of the investment
falls and 26% of the respondents buy more to average and 22% set a stop-loss order and the remaining 18%
of the respondents rebalance their portfolio if stock price drops.

Table 4.22
Satisfaction regarding Investment options
Opinion No. of respondents Percentage
Yes 81 81%
No 19 19%
Total 100 100%
Source: Primary Data

Figure: 4.22
Satisfaction regarding Investment options
49
INTERPRETATION:
Table 4.22 reveals that majority (i.e., 81%) of the respondents are satisfied with their current investment
options and the remaining 19% are not satisfied with their investment options.

Table: 4.23
Need of assistance in savings and investment pattern
Opinion No. of respondents Percentage

Yes 54 54%
No 46 46%
Total 100 100%
Source: Primary Data

Figure: 4.23

50
 Need of assistance in savings and investment pattern

INTERPRETATION:
Table 4.23 reveals that 54% of the respondents need assistance in improving their investment pattern while
the remaining 46% of the respondents do not require any assistance in their investment pattern.

51
 CHAPTER 5
FINDINGS, SUGGESTIONS AND
CONCLUSION

FINDINGS
 Majority of the respondents are male.
 Most of the respondents are in between the age group of 21-30 years.
 Most of the respondents are unmarried.
 Most of the respondents are PG graduates.
 Most of the respondents have an experience of 5-10 years.
 Majority of the respondents have a monthly income of Rs. 20,000-50,000.
 75% of the respondents are from aided colleges.
 Most of the respondents save up to Rs.25,000-50,000 monthly.
 30% of the respondents prefer Bank deposits.

52
  Most of the respondents considered high return as the purpose of their investment.
 40% of the respondents are affected by market risk in their investment.
 Most of the respondents have savings and expenditure ratio of 30:70.
 Majority of the respondents self-manage their investments.
 32% of the respondents have half-year investment pattern.
 Most of the respondents preferred investments which have moderate risk.
 Most of the respondents monitor their investments monthly.
 67% of the respondents are willing to take risk of losing their principal investment amount.
 Majority of the respondents prefer to grow their investments at an average level.
 Most of the respondents prefer medium term investments.
 Most of the respondents (54%) need assistance in investment decisions.
 Majority of the respondents’ investment decision depends upon economic scenario.
 71% of the respondents have thorough knowledge regarding stock market.
 Most of the respondents withdraw their money when stock price falls.
 Majority of the respondents are satisfied with current investment options.
SUGGESTIONS
• Awareness can be given to people about some investment plans like National Saving Certificate, Senior
Citizen Saving Scheme, Mutual fund, Systematic investment plan etc.
• Investor’s feedback can be collected about the alternatives so that improvements can be done in the
schemes.
• For every type of investment there should be a minimum level of safety and security.
• All financial institution should deal with all types of investment scheme.
• Trustworthy agents can be appointed by the institutions to collect the premium amount for investment.
• Awareness about so many special investment schemes in market should be provided to people which
encourage people for the saving.
• To enhance the investment habits, the investment mode must attract people by providing many offers and
new attractive schemes.

CONCLUSION
Today the teaching community has started 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 influenced by other tempting and fashionable expenses. Most of the teachers are giving
first preference to Bank deposits, Gold and post office schemes.
It is also found that the ability of saving and investment has increased and the awareness of the investment
alternatives is also increased in public and if they can analyze about risk return portfolios then they can

53
increase their savings. This can be boosted through innovative savings component in the salary itself along
with some special incentive to those who save more.
It should be noted that this research study was carried out in one district covering one community focusing
on one dimension of the dynamics of the investment. Accordingly, the study was confined to different
categories of college teachers working in various educational institutions in Pathanamthitta District of
Kerala State with a special emphasis on their attitude and behaviour towards consumption, savings and
investments. Hence it is micro study, the findings, discussions and conclusions cannot be generalised so as
to make them applicable to all sections of the society in all States in India due to differing social economic
and cultural circumstances.

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 BIBLIOGRAPHY

BIBLIOGRAPHY

BOOKS AND JOURNALS

 Yasodha .M, Dr. G. Ravindran (2017). Savings and investment pattern of Teachers working in Arts
and Science College in Coimbatore District, International Journal of Science and Research, Vol.6,
June 2017.
 Ananthapadhmanabha Achar (2012). Savinga and Investment Behaviour of teachers. An empirical
study , International Journal of Physical and Social Sciences, August 2012.
 Agrawal, P, Sahoo P. and Dash R K. (2010) Savings Behavior in India, the Economic Review, Vol.
55.

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WEBSITES

www.icbse.com
www.tndec.in
www.moneysmart.gov.in
www.idfcmt.com

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 APPENDIX

APPENDIX

QUESTIONNAIRE

“A STUDY ON INVESTMENT PATTERN OF COLLEGE TEACHERS WITH SPECIAL

REFERENCE TO PATHANAMTHITTA DISTRICT”

Dear Sir/Madam,
My study for project report is the Savings & Investment Pattern of College Teachers in Pathanamthitta
District. The Data collected thru questionnaire is purely for academic purpose and will not be used for any
other purpose.

 DEMOGRAPHIC PROFILE
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1. Gender : Male  Female 

2. Marital Status : Married  Unmarried 

3. Age : 21 – 30 years  31 - 40 years  41 – 50 years 

Above 50 years 

4. Qualification : PG  P. G NET/SET  M.Phil. and above  Ph.D.  Others 

5. Experience : Below 1 years  1 – 5 years  5 – 10 years 

Above 10 years 

6. Category of College: Government  Self Financing 

Aided 

 SAVINGS AND INVESTMENT ATTRIBUTES

7. Monthly savings of the respondent: Below Rs.10,000  10,000 – 25,000

25,000 - 50,000  More than 50,000 

8. Most preferred investment options: Bank  Mutual Fund  Post office fund  Chit Fund 

Real Estate  Insurance  Gold/others 

Shares/Bonds

9. Chose the main purpose of your investment: High Return  Tax Benefit 

Regular Interest Income 

Long Term Capital Appreciation 

Future Emergency Contingencies 

Plan for retirement  Health Care 

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 10. Risk factor experienced in investments: Market risk  Credit Risk  Interest Rate 

Inflation risk  Political risk  Liquidity 

11. What is the proportion of savings and expenditure of your earnings: 10:90  20:80  30:70 

40:60  50:50 

12. How do you manage your investment? Self-management  Thru Stock Brokers  Thru Bank 

Others 

13. How is your investment pattern? Monthly  Quarterly  Half Yearly  Yearly 

14. If you invest – you would prefer investments which have__________? Low risk 

Moderate Risk 

High risk 

15. How often do you monitor your investment: Daily  Weekly  Monthly 

16. Can you take risk of losing principal investment amount? Yes  No 

17. At an average level, do you want your investment to grow? Steadily  Medium  Average 

High 

18. What is the time period you prefer to invest? 0 – 1 years  1 – 5 years  More than 5 years 

19. Choose the most influencing factor of your investment decision?

Past performance consideration  Economic scenario  Industry analysis 

Credit rating  Company analysis 

20. A) Do you have thorough knowledge regarding stock market?: Yes  No 

20. B) If yes imagine that stock price drops after you invest in it, what will you do?:

Rebalance your portfolio  Set a stop-loss order  Withdraw your money 

Buying more to average 

21. Are you satisfied with your investment option? Yes  No 

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22. Do you need any assistance to improve your savings and investment pattern? Yes  No 

If yes, please mention: ________________________

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