Summer Project Full Report 2018 2nd Unedited

INVESTMENT HABIT AND PATTERN OF UNDERGRADUATE
STUDENTS OF TU-BBA PROGRAM
By:
Sudip Sharma
TU Regd. No: 7-2-25-1218-2014
Exam Roll no. 14431/14
A Summer Project Report Submitted to

Faculty of Management, Tribhuvan University
In partial fulfillment of the requirements for the degree of

Bachelor of Business Administration
at the
Nepal Commerce Campus
Tribhuvan University
New Baneshwor
April, 2018
i
Letter of Approval
This summer project entitled “Investment Habit and Pattern of Undergraduate
Students of TU-BBA program” has been submitted by Sudip Sharma for the final
examination to the faculty of management, Tribhuvan University, in fulfillment of the
requirements for the degree of BBA. The research committee of this campus has
found this summer project satisfactory in scope and quality and has therefore
forwarded for examination.
______________________
Signature
Associate Prof. Dr. Prakash Neupane

Director, BBA Program
BBA, Research Committee
ii
STUDENT DECLARATION
This is to certify that I have completed the Summer Project entitled “Investment Habit
and Pattern of Undergraduate Students of TU-BBA program” under the guidance of
Dr. Prakash Neupane in partial fulfillment of the requirements for the degree of
Bachelor of Business Administration at Faculty of Management, Tribhuvan
University. This is my original work and I have not submitted it earlier elsewhere.
Date:
Signature:
Name: Sudip Sharma
iii
CERTIFICATE FROM THE SUPERVISOR
This is to certify that the summer project entitled “Investment Habit and Pattern of
Undergraduate Students of TU-BBA program” is an academic work done by Sudip
Sharma submitted in the partial fulfillment of the requirements for the degree of
Bachelor of Business Administration at Faculty of Management, Tribhuvan University
under my guidance and supervision. To the best of my knowledge, the information
presented by him/her in the summer project report has not been submitted earlier.
______________________
Signature of the Supervisor
Name: Associate Prof. Dr. Prakash Neupane
Designation: Head of the research department, BBA
Date: 2074-12-26
iv
ACKNOWLEDGEMENTS
This summer project report is based on Investment Habit and Pattern of undergraduate
students of TU-BBA program. The main goal of this report preparation is to meet the
particular requirement of summer project as an integral part of Bachelors of Business
Administration (BBA) under the curriculum as prescribed by the faculty of
management, Tribhuvan University.
This report preparation has advanced my knowledge in investment habit and pattern
of BBA students specializing in Banking and Finance. I am able to complete this
report due to the help and motivation of my colleagues, teachers, seniors, and my
parents.
My outmost gratitude goes to the Tribhuvan University for including this Project
Work in the syllabus of BBA, which I think is very helpful in developing practical
knowledge of the student. I would like to thank Nepal Commerce Campus for
providing the support and the proper environment for the study. I am grateful to their
constructive suggestions and cooperation. The study was possible under the
supervision of my supervisor Dr. Prakash Neupane and faculty members. My thanks
are due to them. I would like to express my gratitude to my advisor and faculty
member of Nepal Commerce Campus, Mrs. Sabina Timilsina and Mr. Chudamani
Pandeya for providing me healthy suggestions during my study.
Finally, I am also thankful to Mr. Surya Devkota, Mr. Chandra Deep Lamichhane,
Mr. Rajesh Gurung, and Mrs. Sunil Amatya for their valuable instructions, constant
encouragement, patience, guidance and supervision on several sides of this report.
Thank You !
Sudip Sharma
v
Table of Contents
Letter of Approval.........................................................................................................ii
STUDENT DECLARATION.......................................................................................iii
CERTIFICATE FROM THE SUPERVISOR...............................................................iv
ACKNOWLEDGEMENTS...........................................................................................v
Table of Contents……………………………………………………………………..vi
List of tables................................................................................................................viii
List of figures................................................................................................................ix
Executive Summary.......................................................................................................x
Chapter I: Introduction……………………………………………………..……....1-12
1.1Context Information..............................................................................................1
1.2 Statement of the Problem.....................................................................................3
1.3 Purpose of study...................................................................................................4
1.4 Significance of the study......................................................................................4
1.5 Literature Review.................................................................................................5
1.6 Research Methodology.......................................................................................10
1.6.1 Research Design..........................................................................................10
1.6.2 Population...................................................................................................11
1.6.3 Sample Size.................................................................................................11
1.6.4 Sampling Method........................................................................................11
1.6.5 Nature and Sources of Data.........................................................................11
1.6.6 Data Collection Instruments........................................................................12
1.6.7 Data Analysis Tools....................................................................................12
1.7 Limitations of the Study.....................................................................................12
Chapter II: Data Presentation and Analys………………………………………...13-31
2.1 Respondent Profile.............................................................................................13
2.1.1 Gender of respondents.................................................................................14
vi
2.1.2 Type of colleges of respondent...................................................................14
2.1.3 Permanent location of respondents.............................................................16
2.2 Data Presentation and analysis...........................................................................17
2.2.1 Saving habit of students..............................................................................17
2.2.2 Regularity in saving habit among students.................................................19
2.2.3 Ways, amount and major purpose of saving...............................................21
2.2.6 Monthly Pocket Money and opinion on priorities of spending habits........22
2.2.3 Investment habit among students................................................................23
2.2.4 Major sources of fund for investment activities..........................................25
2.2.5 Investment pattern of students....................................................................27
2.2.6 Amount, market and time of investment.....................................................28
2.2.6 Investment objectives and time period preferred for investment................29
2.2.7 Opinion on factors affecting saving and investment behavior of students. 30
2.2.8 Survey on financial knowledge and future in stock market investment.....30
2.3 Findings and discussion.....................................................................................31
Chapter III: Conclusion and Action Implications………………………………...36-37
3.1 Conclusion..........................................................................................................36
3.2 Action Implications............................................................................................37
REFERENCES
APPENDICES
vii
List of Tables
Table 1: Gender of respondents...................................................................................14
Table 2: Types of college of respondents....................................................................14
Table 3: Permanent address of respondents.................................................................16
Table 4: Saving habit of students on the basis of gender, location and college..........17
Table 5: Regularity in savings among students on the basis of gender.......................20
Table 6: Regularity in savings among students on the basis of location.....................20
Table 7:Regularity in savings among students on the basis of college........................20
Table 8: Ways, monthly amount and major purpose of savings..................................21
Table 9: Monthly pocket Money of students...............................................................22
Table 10: Opinion on priorities of spending habit.......................................................22
Table 11: Investment habit of students on the basis of gender, location and college. .23
Table 12: sources of fund for investment activities.....................................................26
Table 13: Areas of Common Stock Investment...........................................................27
Table 14: Investment amount, market and time period since first investment............28
Table 15: Objectives of investment and time period preferred for investment............29
Table 16:Opinion on factors affecting saving and investment habit of students.........30
Table 17: Survey on financial knowledge and future in stock market investment......31
viii
List of figures
Figure 1: Composition of male and female respondents..............................................14

Figure 2: Frequency of respondents on the basis of type of college............................15
Figure 3: Frequency of respondents on the basis of gender and type of college.........15
Figure 4: Frequency of respondents on the basis of location.......................................16
Figure 5: Saving habits of students on the basis of gender..........................................18
Figure 6: Saving habits of students on the basis of types of college............................18
Figure 7: Saving habits of students on the basis of their location................................19
Figure 8: Investment habits of students on the basis gender........................................24
Figure 9: Investment habit of students based on the type of college...........................24
Figure 10: Investment habits of students based on permanent location.......................25
Figure 11: Sources of funds for investment activities of students...............................26
Figure 12: Areas of common stock investment made by students and its percentage. 28
ix
Executive Summary
This study is based on the assessment of investment habit and pattern of

undergraduate students of TU-BBA program. It focuses on the students studying in
seventh semester and specializing in finance to draw the conclusions and findings.
The major objective of the research is to examine the major sources of fund and
pattern of investment activities of the undergraduate students and also to identify
whether or not gender, location and type of college of the students influence saving
and investment behavior of undergraduate students. This research is based on
descriptive research design and the total number of students currently studying BBA
in 7th semester and specializing in finance is the population of the study . A sample of
total 100 students will be taken with 50 students each from government and private
BBA colleges of TU within Kathmandu valley. Non probability sampling method is
used to collect primary data from the students using Questionnaire and descriptive
statistics tools like frequencies, weighted mean, percentage method and graphic tools
like bargraph, table and pie chart will be used to analyze the collected data. The study
found that majority of the respondents used only parental money and invested mostly
in portfolio of common stocks of different companies. Saving habit of female students
was higher than male while investment habit of males was higher than female
students. No significant difference was found in saving habit of government and
private college students but higher number of government college students was
involved in investment activities than private college students. It was also concluded
that students permanently from inside valley are involved more in saving and
investment activities than students permanently from outside valley. The findings
from this study are significant to the students, colleges, Faculty of Management
Tribhuvan University (FOM-TU) and other researchers. Students can get chance to
know about how to save and invest for the better future while colleges and FOM-TU
can access the effectiveness of knowledge provided to their students and formulate
policies accordingly. However, limited time, unwillingness of students to provide
accurate data and lack of wide generalization area or applicability has been the
limitations of this research study.
x
Chapter I: Introduction
1.1Context Information
Investment is the current commitment of money for a period of time in order to derive
future payments that will compensate the investor for the time the funds are
committed, the expected rate of inflation and the uncertainty of future payments.
According to Harrod (1939) and Domar (1946), the speed of economic growth is
determined by the ability to save because high savings rate will drive up the rate of
investment and consequently stimulate economic growth. No one is born knowing
how to save or to invest. Every successful investor starts with the basics. For most
people, the only way to attain financial security is to save and invest over a long
period of time. According to a report published in The Himalayan Times (2016, May
3), saving habits of Nepalese is currently at its worst in at least two decades, as they
have started consuming almost everything that is being produced in the country. In
such situation, it is essential to promote saving habits among people and encourage
them for investment.
This study about Investment habit and pattern in undergraduate students of TU-BBA
program is an attempt to study the effectiveness of knowledge given to the students
about Economics and Finance. According to Dhodary et.al. (2017), there can be two
major areas of investment; real asset investment and financial asset investment. A real
asset represents actual tangible or physical asset that may be seen, felt, held or
collected; like real state, gold etc. Financial asset is a non-physical asset whose value
is derived from a contractual claim, such as bank deposits, bonds, and stocks etc. A
mechanism designed to facilitate the exchange of financial assets by bringing together
buyer and sellers of security together is a security market. Such market can be divided
into: money market and capital market (on the basis of life of the securities) or
primary market or secondary market (on the basis of the economic function). Since
transaction of securities issued for the first time takes place is in primary market, there
are rare chances of facing loss. Secondary Market is the market for existing and pre-
developed securities. In context of Nepal, NEPSE is the only secondary market. All
1
securities are first traded in the primary market, and the proceeds from the sale of
securities go to the issuing firm. The existence of secondary market provides liquidity
to the financial assets. Unlike real assets, financial asset can be created and destroyed
easily. Furthermore, they have divisibility, high marketability and convertibility
features which distinguish them from real assets. We can buy a small fraction of
shares of a company as well as sell them easily and quickly in the market, and also
convert one financial asset (such as bond) to other (such as common stock).
Information regarding financial assets is easily available as compared to information
regarding real asset. Investors can hold a financial asset for a relatively lower period
of time than a real asset. Most of the students are attracted towards financial asset
investment during the early phase of their studies due to the benefits mentioned
above. Investment, usually in stock market and mutual fund is more popular among
students studying BBA.
According to Dhodary et.al. (2017) there are several investment alternatives available
in the market like non marketable financial assets (e.g. saving account, non negotiable
certificate of deposits etc), money market securities (e.g. t-bills, commercial paper,
negotiable CD, etc.), capital market securities (e.g. government securities, t-notes, t-
bonds, equity securities etc.), derivative securities (e.g. options, future contract etc.) ,
real assets(e.g. precious metals, real estate etc) and other assets like mutual funds,
pension funds, life insurance policies etc.
Investment is possible only through savings. Saving is any residual amount derived
after spending a fixed portion of income. Over the past decades, saving has played an
important role in the process of economic growth and development. Logically, saving
encourages investment that triggers the economic growth of one country. Endogenous
growth theory suggests that high investment and savings rate are crucial in view of
their strong positive correlation with the economic growth rate (Agrawal, 2001).
Students might think that saving and investing is something they don’t need to
consider right now. But there’s a cost to waiting, and even saving a little now can add
up over time and help you pay for your short and long-term goals. The awareness of
the importance of financial education is gaining momentum among policy makers
across the world’s economies. Again, helping young people by understanding their
financial issues is quite important, as younger generations are likely to face ever
2
increasingly complex financial products and services. They are also more likely to
bear more financial risks in adulthood than their parents, especially in saving,
planning for retirement and covering their healthcare needs (OECD, 2011).
Recognizing the importance of financial literacy, a growing number of countries have
developed and implemented national strategies for financial education in order to
improve the financial literacy of their populations in general; often with a particular
focus on younger generations (Grifoni & Messy, 2012).
Many researchers have conducted researches on similar topics till date and have found
that factors apart from financial literacy like saving habits, parental socialization, and
faith of parents, peer influence and self control also influence investment habit and
pattern of students. So the increasing number of students in making investment to
learn and to earn encouraged me to do research in this topic. This research doesn’t
solely rely on financial literacy of students, but it also considers several factors that
affect their will to invest like savings, trust of parents etc. However, we can’t neglect
that the students of TU-BBA, who attend the day classes rarely get any opportunities
of generating income through activities like teaching tuition, doing part time jobs, etc.
Therefore, this study only focuses on how do the students utilize their pocket money
and income from other sources(if any) and what sort of investments have they made
through the money provided by their parents who believe that their son/daughter,
being a BBA-finance student can make wise investment decisions.
1.2 Statement of the Problem

Though there are several empirical evidences that justify the necessity of saving and
investing habits among students of several countries to enhance economic growth
including Nepal, there are very few evidences using recent data from BBA students of
TU in Nepal. Until and unless practicability and effectiveness of the knowledge
provided to the finance students is not accessed frequently, country can’t expect
increasing saving and investment practices in common people?
Thus, this research is an attempt to access the effectiveness of financial knowledge

given to BBA students. Basically, it focuses on finding answers to the following
research questions:
3
1. What is the main source of investment activities of seventh semester students
of TU BBA?
2. What is the current pattern of investment among undergraduate students of
BBA?
3. Does gender and location influence saving and investment practices of
undergraduate students?
4. Are the saving and investment habits of private college students different from
that of government college students?
1.3 Purpose of study

Objectives in its clearest sense are the goals of conducting this research. The general
objective of the research is to examine whether or not a substantial number of
undergraduate students have practically applied the knowledge they have gained
through the books.
The specific objectives can be listed as follows:
1. To identify the major sources of fund for investment activities of

undergraduate students of BBA-TU.
2. To identify whether or not gender and location affects saving and investment
practices of undergraduate students of BBA-TU.
3. To identify the pattern of investment made by undergraduate students of BBA-
TU.
4. To identify whether there is any difference in saving and investment habit in
undergraduate students of private and government colleges of BBA-TU.
1.4 Significance of the study

The study provides benefits to the undergraduate students, colleges offering BBA
courses as well as Faculty Of management TU (FOMTU). Adding values and
fulfilling current research gaps in similar topics, this research paper provides
information about saving spending and investing practices of the students through the
4
funds provided by their parents. It focuses on the information, objectives and factors
that affect such practices of undergraduate students.
FOMTU can use the findings of this research paper to access how practical are its
products in the market. One the basis of such outcomes FOMTU can decide whether
or not to make any changes to the education and evaluation system.
Colleges of TU offering BBA courses can access how practical are their products
becoming. Not only TU BBA colleges, but also other universities affiliated colleges
offering BBA or any other financial courses can use the findings from this paper to
access how the students can be taught in a more effective way so that they can better
link their theoretical understandings in practice and develop a road map accordingly.
Besides these, the other parts that will be benefitted by the research are the students of
finance themselves. This study might turn a milestone for those who are willing to
invest but are in a dilemma about where and how to invest. They can learn better how
to maintain a balance between saving and spending to enroll in the investment
activities in order to make capital gain and get other returns in various forms.
Besides FOMTU, colleges and individual students; the study also provides broad
knowledge to the researchers conducting economic surveys and researches related to
similar topics.
1.5 Literature Review

Chandradathan et.al. (2016) studied about the saving, spending and investment habit
of college students in India. Among various objectives of the research, studying
spending and saving pattern of undergraduate and post graduate students and its
gender wise analysis were also major objectives. The study used questionnaire as a
primary data collection sources and websites and publications were the secondary
sources. The researchers concluded that the students first prefer to shop and
transportation came in secondary. They were not much interested in entertainment.
Among 100 students surveyed, 95% students had saving habits. 69.56 % of them
saved less than 500 and only 3.26% saved more than 1500. Furthermore 74% of them
had no regularity in savings. More specifically, 50% of males and 20% of females
only saved regularly. 98% of the 37% students who had invested reported that they
have invested in common stocks.
5
Thapa and Nepal (2015) studied about Financial Literacy among 436 college students
of 23 colleges in 4 major universities of Nepal under economic review undertaken
under Nepal Rastra Bank. The study of financial literacy was based on financial
behavior, influence, attitude and knowledge. The primary data was collected through
questionnaires and websites and publications were used as secondary sources. The
study concluded that the students were highly influenced by their parents at home and
they have positive attitude towards savings. The researchers also concluded that
instead of buying insurance policy, investing in stocks, students are involved in bank
saving. The study found that saving and investment behavior remained unaffected by
gender and university affiliation. However, type of college affected their behaviors
including some demographic and personality characteristics.
Jorgensen (2007) investigated the personal financial literacy of a sample of

undergraduate and graduate college students using the personal characteristics of
gender, class rank and socioeconomic status, and examined parental and peer
influences on the level of financial literacy of college students. The researcher
concluded with a low score of the students in financial knowledge, attitude, and
behavior but it was significantly increasing each year from freshman to masters.
Further, it also revealed that students who were financially influenced by their parents
had higher financial knowledge, attitude, and behavior scores, and students with
higher financial knowledge also had higher financial attitude and behavior scores.
Lusardi et al. (2010) examined financial literacy among the youth in Germany and
concluded that financial literacy is low; only less than one-third of young adults were
found with basic knowledge of interest rates, inflation, and risk diversification.
However, financial literacy was strongly related to socio-demographic characteristics
and family financial sophistication.
Age, gender, language, race and income level do have an impact on the level of
financial literacy among the undergraduate level students (Clercqet al., 2009). Nidar
and Bestari (2012) investigated the level and factors influencing the personal financial
literacy of 400 students in Padjadjaran University of Indonesia and concluded that
level of personal financial literacy was within the low category, especially in
investment, credit, and insurance. The data was collected by distributing
questionnaires among all 400 students. The researchers also concluded that level of
6
education, faculty, personal income, knowledge from parents, parents’ income, and
ownership of insurance factors have significant impact on personal financial literacy.
They used personal financial literacy in: basic personal finance, income & spending,
credit & debt, saving & investment and insurance.
In the USA, Danes and Hira (1987) surveyed 323 college students from Iowa State
University, using questionnaire covering knowledge of credit card, insurance,
personal loans, record keeping, and overall financial management. The researchers
concluded that the participants have a low level of knowledge regarding overall
money management, credit cards, and insurance. It was also concluded that males
know more about insurance and personal loan, but females know more about issues
covered in the section of overall financial management knowledge.
Some of the studies suggested that the stream of the education is one of the indicators
for determining financial literacy of the students (Chen & Volpe, 1998; Peng et al.,
2007; Robb & Sharpe, 2009; Ramasawmy et al., 2013, and Fatoki, 2014). In
Mauritius, Ramasawmy et al. (2013) examined the level of awareness of financial
literacy by surveying among 200 management students at the University of Mauritius
using questionnaire. Four fundamental aspects in financial literacy were considered:
level and importance, definitions and theories, constraints and measures to improve
financial literacy. It was concluded that management students at the University of
Mauritius attached a sound level of importance to financial literacy to their subject of
study. However, according to the results, most students had a medium level of
knowledge and skills in financial literacy and in savings and borrowings. They did not
find the significant difference in the financial literacy level between male and female
respondents while male and female’s ability to read, analyze, manage and
communicate was found significantly different. Similarly, the study also stated that
age, gender, language, race and income level did not have an impact on the level of
financial literacy.
Merikas et. al. (2004) undertook an empirical survey of the factors, which mostly
influence individual investor behaviour in the Greek stock exchange. The study was
conducted on the 150 respondents. The variables used in the research were accounting
information, subjective/personal, neutral information, advocate recommendation and
personal financial needs. The study indicated the factors that have significant
7
influence and the factors that have least influence on the Greek Stock Exchange
investors. The research result showed the accounting information has significant and
personal financial needs have least influence in Greek.
Iqbal & Usmani (2009) evaluated the factors influencing individual investor
behaviour in the Case of the Karachi Stock Exchange. The study of the investment
decision process consists of economic perspectives derived from the relationship
between the lifestyle, demographic variable and behavioural. Through the
examination it was analyzed that the behavioural variables and utility maximization
are taken together for a complete study. The study incorporated the concept by taking
30 variables from diverse decision criteria including contemporary concerns. The
findings suggest that an individual considers on the wealth maximization criteria on
making their stock purchase. Investors take family and friends recommendations as
well as use accounting information but most of the investor’s decision is based upon
their own will and are not influenced by any one. Individual investor lacks skills due
to which the decision making of investors suffers.
Kadariya (2012) investigated the factors affecting investor’s decision making in the
context of Nepalese Capital Market. The independent variables that are considered
include capital structure, political and media coverage, luck and financial education
and trend analyses in the Nepalese capital market. Findings of the study showed that
majority of the investors were youngsters and they take decision considering the
media coverage and friends recommendations as good source of information.
Dividend, earning, equity contribution and government control were considered the
most important factors while taking the decision. Investors when bears the loss blame
to the market and when earns profit take whole credit to their own abilities.
Gnani et. al. (2012) carried out the research to find out the factors influencing the
individual investor behavior with special reference to Geojit BNP Paribas Financial
Service Ltd, Coimbatore. The study aimed at identifying the most and the least
influencing factors of the individual investor behavior. The project was based on
descriptive research design. The data was collected with the help of a questionnaire.
The questionnaire included thirty items that belong to five categories: self image/
firm-image co-incidence, financial information, neutral information, advocate
recommendations and personal financial needs. The sample size considered for the
8
study was 200 where in all the samples were investors of Geojit BNP Paribas
Financial Service ltd, Coimbatore. The tools used for the analysis include Chi-Square
Test. The analysis was divided into 2 phases which are personal factors and
behavioural factors. The study revealed that accounting information is the most
influencing group of the individual investor behavior and advocate recommendations
have last effect on investor’s decision making.
Farj et. al. (2016) assessed the importance of accounting information contained in the
corporate annual reports published in the Libyan Stock Market from the perspective
of investors as primary users of these reports. A set of questionnaires was used to
gather information from all shareholders. The findings indicated that corporate
financial reports are useful despite that they are not the most sought-after source of
information influencing investors’ decisions. Libyan investors depend mainly on the
pieces of advice obtained from brokers to take their decisions then looking at
corporate annual reports. This result might be due to inadequate information
contained in corporate financial reports in terms of quantity and quality.
In his human capital theory, Becker (1975) stated that women rationally choose to
invest less than men in human capital, including education, skills, and on-the-job
training, affecting women’s employment opportunities, incomes, and ability to
accumulate wealth. Women make different choices than men due to greater family
responsibilities with the gender division of labor within the family, resulting in
women taking primary responsibility for household work and child care (Bajtelsmit &
Bernasek, 1996). Research has shown that the preferences of men and women differ,
affecting the labor and consumption decisions that man and woman make (Croson &
Gneezy, 2004). Women have been shown to invest differently than men, but little is
known about whether or how general saving behaviors differ between men and
women.
Patti J. Fisher (2007) stated that women and men have been shown repeatedly in the
literature to differ in terms of risk tolerance, which has then been shown to affect
women’s financial decisions and behaviors. The current results show that risk
tolerance also affects men and women in terms of whether they engage in saving.
Interestingly, women reporting low risk tolerance were significantly less likely to save
over the short term as well as to be regular savers, while this effect does not apply to
9
the sample of men. In fact, although not found to be statistically different for men and
women, high risk tolerance significantly decreased the likelihood of short-term saving
for men. Poor health also decreased the likelihood of short-term saving for women but
not men. Each year of education made men significantly more likely to save in the
short term and to save regularly, but this effect does not apply to women.
1.6 Research Methodology

Research Methodology simply refers to the methods that are going to be taken into
account for conducting the study of the topic chosen. Methodology of any research
constitutes the selection of representative sample of the universe or the general
population, application of the appropriate research tools and the techniques.
Various subparts of research methodology are used in this research like research
design, study population, sampling method, sample size, nature of the data, data
collection instrument and data analysis tools. Each of them are described below:
1.6.1 Research Design

Since this research is based on studying primary data collected through the
students for studying investment habit and pattern in detail, it uses Descriptive
Research Design. Descriptive research is about asking people for their
opinions in a structured way in order to produce hard facts and statistics to
guide for preparing the report analysis. The following works will be performed
while using descriptive research design:
 Determination of study objectives

 Collection of samples
 Preparing procedures for collecting data
 Collection of data
 Processing and analyzing of data
 Preparing report incorporating facts
The research uses scientific methods of collecting, classifying and analyzing

related data, facts and figures. Classification of the variable related to the
research problem and analyzing and establishing their relationship and
preparing report incorporating the facts will be the basic objective of this
research.
10
1.6.2 Population
The population is the collection of units (people, objects or anything) that
researchers are interested in knowing about. The number of individuals in a
population is called population size For this research, the total number of
students studying BBA in 7th semester is the population. Seventh semester is
preferred because when studying investment habit and pattern of
undergraduate students, it makes sense to study only the specialized in
“Banking and Finance”.
1.6.3 Sample Size

A sample is a smaller collection of units selected from the population, i.e., a
finite subset of individuals in a population is called a sample and the number
of individuals in a sample is called sample size. In this research 50 students
will be taken as sample each from government and private colleges of TU
within Kathmandu valley. Therefore the total sample size will be 100.
1.6.4 Sampling Method

For the convenience, non-probability sampling is used. In non probability
sampling, there is no equal chance of selecting as sample to each unit. And
under non-probability sampling, convenience sampling will be used.
1.6.5 Nature and Sources of Data

The research is based on primary sources of data. Primary data represents the
first hand data collected by the researcher for the purpose of present research.
Primary data is used when secondary data is not available or secondary data
only is not sufficient to draw conclusions. Primary data can be collected using
various methods. They are:
1. Interview
2. Questionnaire
3. Observation
Among these methods, the research uses ‘Questionnaire’ as a primary source

of data. Questionnaire is a formal list of question designed to gather response
from respondents on a given issue, event or topic. The questionnaire will be
11
distributed to the respondents physically and electronically and the data will
be collected.
1.6.6 Data Collection Instruments

Among questionnaire, research interview and observation, survey
questionnaire will be used as data collection instrument that contains:
 Respondents’ profile
 Straight Head Questions
 Multiple choice questions
 Open end Questions
 Likert Scale
1.6.7 Data Analysis Tools

Data analysis is the process of gathering, arranging, classifying, modelling,
and analyzing the data with the purpose of generating useful information. The
data collected are arranged, classified and are presented in the form of table,
graphs and bar diagrams in the report. Those statistical presentations of the
data show the investment habit and pattern of undergraduate students of TU-
BBA program. Various data analysis tools that is used in this research are
table, bar diagram, pie chart, Ms-excel, weighted mean, frequency analysis
and percentage method.
1.7 Limitations of the Study

Despite using scientific techniques for data collection and analysis, this study has
some limitations and they are mentioned below.
1. There was no enough time for the data collection for this research since
samples were scattered around different colleges of valley.
2. Unwillingness of students to provide the accurate information.
3. Due to small sample size, findings may not be generalized.
4. Since only 7th semester students are considered for the study, the findings
can’t be generalized to other semester students.
12
Chapter II: Data Presentation and Analysis
Data analysis is the process of developing answers to questions through the

examination and interpretation of data. It is an important and vital portion of any
dissertation facts. The justification of project work is done on the basis of analysis and
presentation of the facts. The conclusion and recommendation are valid when drawn
based on the data collected, analyzed and interpreted. The objective of this chapter is
to discuss and present the research’s findings. Required information was collected
from the students studying BBA in seventh semester currently. The data collected
were then arranged, classified and presented in the form of tables, graphs and bar
diagrams in the later part of the report. Those statistical presentations of the data show
the investment habit and pattern of students.
This section includes the empirical investigation which was conducted in the form of
field survey of respondents through structured questionnaire distributed to the sample
selected by using non probabilistic procedures. Questionnaire was developed and
distributed to 100 sample respondents to know about investment habit and pattern of
undergraduate students of TU BBA program. 88 participants actively participated in
the survey with the response rate of 88 per cent. Among the questionnaire collected
12 were invalid which shows 6 per cent of the response. Thus 12 additional
questionnaires were distributed to the new mass of respondents according to the
criteria which remained unfulfilled. Total response was thus made 100. Among the
total responses 39 were collected using online questionnaires and remaining 61 were
collected by distributing physical forms. The responses received from these
respondents have been arranged, tabulated and analyzed in order to facilitate the
descriptive analysis of the study. This chapter is all about the empirical investigation
during the study.
2.1 Respondent Profile

This section presents the findings about the respondents in terms of gender, type of
college they study in and their permanent location. The data are shown in frequencies,
percentage, bar diagram and pie chart.
13
2.1.1 Gender of respondents
Gender is the state of being male or female .Table 1 resents the status of the gender of
respondents taken under the study.
Table 1: Gender of respondents

Frequenc Per
Gender y cent Cumulative Per cent
Male 50 50 50
Female 50 50 100
Total 100 100
Source: Questionnaire survey, 2018
Out of the total 100 respondents, coincidently male and female represented equal
portion of the total i.e. 50% were male and 50% were female.
60
50
Frequency
40
30
20
10
0
Male Female
Gender
Figure 1: Composition of male and female respondents
The diagram shown above represents gender and frequency of respondents along x-
axis and y- axis respectively. It shows that 50 of the total 100 respondents were male
and 50 were female. Thus, male and female constitute equal proportion.
2.1.2 Type of colleges of respondent

Table 2: Types of college of respondents
Types of college Male Female Total
Government 24 26 50
Private 26 24 50
Total 50 50 100
The research considered students from private and government colleges within
kathmandu valley to meet its objective. Table 2 represents the no. of students
belonging to government and private colleges, both in gender-wise and in total.
14
Out of the total 100 respondents taken for the study, 50 respondents were taken from
government colleges and 50 from private colleges studying finance specialized course
in seventh semester. Among them 24 males and 26 females represented government
college and and 26 males and 24 females represented private college .
60
50
40
Frequency
30
20
10
0
Government Private
Types of college
Figure 2: Frequency of respondents on the basis of type of college
Types of college and frequency of respondents are shown along x-axis and y-axis of
the above diagram respectively. It shows that among total 100 respondents, 50% of
the respondents are from government colleges and 50% from private colleges.
26.5
Private Government
26
25.5
Frequency
25
24.5
Government Private
24
23.5
23
Male Female
College wise gender representation
Figure 3: Frequency of respondents on the basis of gender and type of college
The diagram shown above represents frequency of respondents and college wise
gender representation along y-axis and x-axis respectively. Among total 50
respondents from government colleges, 24 are male while 26 are female which
represents 24% and 26% of the total population respectively. Similarly 26 males and
24 females are among remaining 50 respondents from private colleges which
represent 26% and 24% of the total population respectively.
15
2.1.3 Permanent location of respondents
The table below represents the permanent location of the total 100 participants in total
as well as on the basis of gender. For convenience, the location was categorized as
inside valley and outside valley.
Table 3: Permanent address of respondents

Location Male Female Total Percentage
Inside Valley 12 20 32 32
Outside valley 38 30 68 68
Total 50 50 100 100
Out of the total respondents 32 of them were from inside valley and remaining 68
from outside valley representing 32% and 68% of the total population which shows
most of them were from outside valley. Among 32 respondents from inside valley
female represented highest portion with 20 out of 32 i.e. 62.5%, whereas males were
least in number and were 12 out of 32 i.e. 37.5%. Similarly, out of 68 respondents
from outside valley, 38 of them were males representing 58.82% whereas 30 of them
were females representing 44.12%.
80
70
60
50
Frequency
40
30
20
10
0
Inside Valley Outside Valley
Location of respondents
Figure 4: Frequency of respondents on the basis of location
In the above bar graph showing location of respondents and frequency along x-axis
and y-axis respectively, it is shown that 32 of them were from inside valley and 68
from outside valley, representing 32% and 68% of the total population respectively.
16
2.2 Data Presentation and analysis
This part of the data presentation and analysis is done to fulfill the purpose of the
study and the factors like the saving and investment habits, their pattern and
preference of the students towards them is studied. The descriptive analysis is done as
follows:
2.2.1 Saving habit of students

Among other objectives of the research, to study about the saving habit of students
was also one. The data collected and recorded from the students was divided mainly
on three bases to study about their saving habits; namely ‘Gender’, ‘Type of college’
and ‘Location’ of the respondents. After dividing the responses on these bases, the
information obtained was presented in the table 4 as shown below:
Table 4: Saving habit of students on the basis of gender, location and type of college
Basis of analysis Q. Do you
save? Yes % No %
Male 42 48.28 8 61.54
Gender Female 45 51.72 5 38.46
Total 87 100 13 100
Government 43 49.43 7 53.85
College Private 44 50.57 6 46.15
Total 87 100 13 100 Total
Inside valley 30 93.75 2 6.25 32
Location Outside valley 57 83.82 11 16.18 68
Considering the saving habits of students, majority of them responded in favor of
saving habits with 87 out of 100 responses representing 87% of the total participants.
While the no. of students who don’t have saving habits been just 13, representing 13%
of the total participants.
Among the total 87 participants who were involved in saving, female constituted the
highest portion representing 45 out of 87 which represents 51.72% . Males were
second in saving habits after female with 42 out of 87 representing 48.28% of the total
savers. However there was no vast difference among males and females in percentage.
On the other side, out of 13 participants who don’t save, 8 were males representing
61.54% of 13 and remaining 5 were females representing 38.46% of total 13 non
savers. This can also be shown through the diagram below:
17
50 Female
45 Male
40
35
Frequency 30
25
20
15
10 Male
Female
5
0
Yes No
Gender wise response
no
Figure 5: Saving habits of students on the basis of gender
The diagram shown above represents gender wise response and frequency along x-
axis and y-axis respectively. It indicates that out of total respondents who saved (87),
females (51.72%) are slightly higher in percentage than males (48.28%). While out of
the total respondents who did not saved (13), 61.54% were males and females were
just 38.46%. Thus, it can be concluded that male students are behind female students
in terms of saving habits.
Out of the total 87 savers, there is no much difference between students of

government and private colleges. 50.57% of the 87 students (44) were from private
colleges and remaining 49.43% of 87 students (43) were from government. The
remaining 7 students out of 13 students who don’t save were from government
colleges and 6 were from private colleges representing 53.85% and 46.15% of 13
respectively. This can be further illustrated through diagram below:
50 Private
45 Government
40
35
Frequency
30
25
20
15
10 Government Private
5
0
Yes No
College Wise Response
Figure 6: Saving habits of students on the basis of types of college
Representing college wise response and frequency along x-axis and y-axis
respectively, the diagram shows very small difference in saving habits of private and
18
government college students were slightly higher percentage of private college
students (50.57%) had saving habit that government college students (49.43%). Out of
the 13 non savers, 7(53.85%) were from government colleges while 6(46.15%) were
from private colleges. Thus it can be concluded that there is no significant difference
in saving habits among students of government and private colleges.
Similarly, out of the total 87 savers, 30 were from inside the valley representing
93.75% of total 32 participants from inside the valley while remaining 2 represented
6.25% of them. Whereas, among 68 participants from outside the valley, 57 were
savers representing 83.82% of 68 participants from outside the valley while remaining
16.18% (11) represented non savers. This also can be represented through diagram
below:
Outside val-
60 ley
50
40
Frequency
Inside valley
30
20 Outside val-
ley
10
Inside valley
0
Yes No
Location Wise Response
Figure 7: Saving habits of students on the basis of their location
Representing location wise response and frequency along x-axis and y-axis
respectively, the diagram shows that substantial no. of participants from inside the
valley(93.75% of 32) are involved in saving practices while the no. is quite low for
participants outside valley( 83.82% of 68). In other words, only 6.25% of the
participants from inside the valley had no habits of saving while it was 16.18% from
those outside the valley.
2.2.2 Regularity in saving habit among students

Regularity is a quality or state of being regular. Table 5, 6 and 7 represent the
regularity in saving behavior among students on the basis of gender, location and
college respectively.
19
Table 5: Regularity in savings among students on the basis of gender
Cumulative Cumulative
Male % % Female % %
Regular 9 21.43 21.43 13 28.89 28.89
Irregular 33 78.57 100 32 71.11 100
Total 42 100 45 100
Table 6: Regularity in savings among students on the basis of location

Inside Cumulative Outside Cumulative
valley % % valley % %
47.3
Regular 23 76.67 76.67 27 7 47.37
52.6
Irregular 7 23.33 100 30 3 100
Total 30 100 57 100
Table 7:Regularity in savings among students on the basis of college

Government % Cumulative% Private % Cumulative%
Regular 29 67.44 67.44 16 36.36 36.36
Irregular 14 32.56 100 28 63.64 100
Total 43 100 44 100
Table 5 shows that males are highly irregular than female in terms of regularity in
saving. Out of the total 42 males who save only 9(21.43%) of them are regular in
saving while 33(78.57%) are irregular. Similarly out of 45 females who save 13
(28.89%) of them are regular and remaining 32 (71.11%) are irregular. Thus, female
students are more regular than male students in terms of saving. But in overall, both
males and females are significantly irregular.
Table 6 shows that the students permanently from inside valley are highly regular in
saving by 76.67% (23 out of 30) than those permanently from outside the valley who
are just 47.37% (27 out of 57). Similarly only 7 out of 30 students from inside the
valley are irregular in saving which represents only 23.33% whereas 52.63% of the
students (remaining 30 out of 57) are irregular in saving. Thus students permanently
from inside the valley are significantly regular than students permanently from
20
outside the valley in terms of saving which might be because the students outside the
valley might have to incur additional expenses or spendinds on various items.
Apart from location and gender, table 7 shows that the no. of students studying in
government college who are significantly regular in saving is 29 which represents
67.44% of total 43 students who study in government colleges while private college
students are regular in savings just by 36.36% representing 16 out of total 44 private
college students. Remaining 28 out of 44 (63.34%) students are irregular. Thus
government college students are highly regular than private college students in terms
of saving.
2.2.3 Ways, amount and major purpose of saving

The table shown below represents the different ways in which the students made
savings, their average monthly saving and major purpose of saving.
Table 8: Ways, monthly amount and major purpose of savings

Ways of saving Frequency % Cumulative %
Bank deposit 81 93.1 93.1
Guardians custody 2 2.3 95.4
Others 4 4.6 100
Total 87 100
Average monthly
saving Frequency % Cumulative%
Less than 500 42 48.28 48.28
500-1500 27 31.03 79.31
More than 1500 18 20.69 100
Total 87 100
Purpose of saving Frequency % Cumulative %
Habit 6 6.9 6.9
Higher Studies 13 14.94 21.84
Future Shopping 34 39.08 60.92
Investment 31 35.63 96.55
Other 3 3.45 100
Total 87 100
According to the table, 93.1% of total 87 who make saving made saving in the form
of bank deposit whereas only 2.3% of them give it to guardians and 4.6% of them
uses other measures of saving .Similarly, 48.28% out of 87 students who saved, save
less than 500 per month in average. 31.03% had monthly saving between 500 to 1500
and 20.69% had saving more than 1500 per month. Among 87 students, 39.08% (34)
students said that they save for future shopping while 35.63% (31) said that they
21
saved for making investment. Only 14.94% (13) said that they save for higher studies
while only 6.9% (6) of them saved as a habit.
2.2.6 Monthly Pocket Money and opinion on priorities of spending habits

The following tables represent monthly pocket given to the students and their opinion
on priorities of spending habits. Table 11 shows pocket money received by students
that are divided on the basis of inside and outside valley students. In table 12, students
are asked to rank the spending from 1 for higher preference to 6 for lower preference
and their frequencies are recorded.
Table 9: Monthly pocket Money of students

Frequency
Outside Inside Cumulative
valley Valley Total % %
Less than 500 0 2 2 2 2
500 - 1000 12 4 16 16 18
1000-2000 18 10 28 28 46
more than 2000 38 16 54 54 100
Total 68 32 100 100
Table 10: Opinion on priorities of spending habit

Rank
1 2 3 4 5 6 Total Weighted value Mean weight Rank
Transportation 32 9 25 20 6 8 100 283 2.83 1
Food/Fast food 13 20 18 12 16 21 100 361 3.61 4
Shopping 9 36 11 27 12 5 100 312 3.12 3
Entertainment 7 15 14 18 26 20 100 401 4.01 5
Beauty Care 6 10 13 10 25 36 100 446 4.46 6
Rent 33 10 19 13 15 10 100 297 2.97 2
Total 100 100 100 100 100 100

According to table 9, most of the students get more than Rs. 2,000 as monthly pocket
money and are 54 out of 100. Among them also, students permanently from outside
the valley are greater in number i.e. 38 than students permanently from within valley
i.e. 16. Only 2 of the total 100 students get pocket money below 500 and both of them
are from inside the valley. The no. of students getting pocket money is greater for all
range of pocket money amount for students outside the valley.
22
Similarly, according to table 10, great majority of respondents (33%) ranked rent as a
highest spending item with mean weight of 2.97 but ranked 2 nd whereas 32% ranked
transportation as 1st with mean weight of 2.83. Among the total students, many of
them had given less priority to beauty care (6%) with mean weight of 4.46 and ranked
6. Shopping, fast food and entertainment were was ranked 3 rd, 4th and 5th respectively
with mean weight of 3.12, 3.61 and 4.01 respectively. Since there are 100
participants, the frequency of ranks also represent percentage.
2.2.3 Investment habit among students

Along with the saving habit s of students, the investment habit was also studied. After
collecting data from the respondents, the data was recorded and classified on the basis
of college, gender and permanent location of the participants to draw conclusions. The
table drawn below shows the responses provided by the students on the question
asked to them regarding whether they save or not. The answer was provided by them
in just Yes/No form and it was recorded under different headings of gender, location
and college as shown in Table 11. After the study, it was found that 64 out of 100
respondents had made investment in any form and remaining 36 had not made any
investment which represented 64% and 36% of the total population respectively. The
clusters were developed among those 64% and 36% population in order to draw the
conclusion.
Table 11: Investment habit of students on the basis of gender, location and type of college
Basis of Q. Have you made any
analysis investment Yes % No %
Gender 33.3
Male 38 59.38 12 3
66.6
Female 26 40.62 24 7
Total 64 100 36 100
College 27.7
Government 40 62.5 10 8
72.2
Private 24 37.5 26 2
Tota
Total 64 100 36 100 l
34.3
Inside valley 21 65.63 11 7 32
134.3 36.7
Location Outside valley 43 8 25 6 68
23
Table 11 represents that the no. of male students who had made investment was 38
out of 50 whereas 12 males did not make any investment. Similarly 26 females out of
50 were also involved in investment activities and 24 of them did not make any
investment. Out of 64 students who had made investment, males represented 59.38%
and females represented only 26%. In other words, males who had not made any
investment were just 12 out of 36 (33.33%) but females were 24 in number
representing 66.67% of the total non investors. It also can be explained through the
bar diagram below:
40 Male
35
30
Female
25 Female
Frequency
20
15 Male
10
5
0
Yes Gender wise response No
Figure 8: Investment habits of students on the basis gender
Measuring gender wise response and frequency along x-axis and y-axis respectively,
the diagram shows that percentage of males making investment is greater (38 or
59.38%) than that of females making investment (26 or 40.62%) out of the total 64
investing students. Only12 males ( 33.33%) out of remaining 36 students didn’t made
any investment while females were 24 in number (66.67%).
Similarly, out of 64 students making investment, 40 (62.5%) are from government

colleges and 24 (37.5%) are from private. On the other side, only 10 students out of
36 non investing students (27.78% only) are from government colleges while 26
(72.22%) are from private colleges. It can also be represented through the following
diagram:
24
45
Government
40
35
30 Private
Private
Frequency
25
20
15
Government
10
5
0
Yes No
College wise response
Figure 9: Investment habit of students based on the type of college
Measuring college wise response and frequency along x-axis and y-axis respectively,
the above diagram represents that highest no. of investing students (40 or 62.5%) are
from government colleges while private college students are involved very less in
such activity (only24 or 37.5%) among total 64 no. of investors.
Finally, out of 64 students making investment, 21 (65.63%) are from inside valley and
43 (63.24% out of 68) are from outside valley. On the other side, only 11 students out
of 32 non investing students (34.37% out of 32) are from inside the valley while 25
(36.76% out of 68) are from outside valley. It can also be represented through the
following diagram:
70 Inside valley
outside valley
60
Percentage of response
50
40 outside valley
Inside valley
30
20
10
0
Yes No
Location wise response
Figure 10: Investment habits of students based on permanent location
Showing location wise response and % of response along x-axis and y-axis
respectively, the above diagram represents that slightly less no. of investing students
(43 or 63.24.5%) are permanently from outside the valley while students from
25
permanently inside the valley are involved slightly higher in such activity (21 or
65.63%) among total 68 and 32 students outside and inside the valley respectively.
2.2.4 Major sources of fund for investment activities

Keeping in mind the fact that BBA students studying in day classes have no any
significant income but might use parental money for investment, this study was
undertaken and the results also prove to be true. Interestingly, some of the students
had already started earning through part time weekend jobs, giving tuition, and other
online jobs. Table 12 represents how the 64 students involving in investing activities
are managing funds for their investment. The possible sources of funds that the
individuals might use for investment have been kept parental money only, other
sources than parental money, parental money plus other income sources. The obtained
responses were recorded in terms of frequency and percentage.
Table 12: sources of fund for investment activities

Frequenc Percentag Cumulative
Sources y e %
Parental money only 45 70.31 70.31
Other than parental money 2 3.13 73.44
Parental money plus other sources 17 26.56 100
Total 64 100
The major possible sources of fund for the students studying BBA were divided into 3
categories; Parental money only, other sources than parental money, and parental
money plus other income sources. Among 64 respondents, 45 of them said that they
are using only parental money which represented 70.31% of the total responses.
Similarly, the least source was marked as other source than parental money by 2
respondents which represent 3.13% of the total respondents. Second highest source
was combination of parental income and income from other sources by the
respondents. Total 17 of the 64 respondents had been using parental money plus other
sources for investment activities. Out of the 19 respondents who used other income
sources with or without parental money they said that they had been earning from part
time jobs such as; weekend job in The British Council, Tuition teacher, and other
online jobs. The data can also be represented through diagram below:
26
27%
Parental money only

Other than parental money
Parental money plus other
3% sources
70%
Figure 11: Sources of funds for investment activities of students
The pie chart shown above presents the portion of sources of funds used for
investment rounded to the closest percentage. It was observed that about 70% of total
64 students who invested used only parental money whereas 27% of them used other
income sources in addition to parental income. Only 3% of them said that they use
other source of income only for their investment activities.Thus, majority of the
students studying BBA in seventh semester, specializing in finance and making
investment are using parental money only for investment.
2.2.5 Investment pattern of students

The study aimed at studying the pattern of investment followed by the students
currently studying BBA at 7th semester specializing in finance. Assuming that they
had made optimum utilization of their finance knowledge in making investment
decision, this study was undertaken. 100% of the students who had made investment
had investment in common stock as per the study. Out of the several sectors of
common stock, the students had to choose one or more sectors in which they had
invested. Only one sector selected by students is represented separately, while
investment in more than 1 sector is recorded as portfolio investment. The findings are
represented in Table 13 below:
Table 13: Areas of Common Stock Investment

Areas of Common stock Frequenc Cumulative
Investment y % %
Commercial Bank only 3 4.69 4.69
27
Development Bank only 1 1.56 6.25
Finance Companies only 2 3.12 9.37
Hydropower only 8 12.5 21.87
Microfinance only 7 10.94 32.81
Portfolio 43 67.19 100
100
Total 64 %
Among the total 7 areas taken under study, none of the 64 students had invested in
hotel and other sectors mentioned in the answer section. Only 1.56% of total
investors had invested in common stock of development bank only, 3.12% in that of
finance companies only and 4.69% in that of commercial bank only. Similarly,
10.94% and 12.5% of the students had invested in common stocks of microfinance
only and hydropower only respectively. However significant of them had created
portfolio for common stock investment combining more than one of the above
mentioned sectors and they were 67.19% in proportion representing 43 out of total 64
members. It can also be illustrated through following diagram:
80
70
60
Percentage
50
40
30
20
10
0
Commercial Development Finance Hydropower Microfinance Portfolio
Bank only Bank only Companies only only
only
Areas of common stock investment
Figure 12: Areas of common stock investment made by students and its percentage
The above diagram measures areas of common stock investment and percentage along
x-axis and y-axis respectively. According to the figure, highest investment is made on
common stock and is 67.19% of total 64 investors. Least percentage is constituted by
investment in shares of development banks only and it is just 1.56% of 64 investors.
Thereafter, 3.12%, 4.69%, 10.94% and 12.5% is constituted by shares of finance
companies only, commercial banks only, microfinance only and hydropower only.
28
2.2.6 Amount, market and time of investment
Table 14 shows amount that students have invested so far, market in which they have
invested and their time since first investment.
Table 14: Investment amount, Investment market and time period since 1st investment
Investment Amount
Frequency % Cumulative %
Less Than 5000 14 21.88 21.88
5000-15000 28 43.74 65.62
above 15000 22 34.38 100
Total 64 100
Investment Market
Primary Market 39 60.94 60.94
Secondary Market 7 10.93 71.87
Both 18 28.13 100
Total 64 100
Time Period since 1st investment
Before Specialization 52 81.25 81.25
After Specialization 12 18.75 100
Total 64 100
It was observed that majority of the students invested between Rs. 5000 and Rs.
15000 among 64 students who investment with total percentage of 43.74%. Only
21.88% had invested less than 5000 amount while 34.38% of the students had
invested more than Rs. 15,000.
On the other side, 60.94% of 64 students had invested only in the primary market
while only 10.93% of them had invested only in the secondary market. However,
students investing in both the market are also significant and it is 28.13% of total
investing students.
Out of the total 64 students who had made investment, 81.25% (52) said that they had
started investing before specialization while only 18.75% (12) of them had started
investing after specialization.
2.2.6 Investment objectives and time period preferred for investment

Table 15 shown below presents the objectives of investment and the time period the
students prefer to invest. Objectives are classified as income and capital gain, long
term growth, short term growth and others. Similarly the time period for investment
was divided into three categories; short (below 1 year), medium (1-5 yrs) and long(>
5 yrs) terms.
29
Table 15: Objectives of investment and time period preferred for investment
Objectives of Investment Frequency % Cumulative%
Income And Capital Gain
24 37.5 37.5
Long Term Growth 33 51.56 89.06
Short Term Growth 6 9.38 98.44
Others 1 1.56 100
Total 64 100
Time period preferred to invest
Short (0-1 yrs) 5 7.81 7.81
Medium(1-5 yrs) 43 67.19 75
Long(>5 yrs) 16 25 100
Total 64
The tabulated responses reveal that that 51.56% of the total 64 investor students
preferred to invest for long term growth which represents highest portion. Similarly,
37.5% preferred to invest for income and capital gain while 9.38% for short term
growth. Only 1.56% respondent opted for other reasons for making investment.
On the other side about 67.19% of students said that they would like to prefer to
invest for medium term of 1-5 years while 25% of them said that they prefer to invest
for long term. Only 7.81% out of 64 investing students said that they would like to
invest for short term.
2.2.7 Opinion on factors affecting saving and investment behavior of students

Table 16 shows the opinion on priority of most important factors affecting saving and
investment behavior of finance students. The respondents were provided with four
major factors namely financial literacy, parental socialization, peer influence and
social control and required to rank factors by 1 for most important factor and 4 for
least important one. Since there are 100 participants, the frequency of ranks also
represent percentage.
Table 16:Opinion on factors affecting saving and investment habit of students

Rank with number of
responses
Weighted Mean
1 2 3 4 Total value weight Rank
Financial
Literacy 41 30 19 10 100 198 1.98 1
Parental
Socialization 25 36 22 17 100 231 2.31 2
30
Peer Influence 19 22 30 29 100 269 2.69 3
Self Control 15 12 29 44 100 302 3.02 4
Total 100 100 100 100
The information revealed in the table shows that majority of the students (41 of 100)
ranked financial literacy 1 with mean weight of 1.98 while 44 out of 100 think that
self control doesn’t affect such behavior much and ranked it as 4 with mean weight of
3.02 .36 respondents ranked parental socialization as the 2 nd most important factor
among all with mean weight of 2.31 and 30 ranked peer influence as the 3 rd most
important one with mean weight of 2.69.
2.2.8 Survey on financial knowledge and future in stock market investment

Table 17 represents the views of students regarding the sufficiency of financial
knowledge given to them as well as the future for students in stock market. They were
provided with 5 point likert scale, 1 being strongly disagree and 5 being strongly
agree. The scale was marked SD for Strongly Disagree, D for disagree, N for Neutral,
A for Agree and SA for Strongly Agree. Since there were 100 total responses, there is
no difference in frequency and percentage.
Table 17: Survey on financial knowledge and future in stock market investment
Statements 1 2 3 4 5 Total responses Weighted value Weighted mean

Financial Knowledge given
BBA students is sufficient 7 19 5 45 24 100 360 3.6
Stock market investment has
future for BBA students 12 15 15 37 21 100 370 3.7
Grand Mean 3.65

According to the data recorded in the table, 45% of the total 100 students agreed with
the statement that financial knowledge given to them is sufficient while 24% of them
strongly disagreed to the statement. 5% were neutral to the statement while 19%
disagreed to the statement. Only 7% students strongly disagreed. The weighted value
of the statement is 360 with weighted mean of 3.6.
Meanwhile, 37% of the total respondents agreed to the next statement that stock
market has future for BBA students while 21% strongly agreed to the statement. 15%
31
were not sure regarding it while 15% disagreed and 12% strongly disagreed. The
weighted mean of the statement was 3.7 with weighted value of 370.
Grand mean is calculated to be 3.65. Hence, we can say that majority of the students
agreed that the financial knowledge given to BBA students is sufficient and they see
future for BBA students in stock market.
2.3 Findings and discussion

The basic objective of the research is to study about the investment habit and pattern
of undergraduate students of TU-BBA program with reference to students studying
currently in seventh semester and specializing in finance. The findings of the study is
analyzed using descriptive statistics tools. To analyze the data, percentage method and
weighted average mean method are used as a numerical tool while bar diagram and
pie chart is used as a graphical tool as per the requirement in our level. The major
findings of the study are summarized as follows:
1. There is difference in saving practices of undergraduate students of TU BBA

program on the basis of gender. Females are involved in saving habits more
than that of males. Among 87 students out of 100 who saved, female
constitute 51.72% while male constitute 48.24%.
2. There is no significant difference in saving habits of undergraduate students of
private and government colleges of TU BBA. There is no significant
difference in saving habit of government college students and private college
students. Among 87 students out of 100 who saved, government college
students constitute 49.43% while private college students constitute 50.57%.
3. Location significantly affects the saving practices of undergraduate students of
TU-BBA. Students permanently from inside valley are involved in saving
activities than the students permanently from outside the valley. Among 32
students permanently from inside the valley, 93.75% are involved in saving
activities while among 68 students permanently from outside the valley, only
83.82% are involved in saving activities.
4. Both male and female students are significantly irregular in saving practices.
However, females are less irregular than males in terms of saving practices.
Among 42 males who save, only 23% are regular while among 45 females
32
who save, 28.89% are regular. On the basis of location, 76.67% of total 30
students permanently from inside valley who save are regular in saving habits
while only 47.3% of total 57 students permanently from outside valley who
save are regular. Similarly, government college students are highly regular
than private college students in terms of saving representing 67.44% of total
43 students from government colleges who save while only 36.36% of total 44
students from private colleges who save are regular.
5. Most of the students made savings in the form of bank deposits and they
represent 93.1% out of total 87 students who save. About 48.28% of them save
less than Rs. 500 per month in average which is the highest amount among
other saving ranges. Also, 39.08% of the total students made saving with the
purpose of future shopping which is the highest proportion among several
purposes.
6. Maximum monthly pocket money received by total 100 students is more than
Rs. 2000 and 54% of them receive more than Rs. 2000 as monthly pocket
money while only 2% received less than Rs. 500 monthly. On the other side
the students ranked transportation as highest spending item among 6 items
with weighted value of 283 and mean weight 2.83 while beauty care spending
was ranked 6 with weighted value of 446 and mean weight 4.46.
7. Investment habit of the students is significantly affected by gender. Among
total 64 students who had invested males represent 59.38% while females are
only 40.62% in number.
8. There is significant difference in investment habit of undergraduate students of
private and government and private colleges of TU BBA. Among 64 students
out of 100 who invested, 62.5% are from government colleges and remaining
only 37.5% are from private colleges.
9. Location affects investment practices of undergraduate students of TU-BBA
program. Most of the students who are permanently from outside the valley,
are involved in saving practices slightly less than those students who are
permanently from inside the valley. Among 32 students from inside valley,
65.63% are involved in saving practices while 63.24% of 68 students outside
the valley are involved in investment practices.
10. Students using parental money only for making investment are significantly
high. Among 64 students who have made investment, 70.31% used parental
33
money only while only 3.13% used other than parental money and 26.56%
used other sources along with parental money. 19 students among 64 who had
used other income sources for investment had been earning income through
weekend job in The British Council, tuition teacher, online jobs etc.
11. 100% students among 64 Students making investment had invested in
common stocks only. Under common stock investment 67.19% had been
investing in portfolio of securities by combining sectors like commercial bank,
hydropower, microfinance etc. Only 32.81% had made investment in only any
one of the sectors.
12. Number of students using amount ranging from Rs. 5000 to Rs. 15000 is
higher than other range of investments. Around 43.74% of 64 are investing
between Rs. 5000 to Rs. 15000 amount while 34.38% have invested above Rs.
15000. 60.94% of them had invested only in primary market while only
10.93% had invested in secondary market only. 28.13% had made investment
in both markets.
13. 81.25% of students making investment reported that they started making
investment before specialization and only 18.75% had started investing after
specialization in finance in seventh semester. Furthermore, 51% of the total
investing ones preferred to invest for long term growth and 67.19% of them
preferred medium term (1 to 5 years) for investment.
14. Majority of the respondents ranked financial literacy 1st as a major factor
affecting saving and investment practices of students with weighted value of
198 and mean weight of 1.98 while parental socialization, peer influence, and
self control were ranked 2nd, 3rd and 4th with mean weight of 2.31, 2.69 and
3.02 respectively.
15. All of the students agreed that financial knowledge given to them is sufficient
and stock market investment has future for BBA students with weighted mean
of 3.6 and 3.7 respectively where 5 points likert scale was constructed with
rank 1 for Strongly Disagree to rank 5 for Strongly Agree.
The findings from the research are consistent, partially consistent or inconsistent with
some of the findings from similar researches. The findings of Thapa and Nepal
(2015) that saving and investment behavior remained unaffected by gender and
university affiliation but type of college affected their behaviors including some
34
demographic and personality characteristics is not consistent with the findings of this
research since this research found that there is no significant difference in saving
behavior between government and private college students but saving habit is more in
females than in males. In terms of investment practices, government college students
are engaged in investment activities more than that of private college students.
Furthermore demographic variables like permanent location of respondents also
affected the saving and investment practices of students since saving and investment
practices of students permanently from outside valley is less than that of students
permanently from inside valley.
Findings from the study are consistent with the findings by Ramasawmy et al. (2013)
in Mauritius which concluded that management students at the University of
Mauritius attached a sound level of importance to financial literacy to their subject of
study since the students under this research assigned high rank to financial literacy as
an influencing factor for their financial activities.
The result is consistent with the findings of Merikas et.al. (2004), Gnani et. al. (2012),
Bashir et.al.(2013). Merikas et.al. (2004) proved that accounting information has
significant influence in individual investor behavior in the Greek stock exchange
investors since this research also found that significant number of students consider
enough accounting information before making investment decisions.
The findings of research is consistent with findings by Patti J. Fisher (2007) that
women and men have been shown repeatedly in the literature to differ in terms of risk
tolerance, which has then been shown to affect women’s financial decisions and
behaviors. Similar to the research, it was found that women save more than men but
their investment practices as compared to men are lower.
The findings are consistent with the findings by Kadariya (2012) who investigated
the factors affecting investor’s decision making in the context of Nepalese Capital
Market. Similar to that research, this research also concluded that financial literacy is
the major variable affecting the investment decision by young investors like the
students of finance in BBA.
35
Chapter III: Conclusion and Action Implications
3.1 Conclusion
With the aim to examine the pattern of investment, major source of fund for
investment, whether or not gender, location and type of college affect saving and
investment practices of students the descriptive research design has been employed
and the primary data is used for the analysis. The data has been collected through the
structured questionnaire that was physically administered to 50 respondents and
distributed online to remaining 50 respondents. The study was conducted on the
students in the beginning but when 12 responses were invalid, additional 12 forms
were distributed to maintain the no. of participants to 100 for simplicity for
calculation purposes. The data collected using questionnaire was recorded using
Microsoft Excel-2007 software and necessary tabulation and calculation were done.
In this study, data was analyzed using descriptive statistics like percentage method
and weighted mean method under numerical analysis and bar diagram and pie chart
under graphic analysis.
The result found that there is no significant difference in saving habits of students of
private and government colleges but private college students are highly regular than
private college students in terms of saving. As compared to males, females had more
saving habit and females were also more regular in saving though both males and
females exhibited lower percentage in saving. Similarly, students permanently from
inside the valley saved more and were regular than students permanently from outside
the valley. While talking about investment habit of students, investment habit of the
students is significantly affected by gender and males had invested more as compared
to females. Similarly, government college students and students permanently from
inside valley invest more than the students from private college and permanently from
outside valley. Furthermore, significant number of students is involved in portfolio
investment of common stock primarily using parental money only.
36
3.2 Action Implications
The students studying BBA need to be more practical in the cases of saving and
investment. Still, many of them seem to be unknown about importance of saving and
investment. They should be given more and more practical education as compared to
theoretical knowledge. Males should be learning saving habits from females and
females should learn investment habits from males. Private college students need to
be more focused on investing activities and all the students must not involve in
investment practices not because it is related to their field but because investment is a
great means of earning money if it is done wisely considering enough information
available about the company. Investor students also need to diversify their investment
in different companies or sector by developing a portfolio of investments to minimize
risks and maximize returns.Many students, still after specialization in finance do not
seem to be involved in investment activities significantly; therefore, such students
should be kept under separate supervision and guidance by Faculty of Management
and college administration. The students need to analyze the investment factors
carefully using the reasonable business knowledge before making an investment
decision. They should also be able to interpret the market and economic indicators
since they influence the performance of the share on the market. They should evaluate
all the variables in the environment instead of considering only one variable.
37
REFERENCES
Adhikari,D.R. and Pandey, D.L. (2016) Business Research Methods. Kathmandu:

Ashmita Publications
Agrawal, P. (2001), The relationship between savings and growth in South Asia. Co
integration and causality evidence from Asia. 105(2): 18-50
Bashir, T. (et.al.) (2013). An Assessment Study on the Factors Influencing the

Individual Investor Decision Making Behavior. IOSR Journal of Business and
Management, 9(5), 37-44.
Chen, Haiyang, and Ronald P. Volpe. (1998). An Analysis of Personal Financial

Literacy Among College Students, Financial Services Review, Vol.7 (2): 107 – 128
Chandradathan, V.; Reghunath, V. and Shaji, S. (2016) A Study on Spending and

Saving Habit of College Students. SCRIBD [Online]
Available: https://www.scribd.com/document/322037813/A-Study-on-Saving-and-
Spending-Habit-of-Youth
Dhodary, S.P.; Karki, R.;Pandeya, C.;Shrestha,P. and Thapa,K. (2017). Investment

Analysis (4th ed.) Kathmandu: Khanal Publications
Graham, J. F., Stendardi, E. J., Myers, J. K., & Graham, M. J. (2002). Gender
differences in investment strategies: An information processing perspective. The
International Journal of Bank Marketing, 20, 17-26.
Grifoni, A. and F. Messy (2012), "Current Status of National Strategies for Financial
Education: A Comparative Analysis and Relevant Practices", OECD Working Papers
on Finance, Insurance and Private Pensions, No. 16, OECD Publishing, Paris.
http://dx.doi.org/10.1787/5k9bcwct7xmn-en
Iqbal, A.,& Usmani, S. (2009).Factors Influencing Individual Investor Behavior.

South Asian Journal of Management Sciences, 3(1), 15-26.
Jorgensen, B.L (2007) Financial Literacy of College Students: Parental and Peer
Influences. PP 12-35
Kadariya, S. (2012). Factors Affecting Investor Decision Making: A Case of Nepalese

Capital Market. Journal of Research in Economics and International Finance, 1(1),
16-30.
Kothari, C.R. (2004), Research Methodology: Methods and techniques. New Delhi:
New age international publishers.
Lusardi, A. Mitchell, O.S. and Curto, V.(2009). Financial Literacy Among the Young.
South Asian Journal of Management Sciences, 3(1), 15-26.
Merikas, A. A. (et.al.) (2004). Economic Factors and Individual Investor Behavior:

The Case of the Greek Stock Exchange. Journal of Applied Business Research, 20(4),
93-98.
Sharma, R.D. (2016, May 3). Nepalis’ savings habit worst in 2 decades . The
Himalayan Times, Retrieved from http://www.thehimalayantimes.com
Tavakoli, M. R., Tanha, F. H., & Halid, N. (2011). A Study on Small Investors’
Behavior in Choosing Stock Case Study: Kuala-Lumpur Stock Market. African
Journal of Business Management, 5(27), 11082-11092.
Thapa, B.S. and Nepal, S.R. (2015) Financial Literacy in Nepal: A Survey Analysis
from College Students. Nepal Rastra Bank Economic Review. 26(1): 50-54
William, N. G. (2011). An Introduction to Investment Theory. New Haven: Yale

University of School of Management, University Printing Press.
APPENDICES
A Questionnaire on “Investment Habit and Pattern of Undergraduate students of

TU-BBA Program”
Dear Friends;
I am Sudip Sharma, student of Nepal Commerce Campus studying BBA at 7th

semester. I am conducting research on “Investment Habit and Pattern of
Undergraduate students of TU-BBA Program.”
I kindly request you to give me 5 minutes of your valuable time to fill this
questionnaire. I would like to let you know that your participation is voluntary and the
data provided by you are treated as “Highly Confidential”. There is no right or wrong
answer and to make this study possible and successful, your kind cooperation and
honest responses are required. Please tick the option/s you prefer.
Campus:
Gender: Male Female Other
Permanent Address:
1. What is your monthly pocket money?
Less than 500 500-1000 1000-2000 More than 2000
2. Please rank the following according to your spending.

(1 for highest spending item to 6 for lowest)
Transportation
Food/Fast Food
Shopping
Entertainment
Beauty care
Rent (if you are living in rent only)
3. Do you save?
Yes No
If Yes,
i. In which way do you make savings?
Bank deposit Give it to guardians Others
ii. Do you have regularity in saving?
Yes No
iii. How much amount do you save per month in average?
Less than 500 500-1500 More than1500
iv. What has been the major purpose of your saving?
Habit Higher studies Future shopping
Investment Others
If No,
v. What factors do you think resist you from saving?
No/less idea about saving Expense is large compared to inflow
I have habits of smoking, drinking, gambling Other reasons
4. Have you made any investment?

Yes No
If Yes,
i. Have you used only parental money for making investments?
Yes, only parental money
No, other sources than parental money
Parental money plus other income sources
Please mention other sources if you are using: eg tution classes
income
ii. Which of the following investment avenues have you chosen?
Common stock Others
iii. If you are investing in common stocks, which sector/s are you
investing in?
Commercial bank Development bank Hotels
Finance Companies Hydropower Microfinance
Others (please specify):
iv. What is/are the reason/s behind choosing above avenue/s?

It related to my field It is easy to invest and to earn
It requires less time and effort Others
v. When did you start investing? Before or after specialization in finance?
Before specialization After specialization
vi. In which market have you been investing?
Primary Market Secondary Market Both
vii. What is your current investment amount?

Less than 5000 5000-15000 Above 15000
viii. Before making saving and investment decisions, do you think you
have:
Very little information Incomplete information
Too much information No information at all
ix. How do you manage your investments?

Self managed Through a bank
Stock brokerage Other financial advisors
x. What is/are your investment objective/s?

Income and capital gain Long term growth
Short term growth Others
xi. How often do you monitor your investment/s?

Daily Monthly Occasionally
xii. What is the time period you prefer to invest?
Short (0-1 yrs) Medium Term (1-5yrs) Long term (>5yrs)
xiii. What best describes your investment experience?

Beginner Moderate Knowledgeable Experienced
5. Do your parents ask you before making investment decisions?

Yes No
6. Please rank the following factors affecting saving and investment behavior of
finance students.(1 for higher preference to 4 for lower)
Financial Literacy Parental socialization
Peer Influence Self control
7. Financial knowledge given to BBA students is sufficient.

Strongly agree Agree Neutral Disagree Strongly disagree
8. Stock market investment has a future for the students like us.
Strongly agree Agree Neutral Disagree Strongly disagree
Thank you for your cooperation!

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INVESTMENT HABIT AND PATTERN OF UNDERGRADUATE

STUDENTS OF TU-BBA PROGRAM

A Summer Project Report Submitted to

In partial fulfillment of the requirements for the degree of

This summer project entitled “Investment Habit and Pattern of Undergraduate

Associate Prof. Dr. Prakash Neupane

Name: Sudip Sharma

Signature of the Supervisor

Name: Associate Prof. Dr. Prakash Neupane

Designation: Head of the research department, BBA

Nepal Commerce Campus

CERTIFICATE FROM THE SUPERVISOR...............................................................iv

1.2 Statement of the Problem.....................................................................................3

1.3 Purpose of study...................................................................................................4

1.4 Significance of the study......................................................................................4

1.5 Literature Review.................................................................................................5

1.6 Research Methodology.......................................................................................10

1.6.1 Research Design..........................................................................................10

1.6.3 Sample Size.................................................................................................11

1.6.4 Sampling Method........................................................................................11

1.6.5 Nature and Sources of Data.........................................................................11

1.6.6 Data Collection Instruments........................................................................12

1.6.7 Data Analysis Tools....................................................................................12

1.7 Limitations of the Study.....................................................................................12

Chapter II: Data Presentation and Analys………………………………………...13-31

2.1 Respondent Profile.............................................................................................13

2.1.1 Gender of respondents.................................................................................14

2.1.3 Permanent location of respondents.............................................................16

2.2 Data Presentation and analysis...........................................................................17

2.2.1 Saving habit of students..............................................................................17

2.2.2 Regularity in saving habit among students.................................................19

2.2.3 Ways, amount and major purpose of saving...............................................21

2.2.6 Monthly Pocket Money and opinion on priorities of spending habits........22

2.2.3 Investment habit among students................................................................23

2.2.4 Major sources of fund for investment activities..........................................25

2.2.5 Investment pattern of students....................................................................27

2.2.6 Amount, market and time of investment.....................................................28

2.2.6 Investment objectives and time period preferred for investment................29

2.2.7 Opinion on factors affecting saving and investment behavior of students. 30

2.2.8 Survey on financial knowledge and future in stock market investment.....30

2.3 Findings and discussion.....................................................................................31

Chapter III: Conclusion and Action Implications………………………………...36-37

3.2 Action Implications............................................................................................37

Figure 1: Composition of male and female respondents..............................................14

This study is based on the assessment of investment habit and pattern of

1.2 Statement of the Problem

Thus, this research is an attempt to access the effectiveness of financial knowledge

1.3 Purpose of study

The specific objectives can be listed as follows:

1. To identify the major sources of fund for investment activities of

1.4 Significance of the study

1.5 Literature Review

Jorgensen (2007) investigated the personal financial literacy of a sample of

1.6 Research Methodology

1.6.1 Research Design

 Determination of study objectives

The research uses scientific methods of collecting, classifying and analyzing

1.6.3 Sample Size

1.6.4 Sampling Method

1.6.5 Nature and Sources of Data

Among these methods, the research uses ‘Questionnaire’ as a primary source

1.6.6 Data Collection Instruments