Savings and Investment Pattern of Working Employees

PROJECT REPORT 2021-22
1.1 INTRODUCTION
“In investing money, the amount of interest you want should depend on whether you want to
eat well or sleep well.”
An investment is the employment of funds with aim of achieving income and growth in
value the main characteristic of investment is wait for a reward. Investment is the allocation of
monetary resources to assets that are expected to yield some gain or positive return over a given
period of time. Investment aims at multiplication of money at higher or lower rates depending
upon whether it is long term or short term investment and whether it is risky or risk- free
investment. Investment activity involves creation of assets or exchange of assets with profit
motive. “An investment in knowledge pays the best interest.” From the people point of view,
the investment is a commitment of a person’s fund to derive future income in the form of
interest, dividend, rent premium, pension benefit or appreciation of the value of their principal
capital.
Most of the investment are considered to transfer of financial assets from one person to
another. Various investment options are available with differing risk – reward- trade – offs.
Investment references to the concept of deferred consumption which may involve purchasing
an asset, giving a loan or keeping funds in bank account with the aim of generating future
returns. An understanding of the core concept and a through analysis of options can investor
create a portfolio that maximizes returns while minimizing risks exposure.
Savings form an investment part of the economy of any nation. With the savings invested
in various options available to the people, money acts as the driver for the growth of the country.
Indian financial scene too presents a plethora of avenues the investor. Through certainty not
the best or deepest of market in the world, it has reasonable options for an ordinary man to
invest his savings.
One need to invest and earn return on their idle resource and generate a specified sum of
money for a specific goal in life and make a provision for an uncertain future. One of the
important reason why one needs to invest wisely is to meet the cost of inflation. Inflation is the
rate at which the cost of living increases.
YUVAKSHETRA INSTITUTE OF MANAGEMENT STUDIES 1

1.2 SIGNIFICANCE OF STUDY

Salaried class people have a fixed flow of income, and their investment pattern are also different.
In connection with this, the researcher will try to find out the investment pattern of Investor in
Palakkad. It will be helpful to understand the investment preference of investors. The study will
also throw light on the awareness of investment avenues available in Kerala. The research paper
will become the helping hand to the research scholars as well as students for their future studies
there in the respective area.
1.3 STATEMENT OF PROBLEM

Today, a wide range of investment avenues is available and not just the traditional tax planning
method like NSC, PPF and other innovative instruments. They are many ways to get involved
with these types of instruments, but they vary widely in degree of risk and return and are
uncertainty not appropriate or necessary for all investors. As a salaried class people is
concerned, the selection of the best saving and investment tool is a complicated process. This
paper tries to analyses the salaried people’s awareness level, their factor influencing before
investment and their preference in placement.
1.4 OBJECTIVES OF STUDY

 To study the investment preference among the salaried people working in different
sectors in the Palakkad area.
 To know the factors influencing investment behavior of the people.
 To find the various problem faced by the investors.
 To analyze the pattern of investment and saving among the salaried class investors.
1.5 SCOPE OF THE STUDY

The scope of the study is to analyses the savings and investment pattern of salaried class people
with special reference to Palakkad area. The analysis will be focusing on the information from
the salaried people about their knowledge, perception and behavior on different financial
products. The study is restricted on Palakkad area and limited samples are collected based on
72 individuals.
1.6 PERIOD OF STUDY

The number of days allotted for the study is 21 days

1.7 RESEARCH METHODOLOGY

The research methodology is the systematic way to solve a research problem. It may be
understood as a science of study on how research is done scientifically. The researcher must
know not only the technique but also the methodology.
1.7.1 Research design

Research is a systematic inquiry to describe, explain, predict, and control the observed
phenomenon. Descriptive research design has been selected in the present study in
Palakkad area selected for the present study. The research design adopted is descriptive.
Under descriptive research, the researcher chose survey research in the study.
1.7.2 DATA COLLECTION

The collection of data is the key task in the research methodology. The data can be
gathered by using two sources, namely primary and secondary sources. In this study
both primary and secondary sources are used.
 Primary data collection
For the descriptive type of researcher, the best research approach for collecting
primary data is the survey technique using the questionnaire method. For this
sample data is collected and the different magnitudes are measured
considering the total population. In this study the questionnaire method is used
to collect primary data.
 Secondary data collection
Secondary data is the data which are already available i.e which have already
been collected and assessed by someone else. The secondary data is collected
from several sources such as websites, magazines, books,dailies and research
reports, national and international journals in the field of business, marketing.

1.7.3 STATISTICAL TOOLS USED

There are various statistical tools which are used in analyzing data. The following tools are
used for representing and analyzing data. Data Representation:
 Table
 Percentage
 Diagram
 Charts
1.7.4 SAMPLE CRITERIA

The process of sampling is the method through which the researcher selects necessary sample
as per the area of research. By means of sampling, data collection becomes faster and easier.
Moreover, the researcher too gains data accuracy. The methods of sampling can be divided
into two types- probability sampling and non-probability sampling. Convenient random
sampling is used to select the respondents for the study. It is type of non probability sampling
that involves the sample being drawn from that part of the population that is close to hand.
1.7.5 SAMPLE SIZE

The size of the sample used for the study is 72.
1.8 LIMITATION OF THE STUDY
 Although great care has been taken while conducting the study and collecting samples
for the same, several factors have limited the results of the study.
 Since the sample selection has been done through simple random sampling and
judgement sampling, it may not be completely representative of the entire population.
 Also, the sample size that has been considered for the study is 300 respondents which
may not be enough to generalize the results to the population at large.
 The respondents may also have been affected by some behavioural biases while
entering the responses to the questions asked, and hence, data may have been skewed
to a certain extent.
 Apart from this, errors in questionnaire development or interpretation of data may have
impacted the entire study and its findings.

REVIEW OF LITERATURE
Review of related literature serves as the base for any researcher to understand his or her
research problem clearly and to design the methodology by which the study is to be conducted.
Various studies conducted earlier on the topics related to the current research problem are
included in the literature. It gives an idea for the researcher to determine the research problem
and to frame the objectives. It also enables the researcher for the smooth conduct of the present
study. The literature includes books, journals, magazines, Ph.D. theses, reports etc. These
studies have been reviewed carefully and summarized in this chapter.
An empirical analysis on preferred investment avenues among rural and semi urban
households. sanjay (2020). The study reveals that in most cases investors across all categories
found them to be safer with taking up the insurance policies. The trends of investment by
households are not similar in nature and they vary between several financial instrument. This
results from the changing preference of the investors. Nonetheless, the trend has changed now.
Households savings in physical properties are greater than household savings in financial
instruments.
Savings and investment attitude of salaried class in mundur (2019) buchaiah.m. This study
is carried out Investment climate must attract the people to save from their income at times
even by forgoing the enjoyment of comforts and luxuries. Countries can never sustain
development unless they have adequate savings. Saving is the main factor for investment, the
government though legal measures encourage savings accumulation.
Investment pattern of salaried people – A study in Malampuzha area. R jayachandran

(2016) in his study entitled “ A Study on the behavior of Household towards savings and
investment in malampuzha area.This study has made an attempt to analyze the savings and
investment pattern of salaried class investors. And in depth analysis is done to identify the
attitude, factor influencing investors to save and saving preference of investors. This study
identified the problem faced by the investors and the impending problem could be solved in the
right direction.

V.k murugan. A study of investment perspective of salaried people ( private sector 2015).
Investment is the employment of funds with the aim of getting return on it. It is the commitment
of funds which have been saved from current consumption with the hope that some benefits
will accrue in future. This it is a reward for waiting for money. The main element of investment
are return,risk and time.This research aims to study and understand the behavioural pattern of
investment among the salaried people working in private sector and the difference in perception
of an individual related to various investment alternative.
Investment preference of salaried people (2018).Dr Ramesh and N.geetha. The investment
ideology depends upon the individuality and many other factors. Here is an attempt to find
solution to a problem of where to invest by a middle and lower income level of the society. A
market survey has been conducted of 25 people in sub – urban kalpathi to identify their
investment psychology and relevant preference. The survey is giving us an insight towards
traditional approach of savings and investment pattern.
A study on people’s preference in investment behavior. ( Seetha) 2020. The study on

people’s choice in investment choices has been undertaken with the objective, to analyze the
investment choice of the people in mundur. Analysis of the study was undertaken with the help
of survey conducted. After analysis and interpretation of data it is concluded that in mundur
respondents are medium aware about various investment choice but they do not know aware
about stock market, equity, bonds and debenture.
Mutual funds attributes and investor behavior (Feb. 2017) Abdul ibrahim. This paper
analyze the dynamic of investor fund flow in a sample of socially screened equity mutual funds.
Mutual funds companies, which continually compete to offer new funds in an effort to attract
investor capital, can except SR investor to be more loyal than investors in ordinary funds.
Mutual funds is the better investment plan Institute of management technology(2010)

Mohinder singh. In few years mutual funds has emerged as a tool for financial well being.
Mutual funds have not only contributed to the growth story but have also helped families up
into the success of Indian industry. This paper analyze the market research on savings and
investment practices of the investors and preference of the investment in mutual funds.
Gold etfs : An emerging investment option (2017) M.Rajeshwari. An investor has numerous
investment options to choose from depending on his profile and exception of returns, different
investment options represents risk – reward trade off of the various type of investment options
in stock market, gold exchange traded funds.

Awareness of commodity market with reference derivative investor Me.Bansal (2010).

Commodity future market are new and emerging market. The awareness of the market is very
less among the investors who can use this trade to sell their products without the middle men
or agent, it also help the actual buyer too. Here trader also can transfer his risk to some other
who can handle it or can appetite the risk through hedging technique.
A study on preferred investment avenues among salaried people with reference to

olavakkod (2022) Mr. Amritraj. The study reveals that investment is the employment of
funds on asset with the aim of earning income or capital appreciation. Investment is the most
important things today. People are earring more, but they do not know where, when and how
to invest it. A proper understanding of money, it’s value, the available avenues for investment,
various financial instution, the rate of risk and return etc are essential to successfully manage
one’s finance for achieving life’s goal.
Small investor precipitation on post office savings schemes ( 2018) Dr.Senthil Kumar.
This scheme found that there was significant difference among the four age groups, in the level
of awareness for kishan vikas parta ( KVP), national savings scheme ( NSS), Deposit scheme
for retired employees (DSRE), the and overall score confirmed that the level of awareness
among investors in the old age groups was higher than in those of young age groups. No
difference were observed among male and female investor.
Kausalya p r and Gurusamy p (2018) observed in their study on, Women investor
“perception towards investment” that there is no significant relationship between age of the
women investors and level of awareness on investment. They have also conducted that the
education level of women investor does not influence the level of awareness.

3.1 INTRODUCTION
An investment is essentially an asset that is created with the intention of allowing money to
grow.The wealth created can be used for a variety of objectives such as meeting shortages in
income, saving up for retirement, or fulfilling certain specific obligations such as repayment of
loans, payment of tuition fees, or purchase of other assets.
Everywhere people talk about money. Every individual, corporate or government will be
earning and spending money. It is difficult for these entities to match their earning and spending
that is earning and spending will not be equal always. The difference between earning and
spending creates imbalance, which leads to either saving or borrowing. Spending more than
earning will lead to borrowing and spending less than the earning will lead to saving. What
someone does with the savings could differ from person to person. Someone may keep the
excess money at home, while someone may invest the savings. The main purpose of saving is
to meet the need of money in future. Some needs could be anticipated like buying a vehicle,
house, education needs of self or children, whereas medical emergencies are unpredictable.
This trade off of between present uses of money against a future anticipated or unanticipated
requirement of money is the reason for savings. Every individual expects the savings to grow
to a higher value in future in comparison to the present value of the savings. To attain this
objective, savers look for avenues where their savings could be parked or invested. This process
of committing the money currently available, for a certain period of time to derive higher future
value is called investments. There could be difference in the way an individual handles his
savings in comparison to how it is handled by a corporate or a government. How individual
handles money, could depend on multiple factors, including his or her demographic profile.
3.2 MEANING AND DEFINITION OF INVESTMENT

Investment is the employment of funds with aspires of getting return on it. It is the assurance
of funds which have been saved from current consumption with the hope that some benefits
will accrue in future. Thus, it is an incentive for the deposited money. So, the first step of
investment is savings. In common usage, saving generally means allocating money aside, for
example, by putting money in the bank or investing in a pension plan. In a broader sense, saving
is naturally used to refer to economizing, cutting cost, or to recuing someone or something.
F Amling defines investment as purchase of financial asset that produces a yield that is
proportionate to the risk assumed over some future investment period.

According to Warren Buffet, investment is laying out money today to receive more money
tomorrow. In its broader sense, investment is a sacrifice of current money or other resources
for further benefits and investment may be defined as the net addition to a nation's physical
stock of capital.
Investment is an economic activity and it is fascinated by people from all walks of life.
Investment is a term with several closely related meanings in finance and economics.it refers
to the accumulation of some kind of asset in hopes of getting a future return from it. The
developing countries like India face the enormous task of finding adequate capital in their
development efforts. Most of these countries find it complex to get out of the vicious circle of
poverty of low income, low saving, low investment, low employment etc. with high capital
output ratio; India needs very high rates of investments to make a rise forward in its efforts of
attaining high levels of growth. Since the beginning of planning, the importance was on
investment as the primary instruments of economic growth and increase in national income. In
order to have production as per target, investment was considered the vital determinant and
capital formation had to be supported by appropriate volume of savings. There are a lot of
investment avenues and one must select the most appropriate one. The person dealing with the
financial planning must know all the various investment choices and how these can be chosen
for the purpose of attaining the overall objectives. The details of making the investment along
with the various behavior in which the investment has to be maintained and managed.
3.3 Avenues of investing money in India

There are multiple investment options to choose from in India:
1. Fixed Deposits
Fixed deposits are regarded as one of the most popular investments in India. They provide a
fixed rate of return for a specific period and considered as a low-risk option.
Banks offer FDs. The interest rate varies from one deposit to another and changes from time to
time. Although FDs have a lock-in period, most financial institutions permit loans and overdraft
facilities against them.
2. Mutual Funds
When you invest in mutual funds, you invest in a vehicle that pools money from different
investors and channels this into diversified assets. Mutual fund schemes vary depending on the
type of assets they focus on – equity funds invest in stocks, debt funds invest in fixed-income
instruments, and hybrid funds invest in both. Investors can make a lumpsum investment or

direct a certain sum periodically through Systematic Investment Plans (SIPs). The returns you
receive could depend on the fund’s performance.
3. Recurring Deposits
Like FDs, Recurring Deposits (RDs) allow an investor to save a specific sum in periodic
instalments. You can deposit a fixed sum every month for a specific period with a bank. Like
FDs, RDs are also low-risk and provide guaranteed returns.
4. Public Provident Fund
The PPF is a long-term savings scheme backed by the Government of India with a lock-in
period of 15 years. However, PPF investments are eligible for tax deductions and are also
relatively safe. The government usually revises the PPF interest rate every quarter. Investors
are also eligible for partial withdrawals and loans against the PPF upon meeting certain
conditions.
5. Employee Provident Fund
The EPF is a retirement savings scheme specifically for salaried employees. Monthly
contributions are made from an employee’s salary, while the employer contributes an
equivalent amount to the corpus. EPFs are eligible for a tax deduction under Section 80C of the
Income Tax Act, 1961 and the final amount after maturity is tax-free.
6. National Pension Scheme
NPS is a retirement pension scheme introduced by the Government of India. Through regular
investments, you can build a corpus that can provide you with a regular pension after retirement.
Investors can also withdraw from the fund partially after retirement.
7.Stocks
Stocks refer to purchasing shares in a company, giving the investor ownership stake. It can be
profitable when the company grows in future. Investing in stocks for the long-term aids in
capital appreciation. Short-term trading, however, can be riskier.
3.4 OBJECTIVES OF INVESTMENTS

Investments are an integral part of any person. Every person has investments in many forms
whether they are in projects or assets. Funds are invested for short term or long-term depending
on the availability or idleness of funds. In essence, for effective investment, investment
objectives need to be fixed.

Following objectives Investments can be taken into consideration for evaluating the
investments:
1. Safety:
Although the degree of risk varies across investment types, all investments bear risk. Therefore,
it is important to determine how much risk is involved in an investment. The average
performance of an investment normally provides a good indicator however; past performance
is merely a guide to future performance not a guarantee. Some investment, like variable
annuities, may have a safety net while others expose the investor to comprehensive losses in
the event of failure. Investor should also consider whether they could manage the safety risk
associated with an investment financially and psychologically.
2. Rate of return
A good rate of return from an investment is the first and the foremost condition for effective
investment. The rate of return is the ratio of sum of annual income and price appreciation to
purchase price of the asset or investment
Rate of return = annual income + (ending price - purchasing price)
Purchasing price
3. Growth of capital:
The objective of investment does not limit to safety and return. One of the important objectives
of making investment often referred to as a capital gain. Growth of capital is most closely
associated with the purchase of equity shares, particularly growth securities, which offer low
yields but considerable opportunity for increase in value.
4. Risk:
Rate of return from different investment options may vary. It is a general phenomenon that
more return is expected from a high-risk investment. The risk of an investment refers to the
variability of the rate of return Risk means uncertainty of returns. Statistically, the risk is judged
based on parameters like variance standard deviation and beta. More a security deviate from its
expected outcomes, risk is considered to be high. Challenge for an investor while investing
funds is to achieve high returns on investments while keeping the risk at lowest possible levels.

5. Marketability or liquidity:
It is desirable that an investment instrument be marketable, the marketability the better it is for
the investor. An investment instruments is considered to be highly marketable when: - It can
be transacted quickly. The transaction cost (including brokerage and other charges) is low.
The price change between transactions is negligible. Many of the investments are not liquid,
which means they cannot be immediately sold and easily converted into cash. Achieving a
degree of liquidity, however, requires the sacrifice of a certain level of income or potential for
capital gains.
6. Tax benefits:
Some of our investments would provide us with tax benefits while other would not This would
also be kept in mind when choosing the investment avenues. So, for investments which have
tax benefits, it is an important consideration because taxes form major part of their expenses.
An investor may buy certain investments in order to adopt tax minimization as part of his
investment strategy. A highly paid executive, for example may want to seek investments with
favorable tax treatment in order to reduce his overall income tax burden.
7. Convenience:
Convenience means the ease with which an investment can be made and managed. The
degree of convenience varies from investment to investments. For example, it is easy to
invest in equity shares compared to real estate because real estate involves lot of
documentation and legal requirements.
3.5 Main factors influencing in investment
1. Interest rates
Investment is financed either out of current savings or by borrowing. Therefore, investment is

strongly influenced by interest rates. High interest rates make it more expensive to borrow.
High interest rates also give a better rate of return from keeping money in the bank. With higher
interest rates, investment has a higher opportunity cost because you lose out the interest
payments.

2. Economic growth
Firms invest to meet future demand. If demand is falling, then firms will cut back on
investment. If economic prospects improve, then firms will increase investment as they expect
future demand to rise. There is strong empirical evidence that investment is cyclical. In a
recession, investment falls, and recover with economic growth.
3. Inflation
In the long-term, inflation rates can have an influence on investment. High and variable
inflation tends to create more uncertainty and confusion, with uncertainties over the future cost
of investment. If inflation is high and volatile, firms will be uncertain at the final cost of the
investment, they may also fear high inflation could lead to economic uncertainty and future
downturn. Countries with a prolonged period of low and stable inflation have often experienced
higher rates of investment.
4. Productivity of capital
Long-term changes in technology can influence the attractiveness of investment. In the late
nineteenth century, new technology such as Bessemer steel and improved steam engines meant
firms had a strong incentive to invest in this new technology because it was much more efficient
than previous technology. If there is a slowdown in the rate of technological progress, firms
will cut back investment as there are lower returns on the investment.
5. Availability of finance
In the credit crunch of 2008, many banks were short of liquidity so had to cut back lending.
Banks were very reluctant to lend to firms for investment. Therefore, despite record low-
interest rates, firms were unable to borrow for investment – despite firms wishing to do that.
Another factor that can influence investment in the long-term is the level of savings. A high
level of savings enables more resources to be used for investment. With high deposits banks
are able to lend more out. If the level of savings in the economy falls, then it limits the amounts
of funds that can be channelled into investment.

6. Wage costs
If wage costs are rising rapidly, it may create an incentive for a firm to try and boost labour
productivity, through investing in capital stock. In a period of low wage growth, firms may be
more inclined to use more labour-intensive production methods.
7. Public sector investment
The majority of investment is driven by the private sector. But investment also includes public
sector investment government spending on infrastructure, schools, hospitals and transport.
8. Government policies
Some government regulations can make investment more difficult. For example, strict planning
legislation can discourage investment. On the other hand, government subsidies/tax breaks can
encourage investment. In China and Korea, the government has often implicitly guaranteed –
supported the cost of investment. This has led to greater investment though it can also affect
the quality of investment as there is less incentive to make sure the investment has a strong rate
of return.
3.6 Problems faced by the investors

1. Inadequate Disclosure
Availability of complete and correct information is required for developing an investor
protection system. But the disclosures required under the Securities Contracts (Regulation) Act,
1956, leave а lot of loopholes regarding the disclosures to be made in the prospectus. Therefore,
some companies give false or misleading statements in their prospectus so as to attract and
cheat innocent investors.
2. Insider Trading
Insider trading means sale or purchase of securities by persons who possess price sensitive
information about the company on account of their fiduciary capacity. For instance, information
about the declaration of high rate of dividend, issue of bonus shares, rights shares etc.,

information relating to financial results of the company, amalgamations, mergers and

takeovers, disposal of the undertaking and such other information.
3. Price Manipulation
It is а common practice that prices of shares of companies proposing to сomе out with а public
issue or right issue are artificially pushed up in the market. This is usually done by way of
giving large employment advertisements in the newspapers just before the public or right issue.
So that some form of respectability may be created and thereby the market price of shares of
that company may be pushed up.
4. Over Subscription of Shares

Usually when the companies make public issues, they are over subscribed many times. А large
number of investors lose interest in the money locked with the company.
5. Lack of Transparency
Lack of transparency is another shortcoming of the stock market. The investor does not know
the actual rate of the transaction. The investor should be informed about the rate and brokerage
by noting them on the contract.
6. Investor’s Grievance
Thousands of complaints are received from the investors against companies and brokers. The
complaints include non-receipt of refund orders, letters of allotment, dividends, brokerage,
underwriting commission etc.
7. Takeovers and Merger
In а closely held company, the shareholders are adequately protected against takeover as the
number of shareholders is few and the shareholders’ agreements impose restrictions on transfer.
But in the case of а publicly listed company such protection is not included in the agreement to
protect the minority shareholders.

8. Problems related to Settlement Mechanism

The settlement mechanism calls for physical movement of share certificates in order to record
ownership changes in the company’s books. Some serious risks such as bad deliveries, delays
in transfer and registration, mutilation, loss, forgery and theft of certificates have been attached
to the settlement mechanism. These problems were repeatedly raised in several investor forums.
3.7 Investment pattern of salaried employees

Savings and investment by individuals are as vital to personal financial well being and security
as it to be a healthy economy. People with savings are better able to weather economic shocks
such as loss of income, to build asset for the further, and are less reliant on credit to over
unexpected expenses. Savings also enable further welfare enhancing actions such as
entrepreneurial activities and access to education and training. At the macro economic level,
household savings drive growth by enabling banks to lend to businesses and by financing
directly or indirectly investment in companies. The ways in which individuals save can range
from holding surplus income as cash, through simple informal savings mechanism such as
savings and loan clubs, to complex investment or non-financial savings such as property or
livestock. Some of these approaches are more suited to short-term savings and income
smoothing, Whilst others provide long term savings to draw upon in future periods.
The savings and investment differs from person to person and place to place as the savers have
varying degrees of fortitude in embracing safety, liquidity and profitability. Such a dynamic
situation compels one to have a clear cut objective of future investment. The investor thinks of
channelizing the surplus income for their own benefit as well as for the growth of the country.
The mode of choosing an ideal investment in very important for an investor in choosing specific
investment. Investor must know the characteristics of that investment which has return,
liquidity, safety, appreciation, risk covered tax benefits. The investor should be very careful in
selecting the investment opportunity otherwise the whole of the investment may not yield
returns.
Salaried people invest for future benefits. The employees save their savings in various aspects
of investments avenues mostly, after the safety of their investment is given importance rather
than high returns. The salaried people have different channels to invest their surplus funds in
modern equipment.

Consumer durables have attracted the salaried brackets towards it. Further an increment in the
savings is always preferred and it has reached a stage where the returns decide the investment.
The salaried group will also differ in their investment pattern due to safety, security, regular
income, retirement benefit and other exclusive features than the other occupation people like
business man and professionals. The certain factors like education level, awareness about
current financial system were also influence the salaried class people.
3.8 Conclusion
The economy is prospering, the job market is booming and salaries are touching a new high.
The Indian youth are rich in cash with their ever increasing salaries. The new breed of Indian
youth has its pockets full and is intelligent enough not to let its money rest in Bank accounts.
The investors of not park their hard earned in money in traditional avenues instead, they look
for higher returns and tax sops, their risk appetite is more and they patronise the on good return-
oriented investment. Investment is on their mind and an option that has the potential to multiply
their savings and provide maximum tax rebate, which is among the top most benefits that they
crave.
The present study is analysis of pattern of investment of salaried investors in the period under
study into financial and physical assets, in general and for different income groups and with
different demographic and socioeconomic factors. Every individual having surplus money
invests in different types of assets including financial and physical assets. Each individual has
his own method of shortlisting financial avenues to invest in. Any individual’s investment
pattern reflects the type of assets held and the perceived risk of the portfolio of assets held. The
type of financial products held by the respondent reflects the portfolio pattern of the respondent.
Survey results indicate that women were preferring to invest in financial products perceived to
a low risk, like bank deposits, insurance and provident fund. Investment pattern could depend
on many demographic attributes. It was found that majority of employed women had
moderately risky investment pattern followed by non-risky portfolio pattern and risky portfolio
pattern.
Today, the living standard of the people increasing day by day so salaried class community has
started. Realizing the importance of savings and proper investment of their savings. They avoid
spending money on heavy luxurious life style and preferring the normal living standard. All the
employees are aware about the different investment avenues like safe and low risk avenues,
moderate risk avenues, high risk avenues, traditional investment avenues and emerging

investment avenues. Likewise, their annual income and percentage of investment is closely
related. Rationally speaking, all personal investments are designed to satisfy a goal like buying
a house, a car for social status, security etc. Hence the investors need to identify the objectives
of their investment as well as their constraints. Is it a long term or short term one, a high priority
or a low priority on, is it for tax planning, for insurance, what are the liquidity constraints, what
are ab integral part of any person. Every person has investments in many forms whether they
are in projects or assets.

ANALYSIS AND INTERPRETATION OF DATA
Analysis of data means critical examination of the data for studying the characteristics of the
object under study and for determining the patterns of relationships among the variables
relating to it using both quantitative and qualitative methods. Interpretation refers to the
technique of drawing inference from the collected facts and explaining the significance. It is a
search for broader and more abstract means of the research findings.
Data analysis is done by considering two sections in the questionnaire one is the personal profile
and another significant section were survey data section. Personal profile section includes
demographic details like Age, Gender, and Place of living of respondents. In survey data
section, it includes the satisfaction level of investor, the current status of their investment and
their opinions and suggestions regarding other investment avenues.
The following are the analysis of data and interpretation in order to find out a study on savings
and investment pattern of salaried class people.
The response of 72 investors from Palakkad area are collected through the questionnaire and
by using a pre structured interview schedule with theoretical and statistical relationships among
the variable were analyzed. The respondents were met in person and asked to fill the
questionnaire. The analysis has been done based on statistical measures like percentage analysis
etc.

TABLE NO 4.1 SHOWS THE QUALIFICATION OF THE

RESPONDENTS
QUALIFICATION NO. OF RESPONDENTS PERCENTAGE
UNDERGRADUATE 12 17%
GRADUATE 36 50%
POSTGRADUATE 18 25%
OTHERS 6 8%
TOTAL 72 100
GRAPH NO 4.1 SHOWS THE QUALIFICATION OF THE

RESPONDENTS
60%
50%
50%
40%
30%
25%
20% 17%
10% 8%
0%
Undergraduate Graduate Postgraduate Others
INTERPRETATION:
Here half of the respondents are qualified up to graduate 50%, 17% of them are undergraduates
and 25% of them are post graduates. The balance 8% are qualified under other certain norms.

TABLE NO 4.2 SHOWS THE OCCUPATION OF THE RESPONDENTS

OCCUPATION NO. OF RESPONDENTS PERCENTAGE
GOVERNMENT 25 35%
EMPLOYEE
PRIVATE EMPLOYEE 30 42%
OTHERS 17 23%
TOTAL 72 100
GRAPH NO 4.2 SHOWS THE OCCUPATION OF THE RESPONDENTS
23%
35%
42%
Government employee Private employee Others
INTERPRETATION:
Here out of the total respondents, 35% are Government employees while 23% are private
employees. A small portion of 23% belongs to other category.

TABLE NO 4.3 SHOWS THE NATURE OF ORGANIZATION

NATURE NO. OF RESPONDENTS PERCENTAGE
SERVICE 13 18%
EDUCATION 27 38%
FINANCE/BANKING 24 33%
OTHERS 8 11%
TOTAL 72 100
GRAPH NO 4.3 SHOWS THE NATURE OF ORGANIZATION

40% 38%
35% 33%
30%
25%
20% 18%
15%
11%
10%
5%
0%
Service Education Finance/banking Others
INTERPRETATION:
Under nature of organization, 38% were education. Finance organization takes 33%, 18% for
service. The rest of the 11% are other types of organization.

TABLE NO 4.4 SHOWS THE MONTHLY INCOME OF THE

RESPONDENTS
INCOME NO. OF RESPONDENTS PERCENTAGE
LESS THAN 10000 27 38%
10000-30000 25 34%
30000-50000 8 12%
ABOVE 50000 12 16%
TOTAL 72 100
GRAPH NO 4.4 SHOWS THE MONTHLY INCOME OF THE

RESPONDENTS
40% 38%
35% 34%
30%
25%
20%
16%
15%
12%
10%
5%
0%
Less than 10000 10000-30000 30000-50000 Above 50000
INTERPRETATION:
The chart shows that 38% of the respondents have an income below 10,000, 34% have an
income between 10,000 and 30,000 and 12% have income between 30,000 and 50,000. The
remaining balance of 16% have income above 50,000.

TABLE NO 4.5 SHOWS THE SOURCES OF INFORMATION ABOUT

INVESTMENT
SOURCE OF NO. OF RESPONDENTS PERCENTAGE
INFORMATION
FRIENDS 12 17%
RELATIVES 19 27%
NEWSPAPER 24 33%
CONSULTANTS 8 11%
OTHERS 9 12%
TOTAL 72 100
GRAPH NO 4.5 SHOWS THE SOURCES OF INFORMATION ABOUT

INVESTMENT
35% 33%
30%
27%
25%
20%
17%
15%
12%
11%
10%
5%
0%
Friends Relatives Newspaper Consultants Others
INTERPRETATION:
Most of the respondents came to know about this investment information through friends 17%,
27% through relatives, 33% through newspaper and 11% through consultants. The rest of the
12% came to know about information through other sources.

TABLE NO 4.6 SHOWS THE OBJECTIVE OF SAVINGS

OBJECTIVES NO. OF RESPONDENTS PERCENTAGE
CHILDREN’S FUTURE 25 35%
RETIREMENT 18 25%
HEALTHCARE 23 32%
OTHERS 6 8%
TOTAL 72 100
GRAPH NO 4.6 SHOWS THE OBJECTIVE OF SAVINGS

40%
35%
35%
32%
30%
25%
25%
20%
15%
10% 8%
5%
0%
Children’s future Retirement Healthcare Others
INTERPRETATION:
The chart states that the objective of savings for 35% of the respondents are to meet children’s
future, 25% for the retirement, 32% for the healthcare. While a small portion of 8% for others
purpose.

TABLE NO 4.7 SHOWS THE OBJECTIVE OF INVESTMENT

OBJECTIVES NO. OF RESPONDENTS PERCENTAGE
LONG TERM GROWTH 58 80%
SHORT TERM 10 14%
GROWTH
OTHERS 4 6%
TOTAL 72 100
GRAPH NO 4.7 SHOWS THE OBJECTIVE OF INVESTMENT
6%
14%
80%
Long term growth Short term growth Others
INTERPRETATION:
This chart considered the objective of investment, 80% for the long term growth of the
investment. While only small portion 14% for short term growth and 6% others objectives.

TABLE NO 4.8 SHOWS THE AVENUES OPTED FOR INVESTMENT

AVENUES NO. OF RESPONDENTS PERCENTAGE
INSURANCE 7 10%
BANKS 13 18%
MUTUAL FUNDS 10 13%
POST OFFICE 8 12%
SHARES 12 17%
REAL ESTATE 1 1%
GOLD 18 25%
OTHERS 3 4%
Total 72 100
GRAPH NO 4.8 SHOWS THE AVENUES OPTED FOR INVESTMENT

30%
25%
25%
20%
18%
17%
15%
13%
12%
10%
10%
5% 4%
1%
0%
Insurance Banks Mutual Post office Shares Real estate Gold Others
Funds
INTERPRETATION:
Most of the respondents prefer gold as an alternative investment avenue (25%), 18% opted for
banks, 17% had chosen shares,13% for mutual funds, 12% post office, 10% opted for insurance.
Just 1% are interested to invest in real estate and balance 4% are looking forward towards other
investment avenues.

TABLE NO 4.9 SHOWS THE PURPOSE BEHIND INVESTMENT OF THE
RESPONDENT
INVESTMENT NO. OF RESPONDENT PERCENTAGE

PURPOSES
WEALTH CREATION 30 42%
TAX 10 14%
FUTURE EXPENSES 15 21%
OTHERS 17 23%
TOTAL 72 100
GRAPH NO 4.9 SHOWS THE PURPOSE BEHIND INVESTMENT OF THE
RESPONDENT
Series 1
45
40 42
35
30
25
20 23
21
15
14
10
0
Wealth Tax Future Others
INTERPRETATION
The above diagram showing that among the total samples collected from 72 salaried individuals
42% of the investor are investing for wealth creation 14% for tax savings 21% for meeting
future expenses and 23% for other purpose. Most of the respondents are educated.

TABLE NO 4.10 SHOWS THE RESPONDENTS TIME PERIOD TO
INVESTMENT
TIME PERIOD NO. OF RESPONDENTS PERCENTAGE
SHORT TERM 28 39%
MEDIUM TERM 10 14%
LONG TERM 34 47%
TOTAL 72 100
GRAPH NO 4.10 SHOWS THE RESPONDENTS TIME PERIOD TO
INVESTMENT
TIME PERIOD
Short term Medium term Long term
0%
39%
47%
14%
INTERPRETATION
39% of the investor are investing for Short term 14% for tax savings 47% for achieving long
term goals. Most of the respondents are educated.

TABLE NO 4.11 SHOWS THE RESPONDENTS PERCENTAGE OF

INCOME ON INVESTMENT
INCOME LEVEL NO. OF RESPONDENTS PERCENTAGE
1-15% 9 13%
15-30% 34 47%
30-50% 25 34%
50% above 4 6%
Total 72 100
GRAPH NO 4.11 SHOWS THE RESPONDENTS PERCENTAGE OF

INCOME ON INVESTMENT
INCOME
50
45 47
40
35
34
30
25
20
15
10 13
5
6
0
1 to 15 15 to 30 30 to 50 50 above
INTERPRETATION
13% of the investor are depends upon small investment 47% medium investment 34% for high
investment and 6% higher-level salaried individuals. Most of the respondents are educated.

TABLE NO 4.12 SHOWS THE RESPONDENTS CRITERIA ON

INVESTMENT
INVESTMENT NO. OF RESPONDENTS PERCENTAGE

CRITERIA
DAILY 16 22%
WEEKLY 25 35%
MONTHLY 12 17%
OCCASSIONLLY 19 26%
TOTAL 72 100
GRAPH NO 4.12 SHOWS THE RESPONDENTS CRITERIA ON

INVESTMENT
40
35
35
30
26
25
22
20
17
15
10
0
Daily Weekly Monthly Occassionally
INTERPRETATION
22% of the investor are depends on daily investment 35% investment on weekly basis 17% on
monthly investment and 26% are occasional investors. Most of the respondents are educated.

TABLE NO 4.13 SHOWS THE FACTORS INFLUENCING ON

INVESTMENT OF THE RESPONDENT
FACTORS NO. OF RESPONDENTS PERCENTAGE
SAFETY 15 21%
LIQUIDTY 8 11%
RETURN 32 45%
LOW RISK 6 8%
OTHERS 11 15%
TOTAL 72 100
GRAPH NO 4.13 SHOWS THE RESPONDENTS FACTORS INFLUENCING

ON INVESTMENT
INVESTMENT FACTORS
Safety Liquidty Return Low risk Others
15%
21%
8%
11%
45%
INTERPRETATION
21% of the investor are depends on safe investment 11% liquidity investment 45% on return
investment 8% are depends on low-risk investment and 15% others. Most of the respondents
are educated.

TABLE NO 4.14 SHOWS THE LEVEL OF SATISFACTION ON

INVESTMENT OF THE RESPONDENT
LEVELS OF NO. OF RESPONDENT PERCENTAGE

SATISFACTION
HIGHLY SATISFIED 24 33%
SATISFIES 28 39%
DISSATISFIES 16 22%
HIGHLY DIS SATISFIES 4 6%
TOTAL 72 100
GRAPH NO 4.14 SHOWS THE RESPONDENTS LEVEL OF
SATISFACTION ON INVESTMENT
45
39
40
35 33
30
25 22
20
15
10
6
5
0
Highly satisfied Satisfied Dissatisfied Highly unsatisfied
LEVEL OF SATISFACTION
INTERPRETATION
33% of the investor are highly satisfied ion investment 39% are satisfies on investment 22%
are dissatisfies on investment 6% are highly dis satisfies. Most of the respondents are educated.

TABLE NO 4.15 SHOWS THE LEVEL OF RISK ON INVESTMENT OF

THE RESPONDENT
RISK LEVEL NO. OF RESPONDENTS PERCENTAGE
BANK DEPOSITES 17 24%

INSURANCE 12 17%
POST OFFICE SAVINGS 10 14%
GOLD 14 19%
REAL ESTATE 5 7%
MUTUAL FUNDS 8 11%
SHARE/SECURITIES 2 3%
OTHERS 4 5%
TOTAL 72 100
GRAPH NO 4.15 SHOWS THE RESPONDENTS LEVEL OF RISK ON
INVESTMENTS
RISK LEVELS
Bank Deposits Insurace Post Office Savings Gold
Real Estate Mutual Funds Share/Securities Others
3% 5%
11% 24%
7%
17%
19%
14%
INTERPRETATION
most of the investors depends on bank deposits 24% and purchasing gold. Only 11% and 3%
depends on mutual funds and shares of securities and 5% others. Most of the respondents are
educated.

TABLE NO 4.16 SHOWS THE CONSULT FOR TAKING INVESTMENT

DECISION OF THE RESPONDENT

CONSULTANTS
OWN 7 8%
ANALYSIS/RESEARCH
SPOUSE OR PARENTS 19 27%
FINANCIAL 40 56%
CONSULTANTS
OTHERS 6 9%
TOTAL 72 100
GRAPH NO 4.16 SHOWS THE RESPONDENTS CONSULT FOR TAKING

INVESTMENT DECISION
CONSULTANTS
Own analysis or research Spouse or parents Financial consultants Others
9% 8%
27%
56%
INTERPRETATION
The above diagram showing that among the total samples collected from 72 salaried individual
56% consults financial consultants 27% spouse and parents 8% own analysis and 27% others.
Most of the respondents are educated

TABLE NO 4.17 SHOWS THE RISK OF LOOSING INVESTMENT

AMOUNT
RISK OF LOOSING NO. OF RESPONDENTS PERCENTAGE
YES 29 41%
NO 29 40%
MODERATE 14 19%
TOTAL 72 100
GRAPH NO 4 .17 SHOWS THE RISK OF LOOSING INVESTMENT

AMOUNT
20%
40%
40%
yes no moderate
INTERPRETATION
The above diagram showing that among the total samples collected from 72 salaried
individuals,41% are aware about the risk of losing investment and 40% are not and 14% are
moderate aware. Most of the respondents are educated

TABLE NO 4.18 SHOWS THE SECTOR PREFER TO INVEST

SECTOR TO INVEST NO. OF RESPONDENTS PERCENTAGE
MONEY
PRIVATE SECTOR 34 47%
PUBLIC SECTOR 23 32%
FOREIGN SECTOR 15 21%
TOTAL 72 100
GRAPH NO 4. 18 SHOWS THE SECTOR PREFER TO INVEST
21%
46%
33%
private sector public sector freign sector
INTERPRETATION
The above diagram shows that the samples collected from the 72 salaried individuals, 47% of
the respondents prefer to invest money in private sector, were 32% tends to invest in public
sector and 21% in foreign sector.

TABLE NO 4.19 SHOWS THE INVESTMENT AND SAVINGS TARGET

AMOUNT AIM FOR EACH YEAR
TARGET AMOUNT NO. OF RESPONDENTS PERCENTAGE

YES 50 69%
NO 22 31%
TOTAL 72 100
GRAPH NO 4.19 SHOWS THE INVESTMENT AND SAVINGS TARGET

AMOUNT AIMS FOR EACH YEAR
80
69
70
60
50
40
31
30
20
10
0
Category 1
yes no
INTERPRETATION
The above diagram shows that the sample collected from the 72 salaried individuals,69% of
the respondents have savings and investments target amount aim for each year and 31% are not
most of the respondents are educated.

TABLE NO 4 .20 SHOWS THE RATE OF INVESTMENT TO GROW

RATE OF NO. OF RESPONDENTS PERCENTAGE
INVESTMENT
STEADILY 34 47%
AT AN AVERAGE RATE 23 32%
FAST 15 21%
TOTAL 72 100
GRAPH NO 4.20 SHOWS THE RATE OF INVESTMENT TO GROW
40
35
30
25
20
15
10
steadily averaage rate fast
INTERPRETATION
The above diagram shows that the sample collected from the 72 salaried individuals, 47% of
respondents wish to grow their investment steadily.32% of respondents wishes to grow at an
average rate and 21% of respondents wishes to grow fast.

TABLE NO 4.21 SHOWS THE MONEY BORROWED FOR

INVESTMENT FROM BANKS OR OTHER SOURCE
MONEY BORROWED NO. OF RESPONDENTS PERCENTAGE
YES 53 74%
NO 19 26%
TOTAL 72 100
GRAPH NO 4.21 SHOWS THE MONEY BORROWED FOR

INVESTMENT FROM BANKS OR OTHER SOURCE
26%
74%
yes no
INTERPRETATION
The above diagram shows that the sample collected form 72 salaried individuals,74%
respondents have borrowed money for investment from bank or other source and 26%
respondents have not.

TABLE NO 4.22 SHOWS THE MONEY INVESTED IN SHARE

MARKET
MONEY INVESTED NO. OF RESPONDENTS PERCENTAGE
YES 48 67%
24 33%
NO
TOTAL 72 100
GRAPH NO 4.22 SHOWS THE MONEY INVESTED IN SHARE

MARKET
33%
67%
yes no
INTERPRETATION
The above diagram shows that the sample collected form 72 salaried individuals,67%
respondents have invested their money in share were 33% haven’t.

TABLE NO 4.23 SHOWS THE TYPICAL ATTITUDE WHEN MAKING

IMPORTANT FINANCIAL/INVESTMENT DECISION
DECISION
VERY ADVENTUROUS 16 22%
ADVENTURE 7 10%
AVERAGE 31 43%
FAIRLY CAUTIOUS 7 10%
VERY CAUTIOUS 11 15%
TOTAL 72 100
CHART NO 4.23 SHOWS THE TYPICAL ATTITUDE WHEN MAKING

IMPORTANT FINANCIAL/INVESTMENT DECISION
35
31
30
25
20
16
15
11
10
7 7
0
VERY ADVENTURE AVERAGE FAIRLY VERY CAUTIOUS
ADVENTUROUS CAUTIOUS
INTERPRETATION:
The above diagram shows that the sample collected form 72 salaried individuals, while making
the important financial / investment decision, 16% of respondents are very adventurous, 7%
are adventure, 31% are average, 7% are fairly cautious, 11% are very cautious

TABLE NO 4.24 SHOWS THE OPINION OF RESONDENTSABOUT

INVESTMENT PREFERENCE
PERFERENCE
LOW AVERAGE 32 45%
ANNUAL RETURN BUT
NO RISK
HIGHER AVERAGE 24 33%
ANNUAL RETURN BUT
SOME RISK
MIXTURE OF TWO 16 22%
TOTAL 72 100
TABLE NO 4.24 SHOWS THE OPINION OF RESONDENTS ABOUT

INVESTMENT PREFERENCE
16
LOW AVERAGE ANNUAL

RETURN BUT NO RISK
32
HIGHER AVERAGE ANNUAL
RETURN BUT SOME RISK
MIXTURE OF TWO
24
INTERPRETATION
The above diagram shows that the sample collected from 72 salaried individuals, invest their
money and 32% of the respondents choose a product with low average annual return but no
risk of losing initial investment, 24% choose a product with higher average annual return but
some risk of losing initial investment and 16% of the respondents chooses the mixture of two
products

TABLE NO 4.25 SHOWS THE INVESTMENT EXPERIENCE

EXPERIENCE
BEGINNING 27 37%
MODERATE 25 35%
KNOWLEDGEABLE 12 17%
EXPERIENCE 8 11%
TOTAL 72 100
CHART NO 4.25 SHOWS THE INVESTMENT EXPERIENCE

30
27
25
25
20
15
12
10 8
0
BEGINNING MODERATE KNOWLEDGEABLE EXPERIENCE
INTERPRETATION
The above diagram shows that the sample collected from 72 salaried individuals, 37% of the
respondents have no experience, 35% have moderate experience, 17% have knowledgeable
experience and 11% have full investment experience

5.1 FINDINGS
 From the study it is proved that of the re are qualified up to 17% undergraduate. While
50% graduates and 25% are post graduates. The balance 8% are qualified under other
certain norms.
 The study states that a majority of 38% of the respondents have an income below 10,000,
34% have an income between 10,000 and 30,000 and 12% have income between 30,000
and 50,000. The remaining balance of 16% have income above 50,000.
 The study shows of the total respondents, 35% are Government employees while 23%
are private employees. A small portion of 23% belongs to other category.
 From the study the nature of organization, 38% were education. Finance organization
takes 33%, 18% for service. The rest of the 11% are other types of organization.
 The study shows of 17% of the respondents are informed by friends, 27% through
relatives, 33% through newspaper and 11% through consultants. The rest of the 12%
came to know about information through other sources.
 The study states that the objective of savings for 35% of the respondents are to meet
children’s future, 25% for the retirement, 32% for the healthcare. While a small portion
of 8% for others purpose.
 This study considered the objective of investment, 80% for the long term growth of the
investment. While only small portion 14% for short term growth and 6% others
objectives.
 Most of the respondents prefer gold as an alternative investment avenue (25%), 18%
opted for banks, 17% had chosen shares,13% for mutual funds,1 12% post office, 10%
opted for insurance. Just 1% are interested to invest in real estate and balance 4% are
looking forward towards other investment avenues.
 Majority of the respondents are educated 42% aware about investment and savings and
for wealth creation and 14% are aware of taxation.
 Most of the respondents 47% have long term investments and 14% are depends upon
medium term investment.
 Most of the respondents have 47% of their salaries are invested and 6% least income
investment.
 Most of the respondents 35% monitor investment in weekly basis and 17% are on
monthly basis.

 Return and safety is the most important factor to considered when selecting a saving
scheme 45% majority of the respondent and 8% are depending upon low risk.
 Most of the respondents 39% are satisfied on their investment area, and 6% are
dissatisfied.
 Majority of the respondents 24% have bank A/C for investing their savings and 5%
depends upon other sources.
 Most of the respondents 56% consults financial consultants for better source to invest
their savings and 8% from own analysis.
 The study reveals that 54% of respondents are aware about the risk of losing investment.
The remaining 46% of respondents are not aware.
 In the study 47% of respondents prefer private sector investments, 32% prefer public
sector and 21% of respondents prefer foreign sector.
 The study reveals that 69% of respondents have savings and investment target.
 The study shows 37% of respondents are wishes to grow their investment in fast.
 The study shows that 74% of respondents use borrowed money for investment purpose.
 Out of 100%, 67% of respondents are invested their money in share market.
 23% of respondents attitude towards making investment decision are adventurous.
 The study reveals that 32% of respondents prefer low average annual return with no
risk, 24% prefer higher average annual return with some risk and remaining 16% of
respondents prefer mixture of both two products.
 The study reveals that 63% of respondents have an investment experience.

5.2 SUGGESTIONS
The following suggestions emanate from the findings of the study. Investment is undertaken in
the expectation of a return which is in proportion to the risk the investor assumes. Favourable
activities relating to investment consists of acquisition of assets, their maintenance and the
liquidation of assets. A good investment market should facilitate these investments activities
and foster growth. There are certain factors such as legal protection, well organized monetary
system, role of financial institutions, healthy industrial climate, varied investment avenues,
varying interest rates, larger incomes, tax rates, and the like which are conducive to the growth
of investment market. Several investment opportunities are available to an investor and in many
combinations. However, the returns offered by them vary depending upon their nature and
qualitative features. The investors through portfolio management, attempt to maximize their
expected return in consistent with individually acceptable portfolio risk.
 Investment risk must be minimized which will in turn increase the investment by aged
employees
 Awareness of various investment avenues must be made to the employees with their
relative merits and demerits.
 The employee investors must be educated about the various avenues of investment.
 More training is needed for the investors to make investments in various avenues.
 They must go for consultation before investing.
 More tax concessions must be introduced by the Government for increasing the
investments in various avenues, especially to the salaried class of employees.
 The procedural formalities regarding certain investments must be reduced.
 Investor guidelines must be made known to every individual investors/employees
through their organization.
 Investor knowledge regarding online investments can be improved by providing
employees subsequent SMS/mail updates.
 Investments avenues like share market, mutual funds need more awareness among
salaried individuals so that more individuals can be attracted.

5.3 CONCLUSION
After the analysis and interpretation of data by the researcher it is conducted that investors are
very well aware about investment avenues that are available in Palakkad area, India but still
investors are preferring to invest in their money in bank deposit, real estate etc. The data
analysis of research reveals that the safety is concerned as important factor while doing
investment so remaining avenues are less found less considerable while doing investment by
investors. Investment is important to achieve individual goal. Investment means we have
money, then we need to make analysis to invest the money, and expected get return in future.
If the investment are run early, then we will make a lot of profit if the investment run well,
if not we will lose all of the investment need to start from earlier. Apart from that,
first thing first we must set an investment plan to make the investment run well. From
that, we can know what we will face in future, what the risk need counter, what economy is
going and many more. As we also know, there are also specific place for investment to be
done. It will involve capital market, Bursa Malaysia, equity market, debt market and
many more. So, we need to know where we should invest our money whether to invest in
high risk market or lower risk market to gain return in future. Usually, high return will
associated with high risk. This report is a reflection of the awareness and factors considering, risk
taking abilities of the various categories of middleclass investors. Selection of the perfect
investment avenue is a difficult task to a middleclass investor. An effort is made to identify the
taste and preference of a sample of individuals selected by connivance and snowball sampling.
This report concentrated in identifying the factors considered individuals before investment,
awareness level of middleclass people towards various investment avenues are identified based
on their occupations, investors risk in selecting a particular avenue. After the analysis and
interpretation of data by the researcher it is concluded that investors are very well aware about
investment and saving option available in the market though the relative/friends and
bank/brokers, and this invest and saving made for the purpose of achieving long term growth.
The most of the middleclass investors are preferring to invest in their money in government and
private sector specially in mutual fund, bank deposit, gold. In this research study data analysis of
research reveals that the high return and safety of principle is concerned as important factor while
doing investment, so remaining factor are less considerable while doing investment by investors.
Finally, I am concluded that the middleclass investors prefer to invest their money in mutual
funds, bank deposit and gold for the purpose of high return and savings

BIBLIOGRAPHY
BOOKS
 Dr.k VENUGOPALAN , Dr. ABDHUL ASSIS KOROTH (2019)
“ INVESTMENT AND SAVINGS PATTERN”
 Dr.ABDHUL ASSIS KOROTH (2020) “ INVESTMENT OF SALARIED CLASS
PEOPLE”
JOURNALS
 Rachana parihar ( 2019) ‘ investment habits'

 Sneha ayyer (2022) ‘ Attitude towards investment from salaried peoples'
Anstie, R.K., Gray, M.R. and Pagan, A.R. (1983), “Inflation and the Consumption Ratio”, The
Effects of Inflation Theoretical Issues and Australian Evidence, 321–361, Canberra: Centre
for Economic Policy Research Australian National University.
Aschauer, D.A. (1989a), “Is Public Expenditure Productive?”, Journal of Monetary

Economics, 23, 177–200.
Aschauer, D.A. (1989b), “Does Public Capital Crowd Out Private Capital?”, journal of
Monetary Economics, 24, 171–181.
Auerbach, A.J. and Kotlikoff, L.J. (1987), Dynamic Fiscal Policy, Cambridge University
Press: Cambridge, USA.
Auerbach, A.J. and Kotlikoff, L.J. (1989), “Demographics, Fiscal Policy and U.S. Saving in
the 1980s and Beyond”, NBER Working Paper No. 3150, October.
Australian Bureau of Statistics (1988), “Projection of the Populations of Austrlaia, States

and Territories 1987 to 2031”, Catalogue No. 3222.0.
Barro, R.J. (1974), “Are Government Bonds Nel Wealth?”, Journal of Political Economy,
1095–1117.
Barro, R.J.(1984), Macroeconomics, John Wiley & Sons: New York.
Barro, R.J. (1989a), “A Cross-Country Study of Growth, Saving and Government”, NBER
Working Paper No. 2855.

WEBSITES
 www.Wikipedia.org
 www.investmentsadda.com
 www.coursehero.com
 www.indiapostgov.in

QUESTIONNAIRE
Name:
Age:
Gender:
Marital status:
1. Qualification:
Undergraduate graduate postgraduate others
2. Occupation/employment:
Government employee Private employee others
3. Nature of organization:
Service education finance/banking others
4. Monthly income:
Less than 10.000 10,000-30,000
30,000-50,000 above 50,000
5. Where do you get investment information?
Friends relatives Newspapers consultants others
6. What is your saving objective?
Children's future retirement health care others
7. What is your investment objective?
Long term growth short term growth others
8. Which of the following avenues have you opted for?
Insurance banks mutual funds post office
Shares real estate gold others
9. What is the purpose behind investment?
Wealth creation tax saving

Future expenses others
10. What is the time period you prefer to invest?
Short term (0-1years] medium [1-Syears]
Long term [>5years]
11. What percentage of your income do you invest?
1-15% 5-30% 30-50% 50%&above
12. How often do you monitor your investment?
Daily weekly monthly occasionally
13. What are the factor influencing investment decisions?
Safety liquidity returns low risk others
14. Level of satisfaction:
Highly satisfied satisfies dissatisfies
Highly unsatisfied
15. Rank the risk level of each of the investment:
Bank deposits insurance post office savings gold
Real estate mutual funds shares/securities others
16. Whom do you consult for taking investment decisions?
Own analysis/research spouse/parents financial consultants

others
17. Can you take the risk of losing your investment amount?
Yes No moderate
18. In which sector do you prefer to invest your money?
Private sector public sector foreign sector
19. Do you have a saving and investment target amount you aim for each year?
Yes No [if yes specify your amount…………]

20. At which rate do you want your investment to grow?
Steadily at an average rate fast
21. Have you borrowed money for investment from banks or from other sources?
Yes No
22. Do you invest your money in share market?
Yes No
23. How would you describe your typical attitude when making important financial
decision/investment decisions?
Very adventurous Adventure Average Fairly cautious
Very cautious
24. Imagine that you have some money to invest and a choice of two investment
products, which option would you chooses?
A product with low average annual return but no risk of losing initial investment
A product with a higher average annual return but some risk of losing initial investment
Mixture of two products
25. What best describes your investment experience?
Beginning [no investment experience]
Moderate [comfortable with fixed deposits or chit funds...]
Knowledgeable [has bought and sold individual shares]
Experience [frequently trade in stocks, commodities options, futures...]

Savings and Investment Pattern of Working Employees

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Savings and Investment Pattern of Working Employees

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PROJECT REPORT 2021-22

YUVAKSHETRA INSTITUTE OF MANAGEMENT STUDIES 1

1.2 SIGNIFICANCE OF STUDY

1.3 STATEMENT OF PROBLEM

1.4 OBJECTIVES OF STUDY

1.5 SCOPE OF THE STUDY

1.6 PERIOD OF STUDY

YUVAKSHETRA INSTITUTE OF MANAGEMENT STUDIES 2

1.7 RESEARCH METHODOLOGY

1.7.1 Research design

1.7.2 DATA COLLECTION

YUVAKSHETRA INSTITUTE OF MANAGEMENT STUDIES 3

1.7.3 STATISTICAL TOOLS USED

1.7.4 SAMPLE CRITERIA

1.7.5 SAMPLE SIZE

1.8 LIMITATION OF THE STUDY

YUVAKSHETRA INSTITUTE OF MANAGEMENT STUDIES 4

Investment pattern of salaried people – A study in Malampuzha area. R jayachandran

YUVAKSHETRA INSTITUTE OF MANAGEMENT STUDIES 5

A study on people’s preference in investment behavior. ( Seetha) 2020. The study on

Mutual funds is the better investment plan Institute of management technology(2010)

YUVAKSHETRA INSTITUTE OF MANAGEMENT STUDIES 6

Awareness of commodity market with reference derivative investor Me.Bansal (2010).

A study on preferred investment avenues among salaried people with reference to

YUVAKSHETRA INSTITUTE OF MANAGEMENT STUDIES 7

3.2 MEANING AND DEFINITION OF INVESTMENT

YUVAKSHETRA INSTITUTE OF MANAGEMENT STUDIES 8

3.3 Avenues of investing money in India

YUVAKSHETRA INSTITUTE OF MANAGEMENT STUDIES 9

3.4 OBJECTIVES OF INVESTMENTS

YUVAKSHETRA INSTITUTE OF MANAGEMENT STUDIES 10

Rate of return = annual income + (ending price - purchasing price)

YUVAKSHETRA INSTITUTE OF MANAGEMENT STUDIES 11

3.5 Main factors influencing in investment

Investment is financed either out of current savings or by borrowing. Therefore, investment is

YUVAKSHETRA INSTITUTE OF MANAGEMENT STUDIES 12

YUVAKSHETRA INSTITUTE OF MANAGEMENT STUDIES 13

7. Public sector investment

3.6 Problems faced by the investors

YUVAKSHETRA INSTITUTE OF MANAGEMENT STUDIES 14

information relating to financial results of the company, amalgamations, mergers and

4. Over Subscription of Shares

7. Takeovers and Merger

YUVAKSHETRA INSTITUTE OF MANAGEMENT STUDIES 15

8. Problems related to Settlement Mechanism

3.7 Investment pattern of salaried employees

YUVAKSHETRA INSTITUTE OF MANAGEMENT STUDIES 16

YUVAKSHETRA INSTITUTE OF MANAGEMENT STUDIES 17

YUVAKSHETRA INSTITUTE OF MANAGEMENT STUDIES 18

ANALYSIS AND INTERPRETATION OF DATA

YUVAKSHETRA INSTITUTE OF MANAGEMENT STUDIES 19

TABLE NO 4.1 SHOWS THE QUALIFICATION OF THE

GRAPH NO 4.1 SHOWS THE QUALIFICATION OF THE

YUVAKSHETRA INSTITUTE OF MANAGEMENT STUDIES 20

TABLE NO 4.2 SHOWS THE OCCUPATION OF THE RESPONDENTS

GRAPH NO 4.2 SHOWS THE OCCUPATION OF THE RESPONDENTS

Government employee Private employee Others

YUVAKSHETRA INSTITUTE OF MANAGEMENT STUDIES 21

TABLE NO 4.3 SHOWS THE NATURE OF ORGANIZATION

GRAPH NO 4.3 SHOWS THE NATURE OF ORGANIZATION

YUVAKSHETRA INSTITUTE OF MANAGEMENT STUDIES 22

TABLE NO 4.4 SHOWS THE MONTHLY INCOME OF THE