RESEARCH PROJECT REPORT

ON

“A STUDY ON INVESTMENT BEHAVIOUR OF

PRIVATE SECTOR EMPLOYEES WITH SPECIAL
REFERENCE TO LUCKNOW CITY”

Towards partial fulfilment of

Master of Business Administration (MBA)
School of Management, Babu Banarasi Das University,
Lucknow

Presented By:
AYUSH SINGH
Roll No. 1220672108
MBA 2rd Year
 INTRODUCTION

The investment behaviour of private sector employees is an important aspect of the economy as it not only
affects their personal financial well-being but also has a significant impact on the overall economic growth.
This paper aims to analyze the investment behaviour of private sector employees in Lucknow city, India.
The study was conducted through a survey of 50 employees working in various private sector organizations
in the city. The findings of the study revealed that the majority of private sector employees in Lucknow city
have a moderate risk appetite and are inclined towards making investments. However, their investment
decisions are primarily influenced by their personal financial goals and risk tolerance. The most preferred
investment options among private sector employees are fixed deposits, mutual funds, and real estate. The
study also found that lack of financial knowledge and awareness is a major barrier for employees to make
informed investment decisions. Based on these findings, recommendations have been made to promote
financial literacy and awareness among private sector employees in Lucknow city.
 COMPANY PROFILE

• The private sector is an integral part of any economy, comprising of

businesses that are owned and operated by individuals or groups of
individuals. It includes all business activities that are not controlled or owned
by the government. The private sector plays a significant role in the economy,
contributing to job creation, economic growth, and innovation. In this paper,
we will provide an overview of the private sector, its importance in the
economy, and a profile of the industry.
• Overview of the private sector
• The private sector is a broad term that encompasses various industries,
including manufacturing, retail, services, and financial sectors. It is often
contrasted with the public sector, which includes all government-owned and
operated entities. The private sector operates on the principles of profit and
competition, aiming to generate revenue and maximize profits for its owners.
 OBJECTIVE OF STUDY

1.To study about the awareness level of investment avenues among

employees in Lucknow district.
2.To analyse various factors considered by employees while making
investment decisions.
3.To find out the risk bearing capacity of employees among different
age groups.
 RESEARCH METHODOLOGY

Sаmple desіgn
The reseаrсh wаs саrrіed out іn vаrіous phаses thаt сonstіtuted аn аpproасh of workіng from whole to pаrt. Іt
іnсluded severаl phаses whісh trіed to deeper іnto users lіkіngs аnd develop а thorough understаndіng of whаt the
сonsumer looks forwаrd whіle orderіng food onlіne. For the study а sаmple of 50 respondents were сhosen from
сommerсe students of Luсknow.
Nаture of populаtіon
The populаtіon seleсted for the study іs the сommerсe students of lucknow аnd the nаture of populаtіon іs fіnіte і.e.
900
Sаmple unіt
Sаmple unіt Luсknow city.
Method of sаmplіng
Sіmple rаndom sаmplіng method іs аdopted for the study wіth а sаmple sіze of 50 respondents аmong сommerсe
students.
Sіze of the sаmple
The sаmple sіze for the сustomer survey іs 75 аnd they wіll be сonsіdered аdequаte to represent the сhаrасterіstісs
of the entіre populаtіon.
Tools for аnаlysіs
Stаtіstісаl tools used for the аnаlysіs аre meаn аverаge, perсentаge, tаble &grаph.
 LІMІTАTІONS OF STUDY

• The study is done taking into consideration the employees of only Lucknow District.
Therefore, the end results may not be considered representative of the entire private
sector employees in the country.
• The study is limited to Lucknow district.
• Validity and reliability of the data depends on the openness of the respondents .
• Time was the main constraint in the preparation of the project. The time allotted to
collect the information was insufficient for a large-scale study thus a sample size has
been selected.
• Some of the respondents may be reluctant to respond to the questions and provide
certain information.
 DАTА АNАLYSІS АND ІNTERPRETАTІON

How is your monthly income being spent?

Interpretation
From the data collected it was observed that the most part of income was being spent on household
expenses (30%), whereas children education cost 24%, 20% was being spent on healthcare, 16% on
savings and 10% was being invested
 Which is your most preferred saving avenue?

Interpretation
From the data collected, it was understood that the most preferred saving avenue for them
was savings bank deposits (52%), while 24% preferred fixed deposit schemes, 14%
preferred chit funds and 10% preferred post office deposits.
 FІNDІNGS

• Majority of the respondents belong to the age group 20-30.

• When annual income is concerned, majority of the respondents earn in the range
of less than 1 lakh.
• A majority of the respondents were found to be unmarried.
• The majority of the respondents are employees in the private sector.
• The majority of the monthly is being spent for household expenses.
• Bank deposits have been found to be the most preferred saving avenue followed
by fixed deposits and chit funds.
• The main objective of savings was to buy or construct a house in the future.
• More than 68% of the population was found to have made at least some kind of
an investment.
• Friends and relatives was the most common source of information regarding
available investment avenues.
 SUGGESTION AND RECOMMENDATION

Most preferred saving avenues were found to be saving bank deposits, fixed deposits, chit funds etc. There are
plenty other avenues, women are unaware of. They must be taught about the potential and benefits of other
avenues.
The most preferred investment tools were found to be insurance and shares. There are several other avenues
like real estate, debentures, bullions etc. women should be educated about these and their potential.
It was observed that there was preference towards low risk investments keeping in mind, the safety of capital.
They must be encouraged to invest in high risk avenues where there is potential for higher returns.
A majority of women prefer self-managed investments. It would be a better choice to manage investments
through institutions like banks, stock markets etc. who provide a wide range of services and also gives us
advice on where and how to invest.
 CONCLUSION

This study was conducted in order to understand the savings and investment behavior of private
sector employees, and also how aware they are of the different savings and investment avenues that
are available, and also the potential and benefits of each of these avenues. Income, investment and
savings are all related and connected terms. Savings are being done for future needs especially for
buying/ constructing houses and children’s education. It was observed that investments with higher
returns were being preferred, but, along with it, the risk factor severely affected their decisions. This
research provides valuable information to companies about the preferences of women and what they
are looking for while making investments, and also advises them on which individuals to target and
plan their policies and strategies accordingly.
 BIBLIOGRAPHY

• Websites:
• www.marketwatch.com
• www.jgbm.com
• www.investopedia.com