DECLARATION

ISilkyAgrawal,studentofMasterofBusinessAdministration,SchoolOfManagementSciences,
Varanasi,affiliatedfromAPJAbdulKalamTechnicalUniversity,Lucknow,
declarethattheworkdoneandtheprojectreporttitled
Investmentpattern of salaried employees in Varanasi,
isoriginalworkcarriedoutbyme.
Allreferences,madetoanypublishedmaterialinthisreport,havebeendulyacknowledged.
ThisreporthasnotbeensubmittedtoanyUniversity/AcademicInstitutionforthe
awardofanydegreeordiploma.
IsolemnlydeclarethatIamsingularlyresponsibleforanyinfringementonthe
IntellectualPropertyofanybodyelseinthisreport.

Place:Varanasi.
Date:18thApril,2016

Silky Agrawal

Acknowledgement
I Silky Agrawal, student of Master Of Business Administration in School Of Management Sciences, Varanasi
take
this opportunity to express my profound gratitude and deep regards to my project mentor prof. Kartikeya
Singh,
Assistant professor in school of management sciences for his exemplary guidance, monitoring and constant
encouragement
throughout the course of completion of this report. The blessing, help and guidance given by him time to time
shall
carry me along way in the journey of life on which I am about to embark.
I also take this opportunity to express a deep sense of gratitude to my all the faculties for their cordial
support, valuable information and guidance which helped me in completing this task through various stages.
Not for the last, I thank everyone for their constant encouragement without which this survey report would
not be possible.

Silky Agrawal

Sr.
No.

Title

Pg no

1 Chapters-I
TABLE
OF CONTENTS
Introduction
1.1Background
1.2Objectiveofthestudy
1.3Needofthestudy
1.5Scopeofthework
2

7
8

1
2
3
4
Chapter-II

Theoretical background/Literature Review

2.1TheoreticalBackground
2.3Reviewofpaststudy
3
Chapter-III
Research methodology/ design
3.1Study
3.2Yearofthestudy
3.3Sample
3.4Typeofdata
3.5Datasource
3.6Statisticaltoolsandtechniquesused
Chapter-IV
Data Collection and Analysis
Presentationofdatacollected(Tables)
5
Chapter-V
Limitation
Findings,suggestion
6
Chapter-VI
SummaryandConclusion/Scopeforfuturework
Bibliography
Appendix

[4]

57
813

14
14
15
15
15
15

1644
45
46
4748
4950
5153

List of table:
Sourceofvariousinvestmentoptions16
savingobjective.....16
Sector.............................................................................................................................17
Formalbudget................................................................................................................17
Consultyourfriendsand/orrelatives...........................................................................18
Investmentinsharemarket............................................................................................19
%ofyourincome...........................................................................................................19
Timeperiod....................................................................................................................20
Differenttaxbenefit...20
Investedinmutualfunds21
Optionofinvestmentinmutualfund..21
Criterionforyouforselectingaparticularinvestmentoption.22
Awarenessofthefollowinginvestmentavenues..22
Safe and low risk investment avenues
Savingaccount.............................................23
Bankfixesdeposits......................................23
Publicprovidentfund..................................24
Nationalsavingcertificate............................24
Postofficesaving..........................................25
Governmentsecurities...................................25
Moderate risk investment avenues
Mutualfunds.................................................26
Lifeinsurance................................................26
Debentures.....................................................27
Bonds.............................................................27
High risk investment avenues
Equitysharemarket.......................................28
Commoditysharemarket..............................28
FOREXmarket..........................................29
Traditional investment avenues

[5]

Realestate(Property)..................................29
Gold/silver..................................................30
Chitfunds....................................................30
Emerging invest avenues:
Virtualrealstate..........................................31
Hedgefunds................................................31
Privateequityinvestments...........................32
Artandpassion.............................................32

factors consider before investing

Savingaccount.............................................33
Bankfixesdeposits.......................................33
Publicprovidentfund...................................34
Nationalsavingcertificate............................34
Postofficesaving..........................................35
Governmentsecurities...................................35
Mutualfunds.................................................36
Lifeinsurance................................................36
Debentures.....................................................37
Bonds.............................................................37
Equitysharemarket.........................................38
Commoditysharemarket................................38
FOREXmarket................................................39
Realestate(Property).......................................39
Gold/silver.......................................................39
Chitfunds....................................................40
Virtualrealstate...........................................40
Hedgefunds.................................................41
Privateequityinvestments.............................41
Artandpassion...............................................42
[6]

Generalinformation
Gender43
Age:..................................................43
Annualincomeoffamily44
Educationalqualification44

[7]

1. INTRODUCTION
WHAT IS THE PROJECT?
Savingformanimportantpartofanyeconomyofanynationwithsavinginvestedvarious
optionavailabletopeople.Aninvestmentreferstothecommitmentoffundsatpresent,in
anticipationofsomepositiverateofreturninfuturetodaythespectrumofinvestmentis
indeedwide.Individualsaremoreawareaboutthedifferentinvestmentavenues.Amongall
investmentsavenuesindividualsconsidersavingaccount,fixeddeposit,publicprovident
fund,lifeinsurance,gold/silveretcasasaferandlowriskinvestmentsavenuescompare
sharemarket,bonds,FOREX,chitfundsashighriskinvestmentavenues.Individualsarenot
awareaboutvirtualrealstate,hedgefunds.SalariedIndividualsareawareaboutshare
market,mutualfundsbuttheyconsidertheseinvestmentsavenuesasahighriskinvestments
avenue.
Themainreasonbehindthethestudyarethefactorslikeawarenesslevelandfactorsconsider
individualsbeforeinvestmentslikesafeandlowinvestmentavenues,moderateriskavenues,
highriskinvestmentavenues,traditionalinvestmentavenues,emerginginvestmentavenues.
Thefindingsrelatestotheawarenessamongindividualsandindividualsrisktakingability
whileinvestingindifferentinvestmentavenues.

[8]

OUTLINE OF THE PROJECT:

In investing money, the amount of interest you want should depend on whether
you
want to eat well or sleep well.
- J. Kenfield Morley
Aninvestmentistheemploymentoffundswithaimofachievingincomeandgrowthinvalue
themaincharacteristicsofinvestmentarewaitingforareward.Investmentistheallocation
ofmonetaryresourcestoassetsthatareexpectedtoyieldsomegainorpositivereturnovera
givenperiodoftime.Investmentaimsatmultiplicationofmoneyathigherorlowerrates
dependinguponwhetheritislongtermorshortterminvestmentandwhetheritisriskyor
riskfreeinvestment.Investmentactivityinvolvescreationofassetsorexchangeofassets
withprofitmotive.Aninvestmentinknowledgepaysthebestinterest.Fromthepeople
pointofview,theinvestmentisacommitmentofapersonsfundstoderivefutureincomein
theformofinterest,dividends,rent,premium,pensionbenefitsorappreciationofthevalueof
theirprinciplecapital.
Mostoftheinvestmentsareconsideredtotransfersoffinancialassetsfromonepersonto
another.Variousinvestmentoptionsareavailablewithdifferingriskrewardtradeoffs.An
understandingofthecoreconceptsandathoroughanalysis.Investmentreferstotheconcept
ofdeferredconsumptionwhichmayinvolvepurchasinganasset,givingaloanorkeeping
fundsinabankaccountwiththeaimofgeneratingfuturereturns.Anunderstandingofthe
coreconceptsandathoroughanalysisoftheoptionscanhelpinvestorcreateaportfoliothat
maximizesreturnswhileminimizingriskexposure.
Savingsformaninvestmentpartoftheeconomyofanynation.Withthesavingsinvestedin
variousoptionsavailabletothepeople,moneyactsasthedriverforgrowthofthecountry.
Indianfinancialscenetoopresentsaplethoraofavenuestheinvestor.Throughcertaintynot
thebestordeepestofmarketintheworld,ithasreasonableoptionsforanordinarymanto
investhissavings.
Oneneedtoinvestandearnreturnontheiridleresourcesandgenerateaspecifiedsumof
moneyforaspecificgoalinlifeandmakeaprovisionforanuncertainfuture.Oneofthe
importantreasonwhyoneneedstoinvestwiselyistomeetthecostofinflation.inflationis
therateatwhichthecostoflivingincreases.

[9]

OBJECTIVE OF THE STUDY

1)Toknowthemodeofinvestmentsofthesalariedindividualsinvariousinvestment
avenues.
2)Tostudythefactorsinfluencingtheinvestmentpatternofthesalariedindividuals.

SCOPE OF THE PROJECT:

Thisanalysisisbaseduponinvestorspatternforinvestmentpreference,awareness,during
normaltimeVisavisrecessionaryperiod.Thisanalysiswouldbefocusingonthe
informationfromthesalariedpeopleabouttheirknowledge,perception,andbehaviouron
differentfinancialproducts.
1.Thetotalnumberoffinancialinstrumentsinthemarketissolargethatitneedsalotof
timeandresourcestoanalysethemall.
2.Astheanalysisisbasedonprimaryaswellassecondarydata,possibilityofunauthorized
informationcannotbeavoidable.
3.ResearchwascarriedoninMumbai.
4.Investmentpatternhasbeenanalysishasbeenlimitedtoonly153individuals.
3)Tostudythefactorsinfluencingenquiresintotheprofile,portfoliopractices,experiences,
preferences&risk,perceptions,andintentionsofsalariedindividuals.

[10]

SALIENT CONTRIBUTIONS OF THE PRJECT

Thisanalysisonindividualinvestorsbehaviourisanattempttoknowtheprofilesofthe
investorandalsoknowthecharacteristicoftheinvestorssoastoknowtheirpreferencewith
respecttotheirinvestments.Thestudyalsotriestounraveltheinfluenceofdemographic
factorslikeageonrisk,toleranceleveloftheinvestor.

[11]

[12]

2. LITERATURE REVIEW:
THEORETICAL BACKGROUND

InIndiathesocioeconomicprofileofthepeoplechangesdramatically.Todaypeoplearenot
onlyspendingonproductsandservices,earlierconsideredaluxurybutarealsolookingat
smarterwaysofinvestingtheirmoney.Thisismainlyduetothefact,thatpeopletodaynot
onlyhaveawiderchoiceofinvestingindifferentsavinginstruments,butarealsomore
educatedandawareabouttheirchoices.Peoplearenowmovingbeyondthetraditionalsaving
optionsoffixeddeposits,postofficesavingstowiderinvestmentoptionsintheformof
insurance,mutualfunds,bonds,equitiesandevenproperty.
Savingisincomenotspent,ordeferredconsumption.Methodsofsavingincludeputting
moneyasideinabankorpensionplan.Savingalsoincludesreducingexpenditures,suchas
recurringcosts.Intermsofpersonalfinance,savingspecifieslowriskpreservationofmoney,
asinadepositaccount,versusinvestment,whereinriskishigher.
Whatissavings?
Incomeexpenditure=savings.Intodaysrapidlychangingfinancialenvironment,itis
criticalthatindividualsnotonlyprotectandenhancetheircurrentfinancialresources,butalso
prepareforfuturesecurityandagainstlossofincome.Thisrequirescarefulplanningand
prudentmanagementofonesfinancialassets.(www.deposits.org).......................................
Financialplanningisthekeyandthefirststeptowardsfulfillingonesdreamsandaspirations
whetheritisaboutprovidingforthefamily,buyingahomeoracar.Goodplanningalso
ensuresfinancialsecurityforthefamilythroughoutlife,evenintheeventualityofthedeath
oftheearningmemberofthefamily.Animportantcomponentofasoundfinancialplanis
notonlytheinclusionoflifeinsuranceinvestmentbutalsoprovidingforadequateinsurance
coverageintheplan.Itisthereforecriticalforindividualstodiscusstheiruniqueneedswith
qualifiedFinancialPlanningAdviserswhocanassistindeterminingtherightplanand
amountofcoveragerequired.Consumersarenowexposedtoanarrayofmodernand
innovativeproducts.Dependingontheneedsofthecustomers,
Investmentisthecertainpresentvaluefortheuncertainfuturereward.Itentailsarrivingat
numerousdecisionsuchastypes,mix,amounts,timing,gradeetcofinvestmentand
disinvestment.furthersuchdecisionmakinghasnotonlytobeordertogetreturnonitsinthe
future,whichisknownasinvestment.Therearevariousinvestmentavenuessuchaequity,
bonds,insuranceandbankdepositetc.Aportfolioisacombinationofdifferentinvestment
[13]

assetsmixedandmatchedforthepurposeofachievinggold.Therearevariousfactorswhich
affectsinvestors

Portfoliosuchasannualincomegovernment,policynaturalcalamities,

economicalchangesetc.
Financial and economic meaning of investment:
Investmentistheallocationofmonetaryresourcestoassetsthatexpectedtoyieldsomegains
orpositivereturnoveragivenperiodoftime.Theseassetsrangefromsafetyinvestmentto
riskyinvestment.Investmentinthisformiscalledasfinancialinvestment.
Features of an investment program:
Inchoosingspecificinvestmentinvestorwillneeddefinitelyideasregardingfeatureswhich
theirinvestmentavenuesshouldpossess.Thesefeaturesshouldbeconsistentwiththe
investorgeneralobjectivesaninaddition,shouldaffordthemalltheincidentalconvenience
andadvantages.Whicharepossibleunderthecircumstances?Thefollowingarethe
suggestedfeaturesastheingredientsfromwhichmanysuccessfulinvestorscompoundtheir
selectionpolicies.
Safety of principle:
Theinvestortobecertainofthesafetyofprincipleshouldcarefullyreviewtheeconomics
andindustrytrendsbeforechoosingthetypesofinvestments.Errorareavoidableand
therefore,toensuresafetyprinciple,theinvestorshouldconsiderdiversificationofassets
Liquidity:
Eveninvestorrequiresaminimumliquidityinhisinvestmenttomeetemergence.liquidity
willbeensurediftheinvestorbuysapropositionofreadilysaleablesecuritiesoutofhistotal
portfolio.
Income stability:
Regularlyofincomeataconsistentarteisnecessaryinanyinvestmentpattern.Notonly
stability,itisalsoimportanttoseethatincomeisadequateinaftertaxes.Itispossibletofins
outcomegoodsecurities,whichpayparticularlyalltheirearningsindividends.
Appreciation and purchasing power stability:
Investorshouldbalancetheirportfoliostofightagainstanypurchasingpowerstability.
Investorshouldjudgepricelevelinflation,exploretheirpossibilityofgainandlossinthe
investmentsavailabletothem.
Legally and freedom from care:
Allinvestmentsshouldbeapprovedbylaw.Lawrelatingtominors,trusts,sharesand
insurancebestudiedwillbringsoutmanyproblemforthetheinvestor.
Tangibility:
[14]

Tangibilitysecuritieshavemanytimeslosttheirvaluesduetopricelevelinflation.Some
investorpreferstokeepapartoftheirwealthinvestedintangiblesproperties.
Undersection80CoftheIncomeTaxAct,certaininvestmentsaredeductiblefromgrosstotal
income.Thistaxexemptionisavailableacrossindividualtaxslabs.IfyouearnRs4lakhsper
annumandmakeinvestmentsofRs1lakhin80cinstrumentsthenthetaxableamountwillbe
Rs3lakhs.

Section80Cbenefithasbeenprovidedtoencouragelongtermsavingsandinvestments.You
shouldchooseacombinationoffixedincomeandmarketlinkedinvestmentsdependingon
yourageandriskprofilewww.rupeetimes.com)
Theeconomyiswitnessinganincreasingtrendingrossdomesticsavingsasaproportionof
GDPsince200102,withthesavingsratiohavingincreasedfrom26.5percentin200203to
28.9percentin200304andfurtherto29.1percentin200405.Theriseinsavingshasbeen
witnessedacrossalltheconstituentsectors,thesoleexceptionbeinghouseholdsectorfor
200405whichwitnessedadecreasefrom23.5percentin200304to22.0percentin2004
05.(reportoftheworkinggrouponsavingsfortheeleventhfiveyearplan(200708to2011
12)

[15]

REVIEW OF PAST STUDY:

1. An empirical analysis on preferred investment avenues among rural and semi
urban
households. kantidas Sanjay (2011)
Thestudyrevealsthatinmostcasesinvestorsacrossallcategoriesfoundthemtobesafer
withtakinguptheinsurancepolicies.Asignificantportionofrespondentsalsoshowskeen
preferencetowardsunitlinkedinsurancepoliciessoastogetshorttermgains.Itisalso
observedthatmostoftherespondentsshowtheirkeeninteresttowardstheinsuranceproducts
soastogettaxbenefits,lifeprotectionandaverageprofitableinvestmentavenues.Thisis
perhapsthemoststrikingfeaturesofgeneralinvestorsandthemostimportantfactorthat
influencestheinvestmentdecisions.Further,itisobservedthatthelevelofincomealso
Influencestheinvestmentdecisions.Higherincomegroupshowsrelativelyhighpreference
towardsinvestmentinsharemarket,converselylowerandaverageincomegroupshowskeen
preferencetowardsinsuranceandbanksasthemostpreferredinvestmentavenues.
Infine,thechangingpatternofIndianhouseholdsavingsistheresultofanumberoffactors.
ThehouseholdsavingsinIndiahasexperiencedavarietyofchangesoverthepastoneortwo
decades.ThechangesinlifestylesandconsumptionmodelsinadevelopingcountrylikeIndia
havealsocontributedtowardsthosevariations.Thetrendsofinvestmentbyhouseholdsare
notsimilarinnatureandtheyvarybetweenseveralfinancialinstruments.Thisresultsfrom
thechangingpreferenceoftheinvestors.Previously,householdsavingsinfinancialsecurities
outperformedhouseholdsavingsinphysicalproperties.Nonetheless,thetrendhaschanged
now.Householdsavingsinphysicalpropertiesaregreaterthanhouseholdsavingsinfinancial
instruments.Thisisassumedtobeaconsequenceofapreliminarypreferenceshift.(Kantidas
Sanjay(2011)Journalfrontlineresearchinartsandscience,Pgno.2636)

2. Savings and Investments Attitude of Salaried Class in CUDDALORE District

L. Pandiyan, Dr. T. Aranganathan May-June 2012)
Investmentclimatemustattractthepeopletosavefromtheirincomeattimesevenby
forgoingtheenjoymentofcomfortsandluxuries.Countriescanneversustaindevelopment
unlesstheyhaveadequatesavings.So,Favorableclimateistobeassuredbythegovernment
toprovideinvestmentclimateguaranteeingacquisition,maintenanceandliquidationof
assets.Sincesavingsisthemainfactorforinvestment,thegovernmentthoughlegalmeasures
encouragesavingsaccumulation.Forthegrowthofadisciplinantinvestmentmarketawell
organizedmonetarysystemthoughprotectingtheinvestmentsagainsttheevesofinflationor
[16]

depletionistobekeptbygovernment. . (Pandiyan,Dr.T.Aranganathan,IOSRJournalof
BusinessandManagementMayJune2012pgno.4049)

3. Investment Pattern of Salaried People A study in Coimbatore district

R. SreePriya,P. Gurusamy ( Jan 2013)
Thisstudyhasmadeanattempttoanalyzethesavingandinvestmentpatternofsalariedclass
investor.Anindeptanalysisisdonetoidentifytheattitude,factorinfluencinginvestorsto
saveandsavingspreferenceofinvestors.Itishopedthatthesavingpublic(particularly
salariedclass)willanalysetheirsavingsandinvestment.Thisstudyidentifiedtheproblem
facedbytheinvestorsandtheimpendingproblemscouldbesolvedintherightdirection.
(R.SreePriya,P.Gurusamy,2013Internationaljournalofscientificresearch,issue1)

4. A study of investment perspective of salaried people (private sector)

prof. ca yogesh p. patel; prof. cs charul y. patel (oct 2012)
Investmentistheemploymentoffundswiththeaimofgettingreturnonit.Itisthe
commitmentoffundswhichhavebeensavedfromcurrentconsumptionwiththehopethat
somebenefitswillaccrueinfuture.Thus,itisarewardforwaitingformoney.Sothefirst
steptoinvestmentissavings.Incommonusage,savinggenerallymeansputtingmoneyaside,
forexample,byputtingmoneyinthebankorinvestinginapensionplan.Inabroadersense,
savingistypicallyusedtorefertoeconomizing,cuttingcosts,ortorescuingsomeoneor
something.Intermsofpersonalfinance,savingreferstopreservingmoneyforfutureuse
typicallybyputtingitondepositthisisdistinctfrominvestmentwherethereisanelement
ofrisk.ThemainelementsofInvestmentsareReturn,RiskandTime.Thisresearchaimsto
studyandunderstandthebehaviouralpatternofinvestmentamongthesalariedpeople
workinginprivatesectorandthedifferenceinperceptionofanindividualrelatedtovarious
investmentalternatives.Italsoaimstoprovideaninsightintofactorsconsideredforan
appropriateinvestment.Givesawiderscopetounderstandvariousissuesrelatedto
investmentbysalariedpeople.
(prof.cayogeshp.patel;prof.cscharuly.patel,oct2012 ,AsiaPacificJournalofMarketing
&ManagementReview,pgno145146)
5. Investment Preferences of Salaried people.
Nanavati Nihar K (June2012)
Theinvestmentideologydependsupontheindividualityandmanyotherfactors.Hereisan
attempttofindthesolutiontoaproblemofwheretoinvestbyamiddleandlowerincome
[17]

levelofthesociety.Amarketsurveyhasbeenconductedof25peopleinsuburban
Ahmadabadtoidentifytheirinvestmentpsychologyandrelevantpreference.Thesurveyis
givingusaninsighttowardstraditionalapproachofsavingsandinvestmentpattern.The
detailedanalysisofthesurveyispresentedhereunder.Inclinationtowardssafe,secureand
taxbeneficialinvestmentismorethanthatofriskyorhighreturninvestment.Withlower
incomesegment,onecannotcreatewealthbutwithgoodcombinationofinvestments,one
cancreateabetterandrespectableliving.Onlyasamplesizeof25inamegacity
Ahmadabadwithlargenumberofpopulationtheconclusiondrawnisalwaysakindof
limitationofsurvey.Thebiasedopinionandhesitantrespondentsarealsotheconstraintsof
theidealstudy.(NanavatiNiharK,JournalofAdvancesinDevelopmentalResearch
June2012)

6. A Study on Peoples Preferences in Investment Behaviour

N. Geetha,Dr. M. Ramesh(Nov 2011)
ThestudyonpeopleschoiceinInvestmentChoiceshasbeenundertakenwiththeobjective,
toanalyzetheinvestmentchoiceofpeopleinKurumbalur.Analysisofthestudywas
undertakenwiththehelpofsurveyconducted.Afteranalysisandinterpretationofdataitis
concludedthatinKurumbalurrespondentsaremediumawareaboutvariousinvestment
choicesbuttheydonotknowawareaboutstockmarket,equity,boundanddebentures.The
studyisconductedbytakingalimitednumberofsamplesizeswhichisstatedearlier.And
thisstudyreflectstheperceptionsofthoserespondentswhoareresidinginKurumbalur.
Theremightbeachancethattheperceptionsoftherespondentsofdifferentarevarieddueto
diversityinsociallife,livingpattern,incomeleveletc.Alltheagegroupsgivemore
importanttoinvestinInsurance,NSC,PPFandbankdeposit.Incomelevelofarespondentis
animpotentfactorwhichaffectsportfolioofthe
respondent.Middleagegroup,Lowerincomelevelgroupsrespondentsarepreferredtoinvest
inInsurance,NSC,PPFandbankdepositratherthananyotherinvestmentavenues.In
KurumbalurrespondentsaremoreawareaboutvariousinvestmentavenueslikeInsurance,
PPF,bankdeposits,smallsavingslikepostofficesavingsetc.Forthatawarenessprogram
hastobeconductedbyStockBrokeringfirmsbecausemostoftherespondentsunaware
aboutthisnewserviceandaboutstockmarket. (N.Geetha,Dr.M.Ramesh,IJMER,Nov2011)

[18]

7. Mutual Fund Attributes and Investor Behaviour(Feb2006)

Thispaperanalyzesthedynamicsofinvestorfundflowsinasampleofsociallyscreened
equitymutualfunds.Mutualfundcompanies,whichcontinuallycompetetooffernewfunds
inanefforttoattractinvestorcapital,canexpectSRinvestorstobemoreloyalthaninvestors
inordinaryfunds. Nicolas P.B. Bollen(Feb2006)

8. Mutual fund is the better investment plan(2005)

Institute of management technology Ghaziabad
Infewyearsmutualfundshasemergedasatoolforfinancialwellbeing.Mutualfundshave
notonlycontributedtothegrowthstorybuthavealsohelpedfamiliestapintothesuccessof
Indianindustry.Thispaperanalyzethemarketresearchonsavingandinvestmentpracticesof
theinvestorandpreferenceoftheinvestmentinmutualfunds. Akilesh Mishra (2005)

9. Gold etfs : An emerging investment option(2008)

Aninvestorhasnumerousinvestmentoptionstochoosefromdependingonhisprofileand
expectationofreturns.differentinvestmentoptionsrepresentriskrewardtradeoff.ofthe
varioustypesofinvestmentoptionsinstockmarket,goldexchangetradedfunds.
(Asia pacific journal of research in business management
Dr.Prashnata Athma(2008)

10. Awareness of commodity market with reference derivative investor.

(2009)
Commodityfuturesmarketsarenewandemergingmarket.Theawarenessofthemarketis
verylessamongtheinvestorwhocanusethistradetoselltheirproductswithoutthe
middlemenoragentsitalsohelptheactualbuyertoo.
Heretraderalsocantransferhisrisktosomeotherwhocanhandleitorcanappetitetherisk
troughhedgingtechnique

11. A Study on Preferred Investment Avenues among

Salaried Peoples with Reference to Namakkal Taluk,Tamil Nadu, India
V.R.Palanivelu K.Chandrakumar (March 2013)
ThestudyrevealsthatInvestmentistheemploymentoffundsonassetswiththeaimof
earningincomeorcapitalappreciation.Investmentisthemostimportantthingstoday.People
areearningmore,buttheydonotknowwhere,whenandhowtoinvestit.Aproper
[19]

understandingofmoney,itsvalue,theavailableavenuesforinvestment,variousfinancial
institutions,therateofreturn/risketc.,areessentialtosuccessfullymanageonesfinancefor
achievinglifesgoal.Throughthisstudy,ananalysishasbeenmadeintopreferred
investmentavenuesamongsalariedpeoplesinNamakkalTaluk,Tamilnadu,India.The
resultshighlightthatcertainfactorslikeeducationlevel,awarenessaboutthecurrent
financialsystem,ageofinvestorsetcmakesignificantimpactwhiledecidingthe
investmentavenues.Thestudyisbasedonpersonalinterviewswithsalariedpeoples,usinga
structuredquestionnaire.Actually,thepresentstudyidentifiesthepreferredinvestment
avenuesamongtheindividualinvestorsusingselfassessmenttest.Thestudyisbasedon
primarysourcesofdatawhicharecollectedbydistributionofacloseendedquestionnaire.
Thedatahasbeenanalyzedusingpercentageandchisquaretestwiththehelpofstatistical
software.Therearelargenumbersofinvestmentopportunitiesavailabletoday.Inthispaper
isgoingtobrieflyexaminehowthesalariedpeoplesmanagingtheirinvestment
Indiarespondentsaremediumawareaboutvariousinvestmentchoicesbuttheydonotknow
awareaboutstockmarket,equity,bondanddebentures.Alltheagegroupsgivemore
importanttoinvestinInsuranceandbankdeposit.Incomelevelofarespondentisan
importantfactorwhichaffectsportfoliooftherespondent.Middleagegroup,Lowerincome
levelgroupsrespondentsarepreferredtoinvestinInsuranceandbankdepositratherthanany
otherinvestmentavenues. (V.R.Palanivelu K.Chandrakumar,IBEA ,March 2013 Pg no
20-23)

12. Small Investors Perception on Post office saving Schemes

Karthikeyan (2001)
KarthikeyanhasconductedresearchonSmallInvestorsPerceptiononPostofficeSaving
Schemesandfoundthattherewassignificantdifferenceamongthefouragegroups,inthe
levelofawarenessforkisanvikaspatra(KVP),NationalSavingsScheme(NSS),anddeposit
SchemeforRetiredEmployees(DSRE),andtheOverallScoreConfirmedthatthelevelof
awarenessamonginvestorsintheoldagegroupwashigherthaninthoseofyoungagegroup.
NOdifferenceswereobservedamongmaleandfemaleinvestorsexceptforNSSandKVP.
Karthikeyan (2001) IJMER

[20]

13. Profile and awareness of salaried class investors and their attitude and
satisfaction
towards investment.(2008).
Krishnamoorthy,c,inhisstudyhasanalyzedtheprofileandawarenessofsalariedclass
investorsandtheirattitudeandsatisfactiontowardsinvestment.Inhasbeenconcludedthatall
salariedpeoplewereawareofbankdeposits,PFschemes,insuranceschemes,postoffice
savingsschemes,goldandhoweveronlyfewwereawareofUTI
( Krishnamoorthy,c,(2008).

[21]

3. Research Methodology
Research is undertaken within most professions. More than a set of skills, it is a way of
thinking: examining critically the various aspects of your professional work. It is a habit of
questioning what you do, and a systematic examination of the observed information to find
answers with the view to instituting appropriate changes for a more effective professional
service.

Universe of Sample
Type of Research
Type of Data
Sampling unit
Sampling method
Sample size

Varanasi (Local region)

Descriptive Research
Primary Data
salaried employee
Stratified Random Sampling
100 (SALARIED

EMPLOYEES)
Data collection Tool

Questionnaire

Sample Size:Thesamplesizedenotesthenumberofelementsselectedforthestudy.Forthe
presentstudy,Questionnairesweredistributedto80individuals,outofwhich60individuals
responded.
Data collection:Datawascollectedbyusingprimarydata.
Primary data: -Primarydataarethosecollectedbytheinvestigatorhimself/herselfforthefirst

timeandthustheyareoriginalincharacter,theyarecollectedforparticularpurpose.
Combinationofnonprobabilityconnivancesamplingtechniqueandsnowballsamplingwill
beusedforcollectingthedatafromdifferentinvestor.Thesalariedpeopleareselectedbythe
connivancesamplingmethod.Theselectionofunitsfromthepopulationbasedontheireasy
availabilityandaccessibilitytotheresearcherisknownassampling.
Informationiscollectedbyconductingasurveybydistributingaquestionnaireto60
salariedpeople.These60salariedareofdifferentagegroup,differentoccupation,different
incomelevelanddifferentqualification.

[22]

Wechoosethefollowingresourcesforourresearch.
Questionnaire Design: -Hereinourresearchwesetquestionsforsalariedindividualsand
answercanbeeasytofilloutwithminimumamountoftimeandeffortsandrequestthe
customertoanswerthesequestionswithcorrectinformation.
ThequestionnaireconsistedofCloseendedquestions.
Close ended question:Itcontainsthosequestionsinwhichtherespondentisgivenalimited
numberofalternativesresponsesfromwhichhe/sheistoselecttheonethatmostclosely
matchedhisattitude.
Thefixedalternativequestionsmaybetakenintheformof
Dichotomousquestion
Multichoicequestion
Dichotomous Question:Itreferstoonewhichofferstherespondentsachoicebetweenonly
2alternativesandreducestheissuestoitssimplestterms.
Multi-choice questions:Amultiplechoicequestionreferstoone,whichprovidesseveral
setofalternatives.Multiplechoicequestionscanbeusedwhenanissuehasmorethan2
aspects.
External data:wasgeneratedfrominternetwebsites.
Statisticaltoolsandtechniquesused:Thedatahasbeenanalyzedbygraphandcharts.

[23]

3
5

4. 15
DATA ANALYSIS RESULTS AND INTERPRETATION
25

DATA COLLECTION AND ANALYSIS

25

14
1

Fromwhichsourceyoucometoknowaboutvariousinvestmentoptions?
15
5
Other

Other , 5
T.V./Newspaper ,
41

T.V./Newspaper

Friend/Relative ,
70

Friend/Relative
Banker

Banker, 25

Broker

Broker , 10
0

10

20

30

40

50

60

70

80

Interpretation:
Outof153salariedindividuals70Friends/relative,41T.V.newspaper,25banker,,10
broker,and5other,thesearethesourcesfromwhereindividualscometoknowabout
variousinvestmentoption.
Whatisyoursavingobjective?

short term growth

Long term growth
Healthcare
Home purchase
Childrens education
0

10

15

20

25

30

Interpretation:
Fromthedataitcanbeinferredthatoutof153salariedndividuals28Incomeandcapital
preservationisthemainobjectiveofthesalariedindividuals,followedby25healthcare
,25longtermgrowthandincome,18homepurchase,15retirement,15growthand
income,5shorttermgrowth,5childrensincome,and3other.

[24]

Inwhichsectordoyouprefertoinvestyourmoney?

Foreign sector, 6,
4%
Public sector,
18,
12%
Private sector

Government
sector , 52, 34%

Private
sector , 77,
50%

Government sector
Public sector
Foreign sector

Interpretation:
Outof153salariedpeople77individualsprefertoinvestinprivatesector,followedby52
governmentsector,18individualsand6foreignsector.

Doyouhaveaformalbudgetforfamilyexpenditure?

No, 44, 29%

Yes
No

Yes, 109, 71%

Interpretation:
Fromallsalariedindividuals109peoplehaveformalbudgetforfamilyexpenditure,44dont
have.

[25]

Usuallydoyouconsultyourfriendsand/orrelativesbeforemakinganinvestment
choice?

Never , 6, 4%
Everytime, 41,
27%

Sometime, 40,
27%

Everytime
Often
Sometime
Never

Often, 63, 42%

Interpretation:
Outof153salariedindividuals40peopleoftenconsultfriends/relativebeforemakingan
investmentchoice,41everytime,40sometime6never.
Doyouinvestyourmoneyinsharemarket?

Yes, 54, 35%

Yes
No
No, 99, 65%

Interpretation:
Outof153salariedindividuals99saidtheydontinvestmoneyinsharemarketand
only54investmoneyinsharemarket.

[26]

What%ofyourincomedoyouinvest?

100
80
60
40
20
0
0 to 15

15 to

%
30%

30 to 50%

Interpretation:
Outof153salariedindividuals92peopleinvest0to15%income,5215to30%,930to50
%..
Whatisthetimeperiodyouprefertoinvest?
Long term (> 5
years), 19, 12%
Short term (0 to
1years)
, 49,
32%
Short term (0 to 1years)
Midterm (1 to 5 years)
Long term (> 5 years)

Midterm (1 to 5
years)
, 85,
56%

Interpretation:
Fromabovechartitcanbeseenthat85salariedindividualsprefermidtermi.e.1to5years,49
shorttermand19longterm.

[27]

Areyouawareaboutdifferenttaxbenefitofinvestingintomutualfunds?

No, 53, 35%

Yes
No
Yes, 100, 65%

Interpretation:
Amongthetotalsamplesize100salariedindividualsareawareaboutdifferenttax
benefitofinvestingintomutualfunds.
Haveyoueverinvestedinmutualfundsofanycompany?

100
80
60
40

Yes, 68

No, 85

20
0
Yes
No

Interpretation:
Outof153samples,85salariedindividualhadnotinvestedinmutualfundsandonly68
hadinvested.

[28]

Doyouknowaboutdifferentoptionofinvestmentinmutualfund?

Yes, 66,
43%

Yes
No

No, 87,
57%

Interpretation:
Outof153data87salariedindividualsdontknowaboutdifferentoptionofinvestment
inmutualfundandonly66peopleknow.
Whatisthemostimportantcriterionforyouforselectingaparticularinvestmentoption?

7, 5%
13, 8%
Past performance
Service
50, 33%

83, 54%

Promoters background
Any other

Interpretation:
83individualsconsiderpastperformanceasaimportantcriterionforselectingaparticular
investmentoption,50service,13promotersbackground,7another

[29]

Areyouawareofthefollowinginvestmentavenues(SavingAccount)
160
140
120

Yes, 146

100
80
60
40
20

No, 2

0
Yes

No

Interpretation:
Outof153salariedindividuals146areawareaboutsavingaccountasaninvestment
avenueandonlyarenotaware.
Areyouawareofthefollowinginvestmentavenues(Bankfixdeposits)
No, 8, 5%

Yes
No

Yes, 145, 95%

Interpretation:
Fromabovedata145individualsareawareaboutbankfixdepositsand5arenot.

[30]

Areyouawareofthefollowinginvestmentavenue(Publicprovidentfunds)

No, 15, 10%

Yes
No

Yes, 138, 90%

Interpretation:
Amongallsalariedindividuals138areawareaboutpublicprovidentfundsand15arenot
awareabouttheseinvestmentavenues.
Areyouawareofthefollowinginvestmentavenue(Nationalsavingcertificate)

No, 17, 11%

Yes
No

Yes, 136, 89%

Interpretation:
Outof153data136individualsareawareaboutnationalsavingcertificateand17arenot
aware.

[31]

Areyouawareofthefollowinginvestmentavenue(Postofficesaving)

No

No, 30

Yes

Yes, 123

50

100

150

Interpretation:
Outof153data123individualsareawareaboutpostofficesavingand30arenotaware.
Areyouawareofthefollowinginvestmentavenue(Governmentsecurities)

No, 17, 11%

Yes
No

Yes, 136, 89%

Interpretation:
Outof153data136individualsareawareaboutgovernmentsecuritiesand17arenotaware.
[32]

Areyouawareofthefollowinginvestmentavenue(Mutualfunds)

Yes, 72, 47%

Yes
No

No, 81, 53%

Interpretation:
Outof153data81individualsarenotawareaboutmutualfundsand72areaware.
Areyouawareofthefollowinginvestmentavenue(Lifeinsurance)

150

Yes, 136

100
50

No, 17

0
Yes

No

Interpretation:
Outof153data136individualsareawareaboutlifeinsuranceasaninvestmentoptionand
17arenotaware.

[33]

Areyouawareofthefollowinginvestmentavenue(Debentures)

Yes, 68, 44%

Yes
No

No, 85, 56%

Interpretation:
Outof153data85individualsarenotawareaboutdebentureand68areaware.
Areyouawareofthefollowinginvestmentavenue(Bonds)

No, 48, 31%

Yes
No

Yes, 105, 69%

Interpretation:
Outof153data136individualsareawareaboutnationalsavingcertificateand17arenot
aware.

[34]

Areyouawareofthefollowinginvestmentavenue(Equitysharemarket)

No, 47, 31%

Yes
No

Yes, 106, 69%

Interpretation:
Outof153data106individualsareawareaboutequitysharemarketand47arenotaware.
Areyouawareofthefollowinginvestmentavenue(Commoditysharemarket)

No

No, 68

Yes

Yes, 85

20

40

60

80

100

Interpretation:
Outof153data85individualsareawareaboutcommoditysharemarketand68arenot
aware.

[35]

Areyouawareofthefollowinginvestmentavenue(Forexmarket)

No, 65, 42%

Yes
No
Yes, 88, 58%

Interpretation:
Outof153data88individualsareawareaboutForexand65arenotaware.
Areyouawareofthefollowinginvestmentavenue(Realestate(Property)

No, 18, 12%

Yes
No

Yes, 135, 88%

Interpretation:
Outof153data135individualsareawareaboutrealstateand18arenotawareaboutreal
stateasainvestmentavenues.

[36]

Areyouawareofthefollowinginvestmentavenue(Gold/silver)

Yes, 135

140
120
100
80
60
40

No, 18

20
0
Yes

No

Interpretation:
Outof153data135individualsareawareaboutgold/silverasinvestmentavenuesand18are
notaware
Areyouawareofthefollowinginvestmentavenue(chitfunds)

140
120
100
80

Yes, 135

60
40
20
0

No, 18
Yes
No

Interpretation:
Outof153data135individualsareawareaboutchitfundsasinvestmentavenuesand18
arenotaware.

[37]

Areyouawareofthefollowinginvestmentavenue(Virtualrealstate)

Yes, 55, 36%

Yes
No
No, 98, 64%

Interpretation:
Outof153data55individualsareawareaboutvirtualrealstateasinvestmentavenues
and98arenotaware.
Areyouawareofthefollowinginvestmentavenue(Hedgefunds)

No, 68, 44%

Yes, 85, 56%

Interpretation:
Outof153data85individualsareawareabouthedgefundsasinvestmentavenuesand
68arenotaware

[38]

Areyouawareofthefollowinginvestmentavenue(Privateequityinvestments)

Yes, 85

100
80

No, 68

60
40
20
0
Yes
No

Interpretation:
Outof153data85individualsareawareaboutprivateequityinvestmentasinvestment
avenuesand68arenotaware
Areyouawareofthefollowinginvestmentavenue(Artandpassion)

No

No, 68

Yes

Yes, 85

10

20

30

40

50

60

70

80

90

Interpretation:
Outof153data85individualsareawareaboutartandpassionasinvestmentavenuesand68
arenotaware.
Whichoftheoffollowingfactorswhichyouconsiderbeforeinvesting(Savingaccount)

[39]

160
140

141

120
100
80
60
40
20

Safe and low risk Moderate risk High Risk

investment
investment
investment
avenues
avenues
avenues

Traditional
investment
avenues

Emerging
investment
avenues

Interpretation:
Amongallsalariedpeople141individualsconsidersavingaccountasasafeandlow
investment

avenue,6

traditional

invetsmnet,4

moderate

risk

investment

avenues,2emerginginvestmentavenues.
Whichoftheoffollowingfactorswhichyouconsiderbeforeinvesting(Bankfixes
deposits)

Emerging investment
avenues

0
6

Traditional investment
avenues
0
High Risk investment
avenues

16

Moderate risk investment

avenues

131

Safe and low risk investment

avenues
0

20

40

60

80

100

120

140

Interpretation:
Amongallsalariedpeople131individualsconsiderbankfixdepositasasafeandlow
investmentavenue,16moderateriskinvestmentavenues,6traditionalinvestment
Whichoftheoffollowingfactorswhichyouconsiderbeforeinvesting(Publicprovident
fund)
[40]

140
120

120

100
80
60
40

20

20

0
Safe and low risk Moderate risk High Risk
investment
investment
investment
avenues
avenues
avenues

Traditional
investment
avenues

0
Emerging
investment
avenues

Interpretation:
Amongallsalariedpeople120peopleconsiderpublicprovidentasasafeandlow
investmentavenue,20moderateriskinvestmentavenues,7highriskinvestmentavenues
6traditionalinvestment.
Whichoftheoffollowingfactorswhichyouconsiderbeforeinvesting(Nationalsaving
certificate)

140
120

120

100
80
60
40

20

20

0
Safe and low risk Moderate risk High Risk
investment
investment
investment
avenues
avenues
avenues

Traditional
investment
avenues

0
Emerging
investment
avenues

Interpretation:
Amongallsalariedpeople120individualsconsiderbanknationalsavingcertificateasa
safeandlowinvestmentavenue,20moderateriskinvestmentavenues,7highinvestment
avenues,6traditionalinvestment.

[41]

Whichoftheoffollowingfactorswhichyouconsiderbeforeinvesting(Postoffice
savings)
120

105

100
80
60
32

40

15

20

Safe and low risk Moderate risk

High Risk
Traditional
Emerging
investment avenues investment avenues investment avenues investment avenues investment
avenues

Interpretation:
Amongallsalariedpeople105individualsconsiderpostofficesavingasasafeandlow
investmentavenue,32moderateriskinvestmentavenues,15traditionalinvestment,1
emerginginvestmentavenues.

Whichoftheoffollowingfactorswhichyouconsiderbeforeinvesting(Government
securities)
100
80

80
53

60
40

10

10

High Risk
investment
avenues

Traditional
investment
avenues

20
0
Safe and low
risk
investment
avenues

Moderate risk
investment
avenues

0
Emerging
investment
avenues

Interpretation:
Amongallsalariedpeople80 individualsconsidergovernmentsecuritiesasasafeand
lowinvestmentavenue,53moderateriskinvestmentavenues,10highinvestmentavenues
and10traditionalinvestment.

[42]

Whichoftheoffollowingfactorswhichyouconsiderbeforeinvesting(Mutualfunds

Emerging investment avenues 2

10

Traditional investment avenues

High Risk investment
avenues

53
80

Moderate risk investment

avenues

Safe and low risk investment

avenues
0

20

40

60

80

Interpretation:
Amongallsalariedpeople80individualsconsidermutualfundsasamoderaterisk
investmentavenues,53highinvestmentavenues,10traditionalinvestment.8safeandlow
investmentavenue,2emerginginvestmentavenues
Whichoftheoffollowingfactorswhichyouconsiderbeforeinvesting(Lifeinsurance)

Emerging investment
avenues

55

Traditional investment
avenues

High Risk investment

avenues

50
40

Moderate risk investment

avenues
Safe and low risk investment
avenues
0

10 20

30 40

50 60

Interpretation:
Amongallsalariedpeople55individualsconsiderlifeinsuranceasatraditional
investment,50moderateriskinvestment,40safeandlowinvestmentavenues,8high
investmentavenues.

[43]

Whichoftheoffollowingfactorswhichyouconsiderbeforeinvesting(Debentures)
2, 1%

10, 7%
Safe and low risk investment
avenues

19, 12%

Moderate risk investment

avenues
High Risk investment avenues
52, 34%

70, 46%

Traditional investment
avenues
Emerging investment avenues

Interpretation:
Amongallsalariedpeople70individualsconsiderdebentureasamoderaterisk
investmentavenues,52highriskinvestment,19traditionalinvestmentavenues10safeand
lowinvestmentavenues,2emerginginvestmentavenues.
Whichoftheoffollowingfactorswhichyouconsiderbeforeinvesting(Bonds)

Emerging investment
avenues

4
19

Traditional investment avenues

82

High Risk investment

avenues

14

Moderate risk investment avenues

10

Safe and low risk investment

avenues
0

10

20

30

40

50

60

70

80

90

Interpretation:
Amongallsalariedpeople82individualsconsiderbondsasahighriskinvestmentavenues
,19traditionalinvestmentavenues14moderateriskinvestmentavenues,10safeandlow
investmentavenues,4emerginginvestmentavenues.

[44]

Whichoftheoffollowingfactorswhichyouconsiderbeforeinvesting(Equityshare
market)
Emerging investment avenues

10

Traditional investment avenues

75

High Risk investment avenues

40

Moderate risk investment avenues 6

Safe and low risk investment
avenues

22
0

10

20

30

40

50

60

70

80

Interpretation:
Amongallsalariedpeople75individualsconsiderequitysharemarketasatraditional
investmentavenues,40highriskinvestmentavenues,22safeandlowinvestment
avenues,10emerginginvestmentavenues.6moderateriskinvestmentavenues
Whichoftheoffollowingfactorswhichyouconsiderbeforeinvesting(Commodityshare
market)
Emerging investment avenues

10

Traditional investment avenues

75

High Risk investment avenues

40

Moderate risk investment avenues 6

Safe and low risk investment
avenues

22
0

10

20

30

40

50

60

70

80

Interpretation:
Amongallsalariedpeople75peopleconsidercommoditysharemarketasatraditional
investmentavenues,40highriskinvestmentavenues,22safeandlowinvestmentavenues,
10emerginginvestmentavenues.6moderateriskinvestmentavenues.

[45]

Whichoftheoffollowingfactorswhichyouconsiderbeforeinvesting(FOREX)

Emerging investment avenues 4

Traditional investment avenues

19

High Risk investment

avenues

75
45

Moderate risk investment avenues

10

Safe and low risk investment

avenues
0

10

20

30

40

50

60

70

80

Interpretation:
Amongallsalariedpeople75individualsconsiderFOREXhighriskshareinvestment
avenues,45moderateriskinvestmentavenues,19traditionalinvestmentinvestment
avenues,10safeandlowriskinvestmentavenues.4emerginginvestmentinvestment
avenues

Whichoftheoffollowingfactorswhichyouconsiderbeforeinvesting(Realestate
(Property)
80
70
60
50
40
30
20
10
0

75

40
22
10

6
Safe and low risk Moderate risk High Risk
investment investment
investment
avenues
avenues
avenues

Traditional
investment
avenues

Emerging
investment
avenues

Interpretation:
Amongallsalariedpeople75individualsconsiderrealstateasatraditionalinvestment
avenues,40highriskinvestmentavenues,22safeandlowinvestmentavenues,
10emerginginvestmentavenues.6moderateriskinvestmentavenues.
[46]

Whichoftheoffollowingfactorswhichyouconsiderbeforeinvesting(Gold/silver)

Emerging investment avenues

10

Traditional investment avenues

83

High Risk investment avenues

20

Moderate risk investment avenues

15

Safe and low risk investment avenues

0

25
10

20

30

40

50

60

70

80

90

Interpretation:
Amongallsalariedpeople83individualsconsidergold/silverasatraditionalinvestment
avenues,25safeandlowinvestmentavenues,20highriskinvestmentavenues.15
moderateriskinvestmentavenues,10emerginginvestmentavenues.

Whichoftheoffollowingfactorswhichyouconsiderbeforeinvesting(chitFunds)
80
70

70

60
50
40

32

25

30
20

12

14

10
0
Safe and low risk Moderate risk
investment
investment
avenues
avenues

High Risk
investment
avenues

Traditional
investment
avenues

Emerging
investment
avenues

Interpretation:
Amongallsalariedpeople83individualsconsiderchitfundsasahighriskinvestment
avenues,32traditionalinvestmentavenues25emerginginvestmentavenues14moderaterisk
investmentavenue12safeandlowinvestmentavenues.

[47]

Whichoftheoffollowingfactorswhichyouconsiderbeforeinvesting(Virtualrealstate)
70

64

60
50

40

40
30
20

25
15

10

0
Safe and low risk Moderate risk
investment
investment
avenues
avenues

High Risk
investment
avenues

Traditional
investment
avenues

Emerging
investment
avenues

Interpretation:
Amongallsalariedpeople64individualsconsidervirtualrealstateashighriskinvestment
avenues,40emerginginvestmentavenues25traditionalinvestmentavenues15safeandlow
investmentavenues,15moderateriskinvestmentavenue
Whichoftheoffollowingfactorswhichyouconsiderbeforeinvesting(Hedgefunds)

Safe and low risk

investment
avenues, 9, 6%

Moderate risk
investment
avenues , 10, 7%

Emerging
investment
avenues, 49,
32%

Traditional
investment
avenues , 20, 13%

High Risk
investment
avenues, 65,
42%

Interpretation:
Amongallsalariedpeople65individualsconsiderhedgefundsasahighriskinvestment
avenues,49emerginginvestmentavenues20traditionalinvestmentavenues,10moderate
riskinvestmentavenue,15safeandlowinvestmentavenues.
[48]

Whichoftheoffollowingfactorswhichyouconsiderbeforeinvesting(Privateequity
investments)
70

64

60

50

50
40
30
20
10

20
10

0
Safe and low risk Moderate risk
High Risk
Traditional
investment
investment investment avenues investment
avenues
avenues
avenues

Emerging
investment avenues

Interpretation:
Amongallsalariedpeople64individualsconsiderprivateequityinvestmentsasahigh
riskinvestmentavenues,50emerginginvestmentavenues,20moderateriskinvestment
avenue,10traditionalinvestmentavenues9safeandlowinvestmentavenues.

Whichoftheoffollowingfactorswhichyouconsiderbeforeinvesting(Artandpassion)

80
70
60
50
40
30
20
10
0

74

30

30

10

Safe and low risk Moderate risk

High Risk
Traditional
investment
investment investment avenues investment
avenues
avenues
avenues

Emerging
investment avenues

Interpretation:
Amongallsalariedindividuals74individualsconsiderartandpassionasaemerging
investmentavenue,30traditional,30moderate10safeandlow,9highriskinvestment
avenuesrespectively.
[49]

GENERAL INFORMATION
Gender

59, 39%
Male
Female
94, 61%

Interpretation:
Outof153salariedindividuals94weremaleand59female.
Age

:
11, 7%

20-30

39, 25%
70, 46%

31-40
41-50
50 and above

33, 22%

Interpretation:
Out153salariedindividuals70individualswerefrom2030agegroup,39peoplewere
from4150,33from3140,11werefrom50andabove.

[50]

Occupation:

other
Profession

30

service

85

Business

32
0

20

40

60

80

100

Interpretation:
Outof153salariedindividuals85peopleworkinserviceoccupation,32business,30
profession,6other.
Annualincomeoffamily:
80
70

70
60
50
40
27

30

30
20

20
10

0
Below 1 L

2-3L

3-4 L

5 to 10

10 & above

Interpretation:
Amongallsalariedindividuals,70individualshave5to10Lannualfamilyincome,30people
34L,27people23L,20individuals10andabove,6below1L.

[51]

Total

family

8 and
above

member:

6-8
PERS
ON

36

2-5
PERS
ON

101

20

40

60

80

100

120

Interpreation
Outof153individuals101individualshave25membersintheirfamily,36individuals
have68and8andabove

other

post graduate

60

Graduate

85

Undergraduate
0

7
10

20

30

40

50

60

70

80

90

Interpretation:
Outof153salariedindividuals,85aregraduate,60postgraduate,7undergraduate,1
other.

[52]

LIMITATION OF THE STUDY:

1.Reluctancesofthepeopletoprovidecompleteinformationaboutthemcanaffectthe
validityoftheresponses.
2Thelackofknowledgeofcustomeraboutthefinancialinstrumentcanbeamajor
limitation.
3.Theinformationcanbebiasedduetouseofquestionnaire.

[53]

CHAPTER-V
FINDINGS:
1StudyrevealsthatmajorinformationsourcesforinvestmentsoptionareT.V.,
friends/relative.
2.Mostofsalariedindividualsprefertoinvestinprivatesector.
3.Mostofindividualsoftendiscusswiththeirfamilyfriendsbeforemakinganinvestment
decision.
4.Majorityofthesalariedindividualsprefermidtermtoinvest.
5.Mostoftheindividualsareawareaboutdifferenttaxbenefits.
6.Mostoftheindividualsareawareaboutinvestmentavenueslikelifeinsurance,FD,gold,
realstateetc.
7.MajorityoftheindividualsconsiderFD,Gold/silver,savingaccount,postofficesavingsas
asafeandlowinvestmentoptions.
8.Studyrevealsthatmajorityoftheindividualsconsiderbonds,FOREX,chitfunds,private
equityashighriskinvestmentavenues.

SUGGESTIONS:
1.

StudyrevealsthatindividualsspendlongtimewatchingT.vs,Thereforeitis

recommendedthatfinancialadvisororfinancialinstitutionshoulduseT.V.asamarketing
media.
2.Investmentsingovernmentsectorshouldincrease.
3.Investorwhowantstoavoidriskshouldinvestinsavingaccount,FD,providentfunds,
Nationalsavingcertificate,postofficesaving,lifeinsuranceetc.
4.Investmentsavenueslikesharemarket,mutualfundsneedmoreawarenessamongsalaried
individualssothatmoreindividualscanbeattracted.

[54]

CHAPTER-VI
SUMMARY AND CONCLUSION:
Thisreportisareflectionoftheawarenessandfactorsconsidering,risktakingabilityofthe
variouscategoriesofsalariedindividuals.Selectionoftheperfectinvestmentavenueisa
difficulttasktoanindividual.Aneffortismadetoidentitythetasteandpreferenceofa
sampleofindividualsselectedbyconnivanceandsnowballsampling.Despiteofmany
limitationstothestudyiwassuccessfulinidentifyingsomeinvestmentspatternsthereis
somecommonnessintheseindividuals.
Thisreportconcentratedinidentifyingthefactorsconsideredindividualsbeforeinvestment,
awarenesslevelofsalariedindividualstowardsvariousinvestmentavenuesareidentified
basedontheiroccupations,investorsriskinselectingaparticularavenue.
Thepresentsstudyhasimportantimplicationforinvestmentmanagerasithascomeoutwith
certaininterestingfacetsofsalariedindividual.Theindividualinvestorstillpreferstoinvest
infinancialproductswhichgiveriskfreereturns.Thisconfirmsthatindividualsevenifthey
areofhighincome,welleducated,independentareconservativeindividualprefertoplay
safe.Theinvestmentsproductdesignercandesignproductswhichcancatertothe
individuals,whoarelowrisktolerant,taxsavingsanduseT.V.asamarketingmediaasthey
seemtospendlongtimewatchingT.vs.Thestudyalsodrawsanimportantconclusionfrom
studythattheindividualsarekeentoinvestinmidtermproducts.

[55]

SCOPE FOR FURTHER RESEARCH:

Thestudywasconductedbytakinglimitednumberofsamplesizewhichstatedearlierand
thisstudyreflectawareness,factorsconsiderforinvestment,risktakingabilityofthose
salariedindividualsresidinginMumbai.Theremightbechancesthattheawareness,factors
considerforinvestment,risktakingabilityofthosesalariedindividualsofdifferentnatureare
variedduetodiversityinsociallife,livingpattern,incomeleveletcthatneedtostudied
further.

[56]

BIBLIOGRAPHY:
Web Reference:
http://www.businessdictionary.com/definition/savings.html
http://www.rupeetimes.com/article/home_loans/admissible_deductions_under_section_80c_5
055.html
http://www.phdcci.in/media_center_details.php?id=330
http://www.studymode.com
http://www.economist.com/topics/indianeconomy
www.taxindia.com
Reference:

Sanjaykantidasanempiricalanalysisonpreferredinvestmentavenuesamongrural
andsemiurbanhouseholds,journaloffrontlineresearch,vol(01)20112636research
paper,Departmentofcommerce,Lumdingcollege,Lumding,Nagaon,Assam

V.R.PalaniveluK.Chandrakumar(March2013)AStudyonPreferredInvestment
AvenuesamongsalariedPeopleswithReferencetoNamakkalTaluk,TamilNadu,
India,internationalconferenceonbusiness,economicsandaccounting2023

R.SreePriya,P.Gurusamy(Jan2013).InvestmentPatternofSalariedPeopleA
studyinCoimbatoredistrict,vol2issue1,internationaljournalscientific research

prof.cayogeshp.patel*;prof.cscharuly.patel,
ofsalariedpeople

astudyofinvestmentperspective

(privatesector),Asiapacificjournalofmarketingand

management,volno2cot2012

SavingsandInvestmentsAttitudeofSalariedClassinCUDDALOREDistrict

L.Pandiyan,Dr.T.AranganathanMayJune2012)(prof.cayogeshp.patel;prof.cs
charuly.patel,oct2012,AsiaPacificJournalofMarketing&ManagementReview
,pgno145146),www.isorjounrnel

N.Geetha,Dr.M.Ramesh(Nov2011)AStudyonPeoplesPreferencesinInvestment
Behaviourijmer,vol1issue6.

Nanavatinihark,invetsmnetpatternofsalariedpeople,Journalofadvance
developmentresearch,2012,vol3.
[57]

NicolasP.B.BollenMutualFundAttributesandInvestorBehavior,February2006,
JournalofFinancialandQuantitativeAnalysis

[58]

Appendix:
Title: Investment pattern of salaried people

DearRespondent,
Sub:RequesttofilltheQuestionnaireregardingresearchstudy.
IamfinalyearstudentcurrentlypursuingMBAatJDBIMS.Iamconductingaresearchstudyon
Investmentpatternofsalariedpeople.Thisresearchistakenasapartialrequirementforthe
completionofmyMBA.Iseekyourkindassistanceincompletingtheattachedquestionnaire
whichwouldtakeapproximately10minutesofyourvaluabletime.Yourresponsewillbetreated
asstrictly confidential
Fromwhichsourceyoucometoknowaboutvariousinvestmentoptions?
Broker

Bank

Friend/relative

T.V./Newspaper

other..(specify)

Whatisyoursavingobjective?
Childrenseducation
Healthcare

Retirement

Homepurchase

Incomeandcapitalpreservation

Growthandincome

shorttermgrowth

childrensmarriage
Longtermgrowth

other

Inwhichsectordoyouprefertoinvestyourmoney?
Privatesector

Governmentsector

Publicsector

foreignsector

Doyouhaveaformalbudgetforfamilyexpenditure?
Yes

No

Usuallydoyouconsultyourfriendsand/orrelativesbeforemakinganinvestmentchoice?
Everytime

Often

Sometime

Never

Doyouinvestyourmoneyinsharemarket?
Yes

No

What%ofyourincomedoyouinvest?
0to15%

15to30%

30to50%

Whatisthetimeperiodyouprefertoinvest?
Shortterm(0to1years)

Midterm(1to5years)

[59]

Longterm(>5years)

Areyouawareaboutdifferenttaxbenefitofinvestingintomutualfunds?
Yes
No
Safe
and low risk investment
avenues
Savingaccount
YES
NO
Haveyoueverinvestedinmutualfundsofanycompany?
Bankfixesdeposits
YES
NO
Publicprovidentfund
YES
NO
Yes
No
Nationalsavingcertificate
YES
NO
Postofficesaving
YES
NO
Doyouknowaboutdifferentoptionofinvestmentinmutualfund?
Governmentsecurities
YES
NO
Yes
No
Moderate
risk investment
avenues
Mutualfunds
YES
NO
Whatisthemostimportantcriterionforyouforselectingaparticularinvestmentoption?
Lifeinsurance
YES
NO
Debentures
YES
NO
Pastperformance
Service
Promotersbackground
Anyother
Bonds
YES
NO
High
risk investment avenues
Areyouawareofthefollowinginvestmentavenues?
Equitysharemarket
YES
NO
Commoditysharemarket
YES
NO
FOREXmarket\
YES
NO
Traditional investment avenues
Realestate(Property)
YES
NO
Gold/silver
YES
NO
Chitfunds
YES
NO
Emerging invest avenues:
Virtualrealstate
YES
NO
Hedgefunds
YES
NO
Privateequityinvestments
YES
NO
Artandpassion
YES
NO

[60]

Whichoftheoffollowingfactorswhichyouconsiderbeforeinvesting?

Savingaccount
Bankfixesdeposits
Publicprovidentfund
Nationalsaving
certificate
Postofficesaving
Governmentsecurities
Mutualfunds
Lifeinsurance
Debentures
Bonds
Equitysharemarket
Commodityshare
market
FOREXmarket
Realestate(Property)
Gold/silver
Chitfunds
Virtualrealstate
Hedgefunds
Privateequity
investments
Artandpassion

Safe and Moderat High

Tradition Emergin
low risk e
Risk
al
g
investme
risk
nt
investme investme investme investme
avenues

General information
Gender:
Male
Female
Age:
2030
3140
4150
50above
Occupation:
student
Business
service
Profession
other
(specify)
Annualincomeoffamily:
Below1L
23L
34L
5to10
10&
above
Totalfamilymember:
25
68
8andabove
Educational qualification
Undergraduate

Graduate

postgraduate

[61]

other

[62]