INVESTMENT PATTERN OF SALARIED INDIVIDUAL

[1]

“Investment pattern of salaried

Individual”

Project Report

Submitted in partial fulfilment for the award of

Master of Management Studies

By

RANJANA SINGHRANJANA SINGHRANJANA SINGHRANJANA SINGH

MMS (2011 – 2013)

Roll No. 40041

Under Supervision of

(DR. NITIN WANI)(DR. NITIN WANI)(DR. NITIN WANI)(DR. NITIN WANI)

Jankidevi Bajaj Institute of Management Studies

(JDBIMS)

SNDT WOMEN’S UNIVERSITY

MUMBAI

April 2013

[2]

ACKNOWLEDGEMENT

The success of any project is the result of hard work & support of a number of individuals

and this project is no different. I take immense pleasure in submitting the project on

“Investment pattern of salaried people”. This project has helped me to understand the pattern

of investment of salaried investor.

I take this opportunity to express my deep and sincere gratitude to Dr.Nitin Wani for his

valuable guidance, inspiration and encouragement in completing this project.

I would like to express my gratitude to JDBIMS. Who contributed greatly to the

accomplishment of the project.

Finally I must express my heartiest gratitude toward all those who helped me directly or

indirectly in the completion of this project.

[3]

DECLARATION

I, Ranjana Singh, student of Master of Management studies Jankidevi Bajaj

Institute of Management Studies (JDBIMS), S.N.D.T Women’s University,

Mumbai, declare that the work done and the project report titled ‘Investment

pattern of salaried Individuals is original work carried out by me. All references,

made to any published material in this report, have been duly acknowledged.

This report has not been submitted to any University / Academic Institution for the

award of any degree or diploma.

I solemnly declare that I am singularly responsible for any infringement on the

Intellectual Property of anybody else in this report.

Place: Mumbai

Date: 22nd

April, 2013

Ranjana Singh

[4]

INDEX

Sr. No. Title Pg no

1 Chapters-I

Introduction

1.1Background 1

1.2 Objective of the study 2

1.3Need of the study 3

1.5 Scope of the work 4

2 Chapter-II

Theoretical background/Literature Review

2.1Theoretical Background 5-7

2.3Review of past study 8 -13

3 Chapter-III

Research methodology/ design

3.1Study 14

3.2Year of the study 14

3.3Sample 15

3.4Type of data 15

3.5Data source 15

3.6Statistical tools and techniques used 15

4 Chapter-IV

Data Collection and Analysis

Presentation of data collected (Tables) 16-44

5 Chapter-V

Limitation 45

Findings, suggestion 46

6 Chapter-VI

Summary and Conclusion / Scope for future work 47-48

7 Bibliography 49-50

8 Appendix 51-53

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List of table:

� Source of various investment options…………………………………………………16

� saving objective…………………………………………………………………….....16

� Sector.............................................................................................................................17

� Formal budget................................................................................................................17

� Consult your friends and / or relatives...........................................................................18

� Investment in share market............................................................................................19

� % of your income...........................................................................................................19

� Time period....................................................................................................................20

� Different tax benefit…………………………………………………………………...20

� Invested in mutual funds………………………………………………………………21

� Option of investment in mutual fund…………………………………………………..21

� Criterion for you for selecting a particular investment option………………………….22

� Awareness of the following investment avenues………………………………………..22

Safe and low risk investment avenues

Saving account.............................................23

Bank fixes deposits......................................23

Public provident fund..................................24

National saving certificate............................24

Post office saving..........................................25

Government securities...................................25

Moderate risk investment avenues

Mutual funds.................................................26

Life insurance................................................26

Debentures.....................................................27

Bonds.............................................................27

High risk investment avenues

Equity share market.......................................28

Commodity share market..............................28

FOREX market..........................................29

Traditional investment avenues

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Real estate (Property)..................................29

Gold/ silver..................................................30

Chit funds....................................................30

Emerging invest avenues:

Virtual real state..........................................31

Hedge funds................................................31

Private equity investments...........................32

Art and passion.............................................32

� factors consider before investing

Saving account.............................................33

Bank fixes deposits.......................................33

Public provident fund...................................34

National saving certificate............................34

Post office saving..........................................35

Government securities...................................35

Mutual funds.................................................36

Life insurance................................................36

Debentures.....................................................37

Bonds.............................................................37

Equity share market.........................................38

Commodity share market................................38

FOREX market................................................39

Real estate (Property).......................................39

Gold/ silver.......................................................39

Chit funds....................................................40

Virtual real state...........................................40

Hedge funds.................................................41

Private equity investments.............................41

Art and passion...............................................42

[7]

� General information

� Gender …………………………… 43

� Age : ..................................................43

� Annual income of family……………44

Educational qualification…………………44

[8]

EXECUTIVE SUMMERY:

Saving form an important part of any economy of any nation with saving invested various

option available to people. An investment refers to the commitment of funds at present, in

anticipation of some positive rate of return in future today the spectrum of investment is

indeed wide .Individuals are more aware about the different investment avenues. Among all

investments avenues individuals consider saving account, fixed deposit, public provident

fund, life insurance, gold/silver etc as a safer and low risk investments avenues compare

share market, bonds, FOREX, chit funds as high risk investment avenues. Individuals are not

aware about virtual real state, hedge funds. Salaried Individuals are aware about share

market, mutual funds but they consider these investments avenues as a high risk investments

avenue.

The main reason behind the the study are the factors like awareness level and factors consider

individuals before investments like safe and low investment avenues, moderate risk avenues,

high risk investment avenues, traditional investment avenues, emerging investment avenues.

The findings relates to the awareness among individuals and individuals risk taking ability

while investing in different investment avenues.

[9]

CHAPTER-I

BACKGROUND:

”In investing money, the amount of interest you want should depend on whether you

want to eat well or sleep well.”

- J. Kenfield Morley

An investment is the employment of funds with aim of achieving income and growth in value

the main characteristics of investment are waiting 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 funds to derive future income in

the form of interest, dividends, rent, premium, pension benefits or appreciation of the value of

their principle capital.

Most of the investments are considered to transfers of financial assets from one person to

another. Various investment options are available with differing risk-reward trade -offs .An

understanding of the core concepts and a thorough analysis. Investment refers to the concept

of deferred consumption which may involve purchasing an asset, giving a loan or keeping

funds in a bank account with the aim of generating future returns. An understanding of the

core concepts and a thorough analysis of the options can help investor create a portfolio that

maximizes returns while minimizing risk 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 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 resources 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.

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OBJECTIVE OF THE STUDY:

1) To know the mode of investments of the salaried individuals in various investment

avenues.

2) To study the factors influencing the investment pattern of the salaried individuals.

3) To study the factors influencing enquires into the profile, portfolio practices, experiences,

preferences & risk, perceptions, and intentions of salaried individuals.

[11]

NEED OF THE STUDY:

This analysis on individual investor’s behaviour is an attempt to know the profiles of the

investor and also know the characteristic of the investors so as to know their preference with

respect to their investments. The study also tries to unravel the influence of demographic

factors like age on risk, tolerance level of the investor.

[12]

SCOPE OF THE WORK:

This analysis is based upon investor’s pattern for investment preference, awareness, during

normal time Vis-a-vis recessionary period. This analysis would be focusing on the

information from the salaried people about their knowledge, perception, and behaviour on

different financial products.

1. The total number of financial instruments in the market is so large that it needs a lot of

time and resources to analyse them all.

2. As the analysis is based on primary as well as secondary data, possibility of unauthorized

information cannot be avoidable.

3. Research was carried on in Mumbai.

4. Investment pattern has been analysis has been limited to only 153 individuals.

[13]

CHAPTER- II

THEORETICAL BACKGROUND/LITERATURE REVIEW:

THEORETICAL BACKGROUND:

In India the socio-economic profile of the people changes dramatically. Today people are not

only spending on products and services, earlier considered a luxury but are also looking at

smarter ways of investing their money. This is mainly due to the fact, that people today not

only have a wider choice of investing in different saving instruments, but are also more

educated and aware about their choices. People are now moving beyond the traditional saving

options of fixed deposits, post office savings to wider investment options in the form of

insurance, mutual funds, bonds, equities and even property.

Saving is income not spent, or deferred consumption. Methods of saving include putting

money aside in a bank or pension plan. Saving also includes reducing expenditures, such as

recurring costs. In terms of personal finance, saving specifies low-risk preservation of money,

as in a deposit account, versus investment, wherein risk is higher.

What is savings?

Income – expenditure = savings. In today’s rapidly changing financial environment, it is

critical that individuals not only protect and enhance their current financial resources, but also

prepare for future security and against loss of income. This requires careful planning and

prudent management of one’s financial assets. (www.deposits.org).......................................

Financial planning is the key and the first step towards fulfilling ones dreams and aspirations

whether it is about providing for the family, buying a home or a car. Good planning also

ensures financial security for the family throughout life, even in the eventuality of the death

of the earning member of the family. An important component of a sound financial plan is

not only the inclusion of life insurance investment but also providing for adequate insurance

coverage in the plan. It is therefore critical for individuals to discuss their unique needs with

qualified Financial Planning Advisers who can assist in determining the right plan and

amount of coverage required. Consumers are now exposed to an array of modern and

innovative products. Depending on the needs of the customers,

Investment is the certain present value for the uncertain future reward. It entails arriving at

numerous decision such as types, mix, amounts, timing, grade etc of investment and

disinvestment .further such decision making has not only to be order to get return on its in the

future, which is known as investment .There are various investment avenues such a equity,

bonds, insurance and bank deposit etc. A portfolio is a combination of different investment

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assets mixed and matched for the purpose of achieving gold. There are various factors which

affects investors Portfolio such as annual income government, policy natural calamities,

economical changes etc.

Financial and economic meaning of investment:

Investment is the allocation of monetary resources to assets that expected to yield some gains

or positive return over a given period of time .These assets range from safety investment to

risky investment. Investment in this form is called as financial investment.

Features of an investment program:

In choosing specific investment investor will need definitely ideas regarding features which

their investment avenues should possess. These features should be consistent with the

investor general objectives an in addition, should afford them all the incidental convenience

and advantages. Which are possible under the circumstances? The following are the

suggested features as the ingredients from which many successful investors compound their

selection policies.

Safety of principle:

The investor to be certain of the safety of principle should carefully review the economics

and industry trends before choosing the types of investments. Error are avoidable and

therefore, to ensure safety principle, the investor should consider diversification of assets

Liquidity:

Even investor requires a minimum liquidity in his investment to meet emergence .liquidity

will be ensured if the investor buys a proposition of readily saleable securities out of his total

portfolio.

Income stability:

Regularly of income at a consistent arte is necessary in any investment pattern. Not only

stability, it is also important to see that income is adequate in after taxes. It is possible to fins

outcome good securities, which pay particularly all their earnings in dividends.

Appreciation and purchasing power stability:

Investor should balance their portfolio s to fight against any purchasing power stability.

Investor should judge price level inflation, explore their possibility of gain and loss in the

investments available to them.

Legally and freedom from care:

All investments should be approved by law. Law relating to minors, trusts, shares and

insurance be studied will brings out many problem for the the investor.

Tangibility:

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Tangibility securities have many times lost their values due to price level inflation. Some

investor prefers to keep a part of their wealth invested in tangibles properties.

Under section 80C of the Income Tax Act, certain investments are deductible from gross total

income. This tax exemption is available across individual tax slabs. If you earn Rs 4 lakhs per

annum and make investments of Rs 1 lakh in 80c instruments then the taxable amount will be

Rs 3 lakhs.

Section 80C benefit has been provided to encourage long term savings and investments. You

should choose a combination of fixed income and market linked investments depending on

your age and risk profile www.rupeetimes.com)

The economy is witnessing an increasing trend in gross domestic savings as a proportion of

GDP since 2001-02, with the savings ratio having increased from 26.5 per cent in 2002-03 to

28.9 per cent in 2003-04 and further to 29.1 per cent in 2004-05. The rise in savings has been

witnessed across all the constituent sectors, the sole exception being household sector for

2004-05 which witnessed a decrease from 23.5 per cent in 2003-04 to 22.0 per cent in 2004-

05. ( report of the working group on savings for the eleventh five year plan(2007-08 to 2011-

12)

[16]

REVIEW OF PAST STUDY:

1. An empirical analysis on preferred investment avenues among rural and semi urban

households. kantidas Sanjay (2011)

The study reveals that in most cases investors across all categories found them to be safer

with taking up the insurance policies. A significant portion of respondents also shows keen

preference towards unit linked insurance policies so as to get short term gains. It is also

observed that most of the respondents show their keen interest towards the insurance products

so as to get tax benefits, life protection and average profitable investment avenues. This is

perhaps the most striking features of general investors and the most important factor that

influences the investment decisions. Further, it is observed that the level of income also

Influences the investment decisions. Higher income group shows relatively high preference

towards investment in share market, conversely lower and average income group shows keen

preference towards insurance and banks as the most preferred investment avenues.

In fine, the changing pattern of Indian household savings is the result of a number of factors.

The household savings in India has experienced a variety of changes over the past one or two

decades. The changes in lifestyles and consumption models in a developing country like India

have also contributed towards those variations. The trends of investment by households are

not similar in nature and they vary between several financial instruments. This results from

the changing preference of the investors. Previously, household savings in financial securities

outperformed household savings in physical properties. Nonetheless, the trend has changed

now. Household savings in physical properties are greater than household savings in financial

instruments. This is assumed to be a consequence of a preliminary preference shift. (Kantidas

Sanjay(2011)Journal front line research in arts and science ,Pg no.26-36)

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

L. Pandiyan, Dr. T. Aranganathan May-June 2012)

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. So, Favorable climate is to be assured by the government

to provide investment climate guaranteeing acquisition, maintenance and liquidation of

assets. Since savings is the main factor for investment, the government though legal measures

encourage savings accumulation. For the growth of a disciplinant investment market a well

organized monetary system though protecting the investments against the eves of inflation or

[17]

depletion is to be kept by government. . (Pandiyan, Dr. T. Aranganathan , IOSR Journal of

Business and Management May-June 2012 pg no.40-49)

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

R. SreePriya ,P. Gurusamy ( Jan 2013)

This study has made an attempt to analyze the saving and investment pattern of salaried class

investor. An in dept analysis is done to identify the attitude, factor influencing investors to

save and savings preference of investors. It is hoped that the saving public (particularly

salaried class) will analyse their savings and investment. This study identified the problem

faced by the investors and the impending problems could be solved in the right direction.

(R. SreePriya ,P. Gurusamy,2013 International journal of scientific research ,issue 1)

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

prof. ca yogesh p. patel; prof. cs charul y. patel (oct 2012)

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. Thus, it is a reward for waiting for money. So the first

step to investment is savings. In common usage, saving generally means putting money aside,

for example, by putting money in the bank or investing in a pension plan. In a broader sense,

saving is typically used to refer to economizing, cutting costs, or to rescuing someone or

something. In terms of personal finance, saving refers to preserving money for future use -

typically by putting it on deposit – this is distinct from investment where there is an element

of risk. The main elements of Investments 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 alternatives. It also aims to provide an insight into factors considered for an

appropriate investment. Gives a wider scope to understand various issues related to

investment by salaried people.

(prof. ca yogesh p. patel; prof. cs charul y. patel ,oct 2012 ,Asia Pacific Journal of Marketing

& Management Review ,pg no 145-146)

5. Investment Preferences of Salaried people.

Nanavati Nihar K (June2012)

The investment ideology depends upon the individuality and many other factors. Here is an

attempt to find the solution to a problem of where to invest by a middle and lower income

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level of the society. A market survey has been conducted of 25 people in sub-urban

Ahmadabad to identify their investment psychology and relevant preference. The survey is

giving us an insight towards traditional approach of savings and investment pattern. The

detailed analysis of the survey is presented hereunder. Inclination towards safe, secure and

tax beneficial investment is more than that of risky or high return investment. With lower

income segment, one cannot create wealth but with good combination of investments, one

can create a better and respectable living. Only a sample size of 25 in a mega city

Ahmadabad with large number of population the conclusion drawn is always a kind of

limitation of survey. The biased opinion and hesitant respondents are also the constraints of

the ideal study. (Nanavati Nihar K , Journal of Advances in Developmental Research

June2012)

6. A Study on People’s Preferences in Investment Behaviour

N. Geetha,Dr. M. Ramesh(Nov 2011)

The study on people’s choice in Investment Choices has been undertaken with the objective,

to analyze the investment choice of people in Kurumbalur. Analysis of the study was

undertaken with the help of survey conducted. After analysis and interpretation of data it is

concluded that in Kurumbalur respondents are medium aware about various investment

choices but they do not know aware about stock market, equity, bound and debentures. The

study is conducted by taking a limited number of sample sizes which is stated earlier. And

this study reflects the perceptions of those respondents who are residing in Kurumbalur.

There might be a chance that the perceptions of the respondents of different are varied due to

diversity in social life, living pattern, income level etc. All the age groups give more

important to invest in Insurance, NSC, PPF and bank deposit. Income level of a respondent is

an impotent factor which affects portfolio of the

respondent. Middle age group, Lower income level groups respondents are preferred to invest

in Insurance, NSC, PPF and bank deposit rather than any other investment avenues. In

Kurumbalur respondents are more aware about various investment avenues like Insurance,

PPF, bank deposits, small savings like post office savings etc. For that awareness program

has to be conducted by Stock Brokering firms because most of the respondents unaware

about this new service and about stock market. (N. Geetha,Dr. M. Ramesh,IJMER,Nov 2011)

[19]

7. Mutual Fund Attributes and Investor Behaviour(Feb2006)

This paper analyzes the dynamics of investor fund flows in a sample of socially screened

equity mutual funds. Mutual fund companies, which continually compete to offer new funds

in an effort to attract investor capital, can expect SR investors to be more loyal than investors

in ordinary funds. Nicolas P.B. Bollen(Feb2006)

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

Institute of management technology Ghaziabad

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 tap into the success of

Indian industry .This paper analyze the market research on saving and investment practices of

the investor and preference of the investment in mutual funds. Akilesh Mishra (2005)

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

An investor has numerous investment options to choose from depending on his profile and

expectation of returns .different investment options represent risk-reward trade off .of the

various types of investment options in stock market, gold exchange traded funds.

(Asia pacific journal of research in business management

Dr.Prashnata Athma(2008)

10. Awareness of commodity market with reference derivative investor.

(2009)

Commodity futures markets are new and emerging market. The awareness of the market is

very less among the investor who can use this trade to sell their products without the

middlemen or agents 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

trough hedging technique

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)

The study reveals that Investment is the employment of funds on assets with the aim of

earning income or capital appreciation. Investment is the most important things today. People

are earning more, but they do not know where, when and how to invest it. A proper

[20]

understanding of money, its value, the available avenues for investment, various financial

institutions, the rate of return/risk etc., are essential to successfully manage one’s finance for

achieving life’s goal. Through this study, an analysis has been made into preferred

investment avenues among salaried peoples in Namakkal Taluk, Tamilnadu, India. The

results highlight that certain factors like education level, awareness about the current

financial system, age of investors etc… make significant impact while deciding the

investment avenues. The study is based on personal interviews with salaried peoples, using a

structured questionnaire. Actually, the present study identifies the preferred investment

avenues among the individual investors using self assessment test. The study is based on

primary sources of data which are collected by distribution of a close ended questionnaire.

The data has been analyzed using percentage and chi-square test with the help of statistical

software. There are large numbers of investment opportunities available today. In this paper

is going to briefly examine how the salaried peoples managing their investment

India respondents are medium aware about various investment choices but they do not know

aware about stock market, equity, bond and debentures. All the age groups give more

important to invest in Insurance and bank deposit. Income level of a respondent is an

important factor which affects portfolio of the respondent. Middle age group, Lower income

level groups respondents are preferred to invest in Insurance and bank deposit rather than any

other investment avenues. (V.R.Palanivelu K.Chandrakumar,IBEA ,March 2013 Pg no

20-23)

12. Small Investors Perception on Post office saving Schemes

Karthikeyan (2001)

Karthikeyan has conducted research on Small Investors Perception on Post office Saving

Schemes and found that there was significant difference among the four age groups, in the

level of awareness for kisan vikas patra (KVP), National Savings Scheme (NSS), and deposit

Scheme for Retired Employees (DSRE),and the Overall Score Confirmed that the level of

awareness among investors in the old age group was higher than in those of young age group.

NO differences were observed among male and female investors except for NSS and KVP.

Karthikeyan (2001) IJMER

[21]

13. Profile and awareness of salaried class investors and their attitude and satisfaction

towards investment.(2008).

Krishnamoorthy,c, in his study has analyzed the profile and awareness of salaried class

investors and their attitude and satisfaction towards investment. In has been concluded that all

salaried people were aware of bank deposits, PF schemes, insurance schemes, post office

savings schemes, gold and however only few were aware of UTI

( Krishnamoorthy,c,(2008).

[22]

CHAPTER III

RESEARCH METHODOLOGY/DESIGN:

Year of the study: The 10 months are divided according to the following manner in order to

be an effective project.

� July to September: Focusing on the study as a whole and identifying the problems

and framing the title, collecting information as well as details raring industry and also

framing objectives.

� October to December: Literature review. Framing of questionnaire for data

collection, information collected through questionnaire for data collection for

interpretation.

� January to April: From the interpretation the researcher list out certain findings,

suggestion, conclusion & rough copy submission for correction, after the correction

fair copy was prepared and submitted.

Sample Size: The sample size denotes the number of elements selected for the study. For the

present study, Questionnaire distributed to 640 individual’s .out of 640,153 individuals

responded.

Data collection: Data was collected by using main two methods i.e. primary data and

secondary data.

Primary data: - Primary data are those collected by the investigator himself/herself for the first

time and thus they are original in character, they are collected for particular purpose.

Combination of non probability connivance sampling technique and snowball sampling will

be used for collecting the data from different investor. The salaried people are selected by the

connivance sampling method. The selection of units from the population based on their easy

availability and accessibility to the researcher is known as sampling.

Information is collected by conducting a survey by distributing a questionnaire to 153

salaried people. These 153 salaried are of different age group, different occupation, different

income level and different qualification.

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We choose the following resources for our research.

Questionnaire Design: - Here in our research we set questions for salaried individuals and

answer can be easy to fill out with minimum amount of time and efforts and request the

customer to answer these questions with correct information.

The questionnaire consisted of Close ended questions.

Close ended question: It contains those questions in which the respondent is given a limited

number of alternatives responses from which he/she is to select the one that most closely

matched his attitude.

The fixed alternative questions may be taken in the form of

� Dichotomous question

� Multi - choice question

Dichotomous Question: It refers to one which offers the respondents a choice between only

2 alternatives and reduces the issues to its simplest terms.

Multi-choice questions: A multiple – choice question refers to one, which provides several

set of alternatives. Multiple – choice questions can be used when an issue has more than 2

aspects.

Customer: - Customer helps in creation of more accurate idea about our research.

Secondary Data: Secondary data are those, which have already been collected by some other

persons for their purpose. Secondary data are usually in shape of finished products.

External data: was generated from internet websites…………………………………

Statistical tools and techniques used: The data has been analyzed by graph and charts

[24]

CHAPTER-IV

DATA COLLECTION AND ANALYSIS

� From which source you come to know about various investment options?

Interpretation:

Out of 153 salaried individuals 70 Friends /relative, 41T.V. newspaper,25 banker,,10

broker, and 5 other, these are the sources from where individuals come to know about

various investment option.

� What is your saving objective?

Interpretation:

From the data it can be inferred that out of 153 salaried ndividuals28 Income and capital

preservation is the main objective of the salaried individuals, followed by 25 healthcare

,25 long term growth and income ,18 home purchase, 15 retirement,15 growth and

income,5 short term growth,5 children’s income, and 3 other.

Broker , 10

Banker, 25

Friend/Relative ,

70

T.V./Newspaper ,

41

Other , 5

Broker

Banker

Friend/Relative

T.V./Newspaper

Other

0 10 20 30 40 50 60 70 80

5

1518

1425

2825

155

3

0 5 10 15 20 25 30

Children’s education

Home purchase

Healthcare

Long term growth

short term growth

� In which sector do you prefer to invest your money?

Interpretation:

Out of 153 salaried people 77

government sector,18 individuals

� Do you have a formal budget for family

Interpretation:

From all salaried individuals109 people have formal budget for family expenditure,44 don’t

have.

Government

sector , 52, 34%

Public sector, 18,

12%

Foreign sector, 6,

4%

No, 44, 29%

[25]

hich sector do you prefer to invest your money?

Out of 153 salaried people 77 individuals prefer to invest in private sector, followed by 52

individuals and 6 foreign sector.

Do you have a formal budget for family expenditure?

109 people have formal budget for family expenditure,44 don’t

Private

sector , 77,

50%

Public sector, 18,

Foreign sector, 6,

4%

Private sector

Government sector

Public sector

Foreign sector

Yes, 109, 71%

Yes

No

prefer to invest in private sector, followed by 52

109 people have formal budget for family expenditure,44 don’t

Government sector

Yes

No

[26]

� Usually do you consult your friends and / or relatives before making an investment

choice?

Interpretation:

Out of 153 salaried individuals 40 people often consult friends/relative before making an

investment choice ,41 every time , 40 sometime6 never.

� Do you invest your money in share market?

Interpretation:

Out of 153 salaried individuals 99 said they don’t invest money in share market and

only54 invest money in share market.

Everytime, 41,

27%

Often, 63, 42%

Sometime, 40,

27%

Never , 6, 4%

Everytime

Often

Sometime

Never

Yes, 54, 35%

No, 99, 65%

Yes

No

� What % of your income do you invest?

Interpretation:

Out of 153 salaried individuals

%..

� What is the time period you prefer to invest?

Interpretation:

From above chart it can be seen that 85 salaried

short term and19 long term.

0 to 15

%

0

20

40

60

80

100

Midterm (1 to 5

years) , 85,

56%

Long term (> 5

years), 19, 12%

[27]

What % of your income do you invest?

ndividuals 92 people invest 0to15% income,52 15 to 30%,9 30 to 50

the time period you prefer to invest?

From above chart it can be seen that 85 salaried individuals prefer midterm i.e.1 to 5 years,49

15 to

30% 30 to 50%

Short term (0 to

1years) , 49,

32%

Short term (0 to 1years)

Midterm (1 to 5 years)

Long term (> 5 years)

92 people invest 0to15% income,52 15 to 30%,9 30 to 50

prefer midterm i.e.1 to 5 years,49

Short term (0 to 1years)

Midterm (1 to 5 years)

� Are you aware about different tax benefit of investing into mutual funds?

Interpretation:

Among the total sample size 100 salaried

benefit of investing into mutual funds.

� Have you ever invested in mutual funds of any company?

Interpretation:

Out of 153 samples, 85 salaried

had invested.

No, 53, 35%

0

20

40

60

80

100

Yes

[28]

Are you aware about different tax benefit of investing into mutual funds?

Among the total sample size 100 salaried individuals are aware about different tax

benefit of investing into mutual funds.

Have you ever invested in mutual funds of any company?

Out of 153 samples, 85 salaried individual had not invested in mutual funds and only 68

Yes, 100, 65%

Yes

No

Yes, 68 No, 85

are aware about different tax

had not invested in mutual funds and only 68

Yes

No

[29]

� Do you know about different option of investment in mutual fund?

Interpretation:

Out of 153 data 87 salaried individuals don’t know about different option of investment

in mutual fund and only 66 people know.

� What is the most important criterion for you for selecting a particular investment option?

Interpretation:

83 individuals consider past performance as a important criterion for selecting a particular

investment option,50 service ,13 promoters background,7 another

Yes, 66,

43%

No, 87,

57%

Yes

No

83, 54%50, 33%

13, 8%7, 5%

Past performance

Service

Promoters background

Any other

[30]

� Are you aware of the following investment avenues(Saving Account)

Interpretation:

Out of 153 salaried individuals 146 are aware about saving account as an investment

avenue and only are not aware.

� Are you aware of the following investment avenues(Bank fix deposits)

Interpretation:

From above data 145 individuals are aware about bank fix deposits and 5 are not.

Yes, 146

No, 2

Yes No

0

20

40

60

80

100

120

140

160

Yes, 145, 95%

No, 8, 5%

Yes

No

� Are you aware of the following investment avenue

Interpretation:

Among all salaried individuals

aware about these investment avenues.

� Are you aware of the following investment avenue

Interpretation:

Out of 153 data 136 individuals

aware.

No, 15, 10%

No, 17, 11%

[31]

Are you aware of the following investment avenue (Public provident funds)

individuals 138 are aware about public provident funds and 15 are not

about these investment avenues.

Are you aware of the following investment avenue (National saving certificate)

individuals are aware about national saving certificate and 17 are not

Yes, 138, 90%

No, 15, 10%

Yes

No

Yes, 136, 89%

No, 17, 11%

Yes

No

138 are aware about public provident funds and 15 are not

National saving certificate)

are aware about national saving certificate and 17 are not

Yes

No

Yes

No

[32]

� Are you aware of the following investment avenue (Post office saving)

Interpretation:

Out of 153 data 123 individuals are aware about post office saving and 30 are not aware.

� Are you aware of the following investment avenue (Government securities)

Interpretation:

Out of 153 data 136 individuals are aware about government securities and 17 are not aware.

Yes, 123

No, 30

Yes

No

0 50 100 150

Yes, 136, 89%

No, 17, 11%

Yes

No

� Are you aware of the following

Interpretation:

Out of 153 data 81 individuals are

� Are you aware of the following investment avenue(

Interpretation:


17 are not aware.

No, 81, 53%

0

50

100

150

Yes

Yes, 136

[33]

Are you aware of the following investment avenue ( Mutual funds )

Out of 153 data 81 individuals are not aware about mutual funds and 72 are aware.

Are you aware of the following investment avenue(Life insurance)

individuals are aware about life insurance as an investment option and

Yes, 72, 47% Yes

No

No

Yes, 136

No, 17

not aware about mutual funds and 72 are aware.

aware about life insurance as an investment option and

[34]

� Are you aware of the following investment avenue(Debentures)

Interpretation:

Out of 153 data 85 individuals are not aware about debenture and 68 are aware.

� Are you aware of the following investment avenue(Bonds)

Interpretation:

Out of 153 data 136 individuals are aware about national saving certificate and 17 are not

aware.

Yes, 68, 44%

No, 85, 56%

Yes

No

Yes, 105, 69%

No, 48, 31%

Yes

No

[35]

� Are you aware of the following investment avenue(Equity share market)

Interpretation:

Out of 153 data 106 individuals are aware about equity share market and 47 are not aware.

� Are you aware of the following investment avenue(Commodity share market)

Interpretation:

Out of 153 data 85 individuals are aware about commodity share market and 68 are not

aware.

Yes, 106, 69%

No, 47, 31%

Yes

No

Yes, 85

No, 68

Yes

No

0 20 40 60 80 100

[36]

� Are you aware of the following investment avenue(Forex market)

Interpretation:

Out of 153 data 88 individuals are aware about Forex and 65 are not aware.

� Are you aware of the following investment avenue (Real estate (Property)

Interpretation:

Out of 153 data 135 individuals are aware about real state and 18 are not aware about real

state as a investment avenues.

Yes, 88, 58%

No, 65, 42%Yes

No

Yes, 135, 88%

No, 18, 12%

Yes

No

� Are you aware of the following investment avenue (

Interpretation:

Out of 153 data 135 individuals are aware about gold/silver as investment avenues and 18 are

not aware


Interpretation:


are not aware.

0

20

40

60

80

100

120

140

Yes

Yes, 135

0

20

40

60

80

100

120

140

Yes

Yes, 135

[37]

Are you aware of the following investment avenue (Gold/ silver)

are aware about gold/silver as investment avenues and 18 are

Are you aware of the following investment avenue (chit funds)

individuals are aware about chit funds as investment avenues and 18

No

Yes, 135

No, 18

No

Yes, 135

No, 18

are aware about gold/silver as investment avenues and 18 are

are aware about chit funds as investment avenues and 18

[38]

� Are you aware of the following investment avenue (Virtual real state)

Interpretation:

Out of 153 data 55 individuals are aware about virtual real state as investment avenues

and 98 are not aware.

� Are you aware of the following investment avenue (Hedge funds)

Interpretation:

Out of 153 data 85 individuals are aware about hedge funds as investment avenues and

68 are not aware

Yes, 55, 36%

No, 98, 64%

Yes

No

Yes, 85, 56%

No, 68, 44%


Interpretation:


avenues and 68 are not aware


Interpretation:

Out of 153 data 85 individuals are aware about art and passion as investment avenues

are not aware.

� Which of the of following factors which you consider before investing(

0

20

40

60

80

100

Yes

Yes, 85

0 10 20 30

Yes

No

[39]

Are you aware of the following investment avenue (Private equity investments)

are aware about private equity investment as investment

Are you aware of the following investment avenue (Art and passion)

are aware about art and passion as investment avenues

Which of the of following factors which you consider before investing(Saving account)

No

Yes, 85

No, 68

Yes, 85

No, 68

30 40 50 60 70 80 90

Private equity investments)

are aware about private equity investment as investment

are aware about art and passion as investment avenues and 68

Saving account)

Yes, 85

[40]

Interpretation:

Among all salaried people 141 individuals consider saving account as a safe and low

investment avenue,6 traditional invetsmnet,4 moderate risk investment

avenues,2emerging investment avenues.

� Which of the of following factors which you consider before investing(Bank fixes

deposits)

Interpretation:

Among all salaried people 131 individuals consider bank fix deposit as a safe and low

investment avenue, 16 moderate risk investment avenues, 6 traditional investment

� Which of the of following factors which you consider before investing(Public provident

fund)

141

4 06 2

Safe and low risk

investment

avenues

Moderate risk

investment

avenues

High Risk

investment

avenues

Traditional

investment

avenues

Emerging

investment

avenues

0

20

40

60

80

100

120

140

160

131

16

0

6

0



High Risk investment avenues


Emerging investment avenues

0 20 40 60 80 100 120 140

[41]

Interpretation:

Among all salaried people 120 people consider public provident as a safe and low

investment avenue,20 moderate risk investment avenues, 7 high risk investment avenues

6 traditional investment.

� Which of the of following factors which you consider before investing (National saving

certificate)

Interpretation:

Among all salaried people 120 individuals consider bank national saving certificate as a

safe and low investment avenue,20 moderate risk investment avenues, 7 high investment

avenues ,6 traditional investment.

120

207 6

0

Safe and low risk

investment

avenues

Moderate risk

investment

avenues

High Risk

investment

avenues

Traditional

investment

avenues

Emerging

investment

avenues

0

20

40

60

80

100

120

140

120

207 6

0

Safe and low risk

investment

avenues

Moderate risk

investment

avenues

High Risk

investment

avenues

Traditional

investment

avenues

Emerging

investment

avenues

0

20

40

60

80

100

120

140

[42]

� Which of the of following factors which you consider before investing (Post office

savings)

Interpretation:

Among all salaried people 105 individuals consider post office saving as a safe and low

investment avenue,32 moderate risk investment avenues,15 traditional investment,1

emerging investment avenues.

� Which of the of following factors which you consider before investing (Government

securities)

Interpretation:

Among all salaried people 80 individuals consider government securities as a safe and

low investment avenue,53 moderate risk investment avenues, 10 high investment avenues

and 10 traditional investment.

105

32

0

15

1

Safe and low risk

investment avenues

Moderate risk

investment avenues

High Risk

investment avenues

Traditional

investment avenues

Emerging

investment avenues

0

20

40

60

80

100

120

80

53

10 100

Safe and low risk

investment

avenues

Moderate risk

investment

avenues

High Risk

investment

avenues

Traditional

investment

avenues

Emerging

investment

avenues

0

20

40

60

80

100

� Which of the of following factors which you consider before investing (

Interpretation:

Among all salaried people 80

investment avenues, 53 high investment avenues

investment avenue,2 emerging investment avenues

� Which of the of following factors which you consider before investing (

Interpretation:

Among all salaried people 55

investment,50 moderate risk investment,40 safe and low investment avenu

investment avenues.











[43]

Which of the of following factors which you consider before investing (Mutual funds

Among all salaried people 80 individuals consider mutual funds as a moderate risk

ues, 53 high investment avenues,10 traditional investment. 8 safe and low

investment avenue,2 emerging investment avenues

wing factors which you consider before investing (Life insurance)

Among all salaried people 55 individuals consider life insurance as a traditional

investment,50 moderate risk investment,40 safe and low investment avenu

020

4060

80






8

53

10

2






0 10 20 30 40 50 60

40

50

8

55

0

Mutual funds

consider mutual funds as a moderate risk

,10 traditional investment. 8 safe and low

Life insurance)

consider life insurance as a traditional

investment,50 moderate risk investment,40 safe and low investment avenues,8 high

80

80

[44]

� Which of the of following factors which you consider before investing (Debentures)

Interpretation:

Among all salaried people 70 individuals consider debenture as a moderate risk

investment avenues, 52 high risk investment,19 traditional investment avenues10 safe and

low investment avenues,2 emerging investment avenues.

� Which of the of following factors which you consider before investing (Bonds)

Interpretation:

Among all salaried people 82 individuals consider bonds as a high risk investment avenues

,19 traditional investment avenues 14moderate risk investment avenues ,10 safe and low

investment avenues,4emerging investment avenues.

10, 7%

70, 46%52, 34%

19, 12%

2, 1%

Safe and low risk investment

avenues

Moderate risk investment

avenues


Traditional investment

avenues


10

14

82

19

4






0 10 20 30 40 50 60 70 80 90

[45]

� Which of the of following factors which you consider before investing (Equity share

market)

Interpretation:

Among all salaried people 75 individuals consider equity share market as a traditional

investment avenues, 40 high risk investment avenues,22 safe and low investment

avenues, 10emerging investment avenues. 6 moderate risk investment avenues

� Which of the of following factors which you consider before investing (Commodity share

market)

Interpretation:

Among all salaried people 75 people consider commodity share market as a traditional

investment avenues, 40 high risk investment avenues,22 safe and low investment avenues,

10emerging investment avenues. 6 moderate risk investment avenues.

22

6

40

75

10






0 10 20 30 40 50 60 70 80

22

6

40

75

10






0 10 20 30 40 50 60 70 80

[46]

� Which of the of following factors which you consider before investing (FOREX)

Interpretation:

Among all salaried people 75 individuals consider FOREX high risk share investment

avenues, 45 moderate risk investment avenues,19 traditional investment investment

avenues, 10 safe and low risk investment avenues. 4 emerging investment investment

avenues

� Which of the of following factors which you consider before investing (Real estate

(Property)

Interpretation:

Among all salaried people75 individuals consider real state as a traditional investment

avenues, 40 high risk investment avenues,22 safe and low investment avenues,

10emerging investment avenues. 6 moderate risk investment avenues.

10

45

75

19

4






0 10 20 30 40 50 60 70 80

22

6

40

75

10

Safe and low risk

investment

avenues

Moderate risk

investment

avenues

High Risk

investment

avenues

Traditional

investment

avenues

Emerging

investment

avenues

0

10

20

30

40

50

60

70

80

[47]

� Which of the of following factors which you consider before investing (Gold/ silver)

Interpretation:

Among all salaried people 83 individuals consider gold /silver as a traditional investment

avenues,25 safe and low investment avenues, 20 high risk investment avenues. 15

moderate risk investment avenues, 10emerging investment avenues.

� Which of the of following factors which you consider before investing (chit Funds)

Interpretation:

Among all salaried people 83 individuals consider chit funds as a high risk investment

avenues,32 traditional investment avenues 25 emerging investment avenues 14 moderate risk

investment avenue 12 safe and low investment avenues.

25

15

20

83

10

0 10 20 30 40 50 60 70 80 90






12 14

70

3225

0

10

20

30

40

50

60

70

80

Safe and low risk

investment

avenues

Moderate risk

investment

avenues

High Risk

investment

avenues

Traditional

investment

avenues

Emerging

investment

avenues

[48]

� Which of the of following factors which you consider before investing (Virtual real state)

Interpretation:

Among all salaried people 64 individuals consider virtual real state as high risk investment

avenues, 40 emerging investment avenues 25 traditional investment avenues 15 safe and low

investment avenues, 15 moderate risk investment avenue

� Which of the of following factors which you consider before investing (Hedge funds)

Interpretation:

Among all salaried people 65 individuals consider hedge funds as a high risk investment

avenues, 49 emerging investment avenues 20 traditional investment avenues, 10 moderate

risk investment avenue, 15 safe and low investment avenues.

159

64

25

40

0

10

20

30

40

50

60

70

Safe and low risk

investment

avenues

Moderate risk

investment

avenues

High Risk

investment

avenues

Traditional

investment

avenues

Emerging

investment

avenues

Safe and low risk

investment

avenues, 9, 6%

Moderate risk

investment

avenues , 10, 7%

High Risk

investment

avenues, 65,

42%Traditional

investment

avenues , 20, 13%

Emerging

investment

avenues, 49,

32%

[49]

� Which of the of following factors which you consider before investing (Private equity

investments)

Interpretation:

Among all salaried people 64 individuals consider private equity investments as a high

risk investment avenues, 50 emerging investment avenues, 20 moderate risk investment

avenue, 10 traditional investment avenues 9 safe and low investment avenues.

� Which of the of following factors which you consider before investing (Art and passion)

Interpretation:

Among all salaried individuals 74 individuals consider art and passion as a emerging

investment avenue,30 traditional ,30 moderate 10 safe and low ,9 high risk investment

avenues respectively.

9

20

64

10

50

0

10

20

30

40

50

60

70

Safe and low risk

investment avenues

Moderate risk

investment

avenues

High Risk

investment avenues

Traditional

investment

avenues

Emerging

investment avenues

10

30

9

30

74

0

10

20

30

40

50

60

70

80

Safe and low risk

investment avenues

Moderate risk

investment

avenues

High Risk

investment avenues

Traditional

investment

avenues

Emerging

investment avenues

GENERAL INFORMATION

� Gender :

Interpretation:


� Age :

Interpretation:

Out 153 salaried individuals 70

from 41-50,33 from 31-40,11 were from 50 and above.

59, 39%

33, 22%

39, 25%

11, 7%

[50]

individuals 94 were male and 59 female.

70 individuals were from 20-30 age group ,39 people were

40,11 were from 50 and above.

94, 61%

Male

Female

70, 46%

11, 7%

20-30

31-40

41-50

50 and above

30 age group ,39 people were

Female

50 and above

� Occupation:

Interpretation:


profession,6 other.

� Annual income of family:

Interpretation:

Among all salaried individuals,70

3-4L,27 people 2-3L,20 individuals

Business

service

Profession

other

020

6

6

27

0

10

20

30

40

50

60

70

80

Below 1 L 2-3L

[51]

individuals 85 people work in service occupation,32 business,30

70 individuals have 5 to 10 L annual family income,30 people

individuals 10 and above,6 below 1L.

4060

80100

32

85

30

30

70

20

3-4 L 5 to 10 10 & above

85 people work in service occupation,32 business,30

have 5 to 10 L annual family income,30 people

[52]

� Total family member:

Interpreation

Out of 153 individuals 101 individuals have 2-5 members in their family,36 individuals

have 6-8 and 8 and above

Interpretation:

Out of 153 salaried individuals,85 are graduate ,60 post graduate ,7 undergraduate,1

other.

101

36

3

0 20 40 60 80 100 120

2-5

PERS

ON

6-8

PERS

ON

8 and

above

7

85

60

1

0 10 20 30 40 50 60 70 80 90

Undergraduate

Graduate

post graduate

other

[53]

LIMITATION OF THE STUDY:

1. Reluctances of the people to provide complete information about them can affect the

validity of the responses.

2 The lack of knowledge of customer about the financial instrument can be a major

limitation.

3. The information can be biased due to use of questionnaire.

[54]

CHAPTER-V

FINDINGS:

1 Study reveals that major information sources for investments option are T.V.,

friends/relative.

2. Most of salaried individuals prefer to invest in private sector.

3. Most of individuals often discuss with their family friends before making an investment

decision.

4. Majority of the salaried individuals prefer midterm to invest.

5. Most of the individuals are aware about different tax benefits.

6. Most of the individuals are aware about investment avenues like life insurance, FD, gold,

real state etc.

7. Majority of the individuals consider FD, Gold/silver, saving account, post office savings as

a safe and low investment options.

8. Study reveals that majority of the individuals consider bonds, FOREX, chit funds, private

equity as high risk investment avenues.

SUGGESTIONS:

1. Study reveals that individuals spend long time watching T.vs, Therefore it is

recommended that financial advisor or financial institution should use T.V. as a marketing

media.

2. Investments in government sector should increase.

3. Investor who wants to avoid risk should invest in saving account, FD, provident funds,

National saving certificate, post office saving, life insurance etc.

4. Investments avenues like share market, mutual funds need more awareness among salaried

individuals so that more individuals can be attracted.

[55]

CHAPTER-VI

SUMMARY AND CONCLUSION:

This report is a reflection of the awareness and factors considering, risk taking ability of the

various categories of salaried individuals. Selection of the perfect investment avenue is a

difficult task to an individual. An effort is made to identity the taste and preference of a

sample of individuals selected by connivance and snowball sampling. Despite of many

limitations to the study i was successful in identifying some investments patterns there is

some commonness in these individuals.

This report concentrated in identifying the factors considered individuals before investment,

awareness level of salaried individuals towards various investment avenues are identified

based on their occupations, investors risk in selecting a particular avenue.

The presents study has important implication for investment manager as it has come out with

certain interesting facets of salaried individual. The individual investor still prefers to invest

in financial products which give risk free returns. This confirms that individuals even if they

are of high income, well educated, independent are conservative individual prefer to play

safe. The investments product designer can design products which can cater to the

individuals, who are low risk tolerant, tax savings and use T.V. as a marketing media as they

seem to spend long time watching T.vs. The study also draws an important conclusion from

study that the individuals are keen to invest in midterm products.

[56]

SCOPE FOR FURTHER RESEARCH:

The study was conducted by taking limited number of sample size which stated earlier and

this study reflect awareness, factors consider for investment, risk taking ability of those

salaried individuals residing in Mumbai .There might be chances that the awareness, factors

consider for investment, risk taking ability of those salaried individuals of different nature are

varied due to diversity in social life, living pattern, income level etc that need to studied

further.

[57]

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/indian-economy

www.taxindia.com

Reference:

• Sanjay kantidas an empirical analysis on preferred investment avenues among rural

and semi-urban households, journal of frontline research ,vol(01)2011 26-36 research

paper, Department of commerce ,Lumding college,Lumding,Nagaon,Assam

• V.R.Palanivelu K.Chandrakumar (March 2013) A Study on Preferred Investment

Avenues among salaried Peoples with Reference to Namakkal Taluk,Tamil Nadu,

India, international conference on business,economics and accounting 20-23

• R. SreePriya ,P. Gurusamy ( Jan 2013) . Investment Pattern of Salaried People – A

study in Coimbatore district ,vol2 issue 1,international journal scientific research

• prof. ca yogesh p. patel*; prof. cs charul y. patel, a study of investment perspective

of salaried people (private sector),Asia pacific journal of marketing and

management,vol no2 cot2012

• Savings and Investments Attitude of Salaried Class in CUDDALORE District

• L. Pandiyan, Dr. T. Aranganathan May-June 2012) (prof. ca yogesh p. patel; prof. cs

charul y. patel ,oct 2012 ,Asia Pacific Journal of Marketing & Management Review

,pg no 145-146),www.isorjounrnel

• N. Geetha,Dr. M. Ramesh(Nov 2011) A Study on People’s Preferences in Investment

Behaviour ijmer,vol 1 issue 6.

• Nanavati nihar k,invetsmnet pattern of salaried people ,Journal of advance

development research ,2012,vol 3 .

[58]

• Nicolas P.B. Bollen† Mutual Fund Attributes and Investor Behavior, February 2006,

Journal of Financial and Quantitative Analysis

[59]

Appendix:

Title: Investment pattern of salaried people.

Dear Respondent,

Sub: Request to fill the Questionnaire regarding research study.

I am final year student currently pursuing MBA at JDBIMS.I am conducting a research study on

“Investment pattern of salaried people”. This research is taken as a partial requirement for the

completion of my MBA.I seek your kind assistance in completing the attached questionnaire

which would take approximately 10 minutes of your valuable time. Your response will be treated

as “strictly confidential”

� From which source you come to know about various investment options?

� Broker � Bank � Friend / relative � T.V./Newspaper � other……………..(specify)

� What is your saving objective?

� Children’s education � Retirement � Home purchase � children’s marriage

� Healthcare � Income and capital preservation � Long term growth

� Growth and income � short term growth � other

� In which sector do you prefer to invest your money?

� Private sector � Government sector � Public sector � foreign sector

� Do you have a formal budget for family expenditure?

� Yes � No

� Usually do you consult your friends and / or relatives before making an investment choice?

�Every time � Often � Sometime � Never

� Do you invest your money in share market?

� Yes � No

� What % of your income do you invest?

� 0 to 15 % � 15 to 30% � 30 to 50%

� What is the time period you prefer to invest?

� Short term (0 to 1years) � Midterm (1 to 5 years) � Long term (> 5 years)

[60]

� Are you aware about different tax benefit of investing into mutual funds?

� Yes � No

� Have you ever invested in mutual funds of any company?

� Yes � No

� Do you know about different option of investment in mutual fund?

� Yes � No

� What is the most important criterion for you for selecting a particular investment option?

�Past performance � Service � Promoters background �Any other

� Are you aware of the following investment avenues?


Saving account YES NO

Bank fixes deposits YES NO

Public provident fund YES NO

National saving certificate YES NO

Post office saving YES NO

Government securities YES NO


Mutual funds YES NO

Life insurance YES NO

Debentures YES NO

Bonds YES NO

High risk investment avenues

Equity share market YES NO

Commodity share market YES NO

FOREX market\ YES NO


Real estate (Property) YES NO

Gold/ silver YES NO

Chit funds YES NO

Emerging invest avenues:

Virtual real state YES NO

Hedge funds YES NO

Private equity investments YES NO

Art and passion YES NO

[61]

� Which of the of following factors which you consider before investing?

Safe and

low risk

investment

avenues

Moderate

risk

investment

avenues

High Risk

investment

avenues

Traditional

investment

avenues

Emerging

investment

avenues

Saving account

Bank fixes deposits

Public provident fund

National saving

certificate

Post office saving

Government securities

Mutual funds

Life insurance

Debentures

Bonds

Equity share market

Commodity share

market

FOREX market

Real estate (Property)

Gold/ silver

Chit funds

Virtual real state

Hedge funds

Private equity

investments

Art and passion

� General information

� Gender : �Male � Female

� Age : �20-30 �31-40 �41-50 �50 above

� Occupation: � student �Business �service �Profession � other

(specify)

� Annual income of family: � Below 1 L � 2-3L �3-4 L �5 to 10 � 10 &

above

� Total family member: �2-5 �6-8 � 8 and above

� Educational qualification

� Undergraduate � Graduate � post graduate � other

INVESTMENT PATTERN OF SALARIED INDIVIDUAL

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