Investment Payment of Salaried Employees

CHAPTER-1
INTRODUCTION
INTRODUCTION
“If you do not know how to care for money, money will stay away from you” says Robert
T. Kiyosaki. From the above quote we come to know about the importance of money in
our day to day life. In today’s world earning of money is a difficult task for everyone than
spending the money. Everyone should work hard for earning the money. India is one of
fastest growing economies in the world. Proper funds are needed for economic
development. Economic growth of a country is very much depended upon savings of the
individuals. So, savings not only beneficial to individuals but also benefits the economy as
a whole.
Nowadays, people tend to save money rather than to spend. Instead of parking savings,
the saved money is used to make profit for their future. The peoples started to invest their
saved money in various investment avenues. One should be very careful in investing their
money. Making investment a successful one, investor should work for it. Decision making
plays a vital role in making investments in various investment avenues. The investment
decisions of investor should balance risk and return against it.
There are various investment options includes government bonds, stocks, deposits in
banks, gold, insurance schemes, provident fund, postal schemes, silver, real estate etc. The
above alternative forms of investment are called investment vehicles. Savings and
investment are the two important variables which plays a significant role in the economic
growth.
GLOBAL INVESTMENT SCENARIO
India today enabled with digital technology in the current global environment, capital is
scarce and countries are competing for attracting capital. It is important to make India an
investor friendly destination for increasing the capital of the country. The Indian
government had facilitated the investors by establishing investor facilitation cell to provide
primary support for all investor protection for handholding and liasioning services to
investors.
INVESTMENT SCENARIO IN INDIA

Foreign Direct Investment (FDI) and globalization is considered as an integral part of all
developed as well as developing countries. The growth of underdeveloped
countries is also depended on these factors. These factors equip the developing nations
with new skills and also provide smooth access to the markets and introduction of the new
technology. Today the whole world is looking for foreign and overseas investors.
Foreign investment is important for the economic development. In recent trends, India
rank second to China in league of investment destination. India is considered the most
preferred investment destination by the foreign institutions and individual investors.
India’s macroeconomic prospectus have improved and reached the best position among
emerging market economies.
Investment scenario in India is getting better with each passing day due to high confidence
level of investors. Choosing the best investment option will varies, only if the investor
analysis and study the heterogeneous nature of the Indian market before investing the
earned money. Attracting global investors is the major factor considered in today economy
development.
STATUS OF WOMEN IN INDIA

The status of women in India has been subject to many great changes over the past few
millennia. From equal status with men in ancient times through the low points of the
medieval period, to the promotion of equal rights by many reformers, the history of
women in India has been eventful. In modern India, women have adorned high offices
including that of the President, Prime minister, Speaker of Loksabha, etc.
In India, traditionally men have been the bread winners where as women typically ran the
household and saved for the rainy days. This was the scenario, till women started working
and took the command of financial matters. Today holds the key to happiness; hence
women should plan their finances and investment well. Women have to save on a regular
basis and smallest of the surplus income they like to invest prudently. The role of women
has changed from “Savers to Investors”. Most of the working rural women have regular
income because they work on the basis of wages. Savings are seen as insurance against
foreseeable future difficulties which are completely unpredictable. Therefore women
investors insure themselves against 19 future risks by saving in the form of various
investments such as deposits, gold, lands, and herds or by hoarding money.
A woman, if employed, she is the best asset of not only to her husband but also to their
entire family. Though money is a sole vital factor for a competent living, the source of it is
also equally much significant. Generally the source happens to be a job. Hence, for a
family man, his earnings alone are not copious for a happy life. Wife’s employment,
investment, in that sense, is a significant and inevitable source for a better maintaining of a
family.
The status and role of women is vacillating all over the world. Women’s stepping out of
the confines of the households multiplied their roles and responsibilities. They have to
shoulders their domestic responsibilities as well as say themselves in the professional
arena. But the balance between the two fronts is guileful exercise. The tilt on any side to a
state of conflict generated from the related role.
FACTORS INFLUENCING INVESTMENT DECISION

Each and every person can be specially differentiated on various parameters. Their
investment decisions depend on various attributes. There are so many factors which
influence their investment decisions. Everyone has their own requirements. So,
accordingly they take decisions.
Personal investment is affected by the level of knowledge, an individual investor possess
about different investment instruments. The knowledge of the relationship between risk
and return along with the knowledge of industrial sectors, economic indicators, companies
performance analysis techniques, portfolio management techniques etc., affect the
investment decision of individuals.
The source of information regarding investment avenues also guides the investment
decisions. One of the most important factors affecting personal investment is the
availability of disposal funds. Apart from all these factors, invested money should be
convertible into cash in the hour of need and this is an important factor which affects
personal investment.
The success of every investment decision has become increasingly important in recent
times. Making sound investment decision requires both knowledge and skill. Skill is
needed to evaluate risk and return associated with an investment decision. Knowledge is
required regarding the complex investment alternatives available in the economic
environment.
We discuss below some of the relevant factors that affects investment decisions:
1. Management Outlook
lf the management is progressive and has an aggressively marketing and growth outlook, it
will encourage innovation and favor capital proposals which ensure better productivity on
quality or both. In some industries where the product being manufactured is a simple
standardized one, innovation is difficult and management would be extremely cost
conscious.
In contrast, in industries such as chemicals and electronics, a firm cannot survive, if it
follows a policy of ‘make-do’ with its existing equipment. The management has to be
progressive and innovation must be encouraged in such cases.
2. Competitor’s Strategy
Competitors’ strategy regarding capital investment exerts significant influence on the
investment decision of a company. If competitors continue to install more equipment and
succeed in turning out better products, the existence of the company not following suit
would be seriously threatened. This reaction to a rival’s policy regarding capital
investment often forces decision on a company’
3. Opportunities created by technological change
Technological changes create new equipment which may represent a major change in
process, so that there emerges the need for re-evaluation of existing capital equipment in a
company. Some changes may justify new investments. Sometimes the old equipment
which has to be replaced by new equipment as a result of technical innovation may be
downgraded to some other applications.
A proper evaluation of this aspect is necessary, but is often not given due consideration. In
this connection, we may note that the cost of new equipment is a major factor in
investment decisions. However the management should think in terms of incremental cost,
not the full accounting cost of the new equipment because cost of new equipment is partly
offset by the salvage value of the replaced equipment. In such analysis an index called the
disposal ratio becomes relevant.
Disposal ratio = (Salvage value, Alternative use value) / Installed cost
4. Market forecast
Both short and long run market forecasts are influential factors in capital investment
decisions. In order to participate in long-run forecast for market potential critical decisions
on capital investment have to be taken.
5. Fiscal Incentives
Tax concessions either on new investment incomes or investment allowance allowed on
new investment decisions, the method for allowing depreciation deduction allowance also
influence new investment decisions.
6. Cash flow Budget
The analysis of cash-flow budget which shows the flow of funds into and out of the
company may affect capital investment decision in two ways.
First, the analysis may indicate that a company may acquire necessary cash to purchase the
equipment not immediately but after say, one year, or it may show that the purchase of
capital assets now may generate the demand for major capital additions after two years and
such expenditure might clash with anticipated other expenditures which cannot be
postponed.
Secondly, the cash flow budget shows the timing of cash flows for alternative investments
and thus helps management in selecting the desired investment project.
7. Non-economic factors
New equipment may make the workshop a pleasant place and permit more socializing on
the job. The effect would be reduced absenteeism and increased productivity. It may be
difficult to evaluate the benefits in monetary terms and as such we call this as non-
economic factor.
Let us take one more example. Suppose the installation of a new machine ensures greater
safety in operation. It is difficult to measure the resulting monetary saving through
avoidance of an unknown number of injuries. Even then, these factors give tangible results
and do influence investment decisions.
SAVINGS AND INVESTMENT PATTERN OF WOMEN INVESTORS
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 25 instruments,
but are also more educated and aware about their choices. Women are now moving beyond
the traditional savings options of Fixed Deposits, Post office savings to wider investment
options in the form of Insurance, Mutual funds, Bonds, Equities and even property.
Income minus expenditure is equal to 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 lass of income. This
requires careful planning and prudent management of ones financial assets.
Savings is a natural human activity because some large purchases cannot be afforded
immediately. Financial planning is the key and the first step towards fulfilling ones dreams
and aspirations. Good planning ensures financial security for the family throughout life.
An important component of a sound financial plan is not only the inclusion of life
insurance coverage in the plan. It is therefore unique needs with qualified financial
planning advisers who can assist in determining the right plan and amount of coverage
required.
Saving and Investment are two key macro variables with micro foundations, which play a
significant role in economic growth. Savings enable people to manage emergencies, to
smooth out peak income and expenditure to make investment in homes, families and
businesses and to provide for old age. Savings encourages cohesion among women
investors and serve as a reserve for repayment of loan from financial institutions. Even
though the women investors are poor, they contribute 26 some amount of money as
savings on a regular basis.
Most of the women investors feel that savings is an important activity but the amount they
save every month is not uniform. Though some of the women investors are uneducated,
they come to know about various savings and investment avenues with the help of agents,
family members and friends. Regular savings and investment is valuable in developing an
informal rural financial system which can be a great benefit of women. Systematic savings
among women also helps to ensure good loan repayment rates.
The savings of women in investors provides the source of funds to make small
investments such as LIC schemes, Post office savings schemes, Bank Deposits, Chit Fund,
Mutual Funds are some of the key saving instrument. With the advent of the investment
options in the market, consumers are now exposed to an array of modern and innovative
products. For example, depending on the needs of the customers, life insurers have
introduced customized products in the market. Women investors also prefer Insurance
policy because they have to pay only small amount of money every year and they prefer
savings in post office because they can withdraw their amount at times of necessity.
Women in India now participate in all activities such as education, politics, media, art &
culture, service sectors, science and technology, etc. More investment improves lot of rural
women which creates a “virtuous circle” of better education, improved health and higher
income and women need to be given the right to have more control over productive assets
like land, water and credit.
INVESTMENT PATTERN
It indicates the choice of preferences in their investment in different assets. The women
investors may prefer to invest their money in physical and financial assets. This
investment pattern may differ according to the investor’s demographics and behavior. The
investment pattern in the present study covers various investment patterns of savings both
in the form of physical and financial assets.
INVESTOR’S PREFERENCES
Women investor’s preferences are showing the willingness to invest in a particular or a set
of assets in the present situation. The Indian capital market has proved a fertile ground for
investors to make money. As a matter of fact, a great public disenhancement with paper
assets has begun during 1980s. Of late, the investor’s preference seems to have shifted
from equity to debt capital. The investor’s preference may significantly differ according to
their location. The rural and urban background of the investors may lead to the investor’s
preference among the various choices.
REASON FOR INCREASING POPULARITY OF
INVESTMENTS
Investing has been an activity confined to the rich and business class in the past. This can
be attributed to the fact that availability of investable funds is a prerequisite to deployment
of funds. But today, we find that investment has become a household world and is very
popular with people from all walks of life.
The following are the reasons for increasing the popularity of investment;
· Increasing working population, larger family incomes and consequent higher savings.
· Provisions of tax incentives in respect of investment in specified channels.
· Increasing tendency of people to hedge against inflation.
· Availability of large and attractive investment alteration.
· Increase in investment related publicity.
· Ability of investments to provide income and capital gains etc.
NEED FOR THE INVESTMENT
Today, the entire nation is expecting a fast track growth. Very soon India will reach top
investment destination compared to our peers. Now a day’s majority of people start to earn
and save money for making profits by investing money in proper investment avenues.
Saving and investing money will shape the economy and lead faster economic
development.
The value inculcated in people’s mind will definitely affect the tomorrow’s picture. The
habit of individual financial planning and investment will surely shows sign of
development. The well informed investor has a potential to invest money in various
investment avenues. In the present day knowledge economy education had been played an
important role for individuals. The teachers are the pillars of the society and the quality of
education depends upon the knowledge, skills, creativity and intelligence of the teachers.
Therefore financial education and awareness will definitely serve the purpose effectively,
if got started through college level study. Therefore study regarding saving and investment
pattern of college teachers become inevitable. The researcher has chosen surat district for
the present study which is called diamond city of India.
There are various state run universities, private universities, government colleges,
government aided colleges and unaided colleges, law and medical colleges are there in the
district. It is established fact that students from different parts of the country pursuing their
qualitative higher education through these colleges. There are number of arts, commerce
and science colleges registered in surat district and the college teachers are paid good pay
scales, like others they tend to save and invest saved money in investment avenues. Hence
a study is undertaken to know what are the investment avenues preferred by the College
teachers working in the district of Surat.
SAVING
Savings refers to the amount of money which is kept aside from the current income for
future use. People able to save money by keeping a part from their revenue every month
and this is possible by cutting the unwanted expenditure, generating higher income and by
doing the both. The need for savings is to meet future expenses, to meet unexpected
contingencies or emergencies, to raise our standard of living, to generate future income,
also helps the nation to improve the economic development etc.
INVESTMENT
Employment of current funds to earn benefits or securing growth in the future can be
termed as investment. It is sacrifice from current income to gain returns at a later stage.
Investment should be done to yield more return than rate of inflation. The current income
of an individual can be put aside for two thing – either consumption or savings. The
money once consumed is gone forever, whereas the savings bears fruit. Major element of
any investment is time and risk. It purely depends upon individual capacity to give
importance to either of the two elements, on the basis of one’s needs.
INVESTMENT PATTERN
Investment pattern refers to the attitude, perception and willingness of the individuals and
institutions while placing their savings in various types of financial assets. An investor is a
person who sacrifices the present in order to reap the benefits for the future. The benefit
may be in the form of capital appreciation, income in the form of dividends, bonus,
retirement benefits and many other benefits. Generally an investor’s objectives would be
one among the following:
· To minimize the risk
· To maximize the returns
· To hedge against inflation
· Liquidity
NEEDS OF WEALTHY INVESTORS
Wealthy investors being aware of the emerging investment opportunities use sophisticated
investment strategies such as
· Leveraging on the professional advisors‟ capability to analyse market trends and make
appropriate investment.
· Searching for innovative products to enhance value
· Diversifying across various types of assets
· Investing across emerging geographies
· Consolidating financial information and assets.
· Young, educated and knowledgeable
· Smart looking for the best deal
· Willing to take risk
· Well informed about global trends
· Seeks information from various sources
SIGNIFICANCE OF SAVING
To attain economic development for the comfortable life of people and for financial
organizations, saving is very important and an essential one. Regarding the decisions to
save, the main motives behind savings seems to be the following
· Provisions for a future period, when income is expected to be less or the need for
expenditure.
· Provisions against unpredictable decline in income.
· Acquisition of higher income either by improving business or by obtaining interest,
dividends, rent or other property income.
· Gain in social status by acquiring property.
(1) For Economic Development

Saving leads to increase in the national income of a country by increasing the level of
investment. To attain economic development, the national income of a country should be
high. Savings are vital to the development of an economy. An increase in private savings
helps to keep the economy in equilibrium by releasing resources for exports and for
additional investment, both at home and overseas.
(2)For People
The future is an unpredictable one, so in order to get the future requirements of money,
saving is essential. This is possible only, when they keep their money in banks or in
financial organizations. The requirements may be in the form of unavoidable expenses,
medical expenses, expenses for social functions, educational and marriage expenses and so
on. Without saving, an ordinary man cannot cover all these expenses at a time. They need
not allocate large amount of their income, but they should allocate a small portion of
income regularly. There are number of ways to save money.
(3)For Investment
Investment is the sacrifice of certain present value for the uncertain future reward. It
entails arriving at numerous decisions such as type, mix, amount, timing, and grade. An
investment decision is a trade between risk and return. All investment choices are made at
points of time in accordance with the personal investment ends and in contemplation of an
uncertain future. In order to invest successfully, one should have an investment and
personal investment objectives like having a home, creating a regular income after
retirement, possessing money for the marriage of one’s children and the likes. It must also
be ensured that the purchasing power of the money saved is not less than its present
purchasing power.
(4)For The Bankers

The Amount deposited by the public and business concerns in banks also get converted
into investments or savings. The saving is created in the form of various deposits of
accounts in the banks. Thus, these investments are indirectly helpful to increase the
national income. Moreover, the savings will be helpful to create smooth functioning or
circulation of money. i.e., the deposits which are made by the public are used for lending.
This loan may be helpful to the entrepreneurs to start a new business or expand their
business. By this way, the bank can also earn reasonable profit in the form of interest,
which is paid by the customer. So, banks are trying to get the money from those who are
having surplus and give it to those who are in need. Thus, banks are acting intermediary
between the low income group and high income group. This is more useful for the balance
of regional development.
AVAILABLE INVESTMENT OPTIONS

There are large number of investment instruments available today to make our lives
easier. Some of them are marketable and liquid while others are non marketable and some
of them also highly risky while others are almost risk less. The People has to choose
proper avenue among them, depending upon their specific need, risk preference and return
expected. Investment avenues can broadly categories under the following heads.
· Equity
· Bank Fixed Deposit
· Company Fixed Deposit
· Corporate Debenture
· Public Provident Fund
· Post Office – NSC
· Life Insurance
· Mutual Fund
· Real Estate
· Gold/Silver
(1)Equity
Equity is one of the most risky areas. But, at the same time this is also a place where an
investor can earn high rates of returns that will push up the returns of the entire portfolio.
There is a need for the investor to separate the speculation from the investment.
Investment in equities can be made directly by the purchase of shares from the market or it
can be done through the mutual fund route, whereby the investor buys the mutual fund
units and the fund in turn buys equity shares for its portfolio. There are various benefits as
well as risks associated with both these routes and it is upto the individual to make up his
mind.
(2)Bank Fixed Deposit

Fixed deposits with banks are also referred to as term deposits. Minimum investment
period for the bank FDs is 30 days. Deposits in banks are very safe because of the
regulations of RBI and the guarantee provided by the deposit insurance corporation. The
interest rate on fixed deposits varies with term of the deposits. Bank deposits enjoy
exceptionally high liquidity. Loan can raised against bank deposits.
(3) Company Fixed Deposit

Company fixed deposit is the deposit placed by investors with companies for a fixed term
carrying a prescribed rate of interest. Company FDs are primarily meant for conservative
investors who don’t wish to take the risk of vagaries of the stock market.
(4) Corporate Debenture

Corporate debentures are normally backed by the reputation and general creditworthiness
of the issuing company. It is a type of debt instrument that is not covered by the security of
physical assets or collateral. Debentures are a method of raising credit for the company
and although the money thus raised is considered a part of the company’s capital structure,
it is not part of the share capital.
(5)Public Provident Fund [PPF]

A long term saving instrument with a maturity of 15 years, A PPF account can be opened
through a nationalized bank at anytime during the year and is open all through the year for
depositing money. Tax benefits can be availed for the amount invested and interest
accrued is tax free. A withdrawal is permissible every year from the seventh financial year
of the date of opening of the account.
(6) Post Office Savings
Post office monthly income scheme is a low risk saving instrument, which can be availed
through any post office. The interest rate on deposits is slightly higher than banks. The
interest is calculated half yearly and paid yearly.
(7)Life Insurance Policies

Insurance companies offer many investment schemes to investors. These schemes promote
savings and additionally provide insurance cover. LIC is the largest insurance company in
India. Some of the schemes are
· Life policies
· Endowment assurance policy
· Money back policy
· Unit link plan
· Term assurance
· Jeevan saathi
· Convertible whole life assurance policy
· Deferred annuity etc.
Insurance policies while catering to the risk compensation to be faced in the future by
investor, also have the advantage of earning a reasonable interest on their investment
insurance premiums.
(8) Mutual Fund

This is an emerging area for investment and there is a large variety of schemes in the
market to suit the requirements of a large number of people. In finance, in general, you can
think of equity as ownership in any asset after all debts associated with a that asset are paid
off. For example, a car or house with no outstanding debt is considered the owner’s equity
because he or she can readily sell the item for cash. Stocks are equity because they
represent ownership in a company.
(9) Real Estate
Investment in real estate also made when the expected returns are very attractive, buying
property is an equally strenuous investment decisions. Real estate investment is often
linked with the future development plans of the location.
At present investment in real assets is booming there are various investment source are
available for investment which are directly or indirectly investing real estate. In addition to
this, the more affluent investors are likely to be interested in other type of real estate, like
commercial property, agricultural land, semi urban land and resorts.
(10)Gold / Silver
The bullion offers investment opportunity in the form of gold, silver, art objects
(Paintings, Antiques) precious stones and other metals, specific categories of metals are
traded in the metal exchange.
OBJECTIVES OF THE STUDY

Primary Objective: To evaluate the saving and investment pattern of college teachers at
Surat city.
.
CHAPTER-2
LITERATURE REVIEW
LITERATURE REVIEW
The literature review includes the academic books, journals, internet access, magazines
etc. Various studies on An Study of saving and investment pattern amongst college
teachers had been conducted in Indian context. Depending on the various issues of
investment, the review has been discussed in brief as follows:
· Bhardwaj (2003) has stated the literature on globalization He found the pervasiveness of
the west’s perception of the world affect on Indian investors that affects the trends in
investor’s choice. They are hugely affected by the west’s views and so changes in Indian
trends occur.
· Shrotriya (2003) conducted a survey on investor preferences in which he depicted the

linkage of investment with the factor so considered while making investment. He says
“There are various factors and their linkage also. These factors help us how to ensure
safety, liquidity, capital appreciation and tax benefits along with returns.”
· Walt A. Nelson (2006) made a study and the purpose of this case study is to examine
direct investment in commercial real estate from the perspective of the individual. While
most research is dominated by studies concerning direct investment by institutions (REITs,
pension funds, etc.), the bulk of direct investment in commercial property is still
conducted by individuals. The paper presents accounting and financial data from the
original purchase, management and disposal of a small-scale office building. Cash flows,
returns and risks are measured and analyzed. The case demonstrates that successful direct
investments may be characterized by short-term time horizons involving older, small-scale
properties. This case illustrates the non-academic nature of real world direct investment in
commercial property. The case demonstrates that emotion and good timing are just as
important to a successful venture as are cash flows and thorough risk estimates. The case
also shows that successful direct investment in commercial property may be limited to
smaller, older properties held for short-term time horizons. This case study is unique
because it identifies the property, the investor, the purchase price, the operating revenues
and the sale price and net proceeds. Most case studies conceal many of these facts in order
to preserve anonymity.
· Casey B. Mulligan and Yona Rubinstein (2008) studied the growing wage inequality
within gender that would cause women to invest more in their market productivity and pull
able women out of workforce. The study uses Heckman’s two step estimator and
identification at infinity on repeated current population survey cross sections to calculate
relative wage series for women since 1970 that hold constant the composition of skills.
They find that selection into the female full time full year workforce shifted the narrowing
of the gender wage gap reflect changes in female work force composition. They find the
same type of composition changes by measuring husbands’ wages and the national
longitudinal survey IQ data as proxies for unobserved skills. The findings help to explain
why growing wage equality between genders coincide with growing inequality within
gender. This study concentrated on wage and productivity of employees and not on their
investment.
· Sunil Gupta (2008) the investment pattern among different groups in city had revealed a
clear as well as a complex picture. The complex picture means that the people are not
aware about the different investment avenues and they did not respond positively,
probably it was difficult for them to understand the different avenues. The study showed
that the more investors in the city prefer to deposit their surplus in banks, post offices,
fixed deposits, saving accounts and different UTI schemes, etc. The attitude of the
investors towards the securities in general was bleak, though service and professional class
is going in for investment in shares, debentures and in different mutual fund schemes. As
far as the investments are concerned, people put their surplus in banks, past offices and
other government agencies. Most of the cities though being rich have a tendency of
investing then surpluses in fixed deposits of banks, provident funds, Post Office savings,
real estates, etc. for want of safety and suitability of returns.
· Archna v. Hegde, Deborah j. Cassidy (2009) interviewed twelve kindergarten teachers

in their study, and a constant comparative method was used to analyze the interviews. This
study included a focus on academics vs. play, the importance of worksheets, the
importance of groups for socialization, and the difficulties of implementing a play-based
curriculum.
· An empirical study of “Indian Individual Investors Behavior” by Syed Tabassum Sultana

(2010) was an attempt to know the profile of the investors and also to know their
characteristics so as to know their preference with respect to their investments. The study
also tried to unravel the influence of demographic factors like gender and age on risk
tolerance level of the investors.
· Karthikeyan (2010) in his study suggested that the world thrift day may be celebrated not
only by Government but also by voluntary organization to increase savings. Interesting
and attractive audio visual type of advertisements and personal canvassing techniques
could be used to increase investments. Existence of agencies must be made known to
investors. The rate of interest must be hiked for investments. His study related to the
savings pattern of employees.
· R.R.Rajamohan (2010) in his study records that the Indian Government has introduced
defined contribution pension plans to the newly recruited employees from January 2004. 7
State governments have introduced the scheme for their employees and others have shown
interest. The new system calls for the participants to manage their contribution by placing
the responsibility of deciding where their contribution should be invested and who should
manage their contribution etc. However the author feels that the work force is not
equipped to take such decision. Thus the study aims at looking in to this aspect by
analyzing the relationship between financial knowledge and the investment of households
in risky assets. The study found the existence of a significant and positive relationship
between the financial knowledge and ownership of risky assets, which calls for the
attention of the policy makers while proceeding further in implementing the defined
contribution pension plan. In this study utmost importance was given to investment in
pension funds, it also touches on the investment in risky assets.
· Shilpa Agarwal (2010) studied the perceptions of the people about the investment of their
savings. The aim of her study was to understand the basic requirements of the common
man and his views on investments. She studied the various investment avenues and the
investors risk preference towards it and tried to identify the general demographic factors of
the investors dealing in capital markets, her other aims were to find out the preference of
investors for various Capital Market instruments, to find out the type of risks which are
considered by the investors, and to find out the ways through which the investors minimize
their risk, but did not study about the pattern of investment in capital market.
· Bhardwaj Rajesh, Raheja Rekh and Priyanka (2011), propounded in their study that
saving and investment pattern of salaried class college teachers of govt. and private
colleges has depended upon income and they both get salary but the scale of the salaries
are different and saving patterns that’s why is so different. Govt. teachers prefer to invest
the money for emergency purposes and private teacher’s emphasis on children marriage
and education.
· Dr. S. Mathivannan and Dr. M. Selvakumar (2011) examined the saving and
investment patterns of salaried teachers of Sivakasi Taluka, Tamilnadu and they found that
there is great importance of money and money’s worth for them and They are regularly
preparing budgets for Expenditures and compare it with the actual expenditure and take
necessary actions if there are any deviations has arrived so far and they are influenced by
fashionable and costly items.
· Pestonjee (2011) attempted to study how far working women enjoy freedom to take
investment related decisions on their own and the pattern of investments in the male
dominated investment world in India. The questions related to investment pattern and its
decision maker with respect to working women was studied by taking, 227 respondents
from 3 cities: 108 in Ahmedabad, 60 in Solapur, 59 in Gulbarga. A Questionnaire was
administered and data were collected on saving, types of investment, influencers,
expenditure and decision-makers. Data were analysed using, conventional and non-
conventional statistical tools. There is no significant difference among the respondents
across the cities with respect to age, family size, type of family, marital status, level of
education, occupation and annual income. No cultural and demographical patterns are
associated with decision making by working women.
· Lewellen (2011) found investor age, income, sex essentially in that descending order of
importance as the unquestionable character which over rode occupation, marital status,
family size and educational background as significant influences in the explanation of
different in investment styles and strategies. The last four were found to make only
occasional modest contributions.
· Meenakshi Chaturvedi and Shruti Khare (2012) analyses and suggests that there is an
explosion in the growth of middle class families due to double income and increase in
number of working women. Hence effort should be made to attract women investors by
providing right information and knowledge about the market through advertisement· There
is a dire need to initiate steps to inculcate saving habit among the growing middle class
families. The savings are to be pooled and channelized into productive investments. Hence
effort should be made to attract women investors by providing right information and
knowledge about the market through advertisement.
· Dr. Dhiraj Jain and Parul Jain (2012) concluded that the majority of the teachers the
money plays a big role and they initiated to prepare budgets and future forecasting for
income and expenditure and there is comparison between future and Standard budgets to
find out the deviations to meet certain money constraints It has been evident from the
study that most of the college teachers are saving their money for the purpose of their
children’s education, marriage and as security after retirement.
· Dr. Ananthapadhmanabha Achar (2012) studied “Saving and Investment Behaviour of

Teachers - An empirical study”. In the analysis individual characteristics of teachers such
as age, gender, marital status, and lifestyle determined the savings and investment
behaviour of teaching community in the study region. They considered monthly family
income, stage of family life cycle, and upbringing status emerged as determinants of their
savings and investment behaviour.
· Murithi Suriya (2012) reported that majority of the investors are found to be considering
two or more sources of information to make investment decisions. The investors discuss
with their family and friend before making an investment decision.
· Mr. K.E. Job (2012) in his article “A Study on Investment Planning with Special
Reference to State Government Officers in Palakkad District” identifies the relationship
between Income and Savings schemes of employees. This study also analysis the reasons
for preferring a particular investment scheme and utilisation of tax concessions by the
employees. The findings of the study are, a. The savings are made to get regular income in
future. b. Profitability, liquidity, safety, tax concession and appreciation are the main
reasons for investments.
· Brooke Harrington (2012) in his study examines the mass movement of Americans into
investing during the 1990s as both a consequence and a cause of contested power between
corporations and individuals. This movement was part of a larger historical pattern of
economically marginalized people consolidating their power through associational
strategies in the realm of finance. Using US investment clubs as a case study, the chapter
draws on Foucault's theories to illuminate the bilateral power structure of modern
capitalism, in which market institutions and small groups at the grassroots level mutually
influence one another. While the investment club movement was in part a response to
economic domination by corporate and political elites, it also catalyzed genuine shifts in
the power dynamics between individuals and corporations.
· Veeramani G and M. Karthikeyan (2014), opines that previous studies mainly

concentrated on differences in individual investing pattern on the basis of gender and have
been carried out to determine the pattern of institutional investors investment but studies
dealing with Investment pattern of individual investors are very few .Earlier studies
conclude that women invest more conservatively than their male counterparts. Their study
concentrates on the investment pattern of the investors in Mutual fund and Life insurance.
To know what factors influence investors while they choose a particular investment ,a
particular company and in which particular scheme they prefer to invest and to find out
whether they are satisfied with their investment decision or not.
· Hood Nofsinger and Varma (2014) examine the factor that influences the investment
decisions of socially responsible investors. The investor feels that stock owned by
individual investors should have social characteristics and personal values.
· B.Thulasipriya (2015) had conducted the search on investment preference of government
employees on various investment avenues. The employees still prefers to invest in
financial products which give risk free returns.
CHAPTER-3
RESEARCH METHODOLOGY
STATEMENT OF PROBLEM
The global economy went through one of its worst ever recession in the past. Financial markets
across the world have suffered with lack of liquidity to reduce the ill effects of recession.
Coincidentally, it was also the time when proportion of investment and saving also started
growing rapidly. Hence, it is felt appropriate to do research on the investment decision of
academicians. The research process began with a question “Is investment decision of
academicians are same as others?” in a general way. After the initial review of literature, it is
found that people are invest their money in various saving or investment. This prompted the
researcher to conduct an initial survey of academicians in the city of Surat in Gujarat and also
brainstorming session with personal financial planners which revealed that there are numerous
internal and external factors affecting saving and investment decision making. This entire process
led researcher to formulate the final research problem as to study about the academician’s
investor, the factors influencing the saving and investment decision of academicians and the
avenues attracted. So the researcher takes a topic “A Study on saving and investment pattern of
academicians with special reference to Surat city”.
OBJECTIVES OF STUDY
Primary Objective: To evaluate the saving and investment pattern of academicians at Surat city.
Secondary Objective:
1. To identify the preferred investment avenue of academicians.
2. To know the various investment patterns amongst the academicians.
3. To know which investments have proved to be more beneficial to the academicians.
4. To know the factors influencing the investment decision of academicians.
5. To study the perception of investment amongst academicians.
6. To analyze the awareness of the investment opportunities amongst the academicians
7. To study the satisfaction level of investment through academicians.
8. To study level of risk and return on various investment.
9. To find out various investment avenues selected by the investors.
RESEARCH DESIGN
· Researcher has used descriptive research design.
· As the first step, literatures relevant to the concepts are reviewed then objectives are formulated
and hypotheses are framed. Based on the objectives questionnaire is formulated for the collection
of primary data which is paramount for the study. Primary data is collected by distributing
questionnaire to the sample population. Collected primary data rigorously analyzed using suitable
techniques to obtain true and reliable results which are interpreted to depict significant findings,
offer valid suggestions and draw into an appropriate conclusion.
DATA COLLECTION METHOD:

Since the present study is an analytical and descriptive type of analysis to survey the factors
influencing academician’s investors and the required data are collected from both the primary and
secondary sources.
The secondary data were collected from various sources such as journals, magazines, websites and
dissertations from libraries of reputed educational institutions.
The primary data which is the centric point of the study is collected through well-defined
questionnaire.
SAMPLING DESIGN
(A) Universe/population
The academicians of the Surat city are the universe of the study.
(B) Sampling techniques
There are several sampling techniques for getting samples from the universe. For this study Non
Probability convenient sampling technique is used to get samples from the universe. Here from
the universe the information about the respondents can be gathered from different colleges,
professionals, private and public colleges etc.
(C) Sample size
The total sampling size of the study is 150 samples.
TOOLS AND TECHNIQUES FOR ANALYSIS
In order to accomplish the objectives of the study, the collected data are classified, grouped and
resented in the forms of tables. These data are thoroughly analyzed using relevant statistical tools
viz, frequency analysis, factor analysis, normality test and kruskal Wallis test with the help of
SPSS and excel packages to generate meaningful results. Results are interpreted to come out with
findings and suggestions. Then conclusion is drawn based on the findings and suggestion offered
in the study.
SIGNIFICANCE OF THE STUDY
The study is quite significant to the target audience, since it tries to analyze various investment
strategies available in the real world. The investors would get to know the risk exposure necessary
to procure full capital gain potential, which can be implemented with aggressive strategy as and
when the opportunity arises.
SCOPE OF THE STUDY

The study mainly concentrates on the analysis of the investment pattern, investor behavior and
risk-return dynamics of investments made by the academicians in Surat. The study tries to analyze
the investment strategies taking into consideration the risk and return parameters. The study
covers different asset classes including equity, debt, real estate, gold, insurance, shares, debenture
etc. The respondent profile is basically academicians or teaching community at the pre-university,
under-graduate and post-graduate, PhD, M.Phil levels.
UTILITY OF THE STUDY

· The study is useful to the investing community for managing their investments and meeting their
financial goal.
· The study is useful to the management and commerce students to understand the various
investment asset classes, investment objectives and risk.
· The study shall also be useful to further researchers to build an investment model for the
investors.
CONTRIBUTION OF THE STUDY
· The study helps in better understanding of the various investment asset classes and factors that
determine the choice of asset classes. The study also tries to understand the demographic
characters like age, gender, annual income, family status, etc and their impact on the investment
pattern.
· One of the most important contributions of the study lies in understanding the parameters that
determine the choice of the asset class. The study also tries to analyze the risk perception of the
investors and its impact on investment pattern. The significant contribution of the study lies in
emphasizing the fact that academicians need to understand the need, importance and objectives of
the investments, so that they could meet their future needs and plan for their requirement.
LIMITATION OF THE STUDY

The researcher humbly believe that present study will be helpful to all the concerned and be an
addition in the area of study. The limitation of the study are really of the researcher, particularly
time, geographical area and limited size of the sample.
The researcher hopes the present study would open many further area of the research, particularly
financial behavior of the person with reference to financial investment patterns.
The lack of available literature on the area of the study was the major limitations. There are very
few studies carried out in India were on the saving behavior rather than focusing on the
investment and portfolio construction of retail investors. The sampling process and sample size
determination was one major issue for the study though we have tried to select the sample
scientifically using some statistical tool but it was felt during survey that this was one of the
limitations of the study.
The purpose of the study ideally, was to know that how much investor are investing in different
kind of financial product and which type of product, investors prefer to invest; such an analysis is
really a very difficult task as the official data on investment is not easily available in India. Such
as other countries like UK, Netherlands, Japan and European countries. The lack of secondary
database in the area of research was the major limitation of the studies.
During this survey researcher found that people are not ready to share their personal information
regarding investment and saving and it was felt that the respondent were so many times not able to
quantify most of the physical as well as financial assets. This response biases can also be
considered as one the limitation of the study.
CHAPTER- 4
DATA
ANALYSIS AND
INTERPRETATION
1. AGE
Age Frequency Percentage

21 - 30 73 49
31 - 40 43 29
41 - 50 27 18
Above 51 7 5
Total 150 100
Age
9%
10%
21 -30
31 - 40
23% 41 - 50
Above 51
59%
INTERPRETATION:
From the above table it is clear that 49% of respondents belonging to the age between 21 – 30,
29% belongs to 31 – 40, 18% belongs to 41 – 50, 5% belongs to 51 and above.
42
2. GENDER
Gender Frequency Percentage
Male 83 55
Female 67 45
Total 150 100
Gender
45%
Male
Female
55%
INTERPRETATION
From the above chart it indicates that from 150 respondents 55% are male and 45% are female.
43
3. MARITAL STATUS
Marital Status Frequency Percentage

Married 90 60
Unmarried 57 38
Widow 1 1
Divorced 2 1
Total 150 100
Marital Status
1%1%
38%
Married
Unmarried
Widow
Divorced
60%
INTERPRETATION
From the above chart 60% are married, 38% are unmarried, 1% are widow and 1% are divorced.
44
4. EDUCATIONAL QUALIFICATION
Educational Qualification Frequency Percentage

Under Graduate 51 34
Post Graduate 74 50
Professional 20 13
Others 5 3
Total 150 100
Educational Qualification
3%
13% 34%
Under Graduate
Post Graduate
Professional
Others
49%
INTERPRETATION
From the above chart of 150 respondents 34% are Under graduate, 50% are post graduate, 13%
are professional and 3% are others.
45
5. TYPE OF ORGANISATION
Type of Organization Frequency Percentage
Self-Finance 124 83
Government 21 14
Semi Government 5 3
Total 150 100
Type of Organisation
3%
14%
Self-Finance
Government
Semi Government
83%
INTERPRETATION
From the above chart it indicates that 83% respondents are from self finance organization, 14%
are from government and 3% are from semi government.
46
6. RESIDENTIAL/LOCATION
Residential/Location Frequency Percentage
Rural 26 17
Urban 124 83
Total 150 100
Residential /Location
17%
Rural
Urban
83%
INTERPRETATION
From the above chart it indicates that 83% respondents belongs to urban area and 17%
respondents belongs to rural area.
47
7. WORKING EXPERIENCE
Working Experience Frequency Percentage

Less than 5 65 44
5 to 10 47 31
10 to 15 29 19
More than 15 9 6
Total 150 100
Working Experience
6%
19% 43%
Less than 5
5 to 10
10 to 15
More than 15
31%
INTERPRETATION
From the above chart it indicates that 44% respondents have working experience of less than 5
years, 31% have experience of 5 to 10 years, 19% have 10 to 15 years and 6% have more than 15
years of experience.
48
8. MONTHLY INCOME (INDIVIDUAL)
Monthly Income Frequency Percentage

Less than Rs. 10000 22 15
Rs. 10,001 to Rs.30,000 57 38
Rs.30,001 to Rs.50,000 61 41
Above Rs. 50,001 10 7
Total 50 100
Monthly Income (Individual)
7% 15%
Less than Rs. 10000

Rs. 10,001 to Rs.30,000
Rs.30,001 to Rs.50,000
41% Above Rs. 50,001
38%
INTERPRETATION
From the above chart it indicates that 15% respondents have income less than Rs. 10000, 38%
have income between Rs. 10,001 to Rs. 30,000, 40% have between Rs. 30,001 to Rs.50,000 and
7% have income above Rs. 50,001.
49
9. ANNUAL INCOME (FAMILY)
Annual Income (Family) Frequency Percentage
Less than Rs. 10,0000 27 18
Rs.10,0001 to Rs.30,0000 34 23
Rs.30,0001 to Rs.50,0000 48 32
Above Rs. 50,0001 41 27
Total 150 100
Annual Income (Family)
27% 18%
Less than Rs. 10,0000

Rs.10,0001 to Rs.30,0000
23%
Rs.30,0001 to Rs.50,0000
Above Rs. 50,0001
32%
INTERPRETATION
From the above chart it indicates that 18% respondents have annual income less than Rs.100000,
23% have between Rs. 100001 to Rs.300000, 32% have income between Rs. 300001 to
Rs.500000 and 27% have income above Rs. 500001.
50
10.Do you have any other income than employment?
Other Income Frequency Percentage
Yes 41 27
No 109 73
Total 150 100
Other Income
27%
Yes
No
73%
INTERPRETATION
From the above chart it shows that 27% respondents have other income and 73% respondents not
have any other income.
51
Q-1 Have you invested your savings so far?
Criteria Frequency Percentage
Yes 125 83
No 25 17
Total 150 100
Invested your savings so far?

17%
Yes
No
83%
INTERPRETATION
From the above chart it shows that 83% respondents have invested their savings and 17% have not
invested their savings.
52
Q-2 Which of the following avenues have you opted for?
Investment Avenues Frequency Percentage
Post Office Saving Schemes 85 15

(POMIS/PPF)
Insurance 97 17
Shares 63 11
Mutual Funds 61 11
National Saving Certificate 29 5
Debentures and Bonds 6 1
Real Estate 35 6
Precious Metals 38 7
Derivative 14 2
Commodity 8 1
Systematic Investment 39 7
Planning
Fixed Deposits 99 17
Other 2 0
Total 576 100
53
Investment Avenues
18%
16%
14%
12%
10%
Percentage
8%
6%
4%
2%
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INTERPRETATION
· From the above chart it indicates that 17% maximum respondents invest in Fixed deposits and
Insurance stands at second category in investment by 17%, 15% invest in post office saving
schemes.
· 11% respondents invest in shares which stands at first place and 11% invest mutual funds which
stands at second category.
· 7% respondents invest in SIP and precious metals such as gold, silver etc.
· 6% respondents invest in real estate, 5% invest in NSC, 2% invest in derivatives and 1% in
debentures and bonds and 1% in commodity.
54
Q-3 How frequently you change your investment?
Time Period Frequency Percentage
1 Month 5 3
1 - 6 Month 35 23
6-12 Month 40 27
Above 1 Year 70 47
Total 150 100
How frequently you change your investment?

3%
23%
47%
1 Month
1 - 6 Month
6 - 12 Month
Above 1 year
27%
INTERPRETATION
From the above chart it shows that 3% respondents frequently change their investment in 1 month,
23% respondents frequently change in 1 – 6 Months, 27% change their investment in 6 – 12
Months and 47% change their investment above 1 year.
55
Q-4 What level of risk are you ready to undertake for your investment avenue?
Level of Risk Frequency Percentage
Less Risk 72 48
Moderate Risk 68 45
High Risk 10 7
Total 150 100
Level of Risk
7%
48%
Less Risk
Moderate Risk
HighRisk
45%
INTERPRETATION
From the above chart it indicates that 48% respondents take less risk for investment, 45% take
moderate risk and 7% take high risk.
56
Q-5 Do you have a formal budget for family expenditure?
Yes 80 53
No 70 47
Total 150 100
Formal Budget
47%
Yes
No
53%
INTERPRETATION
From the above chart it indicates that 53% respondents prepare formal budget and 47% not
prepare budget for family expenditure.
57
Q-6 Do you have an investment target amount you aim for each year?
Yes 82 55
No 68 45
Total 150 100
Investment Target Amount
45%
Yes
No
55%
INTERPRETATION
From the above chart it indicates 55% respondents have investment target amount and 45% have
no target amount for investment.
58
Q-7 How often do you monitor your investment?
Daily 9 6
Monthly 41 27
Occasionally 100 67
Total 150 100
Monitor your investment

6%
27%
Daily
Monthly
Occasionally
67%
INTERPRETATION
From the above chart it indicates that 6% respondents daily monitor their investment, 27%
monthly monitor and 67% occasionally monitor their investment.
59
Q-8 What is the time period you prefer to invest?
Time Period Frequency Percentage
Short term (up to 1Yrs) 23 15
Medium term (2 - 3 yrs) 56 37
Long term (more than 3 yrs) 71 47
Total 150 100
Time Period
15%
47%
Short term (up to 1Yrs)
Medium term (2 - 3 yrs)
Long term (more than 3 yrs)
37%
INTERPRETATION
From the above chart it indicates that 15% respondents invest for short term, 37% invest for
medium term and 48% invest for long term time period.
60
Q-9 What percentage of your income do you invest?

0 - 15% 48 32
15 - 30% 71 47
31 - 50% 31 21
More than 50% 0 0
Total 150 100
Percentage
0%
of income to invest
21% 32%
0 - 15%
15 - 30%
31 - 50%
More than 50%
47%
INTERPRETATION
From the above chart it indicates that 32% respondents invest their 0 – 15% income, 47% invest
their 15 – 30% income and 21% invest their 31 – 50% income.
61
Q-10 What is your preferred way to invest?
Online 41 27
Offline 109 73
Total 150 100
Ways to invest
27%
Online
Offline
73%
INTERPRETATION
From the above chart it indicates that 73% respondents prefer to invest offline and 27% prefer to
invest online.
62
Q-11 Before investing your savings, I prefer to collect the information from:
1-Not preferred 2-Least preferred 3- Neutral 4- Preferred 5-Most Preferred
Particulars N Minimum Maximum Mean Std. Deviation
Financial Planner 149 1.00 5.00 3.2886 1.11073

Annual Reports 147 1.00 5.00 2.9456 1.16326
Prospectus 147 1.00 5.00 2.8027 1.09569
Co. Website 149 1.00 5.00 3.1879 1.08658
Agents 146 1 5 3.59 1.087
Rating Agencies 145 1.00 5.00 2.8345 1.09299
Co. Representatives 146 1.00 5.00 2.4041 1.15418
Family Members 149 1 5 3.52 1.094
150 1.00 5.00 3.4400 1.07741
Friends & Relative
Conversation with colleagues 147 2.00 5.00 3.6871 .92012

News Paper 149 1.00 5.00 3.9396 .96722
Conversation with co. executive 147 1.00 5.00 3.2177 1.13184
Corporate Forecast 150 .00 5.00 2.9800 1.21219
147 1.00 5.00 3.2109 1.22324
Published Research Reports
Opinions from exiting investors 145 1.00 5.00 3.4966 1.06147

Brokers 148 1.00 6.00 3.8716 .97087
Internet 149 1.00 7.00 3.6913 1.01275
137
Valid N (listwise)
63
INTERPRETATION
Certified Financial Planner
Here, the researcher can say that, Certified financial investor is neutral sources for collecting
information regarding investment as per the mean value. (i.e. 3.2886)
Annual reports of the company
Here, the researcher can say that, Annual reports of the company is neutral sources for collecting
Prospectus of the company
Here, the researcher can say that, prospectus of the company is neutral sources for collecting
Company’s Website
Here, the researcher can say that, company’s website is neutral sources for collecting information
regarding investment as per the mean value. (i.e.3.1879)
Distributers/Agents of financial product
Here, the researcher can say that, distributers or agents of financial product is preferred sources
for collecting information regarding investment as per the mean value (i.e. 3.59)
Rating agency reports
Here, the researcher can say that, rating agency reports is least preferred to neutral sources for
collecting information regarding investment as per the mean value. (i.e. 2.8345)
Company’s telephone representatives
64
Here, the researcher can say that, company’s telephone representatives is least preferred sources
for collecting information regarding investment as per the mean value. (i.e. 2.4041)
Family Members
Here, the researcher can say that, family members is preferred sources for collecting information
regarding investment as per the mean value. (i.e.3.52)
Friends and Relatives
Here, the researcher can say that, friends and relatives is neutral sources for collecting information
regarding investment as per the mean value. (i.e. 3.4400)
Conversation/exchanges of views with professional colleagues
Here, the researcher can say that, conversation or exchange of views with professional colleagues
is preferred sources for collecting information regarding investment as per the mean value (i.e.
3.6871)
Publication in the financial press, news paper and electronic media
Here, the researcher can say that, publication in the financial press, news paper and electronic
media is preferred sources for collecting information regarding investment as per the mean value
(i.e.3.9396)
Conversation/ exchanges of views with company executive and sector experts
Here, the researcher can say that, conversation or exchanges of views with company executive and
sector experts is neutral sources for collecting information regarding investment as per the mean
value (i.e.3.2177)
Corporate forecast prepared by independent investment company
Here, the researcher can say that, corporate forecast prepared by independent investment company
is neutral sources for collecting information regarding investment as per the mean value
(i.e.2.9800)
65
Published reports from research agencies
Here, the researcher can say that, published reports from research agencies is neutral sources for
collecting information regarding investment as per the mean value (i.e.3.2109)
Opinions from existing investors of various instruments
Here, the researcher can say that, opinions from existing investors of various instruments is
preferred sources for collecting information regarding investment as per the mean value (i.e.
3.4966)
Financial advisors/Broker and analyst’s recommendation
Here, the researcher can say that, financial advisors or broker and analyst’s recommendation is
preferred sources for collecting information regarding investment as per the mean value (i.e.
3.8716)
Internet
Here, the researcher can say that, internet is preferred sources for collecting information regarding
investment as per the mean value (i.e. 3.6913)
66
Q-12 Which investment has proved more beneficial to you so far? (Please write the number
in order of preference)
Investment Avenue Frequency Rank
Post Office Saving Schemes 435 2

(POMIS/PPF)
Insurance and Pension Plans 429 1
Shares 728 7
Mutual Funds 641 4
National Saving Certificate 652 5
Debentures and Bonds 837 10
Real Estate 718 6
Precious Metals (Gold & Silver) 766 8
Derivatives 936 11
Commodity 954 12
SIP 810 9
Fixed Deposits 518 3
INTERPRETATION
· From the above table it indicates that, among 150 respondents first rank preference for investment
avenue by respondents prefer to insurance as it has less risk and more reliable and useful in
emergency situations like accidents, contingencies etc.
· Respondents prefer second rank for investment avenue is post office savings schemes as it has
long term investment and has very less risk and give more return as compared to other avenues.
· Respondents prefer third rank to fixed deposits for investment as it includes very less risk and
high return and more reliable for long term investment.
· Respondents prefer fourth rank to mutual funds for investment as it diversify risk by creating a
group of different securities and create optimal portfolio which gives more return.
67
· Respondents prefer fifth rank to national saving certificate and sixth rank to real estate for
investment of long term and NSC is beneficial to old aged people.
· Respondents prefer seventh rank to shares for investment as it had high risk and high return
characteristics so constant analysis of stock market is necessary as prices goes on changing.
· Respondents prefer eight rank to precious metals like gold and silver for investment and and ninth
rank to systematic investment planning (SIP) and tenth rank to debentures and bonds.
· Respondents least prefer to derivatives and commodity for investment as it includes very high
risk.
68
Q-13 Why do you want to invest in the various invest categories?
Purpose N Minimum Maximum Mean Std. Deviation
Liquidity 121 1.00 11.00 5.3967 3.05908

Less transaction cost 136 1.00 11.00 5.25 3.76091
Regular income 142 1.00 11.00 5.4437 3.81212
Safety 149 1.00 11.00 4.1544 3.24813
Risk protection 143 1.00 11.00 3.7483 3.22068
Less procedure 133 1.00 12.00 5.9098 3.69163
Less maintenance 131 1.00 11.00 5.5954 3.21242
expense
Long term investment 146 1.00 11.00 5.3836 3.47853
High return 138 1.00 11.00 4.0072 2.63191
Chances for savings 142 1.00 11.00 4.4296 3.29710
Old Age Security 142 1.00 11.00 3.6479 3.28158
Tax benefit 127 1.00 11.00 4.126 3.12946
Emergency need 131 1.00 11.00 3.4656 3.04403
Child education 138 1.00 11.00 5.2681 4.38900
69
Purpose Frequency/N Percentage Mode
Liquidity 121 6.305367 3
Less transaction cost 136 7.087024 3
Regular income 142 7.399687 11
Safety 149 7.764461 1
Risk protection 143 7.451798 2
Less procedure 133 6.930693 11
Less maintenance expense 131 6.826472 3
Long term investment 146 7.608129 1
High return 138 7.191245 3
Chances for savings 142 7.399687 2
Old Age Security 142 7.399687 2
Tax benefit 127 6.61803 1
Emergency need 131 6.826472 2
Child education 138 7.191245 11
Total 1919 100
INTERPRETATION
· From the above table we know that 6.31% invested for the purpose of liquidity and they invested
in shares as shares are easily convertible in cash in emergency.
· Maximum respondents invested for the purpose of safety i.e. 7.76% in post office saving schemes
and second purpose is long term investment i.e. 7.60%.
· 7.46% respondents invest for the purpose of risk protection in Insurance and pension plans.
· 7.40% respondents invest for chances for savings and old age security in insurance and pension
plans.
· 7.19% respondents invest for purpose for high return and child education in shares and fixed
deposits respectively.
· 7.09% respondents invest for the purpose of less transaction cost in shares.
70
Q-14 What is the average annual rate of return you get from different types of investment
you opt?
1à <=5% 2à 5-8% 3à 8-10% 4à 10-15% 5à 16<=%
Investment Avenue N Minimum Maximum Mean Std. Deviation

Post Office Saving Schemes 138 1.00 5.00 2.2464 0.86126
(POMIS/PPF)
Insurance and Pension Plans 137 1.00 5.00 2.5766 0.82000
Shares 130 1.00 5.00 3.1 1.04807
Mutual Funds 134 1.00 5.00 2.7090 1.03926
National Saving Certificate 119 1.00 5.00 2.6050 1.01027
Debentures and Bonds 113 1.00 5.00 2.3009 1.09287
Real Estate 130 1.00 5.00 2.3615 1.09971
Precious Metals (Gold & Silver) 129 1.00 5.00 2.2093 0.92428
Derivatives 119 1.00 5.00 1.9328 0.92728
Commodity 116 1.00 5.00 1.9828 0.98672
SIP 126 1.00 5.00 2.6667 0.94657
Fixed Deposits 140 1.00 5.00 3.1357 0.85840
INTERPRETATION
Post Office Saving Schemes
Here, the researcher can say that, post office saving schemes gives 5-8% average annual rate of
return as per the mean value. (i.e. 2.2464)
Insurance and Pension Plans

Here, the researcher can say that, insurance and pension plans gives 8-10% average annual rate of
return as per the mean value. (i.e. 2.5766)
Shares
Here, the researcher can say that, shares gives 8-10% average annual rate of return as per the
mean value. (i.e.3.1)
71
Mutual Funds
Here, the researcher can say that, mutual funds gives 8-10% average annual rate of return as per
the mean value. (i.e. 2.7090)
National Saving Certificate
Here, the researcher can say that, national saving certificate gives 8-10% average annual rate of
return as per mean value. (i.e. 2.6050)
Debentures and Bonds
Here, the researcher can say that, debentures and bonds give 5-8% average annual rate of return as
per the mean value. (i.e.2.3009)
Real Estate
Here, the researcher can say that, real estate gives 5-8% average annual rate of return as per the
Precious Metals (gold & Silver)
Here, the researcher can say that, precious metals give 5-8% average annual rate of return as per
the mean value. (i.e.2.2093)
Derivatives
Here, the researcher can say that, derivatives give 5-8% average annual rate of return as per the
mean value. (i.e. 1.9328)
Commodity
Here, the researcher can say that, commodity gives 5-8% average annual rate of return as per the
72
Systematic Investment Planning (SIP)
Here, the researcher can say that, systematic investment planning gives 8-10% average annual rate
of return as per the mean value. (i.e. 2.6667)
Fixed Deposits
Here, the researcher can say that, fixed deposit gives 8-10% average annual rate of return as per
the mean value. (i.e. 3.1357)
73
Q-15 Before making specific investment decisions, how often do you do the following?
1-Never 2-Seldom 3-Sometime 4-Often 5-Always
Statement N MinimumMaximum Mean Std. Deviation

Review overall investment goal 146 1.00 5.00 2.9315 0.9872
Assess your risk tolerance level 149 1.00 5.00 3.4295 0.9246
Determine your return objective for the 148 1.00 5.00 3.3514 0.9750
investment
Consider a variety of investment options? 146 1.00 5.00 3.3425 0.9573
Check current financial market condition 148 1.00 5.00 3.4662 1.1513
Talk with family or friends who are 149 1.00 5.00 3.7047 1.0168
knowledgeable about investing?
Consult a financial advisor 148 1.00 5.00 3.5541 1.0254
INTERPRETATION
Review overall investment goal

Here, the researcher can say that, respondents review overall investment goal sometime before
making specific investment decision as per the mean value. (i.e. 2.9315)
Assess risk tolerance level

Here, the researcher can say that, respondents assess risk tolerance level sometime before making
specific investment decision as per the mean value. (i.e. 3.4295)
Determine your return objective for investment

Here, the researcher can say that, respondents determine return objective for investment sometime
to often before making specific investment decision as per the mean value. (i.e. 3.3514)
Consider variety of investment options

Here, the researcher can say that, respondents consider variety of investment options sometime
before making specific investment decision as per the mean value. (i.e.3.3425)
Check current financial market condition
74
Here, the researcher can say that, respondents check current financial market condition sometime
before making specific investment decision as per the mean value. (i.e. 3.4662)
Talk with family and friends

Here, the researcher can say that, respondents talk with family and friends often before making
specific investment decision as per the mean value. (i.e. 3.7047)
Consult a financial advisor

Here, the researcher can say that, respondents consult a financial advisor often before making
specific investment decision as per the mean value. (i.e.3.5541)
75
Q-16 (A) State the level of risk and return associated with the following investments.
1-Very high 2-High 3-Low 4-Very Low
Level of risk
Investment N MinimumMaximum Mean
Post Office Saving Schemes 144 2.00 4.00 3.5417

(POMIS/PPF)
Insurance and Pension Plans 145 1.00 4.00 3.1517
Shares 140 1.00 4.00 1.9857
Mutual Funds 143 1.00 4.00 2.6993
National Saving Certificate 136 1.00 4.00 3.1618
Debentures and Bonds 129 1.00 4.00 2.3101
Real Estate 136 1.00 4.00 2.6103
Precious Metals (Gold & Silver) 139 1.00 4.00 2.7554
Derivatives 131 1.00 4.00 2.2595
Commodity 128 1.00 4.00 2.4375
SIP 132 1.00 4.00 3.1970
Fixed Deposits 142 1.00 4.00 3.6268
76
Level of return
Investment N Minimum MaximumMean
Post Office Saving Schemes (POMIS/PPF)
145 1.00 4.00 2.2483
Insurance and Pension Plans 147 1.00 3.00 2.2381
Shares 139 1.00 4.00 1.8489
Mutual Funds 143 1.00 4.00 2.1888
National Saving Certificate 138 1.00 4.00 2.2246
Debentures and Bonds 132 1.00 4.00 2.2500
Real Estate 138 1.00 4.00 2.4855
Precious Metals (Gold & Silver) 136 1.00 4.00 2.6618
Derivatives 131 1.00 4.00 2.3740
Commodity 131 1.00 4.00 2.5878
SIP 131 1.00 4.00 2.1221
Fixed Deposits 141 1.00 4.00 2.0638
INTERPRETATION
Post Office Saving Schemes (POMIS/KVP/PPF)
Here, the researcher can say that, post office saving schemes have very low level of risk and level
of return is high as per the mean value 3.5417 and 2.2483 respectively.
Insurance and pension plans

Here, the researcher can say that, insurance and pension plans have low level of risk and high
return as per the mean value 3.1517 and 2.2381 respectively.
Shares
Here, the researcher can say that, shares have high level of risk and return as per the mean value
1.9857 and 1.8489 respectively.
Mutual Funds
Here, the researcher can say that, mutual funds have low level of risk and high return as per the
mean value 2.6993 and 2.1888 respectively.
77
National Saving Certificates
Here, the researcher can say that, national saving certificate have low level of risk and high return
as per the mean value 3.1618 and 2.2246 respectively.

Here, the researcher can say that, debentures and bonds have high level of risk and high return as
per the mean value 2.3101 and 2.25 respectively.
Real Estate
Here, the researcher can say that, real estate have low level of risk and high to low return as per
the mean value 2.6103 and 2.4855 respectively.
Precious Metals (Gold & Silver)

Here, the researcher can say that, precious metals have high to low risk and low return as per the
Derivatives
Here, the researcher can say that, derivatives have high level of risk and return as per the mean
value 2.2595 and 2.3740 respectively.
Commodity
Here, the researcher can say that, commodity have high level of risk and low return as per the
Systematic Investment Planning (SIP)
Here the researcher can say that, systematic investment planning have low level of risk and high
return as per the mean value 3.1970 and 2.1221 respectively.
Fixed Deposits
Here the researcher can say that, fixed deposits have very low level of risk and high return as per
78
Q-16 (B) Factors affecting investment before and after demonetization:
1-High 2- Moderate 3- Low
Before Demonetization
Factors N Minimum Maximum Mean
Safety 150 1.00 3.00 2.3800
Profitability 147 1.00 3.00 2.2177
Liquidity 138 1.00 3.00 2.4348
Risk 150 1.00 3.00 2.4533
Non Payment Risk 133 1.00 3.00 2.3459
Business Risk 146 1.00 3.00 2.3973
Inflation Risk 145 1.00 3.00 2.2966
Political Risk 142 1.00 3.00 2.2113
Social Risk 142 1.00 3.00 2.2183
Initial Investments 146 1.00 3.00 1.8973
Tax Benefits 149 1.00 3.00 2.0805
After Demonetization
Factors N Minimum Maximum Mean
Safety 150 1.00 3.00 1.6600
Profitability 148 1.00 3.00 2.1689
Liquidity 144 1.00 3.00 2.1111
Risk 148 1.00 3.00 1.9392
Non Payment Risk 140 1.00 3.00 2.0500
Business Risk 145 1.00 3.00 1.8621
Inflation Risk 143 1.00 3.00 1.8811
Political Risk 143 1.00 3.00 1.9161
Social Risk 143 1.00 3.00 1.9650
Initial Investments 146 1.00 3.00 1.8356
Tax Benefits 149 1.00 3.00 2.4430
INTERPRETATION
Safety
79
Here, the researcher can say that, safety before and after demonetization was moderate and then
high to moderate as per the mean value 2.38 and 1.66 respectively.
Profitability
Here, the researcher can say that, profitability before and after demonetization was moderate as
Liquidity
Here, the researcher can say that, liquidity before and after demonetization was moderate as per
Risk
Here, the researcher can say that, risk before and after demonetization was moderate and then high
to moderate as per the mean value 2.4533 and 1.9392 respectively.
Non Payment risk

Here, the researcher can say that, non-payment risk before and after demonetization was moderate
as per the mean value 2.3459 and 2.0500 respectively.
Business risk
Here, the researcher can say that, business risk before and after demonetization was moderate and
then high to moderate as per the mean value 2.3973 and 1.8621 respectively.
Inflation risk
Here, the researcher can say that, inflation risk before and after demonetization was moderate and
Political risk
Here, the researcher can say that, political risk before and after demonetization was moderate as
80
Social risk
Here, the researcher can say that, social risk before and after demonetization was moderate and
Initial Investments
Here, the researcher can say that, initial investments before and after demonetization was
moderate as per the mean value 1.8973 and 1.8356 respectively.
Tax Benefits
Here, the researcher can say that, tax benefits before and after demonetization was moderate as
81
CHAPTER-5
FINDINGS AND CONCLUSIONS
82
FINDINGS
1. It has found that the 49% of respondent belonging the age between 21-30, 29% belongs to 31-40,
18% belongs to 41-50, 5% belongs to 51 and above.
2. It was find that 45% are female, while 55% are male.
3. Here 60% respondents are married, 38% are unmarried, 1% are divorced, while 1% widow.
4. 34% of respondents are under graduate, 50% are post graduate, 13% are professional and 3% are
others like ca, law etc.
5. 83% of respondents are from self finance.
6. 17% of respondents are from rural area, while 83% are from urban area.
7. 44% of respondents are experienced from less than 5 years, 31% are experienced from 5-10 years.
8. 15% have monthly income less than 10000 Rs, while 7% have income above 50001 Rs.
9. 18% have annual income less than 1 lakhs, while 27% have income above 5 lakhs.
10. 27% have other income other than employment while 73% have no other income.
11. 83% invested money for long period, while 17% have not invested money.
12. 17% maximum respondents have invested in fixed deposits and insurance, while 1% have
invested in debenture and bonds and commodity.
13. 47% change their investment for above 1 year, while 3% change their investment after 1 month.
14. 48% of respondents take less risk, while 7% take high risk for investment avenue.
15. 53% have formal budget for family expenditure, while 47% have no formal budget.
16. 55% of respondents have investment target amount, while 45% have no target amount for
investment.
17. 67% of respondents monitor investment occasionally, while 6% monitor investment daily.
18. 47% of respondents prefer to invest for long term period, while 15% invest for short term period.
19. 32% of respondents invest their 0-15% of income, while 21% invest their 31-50% of income.
20. 73% of respondents prefer offline to invest, while 27% prefer online to invest.
21. Certified financial investor is neutral sources for collecting information regarding investment.
22. Distributers or agents of financial product is preferred sources for collecting information regarding
investment.
23. Company’s telephone representatives is least preferred sources for collecting information
regarding investment.
24. First rank preference for investment avenue by respondents prefer to insurance as it has less risk
and more reliable.
83
25. Respondents prefer second rank for investment avenue is post office savings schemes as it has
long term investment and has very less risk.
26. Respondents least prefer to derivatives and commodity for investment as it includes very high
risk.
27. Maximum respondents invested for the purpose of safety i.e. 7.76% in post office saving schemes
and second purpose is long term investment i.e. 7.60%.
28. Post office saving schemes gives 5-8% average annual rate of return, while insurance and pension
plans gives 8-10% annual rate of return.
29. Respondents assess risk tolerance level and return objective sometime before making specific
investment decision.
30. Post office saving schemes have very low level of risk and level of return is high, while shares
have high level of risk and return.
31. Profitability, safety and liquidity before and after demonetization was moderate.
84
CONCLUSION
A balanced and disciplined investment plan is a pre-requisite for a sustainable financial health and
should be looked on priority basis in order to achieve personal goals and objectives with financial
implications. The investor needs to focus on asset allocation and concentrate on selection of right
securities and right investment avenue.
The investment goals need to be properly defined and the investor must match the investment with
these pre-defined goals. The goals could be either to receive a regular periodical income or to
build a corpus or a mixture of both. Hence investment pattern should certainly match the
investment goals.
Diversification is the most important key to the scientific and systematic investment plan. As the
old adage goes, “Don’t put all your eggs in one basket”, the investor should not invest entire
money in a certain asset class. He/she should rather put the hard earned money in a diversified
portfolio. At the same time, he should neither over-diversify nor under-diversify. The right mix of
asset classes is the most important step in an investment plan.
The investor should understand the risk-return dynamics of the various asset-classes. Different
assets have different risk attributes and investor should thoroughly analyze these parameters.
Though higher risks yield higher returns, the investor should make sure that undue risks beyond
his capabilities are unwarranted for. Professional assistance could be sought before investing and
thorough research needs to be carried out in this regard.
85
CHAPTER-6
SUGGESTIONS
86
SUGGESTIONS
I would like to give some suggestions to improve the investment pattern and investor preferences
among the working women.
· Financial awareness programs need to be organized by the institutions to enhance the investment
knowledge of the investing community.
· There is a real need to stimulate investing habit amongst the people. This can be done by initiating
various schemes by the Government both at State-level and Central-level that encourages the
investing community to invest a part of their income.
· Investment-cells could be placed to provide various information with regard to investment
avenues, risk-return dynamics, tax-planning, marketability, liquidity, safety etc.
· Tax planning has to be widened and many more tax-friendly investment avenues must be
included.
· SIP investment must be aggressively promoted, since it enhances savings and investment culture
and acts as an excellent mode of systematic and continuous investment.
· Investors need to personally appraise, evaluate, understand the investment that he makes and he
should not be just carried away by peer pressure/broker’s advise/media etc.
· Inflation management should be the priority governance area to the Government. Lesser inflation
more disposable income, which can ultimately be translated into increased investments. It also
helps economy to grow as a whole.
87
BIBLIOGRAPHY
BOOKS:
· V.K. Bhalla, Investment Management, S. Chand & Company Ltd., Eleventh Edition, 2004.
· Cooper R. Donald and Pamela S. Schindler (2006). Business Research Methods (9th Ed.). New
Delhi: Tata McGraw Hill Publishing Company Ltd.
ARTICLES:
1. Bhardwaj Rajesh, Raheja Rekh and Priyanka (2011), Analysis Of Income And Savings Pattern Of
Government And Private Senior Secondary School Teachers, Asia Pacific Journal of Research in
Business Management, 2011, Volume : 2, Issue : 9 pp 44-56
2. Dr. Ananthapadhmanabha Achar (2012) ―Saving and Investment Behaviour Of Teachers - An
empirical study, International Journal of Physical and Social Sciences, August 2012, pp 263-286
3. Dr. Dhiraj Jain and Parul Jain (2012) Savings and Investment Pattern of School Teachers -a study
with reference to Udaipur District, Rajasthan, International Journal Of Research In Commerce,
Economics and Management, Volume no. 2 (2012), Issue no. 6 (JUNE 2012)
WEBSITES:
· www.indianjournals.com
· (http://en.wikipedia.org/wiki/Warren_Buffett
· www.icmrr.org
· www.researchgate.net
· www.ijsr.net
· www.indiamoney.com
· www.business-standard.com
· www.indiatimes.economictimes.com
· www.nseindia.com
88
APPENDIX
QUESTIONNAIRE
“A STUDY ON SAVING AND INVESTMENT PATTERN OF ACADEMICIAN WITH
SPECIAL REFERENCE TO SURAT CITY”
Demographic Profile:
1. Name :__________________________
2. Name of Organization :__________________________
3. Designation :__________________________
4. Age : a) 21 – 30 Yrs. b) 31 – 40 Yrs. c) 41 – 50 Yrs. d) Above 51Yrs
5. Gender: 1. Male 2. Female
6. Marital Status: 1. Married 2. Unmarried 3. Widow 4.Divorced
7. Educational qualification : a) UG b) PG c) Professional d) Others
8. Type of Organization : 1. Self-Finance 2.Government 3.Semi Government
9. Residential/Location : 1. Rural 2. Urban
10. Working Experience(Year): a) Less than 5 b) 5 – 10 c) 10 – 15 d) More than 15
11. Monthly Income (Individual): (Rs.)
1) Less than Rs.10, 000 2) Rs.10, 001 to Rs.30, 000 3) Rs.30,
001 to Rs.50, 000 4) above Rs.50, 001
12. Annual Income (Family): (Rs.)
1) Less than Rs.100000 2) Rs.100001 to Rs.300000 3)
Rs.300001 to Rs.500000 4) above Rs.500001
13. Do you have any other income other than employment?
1) Yes 2) No
1. Have you invested your savings so far? 1) Yes 2) No
2. Which of the following avenues have you opted for?
Post Office Saving Schemes Real Estate
(POMIS/NSC/KVP/PPF etc.) Precious Metals (Gold & Silver)
Insurance and Pension Plans derivatives
Shares commodity
Mutual Funds SIP
National Saving Certificates/KVP Fixed deposits
89
Debentures and Bonds other _____________
3. How frequently you change your investment?

1. 1 Month 2.1-6 Months 3. 6-12 months 4.above 1 Year
4. What level of risk are you ready to undertake for your investment avenue?
1) Less Risk 2) Moderate Risk 3) High Risk
5. Do you have a formal budget for family expenditure?
1) Yes 2) No
6. Do you have an investment target amount you aim for each year?
1) Yes 2) No
7. How often do you monitor your investment?
1) Daily 2) Monthly 3) Occasionally
8. What is the time period you prefer to invest?
1) Short term (up to 1Yrs) 2) Medium term(2-3 yrs) 3) Long term (more than 3 Yrs.)
9. What percentage of your income do you invest?
1) 0-15% 2) 15-30% 3)31-50% 4) More than 50%
10. What is your preferred way to invest
1) Online 2) offline
11. Before investing your savings, I prefer to collect the information from:
1 – Not Preferred 2 – Least Preferred 3 – Neutral 4 – Preferred 5 – Most Preferred

Particulars NP LP N P MP
1. Certified Financial Planner
2. Annual reports of the company
3. Prospectus of a company
4. Company’s website
5. Distributers/agents of financial product
6. Rating agencies reports
90
7. Company’s telephone
representatives
8. Family members
9. Friends and relatives
10. Conversation/exchanges of views with
professional colleagues
11. Publication in the financial press, news
papers & electronic media
12. Conversation/ exchanges of views with
company executive and sector experts
13. Corporate forecast prepared by independent
investment company
14. Published reports from research agencies
15. Opinions from existing investors of various
instruments
16. Financial advisors/Broker and analyst’s
recommendation
17. Internet
12. Which investment has proved more beneficial to you so far? (Please write the number in order of
preference)
Sr. No. Investment Avenue Rank
1. Post Office Saving Schemes (POMIS/NSC/KVP/PPF etc.)
2. Insurance and Pension Plans
3. Shares
4. Mutual funds
5. National Slaving Certificates/KVP
6. Debentures and Bonds
7. Real Estate
8. Precious Metals (Gold & Silver)
9. Derivatives
10. Commodity
91
11. SIP
12. Fixed deposits
13. Why do you want to invest in the various invest categories?
etc.)
(POMIS/NSC/
Insurance and
Pension Plans
Mutual funds
Metals (Gold
Fix deposits
Commodity
Debentures
Estate
Derivatives
Post Office
and Bonds
Purpose/motive
& Silver)
Schemes
Precious
Saving
Shares
KVP/PPF
SIP
Real
Liquidity
Less transaction
Cost
Regular income
Safety
Risk Protection
Less Procedure
Less Maintenance
Expenses
Long term investment
High Return
Chances for
Savings
Old Age Security
Tax Benefit
Emergency need
Child education
14. What is the average annual rate of return you get from different types of investment you opt?
92
Sr. No. Investment Avenue <=5% 5-8% 8-10% 10-15% 16 <= %
1. Post Office Saving Schemes
(POMIS/NSC/KVP/PPF etc.)
2. Insurance and Pension Plans
3. Shares
4. Mutual funds
5. National Slaving Certificates/KVP
6. Debentures and Bonds
7. Real Estate
8. Precious Metals (Gold & Silver)
9. Derivatives
10. Commodity
11. SIP
12. Fix deposits
15. Before making specific Investment decisions, how often do you do the following?
Sr. No. Statement Never Seldom Sometime Often Always
1 Review your overall investment goals?
2 Assess your risk tolerance level?
3 determine your return objective for the
Investment
4 Consider a variety of investment options?
5 Check the current financial market
condition?
6 Talk with family or friends who are
Knowledgeable about investing?
7 Consult a financial advisor?
93
16. State the level of risk and return associated with the following investments.
Level of Risk Level of Return
Very Investment
Very High High Low Very High High Low Very Low
Low
Post Office Saving Schemes
(POMIS/NSC/KVP/PPF etc.)
Insurance and Pension Plans
Shares
Mutual funds
National Slaving
Certificates/KVP
Real Estate
Precious Metals (Gold &
Silver)
Derivatives
Commodity
SIP
Fix deposits
FACTORS AFFECTING INVESTMENT BEFORE AND AFTER DEMONETIZATION:

Before Demonetarization After Demonetarization
Factor
High Moderate Low High Moderate Low
Safety
Profitability
Liquidity
Risks
94
Non Payment Risk
Business Risk
Inflation Risk
Political Risk
Social Risks
Initial Investments
Tax Benefits
95

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CHAPTER-1

INVESTMENT SCENARIO IN INDIA

STATUS OF WOMEN IN INDIA

FACTORS INFLUENCING INVESTMENT DECISION

(1) For Economic Development

(4)For The Bankers

AVAILABLE INVESTMENT OPTIONS

(2)Bank Fixed Deposit

(3) Company Fixed Deposit

(4) Corporate Debenture

(5)Public Provident Fund [PPF]

(7)Life Insurance Policies

(8) Mutual Fund

OBJECTIVES OF THE STUDY

· Shrotriya (2003) conducted a survey on investor preferences in which he depicted the

· Archna v. Hegde, Deborah j. Cassidy (2009) interviewed twelve kindergarten teachers

· An empirical study of “Indian Individual Investors Behavior” by Syed Tabassum Sultana

· Dr. Ananthapadhmanabha Achar (2012) studied “Saving and Investment Behaviour of

· Veeramani G and M. Karthikeyan (2014), opines that previous studies mainly

DATA COLLECTION METHOD:

SCOPE OF THE STUDY

UTILITY OF THE STUDY

LIMITATION OF THE STUDY

Age Frequency Percentage

Gender Frequency Percentage

Total 150 100

Marital Status Frequency Percentage

Educational Qualification Frequency Percentage

Type of Organization Frequency Percentage

Total 150 100

Residential/Location Frequency Percentage

Total 150 100

Working Experience Frequency Percentage

Monthly Income Frequency Percentage

Monthly Income (Individual)

Less than Rs. 10000

Less than Rs. 10,0000 27 18

Above Rs. 50,0001 41 27

Total 150 100

Annual Income (Family)

Less than Rs. 10,0000

Other Income Frequency Percentage

Total 150 100

Total 150 100

Invested your savings so far?

Investment Avenues Frequency Percentage

Post Office Saving Schemes 85 15

National Saving Certificate 29 5

Debentures and Bonds 6 1

Total 576 100

Time Period Frequency Percentage

How frequently you change your investment?

Total 150 100

Criteria Frequency Percentage

Total 150 100

Criteria Frequency Percentage

Total 150 100

Investment Target Amount

Criteria Frequency Percentage

Total 150 100

Monitor your investment

Time Period Frequency Percentage

Short term (up to 1Yrs) 23 15

Medium term (2 - 3 yrs) 56 37