A

Final Research

Project Report

On

“SURVEY ON THE INVESTMENT PATTERN OF SALARIED PERSONS”

In partial fulfillment of the

Degree of

“Master of Business Administration (MBA)”

Submitted To

IKG Punjab Technical University, Jalandhar

Submitted By

Student Name

Roll no.

Batch: 2020-22

Gulzar Group of Institutions, Ludhiana, Khanna

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 STUDENT DECLARATION

I HERE BY DECLARE THAT THE PROJECT REPORT

On

“SURVEY ON THE INVESTMENT PATTERN OF SALARIED PERSONS”

SUBMITTED IN PARTIAL FULLFILLMENT OF THE REQUIREMENT FOR

THE DEGREE
OF
MASTER OF BUSINESS ADMINISTRATION (MBA)
OF
IKG PUNJAB TECHNICAL UNIVERSITY, JALANDHAR

IS MY ORIGINAL WORK
&
THE RESULTS PERSONIFIED IN THIS REPORT HAVE NOT BEEN
SUBMITTED TO ANY OTHER INSTITUTE OR UNIVERSITY FOR ANY
AWARD

Student Name
MBA
Date
GGI, Ludhiana

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 CERTIFICATE

This is to certify that the research project report entitled “SURVEY ON THE
INVESTMENT PATTERN OF SALARIED PERSONS” submitted for the degree of
MBA in the subject of finance for the Punjab Technical University, Jalandhar, is a bonafide
research work carried out by Name of the student (Roll No.) under my supervision and that
no part of this research project report has been submitted for any other degree.

This assistance and help received during the course of investigation have been fully
acknowledged.

--------------------
(Name of Supervisor)
Assistant Professor

GGI, Ludhiana

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 ACKNOWLEDGEMENT

I am falling short of words to thank the almighty God for his blessing showered on me
during the project work.

Preparing a project is a great honor for an individual. It is the end result of a lot of
determination and laborious work. The formal piece of acknowledgement may not
sufficient to express the feeling of gratitude towards people who have helped me in
successfully completing my project

I gratefully acknowledge the direction, encouragement and help extended to me by my

guide Name of the Guide, under whose eminent guidance and consent support, I could
complete my project. He provided me all the needed all logical aspects, ideas and
suggestions for completing the project. I would also like to express my gratitude to our
respected Director Maam/Sir helping me in my research project.

Last but not the least, my sincere thanks to my parents and friends directly or indirectly

who helped me to bring this project into the final scale.

Student Name
(Roll No.)
MBA (2020-22)
Date
GGI, Ludhiana

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 Index

Chapter No. Chapter Name Page No.

CHAPTER 1 INTRODUCTION TO TOPIC 6-13

CHAPTER 2 SIGNIFICANCE OF STUDY

CHAPTER 3 RESEARCH OBJECTIVES

CHAPTER 4 LITERATUE OF REVIEW

CHAPTER 5 RESEARCH MEATHODOLOGY

CHAPTER 6 HYPOTHESIS

CHAPTER 7 TESTING OF HYPOTHESIS

CHAPTER 8 INTERPRETATION OF SURVEY

CHAPTER 9 FINDING AND SUGGESTIONS

CHAPTER 10 REFFERENCES

CHAPTER 10 ANNEXTURE

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 CHAPTER 1

INTRODUCTION TO TOPIC INVESTMENT

&

ITS ALTERNATIVES

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 ABSTRACT

Investment is an activity that is engaged in by people who have savings i.e. investments
are made from savings, or in other words people invest their savings. A variety of
investment options are available such as bank, Gold, Real estate, post services, mutual funds
& so on. Investors are investing their money with the different objectives such as profit,
security, appreciation, Income stability. Researcher has studied the different avenues of
investments as well as the factors while selecting the investment with the sample size of 40
salaried employees by conducting the survey through questionnaire in Pune, India. The study
is based on personal interviews with salaried peoples, using a structured questionnaire.
Actually, the present study identifies the preferred investment avenues among the individual
investors using self-assessment test. The study is based on primary sources of data which are
collected by distribution of a close ended questionnaire. The data has been analyzed using
percentage, chi-square test, and Person Correlation Coefficient with the help of statistical
software. The researcher has analyzed those salaried employees consider the safety as well
as good return on investment on regular basis. Respondents are aware about the investment
avenues available in India except female investors.

INTRODUCTION

The developing countries like India face the enormous task of finding sufficient capital in
their development efforts. Most of these countries find it difficult to get out of the vicious
circle of poverty of low income, low saving, low investment, low employment etc. With
high capital output ratio, India needs very high rates of investments to make leap forward in
her efforts of attaining high levels of growth. Since the beginning of planning, the emphasis
was on investment as the primary instruments of economic growth and increase in national
income. In order to have production as per target, investment was considered the crucial
determinant and capital formation had to be supported by appropriate volume of saving.
Investment is the sacrifice of certain present value for the uncertain future reward.
Investments are always interesting, challenging and rewarding. Generally, where there is a
high risk, more rate of return is assured. Risk and reward go together. The major features of
an investment are safety of principal amount, liquidity, income stability, appreciation and
easy transferability. A variety of investment avenues are available such as shares, bank,
companies, gold and silver, real estate, life insurance, postal savings and so on. All the
investors invest their surplus money in the above-mentioned avenues based on their risk-
taking attitude.

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SALARIED INVESTORS:

The respondent of research study consists only those people who earning fixed Income as
salary so the study included only salaried group of people. The Investment pattern of the
salaried employees is different due to safety, regular flow of income, tax saving benefits,
security, Retirement benefits rather than professionals & businessman.

Financial products act as an investment avenue and provide the required financial security to
the investors based on the risk-return profile of the financial products. In the past, traditional
financial products were offered in India by banks (deposit account, credit account), Life
Insurance Corporation (LIC), and postal department (recurring deposit, National Saving
Certificate, Kisan Vikas Patra). However, in recent years with the advent of liberalization of
financial services industry, diverse financial products have been introduced such as mutual
funds, shares, derivatives, life and non-life insurance schemes (Unit Linked Investment Plans
(ULIPs), pension plans, children education plans, etc.). INVESTMENT PATTERN differs
from person to person, as every individual behaves differently while investing. Investment
behaviour of an individual is guided by his own set of circumstances. With an expectation of
generating high returns over a period of time and certain levels of risk, individuals invest in
different financial products. Today, a number of investment avenues are available individual
but an individual, after a thorough market study and according to his needs and
circumstances, has to decide which investment avenue has to be chosen. The present study is
an attempt to analyze the INVESTMENT PATTERNs of salaried individuals towards various
financial products based on demographic factors.

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 VARIOUS INVESTMENT ALTERNATIVES

mutual
funds

life real
insurance estate

saving
bonds
schemes

stock
market

Different avenues and alternatives of investment include share market, debentures or

bonds, money market instruments, mutual funds, life insurance, real estate, precious
objects, derivatives, non-marketable securities. All are differentiated based on their
different features in terms of risk, return, term etc.

EQUITY SHARES

Equity investments represent ownership in a running company. By ownership, we mean

share in the profits and assets of the company but generally, there are no fixed returns. It
is considered as a risky investment but at the same time, depending upon situation, it is
liquid investments due to the presence of stock markets. There are equity shares for which
there is a regular trading, for those investments’ liquidity is more otherwise for stocks
have less movement, liquidity is not highly attractive. Equity shares of companies can be
classified as follows:

 Blue chip scrip

 Growth scrip
 Income scrip
 Cyclical scrip
 Speculative scrip

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MONEY MARKET INSTRUMENTS

Money market instruments are just like the debentures but the time period is very less. It
is generally less than 1 year. Corporate entities can utilize their idle working capital by
investing in money market instruments. Some of the money market instruments are

 Treasury Bills

 Commercial Paper

 Certificate of Deposits

MUTUAL FUNDS

Mutual funds are an easy and tension free way of investment and it automatically
diversifies the investments. A mutual fund is an investment only in debt or only in equity
or mix of debts and equity and ratio depending on the scheme. They provide with benefits
such as professional approach, benefits of scale and convenience. Further investing in
mutual fund will have advantage of getting professional management services, at a lower
cost, which otherwise was not possible at all. In case of open ended mutual fund scheme,
mutual fund is giving an assurance to investor that mutual fund will give support of
secondary market. There is an absolute transparency about investment performance to
investors. On real time basis, investors are informed about performance of investment. In
mutual funds also, we can select among the following types of portfolios:

 Equity Schemes
 Debt Schemes
 Balanced Schemes
 Sector Specific Schemes etc.
 Investment Alternative

DEBENTURES OR BONDS
Debentures or bonds are long-term investment options with a fixed stream of cash flows
depending on the quoted rate of interest. They are considered relatively less risky. An
amount of risk involved in debentures or bonds is dependent upon who the issuer is. For
example, if the issue is made by a government, the risk is assumed to be zero. However,
investment in long term debentures or bonds, there are risk in terms of interest rate risk
and price risk. Suppose, a person requires an amount to fund his child’s education after 5
years. He is investing in a debebture having maturity period of 8 years, with coupon
payment annually. In that case there is a risk of reinvesting coupon at a lower interest rate
from end of year 1 to end of year 5 and there is a price risk for increase in rate of interest
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at the end of fifth year, in which price of security falls. In order to immunize risk,
investment can be made as per duration concept. Following alternatives are available
under debentures or bonds:
 Government securities
 Savings bonds
 PSU bonds
 Debentures of private sector companies
 Preference shares

LIFE INSURANCE AND GENERAL INSURANCE

They are one of the important parts of good investment portfolios. Life insurance is an
investment for the security of life. The main objective of other investment avenues is to
earn a return but the primary objective of life insurance is to secure our families against
unfortunate event of our death. It is popular in individuals. Other kinds of general
insurances are useful for corporates. There are different types of insurances which are as
follows:

 Endowment Insurance Policy

 Money Back Policy
 Whole Life Policy
 Term Insurance Policy
 General Insurance for any kind of assets.

REAL ESTATE

Every investor has some part of their portfolio invested in real assets. Almost every
individual and corporate investor invest in residential and office buildings respectively.
Apart from these, others include:

 Agricultural Land
 Semi-Urban Land
 Commercial Property
 Raw House
 Farm House etc

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PRECIOUS OBJECTS
Precious objects include gold, silver and other precious stones like the diamond. Some
artistic people invest in art objects like paintings, ancient coins etc.

DERIVATIVES

Derivatives means indirect investments in the assets. The derivatives market is growing at
a tremendous speed. The important benefit of investing in derivatives is that it leverages
the investment, manages the risk and helps in doing speculation. Derivatives include:

 Forwards
 Futures
 Options
 Swaps etc

NON-MARKETABLE SECURITIES

Non-marketable securities are those securities which cannot be liquidated in the financial
markets. Such securities include:

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 Bank Deposits
 Post Office Deposits
 Company Deposits
 Provident Fund Deposits

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 CHAPTER 2

SIGNIFICANCE OF STUDY

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SIGNIFICANCE OF THE STUDY:

Salaried employees have fix flow of income & their investments patterns are also different. In
connection with this Researcher will try to find out investment behavior of investors in
Ludhiana region. It will helpful to understand the INVESTMENT PATTERNs of investors.
The study will also throw a light on the awareness of the investment’s avenues available in
India. The research paper will become the helping hand to the research scholars as well as
students for their further studies there in respective area.

IDENTIFICATION OF INVESTORS’ REQUIREMENTS: Investors differ from each

other in terms of objectives, preferences and constraints. The foundation of investment
management is thus, collection of data relating to investors’ requirements. The analysis of
this data gives an idea about the assets and securities to be selected.

FORMULATION OF INVESTMENT POLICY AND STRATEGY: The policy will lay

down the different asset classes of investment viz shares, debentures, bonds etc. and the
proportion of funds to be invested in each class. After formulating the investment policy, the
next stage is to prepare the investment strategy. Investment strategy will be formulated for
income and capital appreciation and for a level of risk tolerance. The investment strategy will
have to be correlated with the expectation of the capital market and the individual sectors of
industry. On the basis of investment policies, strategy and investors’ expectations of the
market, a particular combination of investments is selected.

EXECUTION OF STRATEGY: Next strategy is the implementation and execution of

investment process. This process requires a lot of research, analysis and judgment. The
portfolio thus, constructed may relate to the needs of a given level of income, liquidity,
safety, high yielding growth stocks etc. The success of the portfolio would depend upon the
initiative, innovation and judgment of the person constructing the portfolio.

MONITORING OF PORTFOLIO: The performance of the portfolio is evaluated and

adjustments are made in the portfolio composition from time to time. Thus, is called
monitoring and risk structuring of the portfolios. This process is an adjustment of the
components of the portfolio to improve the performance to make it optimal and efficient. The
changes in investors conditions, market conditions and in industry performance are taken into
account in the portfolio adjustments.

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 CHAPTER 3

OBJECTIVES

&

NEED OF THE STUDY

RESEARCH OBJECTIVES
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 The objectives of the study are:
 To study the INVESTMENT PATTERNs of salaried individuals towards various
financial instruments in Ludhiana City.
 To study the association between demographic variables and INVESTMENT
PATTERN of salaried individuals towards financial instruments
 To know the factor that influencing investment behavior of the employees.
 To study the problem faced by salaried investors.

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 CHAPTER 4
REVIEW OF LITERATURE

LITERATURE REVIEW
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For long researchers have researched on the demographic factors that influence the
investment decisions of an individual. The focus has mostly remained on core factors
such as age, gender, income, marital status, profession, education and financial
knowledge. A number of research studies have been undertaken in India and abroad to
identify the investment behavior of retail investors and households.

Gupta et al. (2001) studied the Indian household investors’ preferences, future intentions
and experiences and found that bonds were regarded as an investment for the retired
people but that did not have much appeal for young people. The market penetration
achieved by mutual funds was found to be much lower than equity shares for all age
classes.

Gupta and Jain (2008) on the basis of an all-India survey of 1463 households found the
preferences of investors among the major categories of financial assets, such as
investment in shares, indirect investment through various types of mutual fund schemes,
other investment types such as exchange-traded gold fund, bank fixed deposits and
government savings schemes. The study provides interesting information about how the
investors’ attitude towards various investment types are related to their income and age,
their portfolio diversification practices, and the over-all quality of market regulation as
viewed by the investors themselves.

Verma (2008) studied the effect of demographics and personality on investment choice
among Indian investors and found that mutual funds were popular amongst professionals,
students and the self-employed. Retirees displayed their risk aversion by not investing in
mutual funds and equity shares. It was also found that higher the education, higher was
the level of understanding of investment complexities. Graduates and above in
qualification preferred to invest in equity shares as well as mutual funds.

Nagpal and Bodla (2009) studied the lifestyle characteristics of the respondents and their
influence on INVESTMENT PATTERNs. The study concludes that investors’ lifestyle
predominantly decides the risk-taking capacity of investors. The study found that inspite
of the phenomenal growth in the security market, the individual investors prefer less risky
investments, viz., life insurance policies, fixed deposits with banks and post office, PPF
and NSC.

Davar and Gill (2009) investigated the underlying dimensions in the selection of different
investment avenues for the households. The results of the study revealed emphasis on
familiarity, satisfaction, opinion and demographic dimensions for all investment avenues.

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Chitra and Sreedevi (2011) analyzed the influence of seven personality traits—emotional
stability, extraversion, risk, return, agreeability, conscientiousness and reasoning—on the
choice of the investment pattern. The results of the study show that these personality traits
of the investors have an impact on the individuals while taking decisions and also have a
strong influence on determining the method of investment. The study found that the
influence of personality traits on the investment decision is more compared to that of
demographic variables.

Ravi Vyas and Suresh C Moonat (2012) carried out a study on the perception and
behavior of mutual fund investors. The study was carried out to understand the preference
of investors investment avenues, mode and form of investment preferred by investors at
Indore with a sample size of 500 respondents out of which 363 respondents were
investing in mutual funds, and these 363 respondent’s data was analyzed to come out with
conclusions. A structured questionnaire was used to collect the data during personal
interviews. To understand the nature of holding by the respondents, chi square test was
used along with the calculation of median and mode. After analysis of data, it was found
that Gold was the most preferred investment option followed by bank deposits and fixed
deposits.

Deerajen Ramasawmy(2013), In his research paper title has A Study of the Level of
Awareness of Financial Literacy among Management student, Proceedings of 3rd Asia-
Pacific Business Research Conference, Kuala Lumpur, Malaysia, ISBN: 978-1-922069-
19-1, The paper took four fundamental aspects in financial literacy i.e. level and
importance, definitions and theories, constraints and measures to improve financial
literacy. The paper also aimed to depict relationship between financial literacy and
demographic variable such as age group, gender and programmed of study. The study
found that most of the student shad a medium level of knowledge and skills in financial
literacy and in savings and borrowings. The study concluded that there is no significant
difference observed at 5% level for the financial literacy level between male and female
respondents while at the same time significant difference wereobserved between male and
female for the ability to read, analyze, manage and communicate. The paper also found
that age, gender, language, race and income level was not having an impact on the level
of financial literacy.The final conclusion of Deerajen Ramasawmy is that the main aim of
the study was to assess the level of awareness of financial literacy among management
students at the University of Mauritius.

Sobhesh Kumar Agarwal (2013) In his research paper the title has “The study on
dimensions of financial literacy among the private employee in urban areas”. The Indian
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Institute of Management Ahmadabad – 380015 India, the paper investigated the study on
the influence of various socio-demographic factors on different dimensions of financial
literacy among the working young in urban India. The study provided an analytical basis
for enunciating policy for enhancing financial literacy of youth in India. The paper found
that the level of financial literacy among the working young in urban India was similar to
the levels that prevailed among comparable groups in other countries. The study found
the significant negative relationship between financial attitude and financial behavior
which was surprising. The above study authorSobhesh Kumar Agrawal concludes that the
education level of those respondents in sample was high but did not translate into
adequate financial literacy. So youngster behaved in a profligate manner which gave rise
to the observed negative association between attitude and behaviour about financial
literacy.

Puneet Bhushan(2013), In his research paper the title has “The study on Financial literacy
level of salaried individual and it’s determinants”,Deptt of Humanities and Social
Sciences, Jaypee University of Information Technology, Waknaghat, Solan, India. Yajulu
Medury, Chief Operating Officer,Jaypee Education System, India, Financial Literacy and
its Determinants, The paper attempted to determine financial literacy level of salaried
individuals which was based on various demographic and socio-economic factors, ISSN :
2279-0039, The study found that overall financial literacy level of respondents was not
very high. Financial literacy level was getting affected by gender, education, income,
nature of employment and place of work whereas it doesn’t get affected by age and
geographic region according to the paper. The final conclusion of his study is to making
the appropriate strategy and should be increasing the level of financial literacy among the
population of the country.

S Umamaheswari, M Ashok Kumar (2014) In his research project title has “awareness,
attitude, expectation and satisfaction over their investments” Impact: International Journal
of Research in Business Management 2 (2), 99-108, and 2014. Investment aspiration of
the salaried middle class is actually a commitment to secure the consumption of all
regular financial in-flow with a futuristic perspective for several reasons. The 30%(Ref
Table 1) fixed deposit choice of this salaried class of the society makes it essential to
study their attitude for investments, level of investment awareness and their expectation
of returns based on the factors which have an upper hand on their investment choices. In
this paper author finally concluded the fact an effort to outline the relationship between
the dominant societal and demographic factors of the salaried middle class that affects the

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 investment criteria namely, investment awareness, investment attitude and investment
returns.

From the review of literature, it can be said that various studies on investment behavior
and preferences provide a piecemeal account of investment behavior of salaried
individuals. Very few studies on investment behavior have been carried out in India. The
present study bridges this gap.

CHAPTER 5

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 CHAPTER 5
RESEARCH METHODOLOGY

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RESEARCH METHODOLOGY

Research is the original contribution to the existing stock of knowledge making for its
advancement it is with the pursuit of truth with the help of study,observation comparison
and experiment , in short the search of knowledge through objectives and systematic
method of finding solution to a problem in research

A research method is reffer o a methods of researchers use in performing research

operations

Research methodology is a way of systematically solve the research problem . by research

methodology not only the research methods are considered but also the logic behind the
method used in the context of research study and explanations are given on a way a
particular technique is used

The researchers has discussed the followings

 Research design
 Sampling design
 Population
 Sampling technique
 Sampling size
 Sample unit
 Sources of data
 Primary sources
 Secondary sources
 Statistical tools

RESEARCH DESIGN

This research study that is adopted in this study is descriptive design Descriptive research
is used to obtain information concerning the current status of the phenomena to describe
what exist s with respect to variables or conditions in a situation the focus of this study
was on self-reported decision made by various investors regarding the investment pattern
of salaried persons toward investment alternatives thus involves statement of the problem.
Identification of information needed to solve the problem. Identification of information
needed to solve the problem selection on development of instruments for gathering the
information, Identification of target population and determination of sampling procedure,
design of procedure for information collection, collection of information, analysis of
information generalizations or predictions

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SAMPLING DESING

Population

The population for study in investors in Ludhiana city

SAMPLING TECHIQUE

The sampling technique used is simple random sampling, simple random sampling is also
known as “probability sampling “under this sample design, every item of universe has
equal chance of inclusion in the sample

SAMPLE SIZE

The sample size for this study is investors in Ludhiana city out of entire population
random numbers were generated using random number used tables

SAMPLE UNIT

Individuals, family, cooperatives, and sole proprietors were the target respondent groups
from which the data were collected

SOURCES OF DATA

Data were collected through both primary and secondary data sources primary data
collected through questionnaires the research was done in the form of direct personals
interviews and through telephones interviews

PRIMARY DATA

A primary data is data which is collected a fresh and for the first time, and thus happen to
be original in character.

PRIMARY SOURCES

DIRECT INTERACTION – I was personally interacted with the various Company

personnel in order to know the proper working of companies.

QUESTIONNAIRE DESIGN

Proper care has been taken to ensure that the information needed matched the objectives,
which in turn match the data collected through the questionnaire the basic cardinal rule of

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 questionnaire design like using simple and clear words, the logical and sequential
arrangement of questions has been taken care off.

SECONDARY DATA

Secondary data consists of information that already exists somewhere, have been
collected secondary data is collected from websites, books and journals

SECONDARY DATA

 Internet
 Books

STATISTICAL TOOLS:
There are various statistical tools which are used in analyzing data. The following tools are
used for representing and analyzing data.

DATA REPRESENTATION:
 Table
 Percentage
 diagram
 Charts
The data analyzed by using under mentioned Techniques:
 Chi square test

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 CHAPTER 6

HYPOTHESES OF THE STUDY

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Ho (Null Hypothesis)- There is a significant difference between Gender and level of
awareness about the investments.

Ha (Alternate Hypothesis)- There is significant relationship between the income level &
awareness of the investments.

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 CHAPTER 7

TESTING OF HYPOTHESIS

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RESULTS AND DISCUSSION:

Awareness About the Investment Avenues:

A survey was made among the respondents about their knowledge on various investment
avenues and the result of that have been presented in the following table

Sr. Awareness about Investment

No. of Respondents Percentages (%)
No Avenues Among Investors
01 Yes 24 60

02 No 16 40

Total 40 100.00

Above table shows that out of 40 investors 60% are aware about the investment avenues
whereas 40% are unaware.

Awareness about Investment Avenues

Among Investors
70

60
60
50

40
40
30

20 24

16
10

0
1 2

TESTING OF HYPOTHESIS:

“There is a significant difference relationship between Gender and the investment awareness
level”.

To test the above hypothesis the researcher has used the chi square test

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 OBSERVED FREQUENCY

Gender Awareness Not Awareness Total

Male 20 13 33

Female 4 3 07

Total 24 16 40

CHI-SQUARE TEST

O E (O-E) (O-E)2 (O-E)2/E

20 19.8 0. 0.04 0.0020

13 13.2 -0.2 0.04 0.0030

04 4.2 -0.2 0.04 0.0095

03 1.2 1.8 3.24 2.7

Total 2.71

Degree of freedom:

v= (r-1)(c-1)

v= (2-1) (2-1)

v= 1

degrees of freedom 5% level of significance is 3.841 the calculate value (2.71) is less than the
table value so, Null hypothesis is rejected.

CONCLUSION:

Hence it is concluded that “There is a relationship between the sex & the investment
awareness level.”

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 2. “There is significant relationship between the income level & awareness of the
investments”.

Sr. No Awareness No Awareness Total

01 100000 - 250000 02 03 05

02 250000-400000 08 04 12

03 400000-550000 05 01 06

04 550000& above 08 09 17

Total 23 17 40

Relati onship between the Income & Awareness

Level
6

0
100000 - 250000 250000-400000 400000-550000 550000 & above

Awareness No Awareness Total

CHI-SQUARE TEST

O E (O-E) (O-E)2 (O-E)2/E

02 2.875 -0.88 0.77 0.268

03 1.275 1.72 3.96 2.321

08 6.9 1.1 1.21 0.175

04 5.1 -1.1 1.21 0.237

05 3.45 1.65 2.40 0.695

01 2.55 -1.55 2.40 0.941

08 4.6 3.4 11.56 2.51

09 3.825 5.18 26.83 7.01

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Total 14.157

Degree of Freedom:

v= (r-1) (c-1)

v= (4-1) (2-1)

v= 3

Degree of freedom 5% significance level is 7.815 & the calculated value is 14.157 is more
than table value so hypothesis is rejected.

CONCLUSION:

From the above analysis it is concluded that there is no significance relationship between
income level & awareness of investments.

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 CHAPTER 8

INTERPRETATION OF SURVEY

Factor influencing while selecting investment avenues

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Investment Avenues Respondents Percentage

Tax Saving 6 15

Security 19 47.5

Liquidity 7 17.5

Diversification 4 10

Simplicity 1 2.5

Affordability 3 7.5

Total 40 100

As we saw the above table there is various investment options. The investor selects suitable
investment option to directly help in future investment and making strong portfolio. (Data
Interpretation) (Source: Primary Data)

Factor infl uencing while selecting investment

avenues
50
45
40
35
30
25
20
15
10
5
0
1 2 3 4 5 6

The above bar chart X axis explain different investment avenues and Y axis explain
percentage of employees (respondents).

The total 40 respondents who gave the response in different investment avenues. Out of total
40 respondents investing their money for the purpose of tax saving is 6, Security 19,
Liquidity 7, Diversification 4, Simplicity 1 and Affordability is 3.

OBJECTIVES OF THE INVESTMENT

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Sr. No. Objectives No. of Respondents Percentage

1 Future Security 12 30

2 Good returns 8 20

3 Liquidity 3 7.5

4 Capital Appreciation 4 10

5 Tax savings 6 10

6 Children career 6 15

7 Other 1 2.5

As we saw the above table there is various investment objectives. The investor selects
suitable investment option to directly help in future investment and making strong portfolio.
(Data Interpretation) (Source: Primary Data)

Objective of Investment
30
25
20
15
10
5
0
ity ns ity n gs er r
ur ur id tio in re he
e c re
t u ci a a v c a Ot
S Liq pr
e x s n
re od Ta re
tu Go Ap i ld
Fu t al Ch
pi
Ca

No. of Respondents Percentage

The above bar chart X axis explain different investment objectives and Y axis explain
number/ percentage of employees (respondents).

The total 40 respondents who gave the response in different investment objectives. Out of
total 40 investors are investing their money for the purpose of future security, Good returns,
Liquidity, Capital Appreciation, Tax Savings, Children Education/Career & Other.

Note: Since some of the investors have mentioned more than one response, the responses
are outnumbered the respondents

Most preferable Investment Option:

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 Investment Avenues Respondents Percentage

Stock Market 2 5

Bank Deposit 13 32.5

Gold 2 5

Mutual Fund 14 35

Insurance 4 10

Real Estate 5 12.5

(Source: Primary Data) (Total respondents is 40)

The above table shows the different Investment options like Stock Market, Bank Deposit,
Gold, Mutual Fund, Insurance, Real Estate etc. There are 40 respondents respond on it. The
above table will explain with the help of following bar chart.

Most preferable Investment Option

40
35
30
25
20
15
10
5
0
Stock Market Bank Deposit Gold Mutual Fund Insurance Real Estate

Respondents Percentage

(Data Interpretation) (Source: Primary Data)

The above bar chart X axis explain investment options and Y axis explain respondents
(no./%age of employees). There are the various investment option has for investment but
above bar chart we can see mutual fund and bank deposit most preferable investment as
compared to other investment options for salaried class people.

5. Level of Risk involved in Investment Scheme

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 Risk Factor

Investment Avenues Very High High Moderate Low Very Low

Stock Market 12 10 15 2 1

Bank Deposit 0 6 15 11 8

Real Estate 12 10 15 2 1

Gold/ Metals 5 16 15 3 1

Mutual Fund 1 4 13 15 7

Insurance 2 5 18 13 2
(Source: Primary Data) (Total respondents is 40)

Note: Since the investor / respondents have mentioned more than one response, the responses
are outnumbered the respondent. The above table shows the various investment options and
their risk factors at the various risk parameters. In it we used the following risk parameters
like very high, high, moderate, low, very low.

Level of Risk involved in Investment

Scheme
18
16
14
12
10
8
6
4
2
0
Stock Market Bank Deposit Real Estate Gold/ Metals Mutual Fund Insurance

Very High High Moderate Low Very Low

(Data Interpretation) (Source: Primary Data)

In above bar chart ‘X’ axis show Investment avenues/ risk factor and ‘Y’ axis show no. of
respondents (employee). The above table and graph should explain the data Interpretation and
data tabulation. Same as give below we should calculate the Null hypothesis and Alternative
hypothesis.

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 CHAPTER 9 FINDING AND SUGGESTIONS

Findings/ Outcomes of the Study:

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In the study the researcher has investigated 40 respondents of Ludhiana city & it reveals that
60% Investors are aware about the investment avenues whereas 40% are unaware

 The researcher used 'CHI-SQUARE' method for hypothesis testing & found that
there is no relationship between the income level & awareness of investment
avenues.
 Safety is the major factor while doing investments as 47.5 percentages of the
respondents are investing their money due to safety & 15 percentages of the
respondents are investing their money in tax saving scheme for tax benefit purpose.
 The main objectives of investors are future security followed by good return on
investments as percentages are 30 & 20 respectively
 The researcher found that self-awareness is the main source of investment.
 Mutual Fund is the first preference given by the investors for investment as the
percentage Followed by Bank deposits as their second choice.
 Study reveals the main information sources of invest is tv, friends and relatives
 Most of the salaried individual prefer to invest into private sector

 Salaried persons in Ludhiana having perception for investment as need of huge funds.

 Most of the individual consider FD, Savings a/c, Insurance, Gold, Real estate as Safe
investment

 Individual consider equity, forex, bonds as high risky investments

 Employees having age between 40- 60 prefer to save the earnings rather to invest.

SUGGESTIONS

If you want to become wealthy and secured in terms of financial, you must save and
allocate some of current savings towards the future. Every earning person should have
his/her financial plan for doing or getting success in terms of fulfilling drams comes
true so they should understand and have a basic knowledge about investment options
available in the current market or fir this they can take help from financial experts or
adviser from time to time. Some Awareness programs needs to be conducted either by
financial experts, financial institutions or itself from organization where employees
working them self. Government should include some basic fundamental investment
topics in school college subject itself.

CONCLUSION:

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(1) Investors/salaried employees are preferring to invest in their money into the Mutual fund
and bank deposit.

(2) The data analysis of research show that the future safety and wellbeing is concerned as
vital factor while doing investment.

(3) Investors are very well conscious about different investment avenues that are available in
Ludhiana City.

(4) It is absolutely necessary and required to saving some proportion of amount what you
earned, to have a plan for your own future and should invest wisely

The study on preferred investment avenues among salaried people has been
undertaken with the key objectives such as to find preferred investment avenues & also to
know the awareness level of investors. Analysis of the study was undertaken with the help of
survey conducted. After the analysis & interpretation of data it is concluded that Investors are
aware about investment avenues available in India but still investors are preferred to invest in
bank deposit, real estate, metals (Gold). Data analysis reveals that the safety is important
factor while doing investment so remaining avenues are less considerable while doing
investment by investors.

Awareness programs has to be conducted by stock broking firms, because most of the
respondents are thinking these avenues are loss making & having no good return on it. ‘No
Pain No gain' is the best principle of investment management and salaried investors are
following this principle only. Hence the researchers have concluded that most of the investors
prefer secured regular income on investment in the study.

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REFERENCES

 https://s.docworkspace.com/d/AMdwx7H6nrsroZiGjrGdFA
 https://www.academia.edu/22721805
 https://m.economictimes.com/wealth/plan/financial-planning-thumbrules/
articleshow/54439162.cms
 https://www.slideshare.net/mobile/RanjanaSingh6/investment-pattern-of-salaried-
individuals
 C.R. Kothari, Research methodology: methods and techniques, Vishwa Prakashan,
New Delhi, 1999, pp. 21- 151
 Singh, P.2013. Investment Management: Security Analysis and Portfolio
Management. Bombay: Himalaya Publishing House.
 Dr. L. Natarajan, Investment Management, Margham Publications, Chennai, 2005,
p.1.1.
 L. Bajtelsmit and A. Bernasek “Why do women invest differently than men?”
Financial Counseling and Planning, vol. 7, 1996, pp. 1-10
 Preethi Singh, “Investment Management, Himalaya Publishing House, New Delhi,
2006, p.3.
 www.mayerbrown.com
 www.moneycontrol.com
 www.joaag.com
 www.financewalk.com
 www.researchgate.ne

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 ANNEXTURE

 Survey on INVESTMENT PATTERN

Name:

Gender:

Qualification:

Designation

Age:

Email address

 CORPORATE INFORMATION

Organization:

Occupation

Annual Income

SURVEY ON INVESTMENT PATTERN

Q Are you aware of the following investment avenues?

 Savings Account.
 Public Provident Fund
 National Savings Certificates..
 Post Office Saving
 Government Securities
 Mutual Funds
 Life Insurance
 Debentures. Bonds
 Equity Share Market

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  Commodity Market. FOREX Market.
 Real Estate (property
 Gold/Silver. Chit Funds
 Other…

What do you think are the best options for investing your money?

In which sector do you prefer to invest your money

 Private Sector
 Public Sector
 Foreign Sector
 Other…

Q What are the important factors guiding your investment decisions?

 Return
 safety of principal
 Diversification
 progressive values
 Other…

What are your savings objectives?

 Children’s Education
 Retirement Plan
 Home Purchase
 Children Marriage
 Health Care
 Other…
 What is your investment objective?
 Wealth Creation
 Capital Preservation
 Long-term Growth
 Short-term Growth

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  Tax Saving
 Future Expenses
 Earn Returns
 Other…

Q Do you invest your money in share market? (Through a DEMAT A/C)

Yes or No

If yes: Imagine that stock market drops after you invest in it then what will you do?
Withdraw your money Wait to increase Invest

Q How often do you monitor your investment?

Daily,

Monthly,

Occasionally

Q What percentage of your income do you invest?

 0-15%
 15-30%
 30-50%

Other…

Can you take the risk of losing your principal investment amount?

 Yes
 No
 Maybe

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