SUMMER INTERNSHIP PROJECT REPORT

ON
“The Perception of Individuals on Investment Vs. Saving”

SUBMITTED TO: -
SHREE JAIRAMBHAI PATEL INSTITUTE OF BUSINESS MANAGEMENT
AND COMPUTER APPLICATION (NICM)

UNDER THE GUIDANCE OF

Dr. Yash Bhatt
(Assistance Professor and Placement Coordinator)

In Partial Fulfillment of the Requirement of the Award of the Degree of the

Masters of Business Administration (MBA)

OFFERED BY

GUJARAT TECHNOLOGICAL UNIVERSITY

AHMEDABAD
PREPARED BY: - JAY KUMAR DINESH CHANDRA
ENROLLMENT NO: 207690592024
MBA SEMESTER-3
SEPTEMBER – 2021
COMPANY CERTIFICATE

I
 STUDENT’S DECLARATION

I hereby declare that the Summer Internship Project Report titled “The perception of
Individuals on Investment Vs. Saving” in (Wealth Street) is a result of my own work and my
indebtedness to other work publication, references, if any, have been duly acknowledged. If I
am found guilty of coping from any other report or published information and showing as my
original work, or extending plagiarism limit, I understand that I shall be liable and punishable
by the university, which may include ‘FAIL’ in examination or any other punishment that
university may decide.

ENROLMENT NO. NAME SIGNATURE

207690592024 Jay Kumar Dinesh Chandra

II
 INSTITUTE CERTIFICATE

This is to certify that this Summer Internship Project titled “The Perception of Individuals
on Investment vs. saving” is benefited work of Jay Kumar Dinesh Chandra
(207690592024) who has carried out his project under my supervision. I also certify further,
that to the best of my knowledge the work reported herein does not form part of any other
project report or dissertation on the basis of which a degree or award was conferred on an
earlier occasion on this or any other candidate. I have also checked the plagiarism extent of this
report which is______% and it is below the prescribe limit of 30%. The separate plagiarism
report in the form of pdf file is enclosed with this.

Rating of Project Report [A/B/C/D/E]:

(A=Excellent; B=Good; C=Average; D=Poor; E=Worst) (By Faculty Guide)

Signature of the Faculty Guide/s

(Dr. Yash Bhatt
Assistance Professor and Placement Coordinator)

Signature of Principal/Director with Stamp of Institute

(Dr. Harishchandra Singh Rathod Director)

III
PLAGIARISM REPORT

IV
 PREFACE

As part of my MBA Programmed, I was required to complete a project as an intern at Wealth

Street in order to gain practical knowledge in the field of management; I conducted marketing
research on the topic "The perception of individuals on Investments vs. Saving" The primary
goal of this project is to gain practical knowledge about various types of investments. This
project contributes to our understanding of investment and saving.

The primary goal of the research is to assess the customer's knowledge of investment. This is
an empirical study that relies heavily on primary data gathered via a well-structured
questionnaire. In today's world, customer awareness is critical for all businesses. As a result,
the customer desires the most up-to-date information and is well-versed in the benefits of
investment.

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 ACKNOWLEDGEMENT

It is a great pleasure for me to undertake this project entitled “The Perception of Individuals
on Investment vs. saving”.

The success and final outcome of this project required a lot of guidance and assistance from
many people and I am privileged to get this all along the completion of my project.
All that I have done is only due to such supervision and assistance and I am grateful to all of
them.

I am thankful to my project guide “Dr. Yash Bhatt (Assistance Professor and Placement
Coordinator)” for their guidance, and my mentor in the company Mr. Hemen Sanghvi-
Business head for their help, support and practically guiding us throughout the internship. The
project would not have completed without their help. Whenever I was in need, He was there to
guide me. I would also like to thank to all the people I have met while completing my SIP and
sharing their wide knowledge with me.

I am thankful to all my family members and friends for showing their support and
encouraging/motivating me to complete the project on time.

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 TABLE OF CONTENT

SR. PARTICULARS PAGE

NO NO
COMPANY CERTIFICATE I
STUDENT DECLARATION II
INSTITUTE CERTIFICATE III
PLAGIARISM REPORT IV
PREFACE V
ACKNOLEDGEMENT VI
1. INTRODUCTION TO THE STUDY 1
2. CHAPTER 1: INTRODUCTION 2
3. INVESTMENT VS. SAVING 2
1.1 BASIC UNDERSTANDING OF INVESTMENT AND SAVING 2

1.2 WHAT IS SAVING 3

1.3 WHAT IS INVESTING 4
1.4 DIFFEREANCE BETWEEN SAVING AND INVESTING 4
1.5 SIMILARITIES BETWEEN SAVING AND INVESTMENT 5
1.6 THE PROS AND CONS OF SAVING 6
1.7 THE PROS AND CONS OF INVESTING 6
1.8 SO WHICH IS BETTER – SAVING OR INVESTMENT 7
4. CHAPTER 2: INTRODUCTION OF THE COMPANY 9
2.1 VISION AND MISSION OF THE COMPANY 10
2.2 SWOT ANALYSIS 10
5. CHAPTER 3: LITERATURE REVIEW 12
6. CHAPTER 4: RESEARCH METHODOLOGY 18
4.1 OBJECTIVE OF THE STUDY 19
4.2 LIMITATION OF THE STUDY 20
7. CHAPTER 5: DATA ANALYSIS AND INTERPRETATION 21
10. CHAPTER 6: FINDING AND SUGGESTIONS 36
11. CHAPTER 7: CONCLUSION 38
12. ANNEXURE(QUESTIONNARIE) 39
13. BIBLIOGRAPHY 42
 INTRODUCTION TO THE STUDY

Managing your money involves optimizing your earning by planning your spending and
investing your surpluses wisely. You can manage your spending and saving by budgeting for
it and sticking to your budget. A Rupee saved is Rupee earned. Saving involves certain amount
of investment savvy for asset allocation to get optimum returns.

First of all, you have to decide about your financial goal and the time span within which to
achieve it. The main focus should be to achieve the goal by allocating money to investments
that provide a hedge against the inflation, are tax efficient, and capital invested is at minimum
risk coupled with good returns. I used the word “minimum risk” because risk is something that
can be mitigated, but not eliminated altogether. Then there is also the concept of opportunity
loss. That is, not selecting the right investment at the most opportune time.

Part of your asset allocation should be such that sufficient liquidity is available for unforeseen
and emergency situations. The financial goal could be to save for old age, own a house, provide
for education of your children and health care for the family. The time span to achieve the goal
would be the productive years of your life. The planning has to start at the beginning of your
career. Necessarily, majority of us may have to make a modest beginning at the start of one’s
career and manage the money ourselves.
 CHAPTER 1
INTRODUCTION
INVESTMENT VS. SAVING

1.1 BASIC UNDERSTANDING OF INVESTMENT AND SAVING

The term “investing” and “saving” are often used interchangeably. Saving and Investing are
both important concept for building sound financial foundation, but they are not the same thing.
While both can help you achieve a more comfortable financial future, consumers need to know
the differences that “when it is best to save” and “when it is best to invest”.
The biggest difference between saving and investing is the level of risk taken. Saving typically
results in you earning a lower return but with virtually no risk. In contrast, investing allows you
the opportunity to earn a higher return, but you take on the risk of loss in order to do so.

Furthermore, both saving and Investing depends upon the risk-taking appetite of an individual.
Whether they are young and can take more risks and can invest or they are aged and want to
play safe saving the money.

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As you can see in the above image, the risk-taking capacity of an individual under the age of
30 is higher. Hence, they take the risk and invest 75% of the earnings in stocks keeping only
5% of the cash with them of their total earning. The percentage changes as the individual grow
old.
On the other hand, when the individual is near to the retirement or has retired already, the
investing pattern of the person changes. Now the individual will keep more of the liquid fund
than risking his/her hard-earned money investing in stocks. Above mentioned image shows the
same. The liquid fund is 20% now which was about 5% when the individual was young. So,
now when he is old, the risk-taking appetite is less so he has increased the liquid fund. The
investment in stocks falls drastically if we compare the under 30 age group of people and above
60 age group of people. It is like a 45% fall in the investment pattern of stocks by the older
people.

1.2 WHAT IS SAVING?

Saving is an act of putting away money for a future expense or need. When you choose to save
money, you want to have the cash available relatively quickly, perhaps to use immediately.

3
However, saving can be used for long-term goals as well, especially when you want to be sure
you have the money at the right time in the future. Savers typically deposit money in a low-
risk bank account. Those looking to maximize their earning should opt for the highest annual
percentage yield (APY) saving account they can find (as long as they can meet the minimum
balance requirements).

1.3 WHAT IS INVESTING?

Investing is similar to saving in that you are putting away money for the future, except you are
looking to achieve a higher return in exchange for taking on more risk. Typical investments
include stocks, bonds, mutual funds and exchange-traded funds (ETFs). You will use an
investment broker or brokerage account to buy and sell them. If you are looking to invest
money, you should plan to keep your funds in the investment for at least five years. Investment
can be very volatile over short periods of time, and you can lose money on them. So, it’s
important that you only invest money that you won’t need immediately, especially within a
year or two.

1.4 DIFFERENCES BETWEEN SAVING AND INVESTING.

Characteristics Saving Investment

Account type Bank Brokerage

Return Relatively low Potentially higher or lower

Risk Virtually none Varies by investment, but

there is always the
possibility of losing some
or all of your investment
capital

Typical Products Saving account, CDs, Stocks, bonds, mutual

Money-market accounts funds and ETFs

Time Horizon Short Long, 5 years or more

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 Difficulty Relatively easier Harder

Protection against Only a little Potentially a lot

Inflation

Expensive No Could be, depending on

how much you buy or
trade and realize taxable
gains.

Liquidity High, Unless CDs High, though you may not

get the exact amount you
put into the investment
depending upon when you
cash in.

1.5 SIMILARITIES BETWEEN SAVING AND INVESTMENT.

As you can see in the above-mentioned table, saving and investing have many different
features, but they do share one common goal: they are both strategies that help you accumulate
money.

“First and foremost, both involve putting away money for future reasons,” says Chris Hogan,
financial expert and author of Retire Inspired.

Both use specialized accounts with the financial institution to accumulate money. For savers,
that means opening an account at a bank. For investors, that means opening an account with an
independent broker, though now many banks have brokerage arm too.

Savers and Investors both realize the importance of money saved. Investors should have
sufficient funds in the bank account to cover emergency expenses and other unexpected costs
before they tie up a large chunk of change in the long-term investments.

As Hogan explains, Investing is money that you are planning to leave alone “to allow it to grow
for your dreams and your future.”

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1.6 THE PROS AND CONS OF SAVING
There are plenty of reasons you should save your hard-earned money. For one, it’s usually your
safest bet, and its best way to avoid losing any cash along the way. It’s also easy to do, and you
can access the funds quickly when you need them.

All in all, saving comes with these benefits:

 Saving account tell you upfront how much interest you’ll earn on your balance.
 Bank product are generally very liquid, meaning you can get your money as soon as
you need it, though you may incur a penalty if you want to access a CD before its
maturity date.
 Saving is generally straightforward and easy to do. There usually isn’t any upfront cost
or learning curve.

Despite its perks, saving does have some drawbacks, including:

 Returns are low, meaning you could earn more by investing (but there is no guarantee
you will.)
 Because returns are low, you may lose purchasing power over time, as inflation eats
away at your own money.

1.7 THE PROS AND CONS OF INVESTING

Saving is definitely safer than investing, though it will not result in the most wealth
accumulated over the long run.

Here are just a few of the benefits that investing your cash comes with:
 Investing products such as stocks can have much higher return than saving accounts
and CDs.
 Investing product are generally very liquid. Stocks, bonds and ETFs can easily be
converted into cash on almost any weekday.

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  If you own a broadly diversified collection of stocks, then you are likely to easily beat
inflation over long period of time and increase your purchasing power. If your return
is below the inflation rate, you’re losing purchasing power over time.

While there’s the potential for higher returns, investing has quite a few drawbacks,
including:
 Returns are not guaranteed, and there’s a good chance that you will lose money at least
in the short term as the value of your assets fluctuates.
 Depending on when you sell and the health of the overall economy, you may not get
back what you initially invested.
 You’ll want to let your money stay in an investment account for at least five years, so
that you can hopefully ride out short-term downdrafts. In general, you’ll want to hold
your investments as long as possible- and that means not accessing them.
 Because investing can be complex, you’ll probably need some expert doing it- unless
you have time and skillset to teach yourself how.
 Fees can be higher in brokerage accounts. You may have to pay to trade a stock or
fund, though many brokers offer free trades these days. And you may need to pay an
expert to manage your money.

1.8 SO WHICH IS BETTER- SAVING OR INVESTMENT?

Neither saving or investing is better in all circumstances, nor does the right choice really depend
on your current financial position.

Generally, though, you’ll want to follow these two rules of thumb:

 If you need the money within a year or so or you want to use the funds as an emergency
fund, a saving account or CD is your best bet.
 If you don’t need the money for the next five years or more and can withstand some
losses in capital, then you likely should invest the money.

For example, paying your child’s college tuition fee in a few months should be in savings- a
saving account, money market account or a short-term CD (or a CD that’s about to mature
when it’s needed).

7
“Otherwise, people will think, ‘well, you know, I have a year and I am buying a house or
something, maybe I should invest in stock market”. “That’s really gambling at that point, as
opposed to saving.”
And it’s the same for emergency fund, which should never be invested but rather kept in
savings.
“So, if you have an illness, a job loss or whatever, you don’t have to resort back to debt”
“You’ve got money you’ve intentionally set aside to be a cushion between you and life.”

And when is Investing better?

Investing is better for long-term money - money you are trying to grow more aggressively.
Depending on the level of risk tolerance, investing in stock market, exchange-traded funds or
mutual funds may be an option for someone looking to invest.

When you are able to keep your money in investments longer, you give yourself more time to
ride out the inevitable ups and downs of the financial markets. So, investing is an excellent
choice when you have a long-time horizon (ideally many years) and won’t need to access the
money anytime soon.

“So, if someone’s beginning with investing, I would encourage them to really look at growth-
stock mutual funds as a great starter way to get your foot into.”

8
 CHAPTER 2
INTRODUCTION OF THE COMPANY

Company’s Overview:

Wealth Street is a one-stop business for all of your financial requirements.

We at Wealth Street believe that smart financial planning today is the key to a brighter, perhaps
more profitable, and stress-free tomorrow.

We are passionate and committed to satisfying all of your investment needs in the areas of
equity, mutual funds, fixed income, and structured products. At Wealth Street, we strive to
make your dreams a reality.

Wealth Street Advisors Private Limited was incorporated on 21st November 2016. Its head
office is in Ahmedabad of 70 staffs. Wealthstreet is a one-stop solution for all client’s financial
requirements. At Wealthstreet, they firmly believe that smart financial planning today is the
key to a brighter, profitable and tension free tomorrow. Wealthstreet is an ideal mix of Financial
and Investment Products, right from Equity to Debts, and Real Estate to Insurance Products,
whether long term or short term, to suit all clients’ financial needs and goals. Company
analyzes the clients risk taking capacity and strive to balance risks and rewards for them.

Company is passionate and committed to cater to all their client’s investment needs regarding
Equity, Mutual Funds, Bonds, NCDs, PMS, Real Estate, Insurance, and Structured Products.
At Wealthstreet, company aspire the client’s growth, because they believe in making clients
dream come true. When clients collaborate with the company, clients are taking a step towards
empowered financial health. Wealthstreet are having more than 11000 happy clients, Rs. 600
crores of total asset under advisory, having the large network of 300+ touch points.

Spearheaded by experienced and expert professionals, company have presence in key

geographies across India (Gujarat, Maharashtra, Odisha, Rajasthan, West Bengal and New
Delhi) and further expanding at a brisk pace.

9
There are 5 directors in the company. Those are:

1. CA Ajay Saraogi - (Expert in Wealth Management, Broking Operations and

Insurance)
2. CA Rakesh Lahoti – (Expert in Structured Product, Legal Aspect and Debt
Syndication)
3. Kunal Mehta – (Expert in Portfolio Management, Strategic Financial Planning, MF
and PMS Product)
4. Jolit Shah – (Expert in Financial Derivatives and Trading Product)
5. Kamlesh Tripathi – (Expert in Real Estate and Automotive Sector)

All the above directors are having the expertise in different field with the experience of more
than 20 years.

VISION and MISSION of the Company

VISION:

To be the favored destination for all the financial requirements, be it an investment, be it an

investment of funds or need for funds, for both individuals and corporates.

MISSION:

To provide an ideal financial solution which is aligned with the needs, goals and risk appetite
of their clients.

SWOT ANALYSIS

Strength:

 The company does not sell products; instead, they provide advice to clients on their
problems.
 Advisors have specialized knowledge in the field of finance and extensive industry
experience.
 Advisors respect the risk of the clients and provide the best services to them.
 They provide products to their customers based on their needs and suitability.

10
Weakness:
 Clients are unable to invest directly from the company's website or application.
 Since the company is new and in its initial phases of development, large and well-
established competitors are the primary source of concern.

Opportunities:
 Obtaining tie-ups with many more corporate offices will boost the company's growth
and profitability.
 To bring in even more business, the company could form an alliance with schools and
universities.

Threat:
 Direct broking app such as Zeroda, Grow, Angle broking, Sub-broker ship (NJ INDIA
& Prudent Corporate)
 The preceding points indicate that the clients who directly invest in the aforementioned
apps and websites pose a threat to the company.
 Companies such as NJ INDIA and Prudent Corporate are also providing sub-broker
ship opportunities to those interested in doing side business.

11
 CHAPTER 3
LITERATURE REVIEW

Sr. Year Of Author/s TITLE Research Data Major Findings

No. Research Objective Collection
tool

1 2014 Bhushan Insights into To examine the Descriptive Respondents are

awareness awareness level statistics quite aware and
level and and investment park their money in
investment behavior of traditional and safe
behaviour of salaried financial products
salaried individuals whereas awareness
individuals towards level of new age
towards financial financial products
financial products among the
products population is low

2 2014 Geetha and Perception of To identify the One There is a

Vimala Household popular sample remarkable change
Individual perception of t-test, Chi- in the investment
Investors individual square avenues due to
towards investors establishment of
Selected towards selected different financial
Financial investment institution,
Investment avenues and creditable source
Avenues attractive return,
the predominant
factors good capital
appreciation, and
which influence
tax concession.
individual
From the investors
to go for savings
point of view
in that
changes in

12
 instrument demographic factor
such as age,
income, education,
and occupation
have an influence in
the investment
avenue preference.

3 2014 Raheja and Behavior of To study Literature There is various

Lamba investor investment review investment
towards behavior and options available in
investments individual the market
investment and people prefer to
practices as per invest in
different stages different
in their life investment options
cycle and to with
understand some objective
what an investor behind
looks for investment. It also
in investment concludes
avenues. that life cycle
stages and
investment
objectives are
dependent on each
other.

4 2014 Charles and Do Investors' To find out SEM Investor’s emotion

Kasilingam Emotions whether based
Determine Individual’s intuitiveness affects
their emotions them
Investment determine their investment
Personality? investment personality.

13
 personality or
not

5 2014 Chhabra and Understanding To understand Literature Investment options

Mundra the Investment and present review opted by people are

Behavior Currency, Bank

a glimpse of
Deposits, Non-
research work
Banking Deposits,
done on the
Life Insurance Fund,
investment
Provident Fund &
behavior. Pension Fund,
Claims on
Government, Shares
& Debentures, Units
of UTI, National
Saving Certificates.

6 2013 Palaniveluan A Study on To analyze the Chi Square Certain factors like
d Preferred investment education level,
Chandra Investment choice of awareness about
Kumar Avenues salaried class in the current financial
among NamakkalTaluk, system, age
Salaried Tamil Nadu, of investors make
Peoples India significant
impact while
deciding the
investment
avenues.
Awareness
program has to be
conducted by
Stock Broking
firms, because

14
 most of the
respondents
unaware
about new services.

7 2013 Elankumara Factors To explore the Descriptive Four major factors

n and Influencing factors and have greater
Ananth Individual influencing the Factor influence on the
Investor behavior of Analysis behavior of
Behavior investors investors, viz., low
towards risk,
commodity informational
market in India asymmetry, high
return and objective
knowledge

8 2013 Bashir, Investment To analyze the Descriptive Females are more

Ahmed, Preferences relationship Analysis, risk averse
Jahangir, and Risk of demographic Correlation than males. Young

Zaigam, Level: variables and educated

Saeed Behavior of with the people are attracted

Salaried investment more
And Shafi
Individuals preferences towards new risky
consisting of investment
stock investment opportunities and
and are reluctant
gambling because of limited
decisions of resources and
salaried lack of investment
individuals of opportunities
finance teachers and absence of
and bankers of investment
Gujarat and trends. The
Sialkot emergence of

15
 frequent religious
issues, non-
conducive
economic
environment and
culture have
negative
relationship with
gambling while
making
investment
decisions

9 2013 Jayaraj The Factor To identify the Principle The results reveal
Model for factors component that the
Determining which determine analysis psychological axes
the Individual individual conservatism,
Investment investor diligent and
behavior in investment discreet, remorse
India. behaviour. abhorrence fall
To know in line with the
whether any earlier research
psychological but prudence and
biases exist under
among Indian confidence is the
investors contrary
behaviour axes
reported by the
multivariate
analysis.

10 2013 Virani Saving and To determine Descriptive The major impact

Investment the Analysis on savings is

16
Pattern of relationship due to the level of
School between the income of the
Teachers savings and school teachers.
investments The main
pattern among avenues of
the school investment are
teachers. Bank
deposits and the
main purpose of
investment is for
children
education,
marriage, and
security
after retirement

17
 CHAPTER 4
RESEARCH METHODOLOGY

Introduction:
A research methodology is a method for solving a research problem in a systematic manner.
It can be thought of as a science that studies how scientific research is conducted. In it, we
focus on the various steps that a researcher takes when studying a research problem, as well as
the logic behind them.
The methodology of the study is illustrated in this chapter. This project is built on data gathered
from primary and secondary sources. Following a thorough exploration, we observed a detailed
analysis of Individuals and their preferences using the survey method. The data has been used
to describe a broad range of Individuals preferences.

Research Design:
This research project will use the Descriptive Research.

Research Population:
The study has been confirmed with consumers, and respondents include people who are aware
of investment and saving opportunities. When selecting the sample unit, efforts will be made
to include friends, family, and unknown individual people.

Sample Technique:
Non-probability Technique and convenience, as well as Snow-ball Sampling methods, will be
used for data collection as a method of referring one respondent to the other.

Sample Size and Design:

A sample of web survey was taken on the basis of the convenience with a sample of 107 survey.

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Research Instrument:

We created a questionnaire in order to collect secondary data. This was managed to accomplish
through the use of self-administered questions. The questions were open-ended and closed-
ended, with a response scale of Ordinal-Polychromous.

Data Preparation:

The data preparation process will begin with a preliminary check of all questionnaires for
completeness. The collected data will be edited, coded, tabulated, grouped, and organized in
accordance with the study's specific requirements.

Data Source:

 Secondary Data: It is information that has already been gathered by someone or an

organization for another purpose or research study. Data for the study will be collected
from a variety of sources, including books, journals, magazine articles, and internet
sources. From 2013 to 2014, the data will be analyzed.
 Primary Data: Following the collection of secondary data, the primary data will be
collected using a self-structured questionnaire. The sample will consist of people who
are employed or work as independent consultants in the capital market to learn about
their attitudes toward investment and savings in all kinds of financial instruments, with
a greater emphasis on derivatives.

4.1 OBJECTIVES OF THE STUDY:

 To know the perception of individual people about the Investment and Savings.
 To know what people, prefer the most investing their hard-earned money or saving it.
 To know how much of the individuals are aware about the different investment and
savings plans.
 To find out the investment and saving habit of the people belonging to all occupation.
 To make some suggestions in order to enhance investment and saving awareness among
people.

19
  To know the purpose of investment and saving of the individuals.
 To identify the saving and investment pattern.

4.2 LIMITATIONS OF THE STUDY:

 Time was a constraint.

 Self-reporting may cause respondents to have a social desirability bias.
 Not an experiment.
 Potential flaws in the study that could not be controlled.

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 CHAPTER 5
DATA ANALYSIS AND INTERPRETATION

QUESTION: GENDER
Gender

Female 46
Male 61
Other 0

Gender

0%

43%
57% Female
Male
Other

INTERPRETATION:
In this Research project, I have taken total responses of 107 to study the perception of
individual on investment vs. saving. Where I got 57% of Male responses whereas the Female
responses were 43% which are 61 and 46, Male and Female responses respectively.

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QUESTION: AGE
Age
Below 20 10
21 - 30 68
31 - 40 14
41 - 50 8
51 - 60 7
Above 60 0

Age

0.00%

7.48% 6.54% 9.35%

Below 20
13.08% 21 - 30
31 - 40
63.55%
41 - 50
51 - 60
Above 60

INTERPRETATION:
From the above pie chart, we can say that maximum number of responses received were from
the age group of 21-30 years that is 63.6%. The least number of responses were from 51-60
years that is 6.5%. Which signifies that the young generation is actually aware of the investment
and savings comparing with the aged group of people.

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QUESTION: OCCUPATION

Occupation
Student 52
Salaried 26
Business 20
House - Maker 9
Retired 0

Occupation

0.0%
8.4%
18.7% Student
48.6% Salaried
Business
24.3%
House - Maker
Retired

INTERPRETATION:
From the above chart and table, we can say that most of the respondents are Students with
48.6% which is 52 out of total 107 responses. 24.3% were salaried individuals which is 26 out
of total 107 responses. The business occupants were18.7% that is 20 out of total 107 responses.
The least responses were from the house-maker group that is 8.4% which is 9 out of total 107
responses.

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QUESTION: ANNUAL INCOME

Annual Income

Below 2,00,000 56

2,00,000 - 4,00,000 24

4,00,000 - 6,00,000 15

Above 6,00,000 12

Annual Income

11.2%
14.0%
Below 2,00,000
52.3% 2,00,000 - 4,00,000
22.4% 4,00,000 - 6,00,000
Above 6,00,000

INTERPRETATION:
Here we can say that 52.3% of respondent’s annual income is below 2 lakh, 22.4% respondents
are with 2 lakhs to 4 lakhs of annual income, 14% respondents’ annual income is between 4
lakhs to 6 lakhs. Only 11.2% respondents were with annual income above 6 lakhs.

24
QUESTION: Do you prefer Investment and Saving?

Do you prefer Investment and Saving?

Yes 89

No 18

16.8%

Yes
83.2% No

INTERPRETATION:
When the question of preference of individual about the investment and saving came, most
people answered affirmatively with 83.2% that’s 89 respondents who said yes to the question.
In contrast, 16.8 percent of people had an unfavorable reply, which amounted to 18 people
saying no to the question.

25
QUESTION: What type of investment options do you know?
What type of investment options do you know?
SIP (Systematic Investment Plan) 66
SWP (Systematic Withdrawal Plan) 20
STP (Systematic Transfer Plan) 15
Liquid Funds 20
Equity Funds 36
Debt Funds 18
Hybrid Funds 13
Health Insurance 69
General Insurance 63

80 69
66 63
70
60
50
36
40
30 20 20 18
20 15 13
10
0

INTERPRETATION:
Out of 89 affirmative responses, people were aware about most of the investment options. Most
people were aware about Health Insurance, SIP (Systematic Investment plan) and General
insurance with 77.5% (69), 74.2 (66) and 70.8% (63) respectively. The aware about the Hybrid
funds were the least with only 13 people knowing about it out of 89 individuals.

26
QUESTION: What type of investments have you made?

What type of investments have you made?

Direct Equity 44

Equity Mutual Funds 27

Debt Mutual Funds 15

Real Estate 20

Gold 62

Property 47

70
62
60

50 47
44
40

30 27
20
20 15

10

0
Direct Equity Equity Debt Mutual Real Estate Gold Property
Mutual Funds Funds

INTERPRETATION:
Most people have invested in Gold, Property and in Direct Equity with 69.7% (62), 52.8% (47)
and 49.4% (44) respectively. Whereas, In Equity Mutual Funds 30.3% (27) of investments
were done by people, following the Real Estate investment with 22.5% (20) and 16.9% (15) in
Debt Mutual Funds.

27
QUESTION: What is your saving objective?
What is your Saving objective?
Children’s Education 38
Retirement Planning 35
Long term growth 58
Health Care 52
Property Purchase 42

70
58
60
52
50
42
38
40 35

30

20

10

0
Children's Retirement Long term Health Care Property
Education Planning growth Purchase

INTERPRETATION:
The above chart depicts that the Long-term growth is the most people’s saving objective with
65.2% (58). Healthcare objectives comes the next with 58.4% (52), following with property
purchase and children’s education that is 47.2% (42) and 42.7% (38) respectively. Whereas,
the retirement planning is the least saving objective of the greatest number of people with
39.3% (35).

28
QUESTION: What is your investment objective?
What is your investment objective?
Safety 70
Liquidity 23
Return 58
Reliability 26
Low Risk 44
Other Factor 16

80
70
70
58
60

50 44
40

30 26
23
20 16

10

0
Safety Liquidity Return Reliability Low Risk Other Factor

INTERPRETATION:
The above chart depicts that the Safety of principle is the most people’s Investing objective
with 78.7% (70). Following with Return on investment and Low risk with 65.2% (58) and
49.4% (44) as the next investing objective.

29
QUESTION: What Percentage of your income do you invest?
What Percentage of your income do you invest?
0 – 15% 38
15 – 30% 46
30 – 50% 3
50% and Above 2

3.4% 2.2%

42.7% 0 - 15%
15 - 30%
51.7%
30 - 50%
50% and Above

INTERPRETATION:
The above chart shows that 51.7% people invest about 15-30% of their total income. 42.7%
number of people are the once who invest 0-15% of their total income. Only 2.2% of people
invest above 50% of their total income.

30
QUESTION: What is the time period you prefer to invest?

What is the time period you prefer to invest?

0 – 1 Year (Short – Term) 13

1 – 5 Year (Mid – Term) 36

Above 5 Year (Long – Term) 40

14.6%
0 - 1 Year (Short - Term)
44.9%

1 - 5 Year (Mid - Term)

40.4%

Above 5 Year (Long -

Term)

INTERPRETATION:
The above chart signifies that most of the people are investing for the longer period of time
that is above 5 years. 40.4% are the individuals who invest for the period of 1 - 5 years that is
mid-term. Only 14.6% are the once with short-term investment.

31
QUESTION: What factor do you consider before investing?

What factor do you consider before investing?

Safety of Principle 34
Low Risk 19
High Return 26

Maturity Period 10

11.2%
38.2%
Safety of Principle
29.2%
Low Risk
High Return
21.3%
Maturity Period

INTERPRETATION:
Out the factors which are safety of principle, low risk, high return and maturity period, most
people are considering safety of principle amount invested as most important factor before
investing. People consider Maturity period as the least important factor before investing.

32
QUESTION: In which sector do you prefer to invest your money?
In which sector do you prefer to invest your money?
Private Sector 70
Public Sector 55
Government Sector 52
Consumer directories, Private banks 1

80
70
70

60 55
52
50

40

30

20

10
1
0
Private Sector Public Sector Government Sector Consumer
directories, Private
banks

INTERPRETATION:
The above chart depicts that people are more interested in investing their money in Private
sector as compared with public and government sector. With preference of 78.7% investment
in Private sector, following 61.8% and 58.4% in public and government sector respectively.

33
QUESTION: 1. Do you think that investment in high-risk security should be avoided?
2. Do you think that economic environment of the country influences your investment
decision?
STRONGLY STRONGLY
QUESTION AGREE DISAGREE
AGREE DISAGREE
Do you think
that
investment
in high-risk 13 50 16 10
security
should be
avoided?
Do you think
that
economic
environment
of the
33 46 8 2
country
influences
your
investment
decision?

60
50
50 46

40 33
30
20 16
13
8 10
10
2
0
STRONGLY AGREE AGREE DISAGREE STRONGLY DISAGREE
Do you think that investment in high risk security should beavoided?

Do you think that economic environment of the countryinfluence your investment

decision?

INTERPRETATION:
50 People Agreed upon the question of investment in high-risk security should be avoided out
of total 89 responses whereas only 10 people totally disagreed with the same.

46 people agreed upon the statement of influence of investment decision by the economic
environment of the country whereas only 2 people strongly disagreed upon the same.

34
QUESTION: Rate how Investments are important to your life?
Rate how Investments are important to your life?
1 6
2 3
3 3
4 24
5 53

60
53
50

40

30
24

20

10 6 5
3 3 3 4
1 2
0
1 2 3 4 5

INTERPRETATION:
Out of the total 89 responses most people said that the investment is one of the most important
factors in their life which is 59.6% (53). Whereas, only 6.7% (6) people said it to be the least
important factor in their life.

35
 CHAPTER 6

FINDINGS AND SUGGESTIONS

FINDINGS:

 According to my observation most people are aware about the investment and saving.
 Most of the young lot between the age group of 21-30 are the most active in investing
their money in different financial derivatives.
 Most people’s investing objective were return on investment with safety of the principal
amount invested.
 Long term growth was the most people’s saving objective.
 Most people were interested in investing in the private sector at the time of the
investment.
 Only a few people disagreed with the investment, which could be due to a lack of
understanding of the term ‘investment’ or a lack of information.
 Individuals who understand the phrase "investment" appropriately invest in various
sectors to satisfy current and future goals.
 Those who do not agree with the investment are not familiar with the notion, and the
reason for this is that it is a complex and risky aspect of their savings.

SUGGESTIONS:

 According to my understanding or research notion of the investment, individuals are

aware of the investment, but are unclear of the advantages and disadvantages of the
same and market fluctuations.
 As the saying goes the “don't put all your eggs in one basket”, one should not invest all
the earning in the same company or in one derivative of financial market.
 As the above statement goes about the different financial derivatives, Hybrid funds
comes in the picture where most people are unaware about it.

36
 In my opinion, it is the best fund to invest in as it is an investment fund that is
characterized by diversification among two or more asset classes mainly combination
of Equity and Debt funds.
 As from the above data analysis I would like to suggest that retirement must be pre-
planned, though people are very least bothered about it.

37
 CHAPTER 7
CONCLUSION

From this project work the study investigates investors' perceptions about financial investment
opportunities. Previously, investors focused on a single investment strategy, but there has been
a significant shift in the financial landscape. This is due to the formation of various financial
institutions, creditable sources of attractive return, good capital appreciation, and tax benefits.
Changes in demographic factors such as age, income, education, and occupation have an
impact on investors' investment avenue preferences.

The Study reveals that the investor’s investment preference reasons are different in different
investment avenues. The investor’s preference reason in Investment Avenue is depends upon
the investment objectives such as Risk, Return, Safety and Liquidity of the investment. Most
of the Investors enter into the Share Market for Returns and Bond Investors take Risk and gains
returns periodically. Risk aversion investors like to invest in Mutual Fund Investment Avenue
for Future Needs.

According to my observation I found that most of the investors are the young people between
the ages of 21-30 years who are mostly interested in investing in private sector which might be
resulting them in gaining huge number of profits though it is subject to market risk.

Also, most of the people are neglecting the retirement financial planning which is important
for their future if they are willing to be independent in their preceding years of life.

38
 ANNEXURE

QUESTIONNAIRE

TOPIC: The Perception of Individuals on Investment Vs. Saving

1. Name:

2. E-Mail

3. Gender:

4. Age:

5. Occupation

6. Annual Income

7. Do you prefer Investment and Saving?

 Yes
 No

8. What type of investment option do you know?

 SIP (Systematic Investment Plan)

 SWP (Systematic Withdrawal Plan)
 STP (Systematic Transfer Plan)
 Liquid Funds
 Equity Funds
 Debt Funds
 Hybrid Funds
 Health Insurance
 General Insurance

9. What type of investments have you made?

 Direct Equity
 Equity Mutual Funds
 Debt Mutual Funds
 Real Estate

39
  Gold
 Property

10. What is your Saving Objective?

 Children’s Education
 Retirement Planning
 Long term growth
 Health Care
 Property Purchase

11. What is your Investment objective?

 Safety
 Liquidity
 Return
 Reliability
 Low Risk
 Other Factor

12. What Percentage of your income do you investment?

 0 – 15%
 15 – 30%
 30 – 50%
 50% and Above

13. What is the time period you prefer to invest?

 0 – 1 Year (Short- Term)

 1 – 5 Year (Mid- Term)
 Above 5 Years (Long- term)

14. What factor do you consider before investing?

 Safety of Principle
 Low Risk
 High Return
 Maturity Period

40
15. In which sector do you prefer to investment your money?

 Private Sector
 Public Sector
 Government Sector

16. Do you think that investment in high-risk security should be avoided?

 Strongly Agree
 Agree
 Disagree
 Strongly Disagree

17. Do you think that economic environment of the country influences your investment
decision?

 Strongly Agree
 Agree
 Disagree
 Strongly Disagree

18. Rating how Investments are important to your life?

 1 (Not Important)
 2
 3
 4
 5 (Most Important)

41
BIBLIOGRAPHY

Ananth, E. a. (2013). Factors Influencing Individual Investor Behavior.

Bashir, A. J. (2013). Investment Preferences and Risk Level: Behavior of Salaried .
Bhushan. (2014). Insights into awareness level and investment behaviour of salaried
individuals towards financial products.
Jayaraj. (2013). The Factor Model for Determining the Individual Investment .
Kasilingam, C. a. (2014). Do Investors' Emotions Determine their Investment Personality?
Kumar, P. C. (2013). A Study on Preferred Investment Avenues among .
Lamba, R. a. (2014). Behavior of investor towards investments.
Mundra, C. a. (2014). Understanding the Investment Behavior.
vimala, G. a. (2014). Perception of Household Individual Investors towards Selected
Financial Investment Avenues.
Virani. (2013). Saving and Investment pattern of school teachers.

https://www.bankrate.com/investing/saving-vs-investing/

https://www.franklintempletonindia.com/investor/investor-education/video/difference-
between-saving-and-investing-io04og31

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