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Introduction
 An investment is the employment of funds to achieve income and growth in value. The
main characteristic of investment is waiting for a reward. Finance is the allocation of monetary
resources to assets that are expected to yield some gain or positive return over a given period.
Salaried individuals are those persons who are receiving a regular income, and are concerned
about their investment habits. They want to invest their income in avenues where they can
earn a return by reducing the risk associated with it. Salaried individuals consist of government
employees and private sector employees. They are receiving a salary for their service. Which
they are providing. These incomes must be utilized appropriately for their benefit of them for
future needs. For that, they are investing in various investment avenues where they can
increase their return maximum. Since the cost of living is increasing day by day to cope with
that one needs to invest and earn a return on their idle resources and generate a specified sum
of money for a specific goal in life and make a provision for an uncertain future. Through this
study, the awareness level, factors that are affecting them, and which investment avenues
prefer most salaried people are studied here. What are Savings? Savings refers to the money
that a person has left over after they subtract their consumer spending from their disposable
income over a given period. Savings, therefore, represents a net surplus of funds for an
individual or household after all expenses and obligations have been paid.
Savings are kept in the form of cash or cash equivalents (e.g. as bank deposits), which
are exposed to no risk of loss but also come with correspondingly minimal returns. Savings can
be grown through investing, which requires that the money be put at risk, however. What are
Investments? An investment is an asset or item acquired to generate income or appreciation.
Appreciation refers to an increase in the value of an asset over time. When an individual
purchases a good as an investment, the intent is not to consume the good but rather to use it in
the future to create wealth. Developing countries in the world, like India, face as seen the
enormous task of finding sufficient capital to utilize in their development efforts. Most
countries find it difficult at this stage to get out of the vicious circle of poverty that is prevailing
of low income, low saving, low investment, low employment, etc., and the list goes on. With a
high capital E output ratio, that is observed India needs very high rates of investments that
would take and make a leap forward in her efforts continues of attaining high levels of growth.
In the stock market and market, uncertainties led to the growth of a new field of
research in finance namely Behavioral Finance. Behavioral Finance is a part of Behavioural
Economics, which began as a result of prospect theory which was developed by Daniel
Kahneman and Amos Tversky. Kahneman and Tversky were both psychologists with no or little
training in classical finance. Inconsistencies in the financial market are due to cross-sectional
and time series patterns in returns from investment in securities that cannot be predicted by
any well-defined theory. Behavior finance is the study of the influence of psychological factors.
The individual in their investment behavior. This new approach to financial research advocates
that investment decision is affected by psychological and emotional factors. This new approach
tries to prove or rather we can say that it assumes that the investors are influenced by
psychological factors such as attitude, over-confidence, optimism, pessimism, etc. The role of
these factors in investment has changed the direction of research in the area of Behavioural
Finance. As I mentioned earlier Kahneman and Tversky (1979) was the first psychologist who
developed this model. Later Shefrin and Statman (1994) and Shleifer (2000) also contributed to
this field. These researchers have attempted to analyze the efficiency of financial markets and
tried to discuss the fluctuations in stock markets. Challenges in the market environment are
growing if the investors analyze the different options and securities can reap the benefit. If we
closely analyze the five decadences can find the finance theory had assumed that investors
have little difficulty in making decisions. According to the traditional theory, the investors are
not getting confused by the information presented to them and not are swayed by any
emotions. But in real situations, this assumption does not match the reality, and this led to new
a approach in finance theory. Over the last decade’s Bah, behavioral finance has gained
importance as it is a new area of research. According to the research investors rarely behave as
per the assumptions made in the trade national theory of finance. According to behavioral
researchers, the finance theory should take consent iteration of the observation of human
behavior. Behavior Research uses a psychological point of view to develop an understanding.
The major features that are seen in investment are safety of principal amount, liquidity,
income, stability, appreciation, and lastly easy transferability. A different variety of investment
avenues in abundance and types are available such as shares, banks, companies, gold and
silver, real estate, life insurance, and postal savings. All the investors. Investors who wish to
invest, invest their surplus money in the above-mentioned avenues that are available based on
their risk-taking attitude and capacity bearing.
Investment pattern of salaried employee are quite different, the character of
employment and income level plays an essential role, but one factor is common for all its
regular basis of income may result in eventual investment or monthly saving habit rather than
payment saving. This research focused only on salaried persons. The saving and investment
pattern of the salaried employees is different from each other thanks to opinion on safety,
return on investments, regular income, tax savings benefits, and retirement benefits.
Mr. Warren Buffett, one among world's successful investor, has said: "Don't save what's
left after spending: spend what's left after saving.” The salaried class incorporates a fixed source
of income and supplemented by additional income from other sources. The salaried class
investors with assured monthly income might be regular savers. Various studies at micro level
confirm the role of salaried class investors in providing the financial resources to the economic
sector. But the amount of savings will be still being augmented from salaried class if the
economic system is formed more attractive to them. Keeping in sight of the potential savings of
salaried class investors, this study is prompted to grasp the behavior of salaried class investors
Statement of the Problem

 The problem stated within the study is that s compared to other countries, India has s
very low rate of investors.
 Investors are unaware of various investment avenues; meanwhile non-investors are
unaware of the importance and benefits of investments.
 Savings alone won't make financial growth faster. Financial planning is a must for each
household. Financial planning goes beyond savings, it's an investment with a purpose
it's a thought to save lots of and spend future income and will be carefully budgeted.
Objectives of the Study

 To identify the popular investment avenue and also the level of satisfaction of investors
in their investment.
 To know the aim of investments and motivating factors which influence investment
decisions.
 To know the factors that influence the investment behavior the salaried people.
 To identify the issues faced by the investors towards investment pattern
 To analyze the awareness level regarding different investment avenues of salaried
people and sources of awareness towards investment avenues.
Key Differences between Savings and Investment
The differences between savings and investment are explained in the following points:
1. Savings means to set keep aside a part of your earned income for future use.
Investment is often defined as the act of putting funds to productive uses, i.e. investing in such
investment vehicles can reap money over some time.
2. People often save money, to fulfill their unexpected and sudden expenses or urgent
money requirements. Conversely, investments are made or done to generate returns over the
period so that they can help the n capital formation of an individual.
3. With an investment, there is follows always a risk of losing money. Unlike savings,
there are comparatively fewer chances of losing tardy-earned money.
4. Investment provides higher returns than savings, as there is an assured and nominal
rate of interest on savings. However, the investments, in turn, can earn money more than the
invested amount, if invested wisely.
5. You can easily have access to your savings, anytime because they are highly liquid and
flexible, but in the case of investment you cannot have easy access to money as compared,
because the process of selling the investments and making liquid takes some time
 The salaried people have different investment channels to in- vest their surplus funds in
modern equipment. Consumer du- rables have attracted the salaried brackets towards it. In
fact, it has affected largely the saving habits of the salaried classes, as well as quantum of
savings, which in turn, has affected the in- vestment decision of this related class. Such a
dynamic situation compels one to have a clear-cut objective of his future investment. Then only
the investor can think of channelizing the sur- plus income for the investor's own benefit as well
as for the growth of the country. The investor should be very careful in selecting the investment
avenues. The investor should exercise this skill, knowledge and experience for choosing
investment opportunity. Otherwise , the whole of his investment may go waste. In this context,
the present study becomes highly essential on the following grounds. To know the investment
pattern of salaried people and to find out the various factors affecting the investment decision
of salaried people. Investment is the employment of funds with the aim of achieving additional
income or growth in value.
The main character- istics of investment are waiting for a reward. Investment is the
allocation of monetary resources to assets that are expected to yield some gain or positive
return over a given period of time. Investment aims at multiplication of money at higher or
lower rates depending upon whether it is lonlong-term short term investment and whether it is
risky or risk-free investment. In- vestment activity involves creation of assets or exchange of as-
sets with profit motive. "An investment in knowledge pays the best interest". From the people
point of view, the investment is a commitment of a person's funds to derive future income in
the form of interest, dividends, rent, premium, pension benefits or appreciation of the value of
their principle capital. Most of the investments are considered to transfers of financial assets
from one person to another. Various investment options are available with differing risk-reward
tradeoffs. An understanding of the core concepts and a thorough analysis of the options can
help an investor to create a portfolio that maximizes returns while minimizing risk exposure.
Savings and Investments are activities important and integral to men and women. Every
individual has a tendency to save for various reasons. They may be for short term purposes like
paying for a holding or for buying a car or they may be made for long term purposes such as
constructing a house or providing for retirement. Sometimes savings are made simply to meet
unknown contingencies. Apart from the above, there are two types of organization namely
manufacturing industry and service industry, which are existing in our country to cater to the
needs and wants of the people and which helps on the economic growth of the nation.
Whatever may be the type of the organization, they need capital to carry their business activity.
At the same time, the capital available is not sufficient to run their organization. Modern
technology and growing expectations of the people call for a heavy dose of capital investments
in these areas. But the capital formation is a difficult task and depends upon the people's
willingness and their capacity to save.
 "There are two ways in which capital may be accumulated; it may be saved either in
consequence of increased revenue or of diminished consumption". Whether it is individual
savings or corporate savings, it must be available for development purposes. Adequate savings
and its deployment in manufacturing and service sector is the need of the hour. Estimates of
international funding agencies and earlier studies confirm that countries can never sustain
development unless they have adequate savings. Actually, financial intermediaries, undertake
the work of channelizing the savings of public into productive assets. Banks, non-banking
finance companies, post-offices, share markets and governments are some of the important
intermediaries. If enough savings are accumulated, the next important thing is to invest them in
constructive assets so as to generate further value. All savings are not an investment. Savings
only become investment if a person makes decision to forego the use of the money saved for a
period of time, in the hope of earning a return. At the same time, these investments do not
always originate from savings. There are many people who sometimes quite unexpectedly
receive lump sums which are surplus to their immediate requirement. This investment is more
important than savings to create further value and achieve the economic development of
individual and nation.
Thus, prosperity of the economy is closely linked with the ability of the public to save
and invest in productive assets for an uninterrupted supply of capital. To survive and develop in
this competitive business world, capital must be made available at a reasonable rate without
conditions attached to it. In India, the level of income, which is an important determinant of
savings, is marginally less. Though, the propensity to save is higher than that of some of the
advanced countries, India's savings rate is not at an encouraging level. While Norway saves 37
per cent of its Gross Domestic Product (GDP), it is 47 per cent in Singapore, 47 per cent in Saudi
Arabia, 35 per cent in Malaysia, 53 per cent in China, but it is only 31 per cent in India during
the year 2011. There is a school of thought that a developing country like India cannot provide
resources for investment out of its, and secondly the rate of interest payable on the external
loan borrowed has risen sharply.
With the above prevailing conditions, countries like India could prosper well if internal
sources are best exploited. In the wake of paucity of funds, the process of industrial
development has not been activated. Mainly due to the financial crunch, industrial sector has
stagnated. Supply of fund would normalize the process and the supply mainly depends on
individual investors. Personal savings or savings of individuals are called household sector's
savings. If Individuals are properly guided and motivated, an active and vibrant participation of
individuals will lend financial support internally to the industrial enterprises. In any country, the
investment climate should not encourage public to hoard cash and postpone investments. On
the other hand, government and other institutions must evolve new systems to induce more
and more public savings.
 In fact, it has affected largely the saving habits of the salaried classes, as well as the
quantum of savings, which in turn, has affected the investment decision of this related class.
Such a dynamic situation compels one to have a clear-cut objective for his future investment.
Then only the investor can think of channelizing the sur- plus income for the investor's own
benefit as well as for the growth of the country. The investor should be very careful in selecting
the investment, the major features that are seen in investment are safety of principal amount,
liquidity, income, stability, appreciation, and lastly easy transferability. A different variety of
investment avenues in abundance and types are available such as shares, banks, companies,
gold and silver, real estate, life insurance, and postal savings. All the investors. Investors who
wish to invest, invest their surplus money in the above-mentioned avenues that are available
based on their risk-taking attitude and capacity bearing.
The financial market is due to cross-sectional and time series patterns in returns from
investment in securities that cannot be predicted by any well-defined theory. Behavior finance
is the study of the influence of psychological factors. The individual in their investment
behavior. This new approach to financial research advocates that investment decision is
affected by psychological and emotional factors. This new approach tries to prove or rather we
can say that it assumes that the investors are influenced by psychological factors such as
attitude, over-confidence, optimism, pessimism, etc. The role of these factors in investment has
changed the direction of research in the area of Behavioural Finance. As I mentioned earlier
Kahneman and Tversky was the first psychologist who developed this model. Later Shefrin and
Statman (1994) and Sheaffe also contributed to this field. These researchers have attempted to
analyze. Banks, non-banking finance companies, post-offices, share markets and governments
are some of the important intermediaries. If enough savings are accumulated, the next
important thing is to invest them in constructive assets so as to generate further value. All
savings are not an investment.
As we know that oxygen is necessary for human life in the same way Savings are nece
future in context to meet the various need of life. Savings means sacrificing the curr 2/8 n order
to increase the living standard and fulfilling the daily requirements in future. The. don in
different ways by making bank deposits, or invests the saving in different ways. One of the best
ways of saving is to create an automatic saving plan. Savings plays very important role in
making of the household and the national economy. Saving also provide the financial protection
to meet the requirement or emergencies in future. It is necessary to have saving plan because it
will help in meeting financial goals like secure future, children's education, meeting the
demands of the family etc. Today investment is an economic activity,. Basically investment is
efficiently use of funds with the expectation of receiving good return or benefits in the future.
Investment is mainly done with the objective like wanting a home, creating a regular income
after retirement, and possessing money for the future.
Income, Saving and Investment
To measure the growth of an economy there are three variables factor are as: Income,
Savings, and Investment. There is a big hand of investment for the development of an economy,
and savings provides the basis for investment broadest sense, Investment means the sacrifice
of a certain present value for (possibly uncertain) future value. The investment pattern and
saving habits of employees sector is determined by their expectations from the various
preferred avenues. Preference may vary due to various considerations i.e. Safety, Liquidity and
Marketability, returns, tax benefits, the risk involved, etc. Investment also depends upon the
awareness about investment opportunities, level of knowledge, and how these investment
opportunities are evaluated and selected. The appropriate investment decisions require a
comprehensive understanding of various subjects like finance, tax, economics, accountancy,
business laws, etc. However, employees owing to their lack of education are not able to
comprehend such subjects.
Investment Pattern
Investments in capital goods is the prerequisite for the growth of an economy-
therefore, the present study deals with the investment pattern of employees at Chandigarh
University so that their investment behavior is understood. According to the analysis of
investments in financial assets undertaken by employees at Chandigarh University, the majority
of the employees are investing in Mutual funds, and gold because they feel it's a safe
investment. Apart from this, the employees have been largely investing especially in bank fixed
deposits and post office schemes.
Investment behaviour
Personal disposable income of the household is divided between consumption and
savings. Savings may beidle or active. Savings becomes active, when it is canalized into return
bearing avenues". The act of canalizing savings into return bearing avenues is investment. In
this sense, investment refers to the increase in real capital, which leads to the generation of
income. Every investment is exposed to one or another type of risk. There are five major risks in
investment, which may be present in varying degrees, in different sorts of investment: non-
payment risk, business risk, inflation risk, political risk, and social risk. Therefore, an investor,
while investing money would try to satisfy the three objectives- safety, profitability, and
liquidity.
Determinants of Investment Behaviour
Investment avenues for an individual or family or household are many, generally known
as instruments". The preference shown by an investor in choosing a particular instrument is
called investment behaviour". The process of investment commences with surplus income,
which includes operating and non-operating earnings. The prime determinants of investment
behaviour of an individual are: sociological factors, such as culture or sub culture, social classes,
reference group; and psychological factors like personality, attitude, beliefs, values and
perceived investment-related benefits. People's investment behavior is strongly influenced by
the class to which they belong. Research studies have shown that there is class membership is a
significant determinant of investment behavior. The selection of investment would depend on
the specific need, rate of return, and risk preference of the respondents and the degree of risk
and return varies for different investment avenues. The aim of Investment is to multiply the
money at various rates depending upon the term of the investment.
Review of Literatur
Prof Sanket L. Charkha, Dr. Jagdeesh R. Lanjekar (2018) have studied the investment
preference among salaried people in different sectors with special reference to Pune city. They
have also studied the mode of investments of the respondents in various investment avenues
and also analysed the pattern of investment and saving among salaried investors. Primary data
was collected by conducting a survey among 60 people by using convenient sampling technique
via a questionnaire. Various statistical tools like table, percentage, diagram and charts were
used. Chi-square was used to test the hypothesis. It was concluded that there was significant
relationship between income level and awareness about investment avenues. There is no
significant relation between gender and investment awareness. Out of the 60 respondents,
73.3% were aware about investment avenues while 26.7% were not aware. The main objectives
of the investors were high returns followed by security on investments. The most preferable
investment options were mutual funds and bank deposits followed by insurance and stock
market.
Dr. Madhavi Karanam, and R.Shenbagavalli (2019) have studied the investment pattern of the
millennial generation (20-35 years) to know the relationship and the major influencer with
respect to their pattern of investments. To measure the association, a descriptive research was
conducted with a sample of 350 professionals in and around Chennai with the help of a
structured questionnaire. The correlation analysis was used to examine the association among
age, income, occupation and the pattern of investment which indicia tes positive
relationsbetweenmong the level of income and occupation and a very high association between
the profession and the investment choices. Occupation is a major influencer with respect to the
risk-return perspective ive the investment choice. Income is the base on which investment
options are suggested as well as decided. Professionals in Chennai have an overall sha own
preference towards, stocks, mutual, funds and real estate as their most preferred avenues of
investment.
Akshay Bhisikar, Yogesh B. Dhoke, Shweta Rokde (2020) have in this research, studied the
different types and avenues of investments as well as the factors that are required selecting the
investment with the sample size of 100 salaried employees conducting the survey through
questionnaire, of Nagpur city (Maharashtra State, while India) this study which have tried to
identify about the preferred investment avenues among individual (Salaried) investors using
their own self-assessment test. They have found that Investors/salaried employees prefer to
invest their money into the Mutual fund and bank deposits. The data analysis of research show
that the future safety and well-being is concerned as vital factor while doing investment.
Investors are very well conscious about the different investment avenues that are available in
Nagpur city. It is absolutely necessary and required to save some proportion of amount that
you earned, to have a plan for your own future and should invest wisely.
Umamaheshwari.S. Ashok Kumar (2011) carried out a study to understand the investment
pattern and awareness level of individuals belonging to the salaried class from the city of
Coimbatore. A structured questionnaire was used to collect the data during December 2010 to
July 2011. Responses from 1000 respondents were collected over a period of eight months
from the areas of Valparai, Pollachi, Metupalayam and Coimbatore. Statistical tools used for
analysts were Chi Square test and ANOVA along with mean value calculation. The awareness
level was divided into three types: low, medium and high. Classification was based on the mean
score obtained for the respondent. It was found that the most preferred avenue of investment
was provident fund followed by insurance gold and Jewellery. The financial product awareness
level among men and was low, Married people had better awareness compared to the
unmarried ones. Savings and investment pattern were influenced by the education level of the
respondents. A strong correlation was found between monthly income level and the number of
dependents.
Sunita Bishnoi (2013) carried out a study consisting of 200 respondents from Faridabad, part of
national capital region. It was found that most preferred source of saving was life insurance
followed by deposits with banks, PPF and postal savings. This is in contrast to Nupur Gupta and
Vijay Agarwal (2013), who found Bank deposits to be the most preferred investment avenue.
Occupational group and gender did not have impact on the investment objective. This is in
similar to the findings of P. Parmashivivaiah, Puttaswamy and Ramya (2013), Newspapers and
magazines were the most preferred source of information. Most of the investors preferred the
investment horizon of five years and more. Main investment objectives were safety of capital
followed by tax savings. Age, income and education were found to have association with the
investment objectives. Respondents for the study were picked using convenience sampling. A
structured questionnaire containing questions related to demographic details and the
investment objective along with investment preference was administered to the respondents.
Simple percentage calculations along with Chi square test was used to analyse the data. This
study reconfirms the association between.
Deepak Sood and Dr. Navdeep Kaur (2015); According to the researcher the study was carried
out to determine the relationship between saving and investment pattern among the salaried
class people of Chandigarh. The researcher has framed detail questionnaire a it was distributed
among and 200 respondents for collection of data. In this research the researcher came to
know that the most preferable investment avenue is the LIC and bank deposit.
RESEARCH METHODOLOGY
Research Motive:
To study the pattern of salary class people, aware for saving and investment.

Objectives of the Study

 To study the pattern of saving and investment of salaried people.

 To identify the popular investment avenue and also the level of satisfaction of investors
in their investment.
 To know the aim of investments and motivating factors which influence investment
decisions.
 To know the factors that influence the investment behavior the salaried people.
 To identify the issues faced by the investors towards investment patterns.
 To analyze the awareness level regarding different investment avenues of salaried
people and sources of awareness towards investment avenues.

Scope of the study:

This analysis is based on investor patterns’ for investment preferences awareness and
the factors which are acting while investing. This analysis would be focusing on information
from salaried class people about the knowledge, perception, and behavior of different financial
products. There might be chances that the awareness, factors command sider for an
investment, and preference of those salaried individuals of varying nature are varied due to
diversity in social life, breathing, pattern, income level, etc. that need to be studied further.

Limitations of the study:

1. The study is restricted to Dombivli only, so the conclusions cannot be generalized.
2. Non-probability sampling is used; hence the sample population may not be the true
representative of the actual population.
3. The study is cross-sectional in nature. Hence the relevance of the study is for a short period
of time and may change in the future.
4. The study does not gender-wise savings and investment patterns.
5. The time period and the sample size taken for this study is limited.
Need of Study
Salaried employees in general have fix flow of income & their investment patterns are
found also different. In connection with this Researcher has tried to find out the investment
behavior of salaried investors in the Pune region. It will be helpful to understand the
investment preferences of investors. The research paper will become a helping hand to the
research scholars as well as students for their further studies in their respective areas.

Sampling Design:
Since the information is to be taken from people through, a questionnaire has been
prepared for studying the saving and investment pattern of salary-class people in Dombivli
Sampling Size

 A sampling method was adopted to know the salaried people’s points of view.
 The sample size is 60.

Source of Data

 Primary Data:
Questionnaire method to the general public.

 Secondary Date:
Website, Journal