CHAPTER 1

INTRODUCTION

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Savings and investment are two crucial elements of macro- economics. Savings is the
portion of current income not spent on consumption. Savings accounts provide an easily
accessible place for people to store their money to meet daily living expenses and to have
money for emergencies. Savings are effectively cash or cash instruments, such as deposit
accounts, term bonds etc

The economic cycles of boom, recession, depression and recovery not only effect the level of
GDP but also the income of the people and hence the saving ratio and investment behaviour.
So, it is important to understand the savings and investment both of which contribute the
economic development. Savings is the backbone of investment which means higher the
savings higher the investment. Investment is the employment of funds with aspires of getting
return on it. It is the assurance of funds which have been saved from current consumption
with the hope that some benefits will accrue in future. Thus, it is an incentive for the
deposited money. So ,the first step to investment is savings. In common usage, saving
generally means allocating money aside, for example, by putting money in the bank or
investing in pension plan. In a broader sense, saving is naturally used to refer to economizing,
cutting costs, or to rescuing someone or something. In terms of personal finance, saving
refers to safeguarding money for future use, typically by putting it on deposit which is
distinct from investment where there is an element of risk.

allowing money to grow. Generally, investments fall in any one of three basic categories they
are; Ownership Investment, Lending Investment and Cash Equivalents

The spectrum for investment is vast today, which comprises of Financial and Non financial
products. Financial products comprises of bank deposits, share market, commodity market,
insurance, post office schemes and other bonds. Non financial products comprises of real
estate and gold /jewellery. Some of the investment instruments are highly risky while few
others are almost risk free.

Savings

Savings refers to the money that a person has left over after they subtract out their consumer
spending from their disposable income over a given time period. Savings, therefore,
represents a net surplus of funds for an individual or household after all expenses and
obligations have been paid.

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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.

Savings represent money that is otherwise idle and not being put at risk with investments or
spent on consumption. Savings accounts are very safe but tend to offer very low rates of
return as a result

TYPES OF SAVINGS ACCOUNTS

There are different types of savings accounts offered by banks that come with different
features or limitations.

Savings Accounts

A savings account pays interest on cash not needed for daily expenses but available for an
emergency. Deposits and withdrawals are made online, by phone, mail, or at a physical bank
branch or ATM. Interest rates on savings accounts tend to be low but are often higher than
on checking accounts. The best savings accounts can usually be found online because they'll
pay a higher interest rate. Online-only accounts may be examples of high-yield savings
accounts, which can offer as much as 20-25x higher interest on deposits than the national
average.

Checking Accounts
A checking account offers the ability to write checks or use debit cards that draw from your
account. A checking account pays lower interest rates than other bank accounts, and many of
them credit no interest at all to checking customers. In return, however, account holders get
highly liquid and accessible funds often with low or no monthly fees.

Money Market Accounts

A money market account (MMA) is an interest-bearing account at a bank or credit union
(not to be confused with a money market fund). MMAs often pay a higher interest rate than
regular passbook savings accounts and also include check writing and debit card privileges.
These also can come with restrictions that make them less flexible than a regular checking
account.

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INVESTMENT

An investment is an asset or item acquired with the goal of generating 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.

An investment always concerns the outlay of some resource today—time, effort, money, in
hopes of a greater payoff in the future than what was originally put in. For example, an
investor may purchase a monetary asset now with the idea that the asset will provide income
in the future or will later be sold at a higher price for a profit.

TYPES OF INVESTMENT AVENUE

Stocks

Companies sell shares of stock to raise money for start-up or growth. When you invest in
stocks, you’re buying a share of ownership in a corporation. You’re a shareholder. There are
two types of stock, common stock and preferred stock. Investment returns and risks for both
types of stocks vary, depending on factors such as the economy, political scene, the
company's performance and other stock market factors.

Bonds

When you buy a bond, you’re lending money to a company or governmental entity, such as a
city, state or nation. Bonds are issued for a set period of time during which interest payments
are made to the bondholder. The amount of these payments depends on the interest rate
established by the issuer of the bond when the bond is issued. This is called a coupon rate,
which can be fixed or variable. At the end of the set period of time (maturity date), the bond
issuer is required to repay the par, or face value, of the bond (the original loan amount).Bonds
are considered a more stable investment compared to stocks because they usually provide a
steady flow of income. But because they’re more stable, their long-term return probably will
be less when compared to stocks. Bonds, however, can sometimes outperform a particular
stock’s rate of return. Keep in mind that bonds are subject to a number of investment risks
including credit risk, repayment risk and interest rate risk.

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Cash equivalent
Cash equivalent investments protect your original investment and let you have access
to your money. Examples include savings account, certificate of deposit etc. These
different types of investments generally deliver a more stable rate of return. But cash
equivalent investments aren’t designed for long-term investment goals such as
retirement

Real estate

Investing in real estate involves purchasing residential or commercial properties to allow your
capital to appreciate or to generate regular rental income. Another strategy is to purchase real
estate units, hold them and then sell them at a later point in time for a higher price, thus
earning a significant return on your initial investment.

Mutual fund

A mutual fund is an open end professionally managed investment fund that pools money
from many investors to purchase securities. Mutual fund are the “ largest proportion of
equity of
U.S. companies.” Mutual fund investors may be retail or institutional in nature.

Bank deposit

These are regarded as one of the most popular investments in india. They provide a fixed rate
of return for a specific period and considered as a low risk option. The interest rate varies
from one deposit to another and changes from time to time.

Gold fund

A gold fund is type of investment fund that commonly holds physical gold bullion, gold
futures contracts, or gold mining companies. It is a convenient way to invest in an asset
without want to purchase commodity in its physical form. These are open ended investments
based on the units provided by the gold exchange traded fund.

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CHARACTERISTICS OF INVESTMENT

Risk factor of investment

Risk is an inherent characteristic of every investment. Risk refers to loss of principal amount,
delay or non payment of capital or interest, variability of return etc. Every investment differs
in terms of risk associated with them. However, less risky investments are the most preferred
ones by investors.

Safety of principal

Safety of funds invested is one of the essential ingredients of a good investment programme.
Safety of principal signifies protection against any possible loss under the changing
conditions. Safety of principal can be achieved through a careful review of economic and
industrial trend before choosing the type of investments.

Liquidity and collateral value

A liquid investment is one which can be converted in to cash immediately without monetary
loss. Liquid investment help investors meet emergencies. Stocks are easily marketable only
when they provide adequate return through dividends and capital appreciation. The investors
invest in high grade and readily saleable investments in order to ensure their liquidity and
collateral value

Stable income
Investors invest their funds in such assets that provide stable income. Regularity of income is
consistent with a good investment program. The income should not only be stable but also
adequate as well

Capital growth

One of the important principles of investment is capital appreciation. A company

flourishes when the industry to which it belongs is sound. So, the investors, by
recognizing the connection between industry growth and capital appreciation should
invest in growth stocks. In short, right issue in the right industry should be bought at
the right time.

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Legality
The investor should invest only in such assets which are approved by law. Illegal securities
will land the investor in trouble. Apart from being satisfied with the legality of investment,
the investor should be free from management of securities. In case of investments in Unit
Trust of India and mutual funds of Life Insurance Corporation, the management of funds is
left to the care of a competent body. It will diversify the pooled funds according to the
principles of safety, liquidity and stability.

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 CHAPTER 2

RESEARCH DESIGN

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SCOPE OF THE STUDY

This study is focusing on the preference of investments by salaried class people in HDFC
bank only and it will be helpful to identify different and better investment options and
that are available in the market Salaried employees in general have fix flow of income
and their investments patterns are found also different .In connection with this researcher
has tried to find out investment behaviour of salaried investors The research paper will
become the helping hand to the research scholars as well as students for their further
studies in their respective area .

OBJECTIVE OF THE STUDY

 To study about different investment avenues available to bank employees.
 To find the relation between income , savings and investment.
 To analyse the saving habit and investment pattern of bank
 employees.
 To analyse the association between demographic factors and the basis of saving and
investment made by the respondent.

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METHODOLOGY

Research methodology is a methodology for collecting all sorts of information & data
pertaining to the subject in question. The objective is to examine all the issues involved
& conduct situational analysis. The methodology includes the overall research design,
sampling procedure & fieldwork done & finally the analysis procedure. The
methodology used in the study consistent of sample survey using both primary &
secondary data. The primary data has been collected with the help of questionnaire as
well as personal observation book, magazine; journals have been referred for secondary
data. The questionnaire has been drafted & presented by the researcher himself.

Sample Size:

Sample of 50 people was taken into study, and their data was collected

Sampling Technique:

To study the Project, a Simple Random Sampling technique is used.

Data Collection
Collection of data is done by Secondary Data & through

Questionnaire

i.e., Primary data was collected through Questionnaire.

Data Analysis:

After data collection, I’m able to analyze customer’s views, ideas and opinions related to
Advance Product and about SBI Advance Product and from this, SBI will come to know the
customer requirements.

Data Interpretation:

Interpretation of data is done by using statistical tools like Pie diagrams, Bar graphs, and

also using quantitative techniques (by using these techniques) accurate information is

obtained.

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Classification & tabulation of data:
The data thus collected were classified according to the categories, counting sheets & the

summary tables were prepared. The resultant tables were one dimensional, two

dimensional.

Statistical tools used for analysis:

Out of the total respondents, the respondents who responded logically were taken into

account while going into statistical details & analysis of data. The tools that have been

used for analyzing data & inference drawing are mainly statistical tools like percentage,

ranking, averages, etc.

SAMPLING PLAN

The present study was administered to the employees of public sector and private sector banks
in HDFC bank . Convenience sampling method was adopted whereby 25 questionnaires were
distributed to the employees of the branches of these banks in Bangalore. Hence, the total
sample size of the study is 100 employees constituting 52 and 48 from public and private
sector bank respectively. Therefore, employees of the banks are the sampling unit and the 100
bank employees are the sampling size of the study private sector bank (Axis Bank, & ICICI
Bank) employees were found to be valid. Hence, the total sample size of the study is 100
employees constituting 52 and 48 from public and private sector bank respectively. Therefore,
employees of the banks are the sampling unit and the 100 bank employees are the sampling
size of the study

DATA ANALYSIS

HDFC Bank is a young and dynamic bank, with a youthful and enthusiastic team determined
to accomplish the vision of becoming a world-class Indian bank

Primary Data:

The primary data was collected by means of a survey. Questionnaires were prepared and
customers of the banks at two branches were approached to fill up the questionnaires. The
questionnaire contains 25 questions which reflect on the type and quality of services provided
by the banks to the customers. The response of the customer and the is recorded on a grade

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scale of strongly disagree, disagree, uncertain, agree and strongly agree for each question. The
filled up information was later analyzed to obtain the required interpretation and the findings.

Secondary Data:

In order to have a proper understanding of the service quality of bank a depth study was done
from the various sources such as books, a lot of data is also collected from the official
websites of the banks and the articles from various search engines like Google, yahoo search
and answers.com.
Horizontal Analysis

analyzes the trend of the company’s financials over a period of time. Each line item shows the
percentage change from the previous period.

Vertical Analysis

compares the relationship between a single item on the Financial Statements to the total
transactions within one given period. It also shows the percentage of change since the last
period. You can perform a Vertical Analysis on both an Income Statement and a Balance
Sheet.

Ratio Analysis

analyzes relationships between line items based on a company’s financial information. It also
compares a company’s performance from one period to another (current year vs. last year).
Analysis of Financial Statements determines the strength of a business and where there is
room for improvement. Without analysis, a business owner may make mistakes understanding
the firm’s financial condition. Resulting in poor rather than strong decision making. For
example, an Assets to Sales ratio is a measure of a firm’s productive use of Assets. Whereas a
low percentage rate compared to the 39 average for the industry usually indicates an efficient
use of Assets. Likewise, a high percentage rate indicates the need to improve the use of
Assets. Check out our blog post on Ratio Analysis.

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 LIMITATION OF THE STUDY

 Time was the main constraint.

 As far as the depth of the study is concerned, it would be unfair to assume that the
sufficient amount of data has been collected within such a limited time frame.
 The exact population of the bank employees was not able to find out hence
probability sampling method could not be carried out.

 The data collection has been done from a limited geographical area using convenience
sampling technique. Hence the findings & conclusion have got their own limitations.
 The study is limited to bank employees working in Bangalore.

 The interpretation is based on assumption that the respondents have given the correct
information.

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 CHAPTER 3
DATA ANALYSIS AND INTERPRETATION

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The data collected are analyzed using several variable and the result of analyzed data are as
follows;

Table 3.1

Table Showing Gender wise classification of the respondents

Gender No of Percentage
person

Male 24 48
Fema 26 52
le
Total 50 100

Analysis
From above table it was found that the major population of investors are female
group about 52% out of total and male grow up are about 48% only

Graph 3.1
Graph showing Gender wise classification of respondents

Interpretation

From above graph it was found that the major population of investors are female
group about 52% out of total and male grow up are about 48% only
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 Table 3.2

Table showing Age wise classification of respondents

Age No of person Percentage

Below 30 17 33.46
30-40 18 34.62
40-50 15 31.92
Above 50 0 0.00
Analysis
Among the population major of respondents was 30 to 40 years about34.62% and secondly
below 30years about 33.46%. Above 50 years population was null in survey collected from
bank employees

Graph 3.2

Graph showing Age wise classification of the respondents

Interpretation

from the above graph it can be understood that Among the population major of respondents was
30 to 40 years about34.62% and secondly below 30years about 33.46%. Above 50 years
population was was null in survey collected from bank employee

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 Table 3.3

Table showing Educational qualification of the respondents

Qualification No of Percentage
person

Under graduation 20 39.22

Post graduation 26 50.98

Other 4 9.80

Analysis

Among the total sample majority of respondents are post graduates with 50.98% and
it is followed by 39.22%. The other category respondents are comparatively low with
9.80% respectively.

Graph 3.3

Graph showing Education qualification of the respondents

Interpretation

From the above table it can be understood that Among the total sample
majority of respondents are post graduates with50.98%and it is followed by
39.22%. The other category respondents are comparatively low with 9.80%.

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 Table 3.4

Table showing Annual income of the respondents

Income No. of person Percentage

Below 200000 6 11.76
200000-500000 26 50.98
500000-10000000 17 35.29
Above 1000000 1 1.96
Analysis

The above table shows that among the 50 respondents 50.98% of them500000 to 1000000,
11.76% have below 200000 and only 1.96% with above 1000000 having a annual income
between 2,00,000 to 5,00,000

Graph 3.4

Graph showing Annual income of the respondents

Interpretation

The above graph shows that among the 50 respondents 50.98% of them500000 to 1000000,
11.76% have below 200000 and only 1.96% with above 1000000 having a annual income
between 2,00,000 to 5,00,000

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 Table 3.5

Table showing whether respondents save and invest their income

options No of person Percentage

Yes 49 96.08

No 1 3.92

Total 50 100

Analysis

From the table it was found that 96.08% respondents invest and save their income and
only 3.92% are non investors and not having saving habit.

Figure 3.5

Figure showing whether respondents save and invest their income

Interpretation

From the graph above survey it was found that 96.08% respondents invest and save
their income and only 3.92% are non investors and not having saving habit.

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 Table 3.6

Table showing Sources of investment option

Source No of person Percentage

Tv /news paper 32 42.67

Friends / relatives 24 32.00

Bank / brokerage 19 25.33

Analysis

From the above table it was found that multiple aspects influenced respondents.
42.67% respondents come to know about investment options from tv or news
paper.
.

Figure 3.6

Figure showing Sources of investment options

Interpretation

From the graph, it was found that multiple aspects influenced respondents. 42.67%
respondents come to know about investment options from tv or news paper.
.

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 Table 3.7

Table showing the sector of investment options

Sector No of person Percentage

Private sector 2 3.77

Public sector 25 47.17

Government sector 26 49.06

Analysis

From the above table, it was found that most of the respondents are investing in government sector
with 49.06% and less are in private sector with only 3.77%. Others are investing in public sector
with 47.17% minor difference from government sector.

Graph 3.7
Graph Showing the sector in which respondents invest

Interpretation

From the above graph , it was found that most of the respondents are investing in government sector
with 49.06% and less are in private sector with only 3.77%. Others are investing in public sector
with 47.17% minor difference from government sector.

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 Table 3.8
Table Showing the saving objective of respondents

Objective No of person Percentage

Children
education 19 37.25

Health care 4 7.84

Home purchase 11 21.57

House 13 25.49
construction
Analysis

Among the population of survey the majority respondents saving objective is children
education with 37.25%. And next is house construction and home purchase with 25.49%
and 21.57%. At last health care with 7.84% only.

Graph 3.8

Graph Showing the saving objective of respondents

Interpretation

From the above graph we can understand that the majority respondents saving objective is
children education with 37.25%. And next is house construction and home purchase with
25.49% and 21.57%. At last health care with 7.84% only.

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 Table 3.9

Table showing To know the investment objective

Objective No of person Percentage

Income / capital
appreciation 19 31.37

Long term growth 23 45.10

Short term growth 4 7.84

Growth and income 8 15.6

Analysis
From the above table it is we can understand that The main investment objective of the
respondents is long term growth with 45.10% and second main is income and capital
appreciation with 31.37%. other objectives short term growth and growth and income have less
priority compare to above noted with 7.84% and 15.69% .

Graph 3.9

Graph showing To know the investment objective

Interpretation
From the above graph it is understood that The main investment objective of the respondents is
long term growth with 45.10% and second main is income and capital appreciation with 31.37%.
other objectives short term growth and growth and income have less priority compare to above
noted with 7.84% and 15.69% .
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 Table 3.10
Table showing To know employees have formal budget for
family Expenditure

Options No of person Percentage

Yes 45 90.20

No 5 9.80

Analysis

From the above table it was found that 90.2% of the respondents have a formal budget
for family expenditure and rest 9.80% not having formal budget .

Figure 3.10

Figure showing To know employees have formal budget for

family expenditure

Interpretation
From the above figure it is understood that 90% of the employees have formal budget for the
family expenditure and 10% of the employees do not have formal budget for the family
expenditure .

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 Table 3.11

Table showing the rate at which investment grow

Growth No of person Percent

age

Steadily 48 92.31

At an average 3 5.77
Fast 1 1.92
Analysis

Above table and figure shows that the 92.31% investors want their investment to grow
steadily and only 5.77% and 1.92 % of them at an average and fast.

Graph 3.11

Graph Showing the rate at which investment grow

Interpretation

The Above graph shows that the 92.31% investors want their investment to grow
steadily and only 5.77% and 1.92 % of them at an average and fast.

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 Table 3.12

Table showing To know the purpose of investment

Purpose No of Percent
person age

Wealth creation 33 66.67

Tax saving 1 1.96

Earn return 15 29.41

Other 1 1.96

Analysis

From the table it can be found that 66.67% of bank employees invest for the purpose of
wealth creation,29.41% to earn return. Only 1.96% of them for tax saving and other
purposes.

Graph 3.12

Graph showing the purpose of investment

Interpretation

From the graph it can be found that 66.67% of bank employees invest for the purpose of wealth
creation,29.41% to earn return. Only 1.96% of them for tax saving and other purposes

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 Table 3.13

Table showing the management of investment

Response No of Percentage
person

Self managed 36 66.67

Stock brokers 0 0

Through bank 14 33.33

Analysis

From the above table It was found that most of the bank employees are managing investment by self about
66.67% are self managed and 33.33% through. No one is managed by stock brokers.

Graph 3.13

Graph showing To know the management of investment

Interpretation

From the above graph It was found that most of the bank employees are managing investment by
self about 66.67% are self managed and 33.33% through. No one is managed by stock brokers

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 Table 3.14
Table Showing the monitoring of investment by respondents

Monitoring No of percentage
person

Daily 1 1.9
6

Monthly 19 39.22

Occasionally 30 58.82

Analysis

From the above table it can be understood that most of the employees monitor their
investment only occasionally about 58.82% , others monthly about 39.22% and only
1.96% monitor daily basis

Graph 3.14

Graph Showing the monitoring of investment by respondents

Interpretation

From the above graph it can be understood that most of the employees monitor their
investment only occasionally about 58.82% , others monthly about 39.22% and only
1.96% monitor daily basis

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 Table 3.15
Table showing To know the time period prefer for
investment

Time No of Percentage
Period person

Short term 8 15.38

Medium term 23 48.08

Long term 19 36.54

Long term 19 36.54

Analysis

From the above table it was found that the 48.08% of the employees prefer a time period of
medium term , 36.54% prefer long term and only 15.38% prefer short term period for investment.

Graph 3.15

Graph showing To know the time period prefer for

investment

Interpretation

From the above graph it was found that the 48.08% of the employees prefer a time period of
medium term , 36.54% prefer long term and only 15.38% prefer short term period for investment.

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 Table 3.16
To know whether respondents consults others before investment choice.

Consult No of person Percentage

Always 19 38
Rarely 7 14

sometimes 24 48

Never 0 0.00

Analysis

From the above table it is clearly stated that 48% of employees consult other sometimes only
before investment choice , 38% always consult and 14%rarely consult .

Figure 3.16

To know whether respondents consults others before investment choice

Interpretation

From the above graph it is clearly stated that 48% of employees consult other sometimes only
before investment choice , 38% always consult and 14% rarely consult

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 Table 3.17
Table showing the percentage of income invest by
respondents

Consult No of person Percentage

Always 19 38

Rarely 7 14

Sometimes 24 48

Never 0 0.00
Analysis

From the above table it is clearly stated that 48% of employees consult other sometimes
only before investment choice , 38% always consult and 14%rarely consult .

Figure 3.17

Figure showing the percentage of income invest by

respondents

Interpretation

From the above graph it is clearly stated that 48% of employees consult other sometimes
only before investment choice , 38% always consult and 14%rarely consult .

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 Table 3.18
Table showing To know the type of investment option prefer
by respondents

Types No of Percent age

person

Shares 34 35.05

Mutual 8 8.24
fund

Bank deposit 35 36.08

Post office savings 15 15.78

Gold / real estates 0 0

Other 5 4.85

Analysis
From the above table it was found that the 36.08 % of the respondents invested as bank
deposit ,15.78 are invested in mutual funds ,15.78% are invested in other type ,35.05% in
shares , 15.78 in post office savings and nobody invested in gold/ real estate.

Graph 3.18

Graph showing To know the type investment option prefer by

respondents

Interpretation

From the above graph it was found that the 36.08 % of the respondents invested as bank deposit
15.78 are invested in mutual funds ,15.78% are invested in other type ,35.05% in shares , 15.78 in
post office savings and nobody invested in gold/ real estate.
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 Table 3.19

Table Showing To know whether respondents invest in share

market

Options No of Percentage
persons

Yes 34 68

No 16 32

Analysis

From the above table it was found that the 68% of respondents invested in
share market and 32% are not invested.

Figure 3.19

Figure showing To know whether respondents invest in

share market

Interpretation

From the above graph it was found that the 68% o f r e s p o n d e n t s invested in
share market and 32% are not invested.
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 Table 3.20
Table Showing the factor before investing

Factors No of person Percentage

Safety of principal 22 44.44

Low risk 25 50

High risk 1 1.85

Maturity period 2 3.70

Analysis
From the above table it was found that the 50% of the respondents consider the factor low risk before
taking investment decision,44.44% consider safety of principal amount and only 3.70% and 1.85%
consider maturity period and high risk

Figure 3.20

Graph Showing the factor before investing

Interpretation

From the above graph it was found that the 50% of the respondents consider the factor low risk
before taking investment decision,44.44% consider safety of principal amount and only 3.70%
and 1.85% consider maturity period and high risk

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 Table 3.21

Table showing whether respondents set aside special fund

for child education or marriage.

Options No of person percentage

Yes 8 17.65

No 42 82.35
Analysis

From the above table, it was found that 82.35% of the respondents did not set aside
fund for their children education or marriage only 17.65% kept aside fund for
education and marriage of their children.
Graph 3.21

Graph showing whether respondents set aside special fund for child education or
marriage.

Interpretation

From the above graph, it was found that 82.35% of the respondents did not set aside fund
for their children education or marriage only 17.65% kept aside fund for education and
marriage of their children.

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 Table 4.22
To know monthly income spending

Spending No of person Percentage

Shopping 0 0

Investment 0 0

Savings 0 0

All of the above 50 100

Analysis

Above table shows that the monthly income of respondents are spending for all of the above
category such as shopping, investment and savings.

Graph 4.22

To know monthly income spending

Interpretation

From the above graph , it was found that 82.35% of the respondents did not set aside fund for
their children education or marriage only 17.65% kept aside fund for education and marriage of
their children.

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 Table 4.23

To know whether the respondents can take risk of losing the principal amount

Options No of person Percentage

Yes 17 35.29

No 33 64.17

Interpretation

From the above table, it was found that the 64.17% of respondents are not able to take the risk of
losing the principal amount and 35.29% can able to take the risk.

Graph 4.23

To know whether the respondents can take risk of losing the principal amount.

Analysis

From the above graph, it was found that the 64.17% of respondents are not able to take the risk
of losing the principal amount and 35.29% can able to take the risk.

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 CHAPTER 4

FINDINGS, SUGGESTIONS , CONCLUSION

38
FINDINGS

 Maximum investors are aware of all investment options.

 Majority of the respondents are in the age group 30 to 40 about34.62%
 Out of the 50 respondents 52% was female and 48% was men, in that most of them are
post graduates.
 Investors do not invest in single avenue. They prefer different avenues and maximum
investors prefer to invest as bank deposit and in mutual funds.
 Maximum investors wants their investment grow steadily. And after 5.77% prefer to
grow at an average rate.
 The main purpose of majority of the people to invest money is for wealth creation
 The main purpose of majority of the people to invest money is for wealth creation.
 The main way from which investors come to know about different investment options are
from television and news paper advertisement.
 The main factors consider by investors while investing are low risk and safety of
principle amount.
 Majority of investors invest 15 to 30% of their annual income.
 Maximum investors monitor their investment on occasionally only not in daily or
monthly basis.
 Most of the investors invest their income in government sector as compared to investing
in public or private sector.
 Majority of respondents main objective for investing their annual income is for long
term growth , income and capital appreciation.
 90% of the bank employees have a formal budget for family expenditure.
 Most of the respondents didn’t set aside special fund for their children education or
marriage.

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SUGGESTIONS

 The various investment tools which are mostly preferred by the investors are bank
deposits, shares etc. Bank employees should have various other means to create awareness
regarding the potential of other instruments and the tools which can be more beneficial to
the investors.
 The investors consider various factor while making investment low risk , safety of
principle etc. bank employees should have rational thinking So, that they are able to know
what point of time they need capital appreciation instead the risk.
 The preferred time span of investment by bank employees is medium term, most
probably the long time span is suitable because the returns are high and safety is also there.
 Bank employees should have a complete knowledge of all the different investment
alternatives.
 According to the study, most of the respondents prefer self managed investment criteria.
For them I suggest to manage their investment through stock brokerage because stock
brokerage have access to valuable research

40
CONCLUSION

This research study was conducted to understand the saving habit and investment pattern of
bank employees and also to know their level of awareness towards alternative investment
avenues.
Many of the respondents have started their savings for future needs. The bank employees saved
their savings in the form of bank deposits, mutual fund etc. Most of them are saved and invested
their income for children education and also for house construction. The study also revealed the
respondents are aware about the selection basis of investment and would prefer investment
where return on investment is good and also good investment which help in asset creation for
their future. This research will also guide the investment firms to identify the right respondents
and to offer their investment instruments and decide their policy accordingly.

41
 ANNEXURE

BIBLIOGRAPHY

Journals
 Dinesh (2000) , preferences and significance of demographics on the factors influencing
investment decision.
 A changing financial investment behavior of house hold by Altaf
M (2002)
 Study of saving pattern and investment preferences of individual household in India, by
Meenakshi Chaturvedi and Shruti khare (2000)
 A study on investment pattern of women investors, by SanthiyavalliG and Usharani M
(March, 2001).
 A study on preferred investment avenues among the people and factors considered for
investment by Ashly (2010).
 Difference in gender attitude in investment decision making in india, by Gaur Arti (2011)

 Investment preferences of salaried individuals towards financial products, by Puneet

Bhushan &Yajulu Medury (2013)
 Study on savings and investment pattern of teachers with reference to Thanjavur
city corporation.(2016)
 Risk perception of employees with respect to equity shares, by Ranjit Singh and Bhowal
Amalesh (2017)
 Investor’s preference towards post office saving scheme, by Karthikeyan .B (2018) products

 Study on savings and investment pattern of teachers with reference to Thanjavur

city corporation.(2016)
 Risk perception of employees with respect to equity shares, by Ranjit Singh and Bhowal
Amalesh (2017)
 Investor’s preference towards post office saving scheme, by Karthikeyan B(2018)

Books:
 Investment management, Dr Abdul Assis
Koroth Fundamentals of investment, Calicut
university

42
Websites:

www.marketwatch.com

www.oecd.org

www.jgbm.com

WWW.hdfcbank.com

43
 QUESTIONNAIRE

Dear respondents.

I am Himani p, pursuing final year BBA, in KLE society’s degree college, Nagarbhavi.
The aim of this questionnaire is to know about ‘A study on savings and investment
behavior of bank employees with reference to HDFC Bank’.

Name :

Gender

Male ☐
Female ☐
Other ☐

Age
Below 30 ☐
30-40 ☐
40-50 ☐
Above 50 ☐

1. Monthly income
10000 to 20000 ☐
20000 to 30000 ☐
30000 to 40000 ☐
Above 50000 ☐

2. Do you invest your income?

Yes ☐

No ☐

44
3. Are you aware of savings and investment concept ?

Always ☐
Rarely ☐

Sometimes ☐

Never ☐

4. Out of the following, which type of investment are you aware of or invested ?

Shares ☐

Mutual funds ☐

Bank deposits ☐

estates ☐

Other ☐

5. You feel safe in your transactions with the bank.

Yes ☐

No ☐

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

Tv ☐

Newspaper ☐

Friends ☐

Relatives ☐

Other ☐

45
7. In which sector do you prefer to invest your money ?

Private sector ☐

Public sector ☐

Government sector ☐

Other

8. Do you have formal budget for family expenditure ?

Yes ☐

NO ☐

9 .What percentage of income you invest

? 15-20% ☐

30-50% ☐

Above 50% ☐

10. Do you invest in share market?

Yes ☐

No ☐

11. If yes, imagine that stock market drops after you invest in it then what will you do?

Withdraw ☐

Wait to increase ☐

Other ☐

46
12. At which rate do you want your investment to grow ?

Steadily ☐

At an average ☐

Other ☐

13. Have you set aside fund specially for the education or marriage of your children ?

Yes ☐

No ☐

14. Which factor do you consider before investing ?

Safety of principal ☐

Low risk ☐

High risk ☐

15. How do you spend your

monthly income ?

Shopping ☐

Investment

Savings ☐

All of the above ☐

16. How often do you monitor your investment ?

Daily ☐

Monthly ☐

Occasionally ☐

47
17.What is the time period you prefer to investment

? Short term ☐

Medium term ☐

Long term ☐

18 .Can you take risk of losing your principal amount ?

Yes ☐

No ☐

19. How do you manage your investment ?

Self managed ☐

Stock ☐

Through bank ☐

Other ☐

20. Have you invested your savings so far ?

Yes ☐

No ☐

21.What are your investment

objectives Short term profit seeking

Steady income ☐

Long term profit seeking ☐

Others ☐

48
22. Please indicate your mode of investment

preferred One time investment ☐

Systematic investment plan (SIP) ☐

23. From where do you receive assistance when you invest? Please select by ticking

Professional Consultant ☐
Friends ☐

Relatives ☐

Peers ☐
Family ☐

From internet ☐
None ☐

24. Kindly mention what percentage of your income you have saved and invested last year

None ☐

1-10 % ☐

11-20% ☐
21-30% ☐
31-40% ☐

25. From the following please select reasons for your savings and investment and rank them

from 1 to3 (1 being the most important reason and 3 being least reason and so on).

Higher Education of children ☐

Buying house or land ☐

Tax savings ☐

High return from invested amount ☐

49