Bba Project (2018-2021)

Investment Pattern of Teachers – An Empirical Analysis in
Malappuram District
Project Report
Submitted to the University of Calicut in partial fulfillment of the requirements

for the award of the degree of Bachelor of Business Administration
By
Adila Nasreen.KP (GPASBBAR01)
Fathima Rabna.C (GPASBBAR02)
Munsha mol.V (GPASBBAR03)
Naseeha Farsana.U (GPASBBAR04)
Rahna.T (GPASBBAR05)
Sameeha.MP (GPASBBAR06)
Under the Guidance of

Dr. U SREEVIDYA
Assistant Professor and Head
PG Department of Commerce and Management Studies
PTM Government College, Perinthalmanna
PG DEPARTMENT OF COMMERCE AND MANAGEMENT STUDIES

PTM GOVERNMENT COLLEGE PERINTHALMANNA
2018-2021
PTM Government College Perinthalmanna
Certificate
This is to certify that Adila Nasreen.kp (GPASBBAR01), Fathima

Rabna.C (GPASBBAR02),MunshaMol.V(GPASBBAR03),NaseehaFarsana.U
(GPASBBAR04),Rahna.T(GPASBBAR05),Sameeeha.MP(GPASBBAR06) are
bonafide students of sixth semester BBA in PTM Govt. College,
Perinthalmanna and the project report entitled “Investment Pattern of
Teachers-an Empirical Analysis in Malappuram District” is an original wok
prepared and submitted in partial fulfillment of the requirement for the award
of Degree in Bachelor of Business Administration of The University of Calicut.
Perinthalmanna Dr.U.Sreevidya
12.0.2021 Assistant Professor and Head
PTM Government College Perinthalmanna
Certificate
This is to certify that the project report entitled “Investment Pattern of

Teachers-an Empirical Analysis in Malappuram District” is bonafied work
done by AdilaNasreen.KP (GPASBBAR01), FathimaRabna.C
(GPASBBAR02), MunshaMol. (GPASBBAR03), NaseehaFarsana.U
(GPASBBAR04), Rahna.T (GPASBBAR05), Sameeha.MP (GPASBBAR06)
under my guidance and supervision and submitted in partial fulfillment of the
requirement for the award of Bachelor of Business Administration of the
University of Calicut.
They are allowed to submit the project report.
Perinthalmanna Dr.U.Sreevidya
12.0.2021 Assistant Professor
Declaration
We Adila Nasreen.KP (GPASBBAR01), Fathima Rabna.C

(GPASBBAR02), MunshaMol.V (GPASBBAR03), NaseehaFarsana.U
(GPASBBAR04), Rahna.T (GPASBBAR05), Sameeha.MP (GPASBBAR06)
students of Sixth Semester BBA in PTM Government College Perinthalmanna,
hereby declare that the Project Report entitled “Investment Pattern of
Teachers-an Empirical Analysis in Malappuram District” is a bonafide
work done by us under the supervision and guidance of Dr. U. Sreevidya ,
Assistant Professor and Head of PG Department of Commerce and Management
Studies, PTM Government College, Perinthalmanna.
We further declare that this report has not been formed on the basis
for the award of any Degree, Diploma, Associateship, Fellowship or similar
titles of any University or similar Institutions.
Perinthalmanna
12.0.2021 Adila Nasreen.KP (GPASBBAR01)
Fathima Rabna.C (GPASBBAR02)
Munsha Mol.V (GPASBBAR03)
Naseeha Farsana.U (GPASBBAR04)
Rahna.T (GPASBBAR05)
Sameeha.MP (GPASBBAR06)
Acknowledgement
We thank God Almighty who is all merciful in inspiring me a spirit to study a

subject of our choice and achieve the goal We have long cherish for and blessed
us with what we today.
Firstly we wholeheartedly thank our guide Dr.U Sreevidya for her efforts and
constant guidance. Without her sincere efforts this project would have been a
distant dream for us.
We would like to express our sincere thanks to all the Faculty Members of the
Department of Commerce for giving inspiration, timely guidance and
encouragement.
We express our heartfelt gratitude to Dr.Nikhil.M, Vice Principal, Nasra
College of Arts and Science, Thirurkad and Ms. Anjana.K, Research Scholar,
DCMS, University of Calicut for their valuable suggestions and support in
completing this work.
We express my heartfelt thanks to all the Respondents of the project work, who
were friendly and co-operative during the data collection.
We also express sincere gratitude to our Parents, Friends Relatives, Well-
Wishers, for their abundance utmost care.
Adila Nasreen. KP (GPASBBAR01)
Fathima Rabna.C(GPASBBAR02)
Munsha Mol.V(GPASBBAR03)
Naseeha Farsana.U(GPASBBAR04)
Rahna.T(GPASBBAR05)
Sameeha .MP(GPASBBAR06)
LIST OF CONTENTS
Sl. Title Page no:
No:
I Introduction
II Review of Literature
III Theoretical Framework
IV Data Analysis and Interpretation
V Findings, Conclusion and Suggestions
VI Appendix
VII Bibliography
LIST OF TABLES
TABLE NO TITLE PAGE NO
4.1 Age wise classification
4.2 Gender wise classification
4.3 Classification based on type of college
4.4 Classification based on years of service in college
4.5 Classification based on source of investment information
4.6 Awareness of various investment avenues
4.7 Classification based on transparency of the scheme
4.8 Classification based on percentage of salary invested
4.9 Motivations of savings
4.10 Classification based on most preferred investment avenue
4.11 Horizon of investment
4.12 Adequacy of existing investment scheme
4.13 Satisfaction of present investment scheme
4.14 Factors for increasing the size of savings
4.15 Frequency of changing investment
4.16 Return on investment
4.17 Monthly commitment for expenses and investment
4.18 Level of risk
4.19 Difficulties in differentiating various investment avenues
4.20 Need for any special scheme
4.21 Preference of future investment plan
LIST OF FIGURES
TABLE NO TITLE PAGE NO
4.3 Classification based on type of college
4.4 Classification based on years of service in college
4.5 Classification based on source of investment information
4.6 Awareness of various investment avenues
4.7 Classification based on transparency of the scheme
4.8 Classification based on percentage of salary invested
4.9 Motivations of savings
4.10 Classification based on most preferred investment avenue
4.11 Horizon of investment
4.12 Adequacy of existing investment scheme
4.13 Satisfaction of present investment scheme
4.14 Factors for increasing the size of savings
4.15 Frequency of changing investment
4.16 Return on investment
4.17 Monthly commitment for expenses and investment
4.18 Level of risk
4.19 Difficulties in differentiating various investment avenues
4.20 Need for any special scheme
4.21 Preference of future investment plan
Chapter I
INTRODUCTION
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1.1 Introduction
The word investment is derived from the Latin word “investire” which means to clothe.
Investment is the action or process of investing money for profit. Investment is the
sacrifice of certain present value for the uncertain future rewards. The investment decision
has to be continuous and rational.
In an economic sense, an investment is the purchase of goods that are not consumed today
but are used in future to create wealth. In finance an investment is a monetary asset
purchased with the idea that the asset will provide income in the future or will later be sold
at a higher price for a profit.
The various avenues of investment are government deposits, bonds, real estates, post
office saving certificates, life insurance policies, mutual funds, gold, land etc. The logic
behind investment is to generate additional return, though investment does not assure
returns. Most investments are risky. Some of the factors which help us to reduce the risk
associated with investment are portfolio diversification, continuous review and revision of
portfolio etc.
Individuals invest to earn money. The money they earn is normally spent on meeting daily
needs to like buying vegetables, groceries, clothes, paying school fees, paying telephone
bills etc. Generally people keep aside a part of their earnings to meet the future needs
because the future is uncertain in nature. The future needs are marriage of their wards,
higher education, security after retirements, buying a house, etc. There are some people
having the habit of saving a part of their earnings either to deposit in banks or in buying
shares, property or gold. By doing this they are able to generate some extra earnings for
themselves. Similarly, teachers also invest their part of salary because this money will add
up over the years and will provide huge investment returns later on.
1.2 Significance of the study

The present study helps to know the different investment needs of Government and Aided
College Teachers. They invest a part of their salary through different schemes. The
understanding of investment habits of government employees is essential as savings forms
the basis for the development of country, if the saving and investment pattern among the
government employees is good, then it will indirectly result in the economic development
of the country. The present study tries to identify the factors influencing the investment
decision of Government and Aided College teachers in Malappuram District and to
ascertain their investment habits. The study area is featured by good number of
2
Government and Aided College Teachers and their ability to save or invest. This study has
more importance in our present condition. It will help the employees to save their valuable
income to meet their future needs. It also helps them to understand about various
investment schemes.
1.3 Statement of the problem

Investment means sacrificing the money today in order to earn some benefits in future.
Investment enables a person to fasten the earnings. In the desire to earn money quickly,
more and more people have ventured into different investment schemes. But if the
investment decision is not taken systematically, there are chances of occurrence of losses.
Therefore, there is a need to assess various factors motivating a person to invest his
savings and to assess the investor’s awareness and preference on various investment
schemes. Hence, this study is an attempt in this direction. The study focused on the factors
influencing investment decision of various Government and Aided College Teachers and
their awareness and perception towards various investment options.
1.4 Scope of the study

The scope of this study is limited to the teachers who are working in various Government
and Aided Colleges in Malappuram District only. The teachers working in various private
colleges, self-financing colleges etc. were not considered. Further,this study attempts to
examine the knowledge, perceptions and behavior of teachers on different investment
options.
1.5 Objectives of the study

The specific objectives of the present research work are presented below.
 To understand the awareness level of Government and Aided college teachers about the
investment avenues
 To identify the factors influencing investment habit of Government and Aided College
Teachers.
 To analyse the most preferred investment avenues by college teachers in Malappuram
1.6 Methodology and database

The present study is descriptive in nature. The data were collected from both secondary and
primary sources.
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1.6.1 Collection of Secondary Data
Secondary data were collected from the following sources.
 Websites
 Books
 Journals
 Other publications
1.6.2 Collection of Primary Data

Primary data were collected from various Government and Aided College Teachers in
Malappuram District.
1.6.3 Sampling design

A simple random sampling used lottery method for the selection of sample respondents.
The samples were based on their occupation level. In order to ensure a large sample size
50 Government and Aided College Teachers were selected.
1.6.4 Method of Collection of Data

Data were collected using a well-structured questionnaire.
1.6.5Tools and techniques

In order to analyse the collected data various statistical and graphical tools were
employed. These include:
 Tables
 Diagrams
 Charts
 Chi square test
1.7 Limitations of the study

The following are the main limitations of the study.
 Location of the study was limited to Malappuram District.
 Extensive study was not possible to collect information due to time constraint.
4
 Some of the government and Aided College Teachers may not have the interest to say
about their investment, so some information may be bias
1.8 Chapter scheme

The Project Report is divided into five chapters. They are given below.
Chapter 1 : Introduction
Chapter 2 : Review of Literature
Chapter 3 : Theoretical Framework
Chapter 4 : Analysis and Interpretations
Chapter - 5 : Finding, Conclusions and Suggestions
5
Chapter - II
REVIEW OF LITERATURE
6
2.1 Introduction
The present study attempts to conduct comparative investigation on the investment pattern
of the teachers in government and aided colleges. To have an investigation to what has
been already dealt within the said area and to identify the research gap, a humble attempt
to review the existing literature relevant to the area of research.
2.2 Literature Review

A brief of the above studies are presented below in the chronological order of the year of
study.
Lewellen (1978) :Found investor age , income , sex essentially in that descending order of
importance as the unquestionable character which overrode occupation , marital status ,
family size and education background as significant influences in the explanation of
different in investment styles and strategies. The last four were found to make only
occasional modest contributions.
Berry (1982) :advices bank marketers to think in terms of marketing investment portfolios
tailored to specific liquidity , convenience , return , safety and tax sheltering preferences of
individual who can no longer be considered mere savers.
Tamilkodi (1983) :suggested that the small savings scheme is having a psychological
appeal by providing an opportunity for an ordinary man , women and even children . It
reaches a large number of people and covers a wide range of areas .she also suggested that
efforts should be taken to simplify the procedures of small saving scheme to suit the needs
of illiterate and socially downtrodden people. Further she suggested the increase in the rate
of interest of the small savings schemes to meet the challenges of commercial banks.
John Morais (1988) :made a study about investor behavior and the results were that an
individual investor is guided by superiority of the product of the company , the extend of
diversification and the geographic spread of the company backed by a thorough
knowledge of companies performance gained from various sources , stable political
environment , relevant information, reputation of the organization , share price and
expected earnings from investment. The logical outcome of the study is an investor
decision process model. In an investors decision making process there are three stages
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viz., input, output and process. The input decision includes the product superiority, share
price, income from investment. The process includes needs to invest, pre investment
research, examining the investment alternatives, evaluation of alternative. The output
decisions include investment decision, disinvestment and continuity of investment.
Mohan (1991) :made a comparative study to find out which schemes were more beneficial
under specific sarcoma standees. If found that PPF and NSS 1987 are the two popular
investment avenues which enjoy consecutions under the IT act 1961. But the both schemes
differ in number of aspects including the rate of return offered. The finding of the study
prevail that PPF is beneficial under certain second stances and NSS in certain other
sarcoma statuses but returns from investments in both scheme are more or less the same.
Pamela Sebastin (1994) :made a study of 31095 investors , it revealed that 56% of the
participants believed that the stock market was controlled by large investors. So the small
investor did not stand a chance.
V .Rajarajan (1999) : in his study confirmed that individual investors occupy a prominent
place in a economic development of nation. The savings pattern needs considerable
attention. His study examine the relationship between the stage in life cycle of individual
investors and their investment size and their investments in risky assets , on the basis of
primary data collected from 405 individual investors. The study finds the existence of
systematic relation among these factors.
Casey B Mulligan YonaRubinstenin (2008): study the growing wage inequality with
gender that would cause women to invest more in the market productivity and pull able
women out of work force. The study uses heck man’s two step estimate and identification
and infinity on repeated current population survey cross sections to calculate relative wage
series for women since 1970 that hold constant the composition of the skills. They find
that selection into the female full time full year work force shifted the narrowing of the
gender wage gap reflect changes in female work force composition. They find the same
type of composition changes by measuring husbands wage and national longitudinal
survey is data as proxies for un mob served skills. The findings help to explain why
growing wage equality between genders co inside with growing in equality within gender.
8
The study concentrated on wages and productivity of Government and Aided College
Teachers and note on their investment.
Tarujyothi Buragohain (2009) :made an attempt in his paper to discern the trend and
pattern of savings in general and household sector savings in particular and to assess the
major determinants of household sector saving based on fundamental theory . According
to this study income elasticity of savings provided a sufficient encouraging picture and this
value have been increasing the economic resurgence period (1990-2007). This implies that
household disposable income is a better determinant of household savings and it increased
with increase in income. No attempt was made in this study to find out employees
investment behavior.
Karthikeyan (2010) :In this study suggested that the world thrift day may be celebrated
not only by government , but also by voluntary organizations to increase savings.
Interesting and audio visual type of advertisement and personal canvassing technique
could be used to increasing investment. Existence of agencies must be made known to
investors. The rate of invest must be hiked for investments. Is study reacted to the saving
pattern to Government and Aided College Teachers .
Syed Zemberi Ahmad (2011) :Made a study to offer an account of gender and investment
climate reform in the pacific region. This six country research studies face to face
interviews with a variety of stakeholders including : private sector representative bodies,
private sector operators , banks and micro credit institutions, lawyers, civil society,
government departments and bodies. The findings recognized the solutions identified to
address gender based investment climate barriers which constraints women’s economic
empowerment in six pacific nations. This research offers valuable practical insights for
policy makers, the judiciaries, the private sector, women’s business organizations, and
financial institutions. The paper offers an unprecedented level of new information about
gender and investment climate reform in the pacific region.
Shaikh, Rehman, Arifur, and Kalikudrikar, anil (2011) :revealed that demographic
factors have an impact on retail investors’ investment decision. This had been identified
on the basis of cross analysis between demographic factors and the level of risk taking
9
ability of the investors, and the study was carried out by applying chi-square test and
correlation analysis.
Dr .Sambhaji Mane and Ravi Bhandari (2014) :dealt with the investment behavior while
selecting different investment avenues. This study confirms the earlier findings with
regard to the relationship between age and income level of individual investors. The
present study has important implications for investment manager. As it has come out with
certain important facets of an individual financial product which gives risk free returns.
The study also identified the large number of portfolio is not good for healthy investment.
Deepak Sood (2015)states that, today the standard of the people increasing day by day so
salaried class community has started realizing the importance of savings and proper
investment of their savings. They avoid spending money on heavy luxuries life style and
preferring normal living standard. It is evident from the study undertaken that most of the
people are saving their money for children’s education, marriage and to fulfill the other
goals of life. There is bright chances to increase the saving and investment habits of
salaried class people at Chandigarh.
Sasirekha and Jerinabi (2015) :had studied the attitude of the investors towards
investment and risk. The outcome of the study shows that, the attitude towards investment
and risk are same for both the men and women. The level of awareness is the most
important factor that motivates to make investment and also an important determinant for
creating attitude towards investment and risk.
Dr N. Manika Mahesh and M. Selvakumar (2015)state the behavior on investment of

households. The households prefer bank deposit mostly and dislike shares and mutual
fund. The factor safety influence more on investment decision of households and the socio
economic factors education and income have relationship with investment of households.
On the basis of the finding the researcher presents suggestions for better investment
decision of the household. If the suggestions are carried out definitely, which lead to better
behavior on investment.
10
B .Thulasipriya (2015)states that Government employees belonging to the age group of
above 50 years have high level of preference for investment. And female Government
employees also have high investment preference. The employees of government those
who are single are also have high preference to investment. The analysis reveals that the
period of investment amongst the government employees prefer to have both long term
and short term investment for their safe future. The government employees reveals high
risk perception towards the preference for investment and the mean preference score
depict high and moderate risk perception towards the investment preferences.
Dr. G. Shanthri and R. Murugesan (2016)states that this report is a reflection of the
behavior of various categories women investors. In the study I investigated 60 respondents
out of them 61.67% respondents are aware aboutinvestment avenues. Most of the
respondents are in the age group between 31 to 40 years. Among the sample investors,
majority 30% of the respondents are educated up to graduation level. This study confirms
that the women are less likely to take investment risk for whichever reason many women
are less willing than men to take risk.
Sujithra A (2016) :States that investment habit is an essential thing every individual
should have for oneself as well as for the nation because the contribution of the household
to total capital formation of the country is very high. The study made an attempt to
compare the investment habit of rural and urban households. The study brings out the risk
avert nature of the individuals. It also laid greater emphasis on the need for creating
awareness among individuals about different innovative investment option available to
them.
Mahalakshmi Kumar (2017) : says that women should collect information about various
investment avenues through news paper , magazines and websites. This will give them the
confidence to take investment decisions of their own. After collecting information they
should analyze these investments by studying average returns of them in the past few
years. The merits and demerits of each investment avenue should be understood properly.
An appropriate portfolio should be made by considering various factors such as short term
goals, long term goals and the risk taking capacity.
11
Dr. G. Regha and R.Vishnupriya(2019)states that the study is based on the analysis of
investment pattern among working women which includes both government and private
sector employees and also business person and it has been found that many of the
respondents are working in private sector. They prefer mainly in investing gold. It is
evident from the study that most of the women are saving their money for children’s
education, marriage and to fulfill other goals of their life. There is a chance to increase the
savings and investment habits among salaried women and their investment depends upon
the annual income among the respondents. This study result that higher income group
investing more in their investment.
2.3 Research Gap

From the foregoing review of literature an investment pattern of government and aided
college teachers. , it is clean that much work has not been conducted in the said area
especially in the Malappuram district. No attempts have been made so far to examine the
awareness and to analyse the satisfaction level of the investment patterns. Therefore , in
this context,. The present study is a novel attempt undertaken to fill the lacuna.
References
 C R Kothari (2004) Researching Methodology. New Age International Publications.
 Punithavathyapandian (2012) Port Folio Management, Second Edition. Vikas
Publishing.
 B Karthikeyan 2010 “Small Investors Perception On Post Office Savings Schemes”
Madras University. Phd Thesis.
 Casey B Mulligan And Yona Rubistien August 2008- “Selection Investment And
Women’s Relative”
 Wages Over Time – Hardvard College And The Massachusetts Institute Of
Technology. The Quarterly.
 Sayed Zamberi Ahamed 2011 – “Gender And Investment Climate Reform
Assessment In Pacific.”
 Region – A Six Country Research Study- Equality, Diversity And Inclusion : An
International Journal Volume : 30 Issue :5 2011
 Tarujyothi Buragohain – 2009 “ A Study On House Hold Savings In India
12
 Assessment - National Council Of Applied Economics Research , New Delhi – The
Journal Of Income And Wealth – Vol.31, January – June 2009
 V.Rajarajan – June 1999 – “A Study On Stage In Life Cycle And Investment Pattern”
– Senior
 Lecture In Commerce , Pachayappas College For Men, Kanchipuram- Published In
Finance India, Vol.8
 Tamilkodi.A.P.P, 1983 – Small Saving Scheme In Tamilnadu-A Trend Study (1979
To 1980) – Thesis In Madras University
 Leonard.L.Berry – 1982 _ “Bank Marketing Priorities In US” – Europian Journal Of
Marketing.
 Wilbur G Levelenn , - December1978 – “Some Direct Evidence On Divident
Phenomenon” – Journal Of Finance , 33-5, P. 1385-1399
 Pamela Sebastin – Feb7, 1994 – “Many Small Investors Quit Picking Stokes” – The
Wallstreet Journal
 John Morais – Dec1988 – “Investment Behavior Of Individual Investors”- Madras
University - Phd
 Deepak Sood- 2015- International Journal Of Research In Engineering IT And
Social Sciences.
13
Chapter- III
THEORETICAL FRAMEWORK
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3.1 Investment-meaning and definition of investment:
Investment or investing means that an asset is bought, or that money is put into a bank to
get a future interest from it. Investment is total amount of money spent by a shareholder in
buying shares of a company. In economic management sciences, investment means
longer-term savings.
It is a term used in business management, finance and economics, related to saving or

deferring consumption. Literally, the word means the "action of putting something in to
somewhere else" (perhaps originally related to a person's garment or 'vestment').
An investment is an asset intended to produce income or capital gains.
Investments can be stocks, bonds, mutual funds, interest-bearing accounts,

land, derivatives, real estate, artwork, old comic books, jewelry -- anything an investor
believes will produce income (usually in the form of interest or rents) or become worth
more.
3.2 Why does investment matter?

The safety of the principal is of concern in any investment, although some investors are
more risk tolerant than others and are thus more willing to lose some of their principal in
return for the chance of generating a higher profit. The investor's ability to tolerate risk
and the incremental return associated with increasing amounts of risk are two
primary factors that distinguish types of investments from one another and help determine
appropriate investments for a given investor.
3.3 What is investment?

An investment is an asset or item accrued with the goal of generating income or
recognition. In an economic outlook, an investment is the purchase of goods that are not
consumed today but are used in the future to generate wealth. In finance, an investment is
a financial asset bought with the idea that the asset will provide income further or will
later be sold at a higher cost price for a profit.
Investment is elucidated and defined as an addition to the stockpile of physical
capital such as:
15
 Machinery
 Buildings
 Roads etc.,
i.e. anything that sums up to the future productive ability of the economy and changes in
the catalogue (or the stock of finished commodities) of a manufacturer. Note
that ‘investment commodities’ (such as machines) are also part of the final commodities –
they are not intermediate commodities like raw materials. Machines manufactured in an
economy in a given year are not ‘used up’ to produce other commodities but yield their
services over a number of years.
Investment decisions by manufacturers, such as whether to buy new machinery, rely to a
large extent, on the market place rate of interest. However, for simplicity, we presume
here that enterprises plan to invest the same amount every year.
3.4 Reasons to make investments

Everything you do in life has a reason for example you get married to settle yourself in life
with a soul mate and lead yourself towards a family life, you work to make sure that your
family does not fall short of basic necessities, you save money for various reasons like
vacations, unforeseen events, etc. now you need to know why should you make
investments.
3.4.1 Hit the inflation hard

You know keeping money in your wardrobe or under your mattress is very dangerous rite?
You never know when your house will be broken in by burglars and when will you be
robbed. You wouldn’t want to risk your families or your life. Keeping you money in a
bank, is it really sensible? Does it give you enough returns, the answer is NO. Keeping the
money with you is not rotating the money in the market is keeping it dead. Remember it’s
not just you it’s a number of other people with the same thinking of keeping their money
at home.
This creates shortage of money in the market. A simple law of scarcity explains, “the
scarce the product the more is its value”, which means that the price for goods and
services you pay will shoot up and will continue to shoot up for the money in the market is
scarce. This increases inflation, inflation to some extent is ok; however it should not
16
increase a lot. By making investments you keep your money rotating in the market and
this keep inflation constant.
3.4.2 Pension and retirement savings

Focusing on today and the requirements of the day is important, however these
requirements will never end they will only increase with time and will also grow as you
grow. Remember one thing you are able to fulfill your requirements today because you are
earning enough and hence are able to spend. What will happen when you stop working?
What will happen after you retire? Employers today do not support you with a pension as
most of us work with private organizations.
Will you be able to pay for yourself and the other growing requirements of your family? A
pension plan or a retirement plan can help you best in investments for your future, where
you will never have to look up to your kids for your expenses. Trust me the feeling of
depending on your children for your basic necessities is a very horrible feeling.
3.4.3 Let your money work

You work hard to earn each penny, weather it is to spend on basics, luxuries or to save. In
the mean time what is your money doing in the locker or the safe or the bank account,
nothing simply lazing around. Do you know your money can earn you money? The
moment your money has the right direction the right path to follow it can earn you more
that you expect. Yes the path needs to be the right path, either the market directly, or the
mutual funds or the insurance to meet a goal. Focus on you future requirements and you
will know where and how to invest. If you do not have the right knowledge of
investments take the help of an advisor.
3.4.4 Meet your financial goals

Each one of us have financial goals in life, these goals may include your child’s higher
education, your retirement, to build your wealth, etc. all of these goals can be met by
putting your money in the right direction in the right manner, however if you do not, your
money lies aimlessly in your bank account and your lockers. Neither your locker nor bank
account will fetch you as much money you require to meet your financial goals. The
17
reason behind this is that your money is either stagnant or as good as stagnant when not
invest correctly.
To build your wealth correctly for your future requirements you need to study the market
properly and work towards the same; in case you have no knowledge about investments
you must seek advice. If you seek advice you will realize that the advisors take a lot of
factors into consideration before suggesting you an investment.
3.4.5 Increase your wealth

Investments are saving and it is saving the right way. Do not forget when in the market
under a fund manager or under an agent, a stock agent or an insurance company you
money is put to work a little aggressively, it includes your capital money or your
investments along with the interest, dividend, higher NAV, etc.
In short on top of your money you are receiving money from the market for taking the risk
of investing money in the market. Remember the higher the risk the higher the returns. It
adds value to your investments; this helps you in creating wealth for your financial goals.
You can meet your financial goals faster, as your money will increase faster.
3.4.6 Secure your families future along with yours

You never know when will you need money and for what reason, the future is not seen to
anyone. Hence all you can do is save money, yes savings are extremely important. In case
anything goes wrong and you are in desperate need of money you can withdraw your
money from the market and use it for the emergency. God forbid if anything happens to
you your family members or legal heirs can use the money to meet their basic needs or
continue the same investments. Money is money and money in the market will always
grow. You can always count on your money for your families or your requirement.
Remember if your investments are invested rightly it will always give you more than you
expect.
3.5 Investments have risk —the higher the risk the higher the
return
No one will give you money or returns on your money for free; there is some reason for
paying you such high returns on your money. The reason is the risk involved in investing
your money in the market. The risk is the fear of losing your money in the volatile market.
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Which means if the market is up the stock price is up you get better investments returns
you get good returns, however in case of recession or when the market falls down the
returns drop to an extent where you can lose even your capital money, which is the money
invested by you.
In such situation you should never panic and remain calm as these situations do recover
when the market recovers. Getting panicky and withdrawing your money from the market
is going to get your into loss. Just stick around there and wait for the market to stabilize
and then grow. In fact in the low market you can, you must invest and make most out of
the situation to benefit from it.
3.6 Learn how to invest on timely basis and systematically

A number of companies and investments give you an option of investing systematically
may be it annually or half yearly or quarterly or maybe even monthly. You have options of
investing as low as Rs 500 monthly by companies. You can take anyone of the suitable
plans and start investments; this will get you in a habit of saving money investing it the
right way.
It is extremely important to understand why you need to and why you should save;
however saving needs to be done the right way that is by investing your money in the
market via stocks, bonds, debentures, insurances and mutual funds. Investments in the
stock market give your money the right direction and much higher returns compared to the
banks savings account. Investing in the market does expose your money to risk however
does help you attain your financial goals faster by putting your money to work and not
laze around in your lockers or your bank account. Investments will help not just you also
the government and the nation to grow.
3.7 Types of Investment

The major avenues for Investments are discussed as under:
3.7.1 Provident fund

Provident fund is an investment fund contributed to by employees, employers, and
(sometimes) the state, out of which a lump sum is provided to each employee on
retirement. Provident fund is another name for pension fund. Its purpose is to provide
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employees with lump sum payments at the time of exit from their place of employment.
This differs from pension funds, which have elements of both lump sum as well as
monthly pension payments. As far as differences between gratuity and provident funds are
concerned, although both types involve lump sum payments at the end of employment, the
former operates as a defined contribution plan, while the latter is a defined benefit plan.
A provident fund is a compulsory, government-managed retirement savings scheme used
in Singapore, India, and other developing countries. ... Workers give a portion of their
salaries to the provident fund and employers must contribute on behalf of their employees.
The primary purpose of PF fund is to help employees save a fraction of their salary every
month so that he can use the same in an event that the employee is temporarily or no
longer fit to work or at retirement. Employers and employees both contribute @12% of
wages in contribution accounts.
As per the rules, in EPF, employee whose 'pay' is more than Rs. 15,000 per month at the
time of joining, is not eligible and is called non-eligible employee. Employees drawing
less than Rs 15000 per month have to mandatorily become members of the EPF. Once the
Contribution of the employee and the employer is computed, we compute the interest on
the contribution. Interest on the Employees' Provident Fund (EPF) is calculated on the
contributions made by the employee as well as the employer. ... The employer contribution
will, however, remain at 12%/10%. EPF is perhaps the easiest way to save money for the
future without much hassle. Apart from the pension obtained from the Employee’s
Pension Scheme, you also get insurance cover from EDLI. Your EPF account is
automatically eligible for this cover and you do not have to contribute anything towards it.
Furthermore, the EPFO invests 5 to 15% of its deposits in ETFs (Exchange Traded
Funds). This way, you might get higher returns in future as the interest rates are likely to
increase. Therefore, all these factors make EPF a safe retirement planning tool.
3.7.2 Bank deposit

Bank deposits consist of money placed into banking institutions for safekeeping. A deposit
account, savings account, current account or any other type of bank account that allows
money to be deposited and withdrawn by the account holder.
Bank deposits consist of money placed into banking institutions for safekeeping.
These deposits are made to deposit accounts such as savings accounts, checking accounts
and money market accounts.
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It works like this: When you deposit the check at your bank, they will send the check or an
electronic image of the check to the payer's bank. Some large banks work directly with
each other to clear checks. ... Generally, if your deposit is $200 or less, you'll have access
to the money by the next business day.
Primarily, banks offer two kinds of deposit accounts. These are demand deposits like
current/saving account and term deposits like fixed or recurring deposits. When you open
a deposit account in a bank, you become an account holder or a depositor.
If you just let it go , you may never see your security deposit, and the sad truth is that
some landlords get away with just not giving a deposit back. Typically, the landlord has 30
days to issue a refund, but some states give even less time.
A deposit is a financial term that means money held at a bank. A deposit is a transaction
involving a transfer of money to another party for safekeeping. However, a deposit can
refer to a portion of money used as security or collateral for the delivery of a good.
3.7.3 Fixed deposit

A fixed deposit is a financial instrument provided by banks or NBFCs which provides
investors a higher rate of interest than a regular savings account, until the given maturity
date. It may or may not require the creation of a separate account.
A fixed deposit is one the most popular investment options in India. Several people
consider fixed deposit as the best investment option and invest a significant portion of
their savings in this instrument. But what is a fixed deposit?
A fixed deposit is a type of deposit in which a sum of money is locked for a fixed period
of time. However, the tenure for the fixed deposit is decided by the person who invests his
fund. This tenure could be anywhere from a few days to several years. In return for
locking in this fund, fixed deposit pay the depositor a fixed rate of interest. All banks offer
fixed deposits at different rates. Opening a fixed deposit is extremely simple and can done
both online and offline. To understand whether investing in a fixed deposit is the best
option, we need to look at the advantage and disadvantages of fixed deposit account.
Benefits of fixed deposits
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1. Investment return is guaranteed
One of the worries when investing is: “Will I get my money back?” Unlike investing in
stock markets or the commodity market, a fixed deposit guarantees money back at the end
of the tenure. All you need to do is wait for your returns to mature.
2. Capital and returns are insured
If you’re worried about risking your money, don’t be. Fixed deposits in Malaysia are
regulated by Perbadanan Insurance Deposit Malaysia (PIDM), a government agency
designed to protect and avoid the loss of money by depositors.
3. Inflation loss is covered
The interest rates highly depend on the bank you’re applying from. Banks offer
competitive interest rates for fixed deposits compared to a regular savings account which
could help compensate the annual inflation rate.
4. Regular earning potential
You earn an interest rate with the money you deposited over a fixed time. This happens
monthly, quarterly or yearly. There are banks which allow you to deposit or transfer the
interest you earned to your preferred bank. This means, while you will not be able to
withdraw your money until the tenure ends, you get to earn money through interest
payments, provided you selected the maturity instruction of rollover principal and
withdraw interest return.
5. Flexibility of deposit tenure
The fixed deposit has flexible terms; you can choose a short-term fixed deposit which you
can withdraw within a month or a long-term where you wait for years until it matures.
Banks vary in tenure criteria, so be mindful when selecting the tenure suitable for you to
avoid premature withdrawals.
6. Quick cash withdrawal
Unlike other investments like stocks and unit trusts, which may require a few days to cash
out, an FD can be cashed out anytime upon you presenting yourself to the bank with valid
documentation. To reap the best returns, wait for your invested money to mature.
7. Encourage saving habit
If you want your money to grow and not risk penalty fees when you break your agreement,
then having a fixed deposit helps develop a good habit of saving by avoiding the
temptation of withdrawing your funds under the agreed period.
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3.7.4 Recurring deposit
A recurring deposit is a special kind of term deposit offered by banks which help people
with regular incomes to deposit a fixed amount every month into their recurring deposit
account and earn interest at the rate applicable to fixed deposits.
Is rd a good investment option?
It entirely depends on your investment period. If it is for less than 12-18 months, RD will
be a good option as you may not want to take a risk of investing in equity funds which
usually fetch you a return of close to 12%(in generalized term), if your investment horizon
is of more than 36 months.
Features of recurring deposit

RD offers you a fixed interest on the invested amount at a specific frequency till the pre-
determined term or up on maturity. At the end of the term, the amount upon
maturity(which is your invested capital) along with remaining or accumulated interest is
paid.
The main features of recurring deposit account are as follows:

 Recurring Deposit schemes aim to inculcate a regular habit of saving among the public.
 Minimum amount that can be deposited varies from bank to bank. It can be an amount
as small as Rs.10.
 The minimum period of deposit starts at six months and the maximum period of deposit
is ten years.
 The rate of interest is equal to that offered for a Fixed Deposit and is hence higher than
any other Savings scheme.
 Premature and mid-term withdrawals are not allowed. However, the bank may allow to
closethe account before the maturity period, sometimes with a penalty for premature
withdrawal.
 RD offers the additional benefit of taking loan against the deposit, i.e., by using the
deposit as collateral. About 80 to 90% of the deposit value can be given as loan to the
account holder.
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 The Recurring Deposit can be funded periodically through Standing Instructions which
are the instruction given by the customer to the bank to credit the Recurring Deposit
account every month from his/her Savings or Current account.
Benefits of Investing in Recurring Deposit

Investing money in a recurring deposit account is a shrewd investment as the principal
amount invested is almost guaranteed to give a return. The rate of return offered on it is
also attractive. All this makes the recurring deposit a smart investment option.
Some of the other benefits of investing money in a recurring deposit account are:
 A simple financial product to invest in: A recurring deposit is one of the simplest
financial products in the world to invest in. The concept of investing money in it is
pretty simple. For any person who is new to the world of financial investment, experts
always advise the person to invest their money in a recurring deposit account. Initial
investments in recurring deposit also develop good investing habits for the individual.
 Guaranteed returns: Unlike equity and mutual funds, recurring deposits offer
guaranteed returns on the principal amount invested in the short term.
 Tenure and minimum amount to be deposited: The tenure of a recurring deposit
account usually varies from 6 months to 10 years. The depositor can select the short-
term, medium-term or long-term period for investment in a recurring deposit account.
Also the minimum amount to be deposited to open an RD account is Rs.100 for public
sector banks and varies from Rs.500 to Rs.1,000 for private sector banks such as ICICI
or HDFC bank which is not a huge amount to deposit at the beginning.
 Anytime withdrawal: Recurring deposit accounts also offer the facility of withdrawal
of the account anytime. The bank might charge a small fee for it but it is still a good
option for the depositor to have in case he or she needs the deposited money along with
the return on it urgently.
 Loan against deposit: Banks also provide the facility of loan against recurring
deposits. A depositor can avail a loan amount equivalent to 90-95% of the total money
deposited in the recurring deposit account depending on the bank.
 Flexible recurring deposits: Another advantage of investing money in a recurring
deposit account is flexibility. A flexible recurring deposit is a scheme in which a person
can invest any amount of money (greater than the minimum amount) at any intervals of
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time. Some banks also allow the facility for the depositor to skip an installment without
paying any penalties.
3.7.5Life insurance
Life insurance is a contract wherein an individual is offered financial coverage by
an insurance company in exchange for a payment over a period. ... In case the policyholder
passes away during the policy tenure, the insurance company will offer a lump sum
amount to his/her nominee.
There are three main types of permanent life insurance: whole, universal, and variable.
 Whole life insurance. This type of permanent life insurance has a premium that stays
the same throughout the life of the policy. ...
 Universal life insurance. Universal life coverage goes one step further. ...
 Variable life insurance.
What is life insurance?
Life insurance is a contract with between an individual and an insurance company, in

which the insurance company provides financial security in return for regular
payments(known as premiums)to the insurance company. In case of the policyholder’s
death or if the policy matures, the insurance company shall pay a lump-sum to the
individual after a period of time or to their family, on basis of the contract Typically, this
type of policy is chosen based on your needs and goals.
How insurance can be useful
Insurance can prove advantageous in meeting several financial goals of the individual and
his family. Here are some of the important ones:
 Financial cover against loss of life, which makes sure your family can support itself in
your absence
 Child’s education
 Child’s marriage
 Buying a house
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 Pension or regular income post-retirement
 Post-retirement income for NRIs
These are just some of financial goals you can achieve with the help of life insurance.
More importantly, life insurance plans are flexible. This means although you won’t find an
insurance plan dedicated to buying a house, you can buy an endowment plan (traditional
or market-linked) with the aim of paying for a house at a future date.
3.7.6Mutual funds
Mutual funds are currently the most popular investment vehicle for the majority of
investors but before investing in one of its crucial to understand the advantages they offer
as well as the disadvantages. There are a variety of funds covering different industries and
different asset classes available. Some of the advantages of this kind of investment include
advanced portfolio management, dividend reinvestment, risk reduction, convenience, and
fair pricing.
Disadvantages include high expense ratios and sales charges, management abuses, tax
inefficiency, and poor trade execution.
Here's a more detailed look at both the advantages and disadvantages of this investment
strategy.
Advantages of mutual funds

There are many reasons why investors choose to invest in mutual funds with such
frequency. Let's break down the details of a few.
Advanced portfolio management
When you buy a mutual fund, you pay a management fee as part of your expense ratio,
which is used to hire a professional portfolio manager who buys and sells stocks, bonds,
etc. This is a relatively small price to pay for getting professional help in the management
of an investment portfolio.
Dividend reinvestment
As dividends and other interest income sources are declared for the fund, it can be used to
purchase additional shares in the mutual fund, therefore helping your investment grow.
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Risk reduction (Safety)
Reduced portfolio risk is achieved through the use of diversification, as most mutual funds
will invest in anywhere from 50 to 200 different securities—depending on the focus.
Numerous stock index mutual funds own 1,000 or more individual stock positions.
Convenience and fair Pricing
Mutual funds are easy to buy and easy to understand. They typically have low minimum
investments (some around $2,500) and they are traded only once per day at the closing net
asset value (NAV). This eliminates price fluctuation throughout the day and
various arbitrage opportunities that day traders practice.
Disadvantages of Mutual Funds

However, there are also disadvantages to being an investor in mutual funds. Here's a more
detailed look at some of those concerns.
High expense ratios and sales Charges
If you're not paying attention to mutual fund expense ratios and sales charges, they can get
out of hand. Be very cautious when investing in funds with expense ratios higher than
1.20%, as they are considered to be on the higher cost end. Be wary of 12b-1 advertising
fees and sales charges in general. There are several good fund companies out there that
have no sales charges. Fees reduce overall investment returns.
Management abuses
Churning, turnover, and window dressing may happen if your manager is abusing his or
her authority. This includes unnecessary trading, excessive replacement, and selling the
losers prior to quarter-end to fix the books.
Tax inefficiency
Like it or not, investors do not have a choice when it comes to capital gains payouts in
mutual funds. Due to the turnover, redemptions, gains, and losses in
security holdings throughout the year, investors typically receive distributions from the
fund that are an uncontrollable tax event.
Poor trade execution
If you place your mutual fund trade anytime before the cut-off time for same-day NAV,
you'll receive the same closing price NAV for your buy or sell on the mutual fund. For
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investors looking for faster execution times, maybe because of short investment horizons,
day trading, or timing the market, mutual funds provide a weak execution strategy.
3.7.6 Post office deposit

The post-office term deposit (POTD) is similar to a bank fixed deposit, where you save
money for a definite time period, earning a guaranteed return through the tenure of
the deposit. At the end of the deposit's tenure, the maturity amount comprises the capital
deposited and the interest it earns.
Capital protection
The capital in the POTD is completely protected, with guaranteed returns, as the scheme is
backed by the Government of India.
Inflation protection
The POTD is not inflation protected, which means whenever inflation is above the
guaranteed interest rate, the return from the scheme earns no real returns. However, when
the inflation rate is below the guaranteed return, it does manage a positive real rate of
return.
Guarantees
The interest rate on the POTD is guaranteed for the tenure one opts for. It currently varies
from 6.9 per cent for a yearly deposit to 7.7 per cent for a five-year deposit. The interest
rates on this deposit are notified every quarter and are aligned with G-sec rates of similar
maturity, with a spread of 0.25 per cent. However, the rates will remain unchanged for the
entire term of a deposit after one has made an investment.
Liquidity
The POTD is liquid, despite the deposit lock-in. One can borrow against the deposit or
withdraw the deposit prematurely.
Other risks
There is no risk associated with this investment and hence it is risk-free.
Credit rating
As the POTD is offered by the Government of India, it does not require any commercial
rating.
Tax implications
There is no tax benefit on the deposits with less than five-year tenure. The five-year
deposit qualifies for income-tax deduction on the sum deposited under Section 80C.
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3.7.7Post Office Fixed Deposit
The post office deposit (POFD), also known as ‘post office time deposit’ is a convenient
alternative to the fixed deposits provided by banks. Through this fixed deposit scheme that
is offered by the Indian postal services, an individual can earn a guaranteed return on the
money deposited for a fixed period of time.
3.7.8 Post Office Savings Deposit

The post office savings account is a deposit scheme provided by the post office throughout
India. The account provides a fixed interest rate on the account balance. It is a beneficial
scheme for individual investors who wish to earn a fixed rate of interest by investing a
significant portion of their financial assets. Post office savings account is also a very
helpful scheme for those residing in rural parts of India. Since the nationwide reach of the
post offices is much greater as compared to banks, a large number of unprivileged people
have been able to get access to savings accounts through post offices.
3.7.9 Share market

Despite its popularity and presence in the news, the stock market is just one of many
potential places to invest your money. Investing in stock is often risky, which draws
attention to the huge gains and losses of some investors. If you manage the risks, you can
take advantage of the stock market to secure your financial position and earn money.
Investment gains
One of the primary benefits of investing in the stock market is the chance to grow your
money. Over time, the stock market tends to rise in value, though the prices of individual
stocks rise and fall daily. Investments in stable companies that are able to grow tend to
make profits for investors. Likewise, investing in many different stocks will help build
your wealth by leveraging growth in different sectors of the economy, resulting in a profit
even if some of your individual stocks lose value.
Dividend income
Some stocks provide income in the form of a dividend. While not all stocks offer
dividends, those that do deliver annual payments to investors. These payments arrive even
if the stock has lost value and represent income on top of any profits that come from
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eventually selling the stock. Dividend income can help fund a retirement or pay for even
more investing as you grow your investment portfolio over time.
Diversification
For investors who put money into different types of investment products, a stock market
investment has the benefit of providing diversification. Stock market investments change
value independently of other types of investments, such as bonds and real estate. Holding
stock can help you weather losses to other investment products. Stock also adds risk to a
portfolio, as well as the potential for large, rapid gains, helping investors avoid risk-averse
or overly conservative investment strategies.
Ownership
Buying shares of stock means taking on an ownership stake in the company you purchase
stock in. This means that investing in the stock market also brings benefits that are part of
being one of a business's owners. Shareholders vote on corporate board members and
certain business decisions. They also receive annual reports to learn more about the
company. Owning stock in the company you work for can be a way to express loyalty and
tie your personal finances to the success of the business as a whole.
Stock investment offers plenty of benefits:
1. Takes advantage of a growing economy: As the economy grows, so do corporate

earnings. That's because economic growth creates jobs, which creates income, which
creates sales. The fatter the paycheck, the greater the boost to consumer demand, which
drives more revenues into companies' cash registers. It helps to understand the phases
of the business cycle—expansion, peak, contraction, and trough.
2. Best way to stay ahead of inflation: Historically, stocks have averaged an annualized
return of 10%. That's better than the average annualized inflation rate of 2.9%. It does
mean you must have a longer time horizon. That way, you can buy and hold even if the
value temporarily drops.
3. Easy to buy: The stock market makes it easy to buy shares of companies. You can
purchase them through a broker, a financial planner, or online. Once you've set up an
account, you can buy stocks in minutes. Some online brokers such as Robinhood let
you buy and sell stocks commission-free.
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4. Make money in two ways: Most investors intend to buy low and then sell high. They
invest in fast-growing companies that appreciate in value. That's attractive to both day
traders and buy-and-hold investors. The first group hopes to take advantage of short-
term trends, while the latter expect to see the company's earnings and stock price grow
over time. They both believe their stock-picking skills allow them to outperform the
market. Other investors prefer a regular stream of cash. They purchase stocks of
companies that pay dividends. Those companies grow at a moderate rate.
5. Easy to sell: The stock market allows you to sell your stock at any time. Economists
use the term "liquid" to mean you can turn your shares into cash quickly and with low
transaction costs. That's important if you suddenly need your money in a hurry. Since
prices are volatile, you run the risk of being forced to take a loss.
Here are disadvantages to owning stocks:

1. Risk: You could lose your entire investment. If a company does poorly, investors will
sell, sending the stock price plummeting. When you sell, you will lose your initial
investment. If you can't afford to lose your initial investment, then you should buy
bonds..You get an income tax break if you lose money on your stock loss. You also
have to pay capital gains taxes if you make money.
2. Stockholders paid last: Preferred stockholders and bondholders/creditors get paid first
if a company goes broke. But this happens only if a company goes bankrupt. A well-
diversified portfolio should keep you safe if any one company goes under.
3. Time: If buying stocks on your own, you must research each company to determine
how profitable you think it will be before you buy its stock. You must learn how to
read financial statements and annual reports and follow your company's developments
in the news. You also have to monitor the stock market itself, as even the best
company's price will fall in a market correction, a market crash, or bear market.
4. Emotional roller coaster: Stock prices rise and fall second-by-second. Individuals
tend to buy high, out of greed, and sell low, out of fear. The best thing to do is not
constantly look at the price fluctuations of stocks, just be sure to check in on a regular
basis.
5. Professional competition: Institutional investors and professional traders have more
time and knowledge to invest. They also have sophisticated trading tools,financial
models, and computer systems at their disposal. Find out how to gain an advantage as
an individual investor
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Chapter - IV
ANALYSIS AND INTERPRETATIONS
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Table - 4.1
Age wise classification
Age Respondents Percentage (%)
Below 25 0 0
25-35 5 10
35-45 20 40
45-55 25 50
Above 55 0 0
Total 50 100
Source of Data:- Primary Data
Figure - 4.1: Age wise classification
Interpretation :
Table –4.1 shows the age wise classification of the selected samples and 10%of the
samples are 25-35 aged people, 40% of the people are 35-45 aged people and 50% of
the samples are 45-55 aged people.
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Table –4.2
Gender wise classification
Gender Respondents Percentage (%)
Male 29 58
Female 21 42
Transgender 0 0
Total 50 100
Figure – 4.2: Gender wise classification
Interpretation:
Table -4.2 shows the gender wise classification of the selected sample and 58% of the
samples are male and 42 % of the samples are female in this study. There is no
transgender in the selected samples.
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4.3 Classification based on college type
Table –4.3
Classification based on Type of College
Type of college Respondents Percentage (%)
Aided 25 50
Government 25 50
Total 50 100
60
GOVERNMENT,
Percentage (%),
50
50
40
30 GOVERNMENT, AIDED
Respondents , 25
GOVERNMENT
20
10
0
Respondents Percentage (%)
Figure –4.3: Classification based on college type
Interpretation:
Table – 4.3 there is 50% of employees are working in Aided College and Government
colleges.
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4.4 Years of Service in College
Table – 4.4
Years of Service in College
Year off Service Respondents Percentage (%)
1-10 8 16
11-20 15 30
11-30 27 54
Total 50 100
120
100
100
80
60 54
Percentage (%)
40 30
20 16
0
1-10 11-20 21-30 Total
Figure – 4.4: Years of Service in College
Interpretation:
Table – 4.4 shows the year of service of the selected samples 1-10 years are 16 % and 11-
20 30% of the samples and 54 % of the samples are 21-30 year of service..
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4.5 Source of Investment Information
Table – 4.5
Source of Investment Information
Sources of Respondents Percentage (%)

information
TV and Radio 25 22
Organization reports 14 12
Agents and advisors 16 14
Family members and 32 28
colleagues
Journal and 27 24
magazines
Figure – 4.5 Source of Investment Information
Interpretation :
The table 4.8 shows the sources of information for the investment of the respondents and
22% of the sample get information from TV and Radio, 12% of the samples get
information from organization repots , 14% of the samples get information from agents
and advisors , 28% of samples get information from family members and colleagues and
24% of the sample get information from journal and magazines.
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4.6 Awareness of Various Investment Avenues
Table – 4.6
Awareness of Various Investment Avenues
Investment avenues Respondents Percentage
PF 50 16
Bank deposit 48 15
Fixed deposit 49 14.6
Life insurance scheme 45 14
Chitty 37 11.4
Mutual fund 21 7
Recurring deposit 16 5
Post office deposit 36 11
Share market 19 6
Figure – 4.9 Awareness of Various Investment Avenues

Interpretation :
Table – 4.9 shows the awareness of various investment avenues of selected
respondents and 16% of the samples are aware of PF , 15% of the samples aware of
bank deposit , 14.6% are aware of fixed deposit , 14% are aware of LIC , 11.4% are
aware of chitty , 7% of the samples are aware of mutual fund , 5% of the samples are
aware of recurring deposit, 11% of the samples are aware of post office deposit, and
6% of the samples are aware of share market.
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Table – 4.7
Transparency
Transparency Respondents Percentage (%)

High 25 50
Medium 24 48
Low 1 2
Total 50 100
Figure – 4.7
Transparency
Interpretation :
Table – 4.10 shows the transparency of the investment schemes selected by the
respondents and 50% of the sample’s investments are highly transparent , 48% of the
sample’s investments are medium transparent and 2% of the sample’s investments are
low transparent.
Table – 4.8
Percentage of salary invested
Salary invested Respondents Percentage(%)

Below 10% 5 10
10 – 20 % 17 34
39
20 – 30 % 14 28
30 – 40 % 9 18
Above 40 % 5 10
Total 50 100
Percentage of salary invested
Figure – 4.8
Interpretation :
Table – 4.11 shows the percentage of salary invested by the respondents and 10%
of the samples invest below 10%, 34% of the samples invest 10 – 20 % of their salary,
28% of the samples invest 20 – 30 % of their salary , 18% samples are invest 30 -40 %
of their salary and 10% of the samples invest above 40% of their salary in various
schemes.
Table – 4.9
Motivations of savings
Motives Respondents Percentage
To meet specific purpose or 30 60
contingent expenses
To earn income 6 12
To get tax benefit 5 10
To be secured at old age 9 18
Total 50 100
40
Motivations of savings
Figure – 4.9
Interpretation :
Table – 4.9 shows the motivations of savings of the selected samples and 60% of the
sample’s motive is to meet specific purpose and contingent expenses, 12% is to earn
income, 10% is to get tax benefit and 18% is to be secured at old age.
Table – 4.10
Most preferred investment avenue
Investment schemes Respondents Percentage
PF 45
Bank deposit 19 37.5
Fixed deposit 18 16
LIC 23 15
Chitty 8 19.2
Mutual fund 1 6.6
Recurring deposit 1 0.8
Post office deposit 2 0.8
Share market 3 1.6
Total 129 100
41
Most preferred investment avenue
Figure – 4.10
Interpretation:
Table – 4.10 shows the preference of the respondents towards various investment
avenues and 37.5% of the samples are prefer PF , 16% of samples are prefer bank
deposit , 15% of the samples are prefer fixed deposit , 19.2% of the samples are prefer
LIC , 6.6% of the samples are prefer chitty , 0.8% of the samples are prefer mutual
fund, 0.8% of the samples are prefer recurring deposit , 1.6% of the samples are prefer
post office deposit and 2.5% of the samples are prefer share market.
Table – 4.11
Horizon of investment
Term of investment Respondents Percentage

(%)
Long term (above 10 years) 26 52
Short term (1-5 years) 5 10
Medium term (5-10 years) 17 34
Very short term(below 1 year) 2 4
Total 50 100
Horizon of investment
42
Figure – 4.11
Interpretation :
Table – 4.14 shows the time horizon of the respondent’s investment and 52% of the
sample are invested in long term , 10% of the samples are invested in short term , 34%
of the samples are invested in medium term and 4% of the samples are invested in very
short term.
Table – 4.12
Adequacy of the existing investment scheme

More than Adequate 4 8
Sufficient 44 88
Not sufficient 2 4
total 50 100
43
Adequacy of the existing investment scheme
Figure – 4.12
Interpretation :
Table – 4.15 shows the adequacy of the existing investment scheme of the
respondents. 8% of the samples are more than adequate, 88% are sufficient and 4% are
not sufficient.
Table – 4.13
Satisfaction of present investment scheme
Satisfaction level Respondents Percentage (%)
Highly satisfied 13 26
Satisfied 30 60
Dissatisfied 5 10
Highly 2 4
dissatisfied
44
Total 50 100
Satisfaction of present investment scheme
Figure – 4.13
Interpretation:
Table – 4.16 shows that the satisfaction level of the respondents and 26% of the
sample’s are highly satisfied, 60% of the samples are satisfied, 10% of the sample’s are
dissatisfied, and 4% of the samples are highly dissatisfied.
Table – 4.14
Factors for increase in size of savings
Factors Respondents Percentage

(%)
Increase in salary income 29 45.3
Statutory requirement 2 3.2
Tax benefit 4 6.2
Future needs 29 45.3
Total 50 100
45
Factors for increase in size of savings
Figure – 4.14
Interpretation :
Table – 4.17 shows the factors consider for increasing the size of savings of the
respondents and 45.3% of the sample’s are consider increase in salary income, 3.2% of
the sample’s are consider statutory requirement, 6.2% are consider tax benefit and
45.3% of the sample’s are consider future needs as the factor for increase the size of
savings.
Table – 4.15
Frequency for changing the investment
Period Respondents Percentage (%)

1 month 0 0
1-6 month 3 6
1 year 3 6
Above 1 year 44 88
Total 50 100
46
Frequency for changing the investment
Figure – 4.15
Interpretation:
Table – 4.18 show the frequency of changing the investment of the selected
respondents and 6% of the samples change their investment within 1-6 month, 6% of
the sample’s change their investment within 1 year and 88% of the sample’s frequency
for changing investment is above 1 year.
Table – 4.16
Return on investment
Rate of return Respondents Percentage (%)

10% 22 44
20% 17 34
30% 6 12
more than 30% 5 10
Total 50 100
47
Return on investment
Figure – 4.16
Interpretation:
Table – 4.16 shows the expected return on investment of the respondents and 44%
of the sample’s are expect 10% return , 34% of the sample’s expect 20% return and
12% of the sample’s expect 30% return and 10% of the sample’s are expect more than
30% return on investment
Table – 4.17
Monthly commitment for expense and investment
Commitment Respondents Percentage (%)

Highly satisfied 4 8
Satisfied 44 88
Dissatisfied 2 4
Highly dissatisfied 0 0
Total 50 100
48
Monthly commitment for expense and investment
Figure – 4.17
Interpretation:
Table – 4.20 shows the monthly commitment of the respondents for expenses and
investment and 8% of the sample’s are highly satisfied, 88% of the sample’s are
satisfied, and 4% of the sample’s are dissatisfied for their monthly commitment for
expenses and investment.
Table – 4.18
Level of risk
Level of risk Respondents Percentage (%)

Low risk 38 76
Medium risk 12 24
High risk 0 0
Total 50 100
49
Level of risk
Figure – 4.18
Interpretation:
Table – 4.21 shows the level of risk ready to undertaken by the respondents and
76% of the samples are ready to take low risk and 24% of the samples are ready to take
medium risk. There is no one ready to take high risk.
Table – 4.19
Difficulties in differentiating various investment avenues

Yes 19 38
No 31 62
Total 50 100
Difficulties in differentiating various investment avenues
50
Figure – 4.19
Interpretation:
Table – 4.22 shows there are any difficulty feel to the respondents in differentiating
various investment avenues. 38% of the samples feel difficulty and 62% of the samples
never feel difficulty in differentiating various investment avenues.
Table – 4.20
Need for any special scheme

Yes 31 62
No 19 38
Total 50 100
51
Need for any special scheme
Figure – 4.20
Interpretation:
Table – 4.23 shows there are any need for a special scheme to meet the need of the
respondents. 62% of the samples wantspecial scheme to meet their needs and 38% of
the samples don’t want any special scheme to meet their need.
Table – 4.21
Preference of future investment plans
Investment plan Respondents Percentage (%)

Regular return plan 19 38
Medical plan 15 30
Pension plan 8 16
Specific purpose plan 8 16
52
Total 50 100
Preference of future investment plans
Figure – 4.21
Interpretation:
Table – 4.24 shows the preference of the respondents for future investment and 38% of the
sample’s are prefer regular return plan, 30% of the sample’s prefer medical plan, 16% of the
sample’s are prefer pension plan and 16% of the sample’s prefer specific purpose plan.
53
Chapter -V
FINDINGS , CONCLUSION & SUGGESTIONS
54
Findings
The required data for the study are collected from teachers working in Government and
Aided Colleges in Malappuram District. Majority of the respondents are male. Most of the
teachers are in the Age group of 45-55. Most of the employee’s family structure is nuclear
and are married.
The following are the important findings of the study:
 The respondents of this study get or collect investment information from family
members and colleagues
 The awareness of various investment avenues is important objective of this study and
majority of the respondents are highly aware about PF and just below that respondents
are aware about bank deposit.
 The majority of the respondent’s present investment avenues are highly transparent in
nature.
 The majority of the respondents invest their salary between 10%-20%. This shows that
the percentage of salary invested by an employee is very low.
 Motivation of savings is the other important and prime objective of our study.
Motivation is the one of the variable selected in this study. So it is important that to
find out the reason or motivation for the investment of the respondents and the majority
of the respondent’s motivation to investment is to meet specific purpose or contingent
expenses. It is the factor influencing for investment of the government employees of the
selected respondents of Malappuram District.
 Respondents must have a preference towards investment avenues and the most
preferred investment avenue of the majority government employees of Malappuram
District is PF. Most of them prefer PF for investing their salary.
 The majority respondent’s horizon of investment is long term (more than 10 years) in
nature.
 Majority of the respondents are more than adequate their present investment scheme.
 Another prime objective of the study is satisfaction of the present investment scheme.
Majority of the respondents are satisfied with their present investment scheme.
 There are some factors considered by the respondents for increasing the size of the
savings. 45.3% of the respondents are considering increase in salary income as the
55
factor for increase in their savings and other 45.3% are consider future needs as the
factor for increasing the size of the savings.
 Majority of the respondent’s frequency for changing the investment scheme is above 1
year.
 The majority of the respondents expect the return on investment at 10%.
 Most of the respondent’s monthly commitment for the expenses and investment is
satisfied.
 Risk is an important term and factor in case of investment. In this study majority of the
respondents are ready to take only low risk in their investment scheme.
 Majority of the respondents are never feel difficulty in differentiating various
investment avenues.
 Most of the employees are need any special scheme to meet their needs.
 If the respondents are need special scheme to meet their needs, then which plan they
prefer for the future is an important question. In this study most of the respondents are
prefers regular return plan for their future investment.
Conclusion
Life is full risk of uncertainties. Investment is a means of protection from these risk and
uncertainties. For this purpose, there are various investment schemes are available for
investors in our society.
The research has been conducted in order to study investment habits of government
employees with special reference to Malappuram District area. The information related to
this study has been collected from Government and Aided College Teachers in
Malappuram area.
This project work is done in order to find out the employees habits in investing
money.58% of the employees are male and 42% are female. The highly invested
employees are coming under the age between 45 and 55. Majority of the employees are
married. Most of them are coming from nuclear family. Most of them are graduated. Due
to legal procedure some employees faced difficulties while opening bank account.
It can be concluded that most people prefer PF and regular return plan as their future
investment. Most of them are ready to invest more in future as they are satisfied with
present schemes. More Investment avenues are needed to meet the special needs
56
Suggestions
The following suggestions are given on the basis of this study:
 The investors given priority to self evaluation inspire of their lack of knowledge about
the present situation, so there is a need for the awareness of the various investment
avenues available.
 More advertisement should be given as the part of the investing policies,
 Dissatisfied employees must motivate in re-investment.
 Provide education to government employees about investment,
 Banks and other investment companies are give more emphasis on promotional
activities at younger prospective investors to attract them towards investments.
 They should create more awareness regarding multiple benefits of investment, which
will help to attract investors.
 Banks and other investment companies should provide education among the peoples
about the need of investment.
 Investment companies should provide fair return to investors.
 Investment bank should provide better customer satisfaction between investors.
 Provide knowledge about small saving investment schemes.
 Minimize the problems while opening bank account.
 Provide new investment schemes and policies to customers.
 Provide more safety measures in the field of investment.
57
APPENDIX
Google form
58
QUESTANNARE
Gender : male female
Present Age : ……
Retirement Age : ……
Which College were you Working in? : government aided
Years of Service in College : ……
Where you having any other Source of Income? : yes no
Did you have Investments? : yes no
Source of Information about Investment Option? :
co-workers / friends / relatives / magazines

peer groups / other (business/self/investment advisor)
Investment options? :
Bank / Insurance / Mutual funds / Share market / Post office / Others
Motive of your Investment?
Children's education / Wealth creation / House building / Marriage purpose / Others
What were the Factors which is inflenced your investment Decision?
Safety / Risk / Return / Maturity period / Others
Investment Withdrawal or Maturity Period?
2-5 years 5-10 years Above 10 years
59
Are you Satisfied with your Investment?: yes no
Did you get Expected percentage of Return? : yes no
Would you Suggest your Investment Option to Anyone? : yes no
Are you Working after Retirement?: yes no
If Yes,Please Specify your new Occupation? : …………..
Are you Investing after Retirement? : yes no
If Yes,Please Specify the Nature of Investment? : ………….
60
BIBLIOGRAPHY
61
Books
 William M Pride and O C Ferel. (2015). Marketing concepts and strategies,
Biztantra, India.
 Kefer Lee and Steve Cater. (2005). Marketing management, OXFORD University
press, New York.
 David L Louden and Albert A Della Bitta, TMGH,4th .Edition, 2006, consumer
behavior.
 J Paul Peter, Jerry P Olson J Paul Peter, Jerry C Olson (1990), consumer behavior and
marketing strategy, 2nd edition.
 C R Kothari (2004) Researching Methodology. New Age International Publications.
 Punithavathyapandian (2012) Port Folio Management, Second Edition. Vikas
Publishing.
 B Karthikeyan 2010 “Small Investors Perception On Post Office Savings Schemes”
Madras University. Phd Thesis.
 Casey B Mulligan And Yona Rubistien August 2008- “Selection Investment And
Women’s Relative”
 Wages Over Time – Hardvard College And The Massachusetts Institute Of
Technology. The Quarterly.
 Sayed Zamberi Ahamed 2011 – “Gender And Investment Climate Reform
Assessment In Pacific.”
 Region – A Six Country Research Study- Equality, Diversity And Inclusion : An
International Journal Volume : 30 Issue :5 2011
 Tarujyothi Buragohain – 2009 “ A Study On House Hold Savings In India
 Assessment - National Council Of Applied Economics Research , New Delhi – The
Journal Of Income And Wealth – Vol.31, January – June 2009
 V.Rajarajan – June 1999 – “A Study On Stage In Life Cycle And Investment Pattern”
– Senior
 Lecture In Commerce , Pachayappas College For Men, Kanchipuram- Published In
Finance India, Vol.8
 Tamilkodi.A.P.P, 1983 – Small Saving Scheme In Tamilnadu-A Trend Study (1979
To 1980) – Thesis In Madras University
 Leonard.L.Berry – 1982 _ “Bank Marketing Priorities In US” – Europian Journal Of
Marketing.
 Wilbur G Levelenn , - December1978 – “Some Direct Evidence On Divident
Phenomenon” – Journal Of Finance , 33-5, P. 1385-1399
 Pamela Sebastin – Feb7, 1994 – “Many Small Investors Quit Picking Stokes” – The
Wallstreet Journal
 John Morais – Dec1988 – “Investment Behavior Of Individual Investors”- Madras
University - Phd
62
Deepak Sood- 2015- International Journal Of Research In Engineering IT And Social
Sciences.
Websites
 https://www.gopgle.com/share_market/search?
 https://www.mutualfundssahihaI.com
 https://www.researchgate.net/publication/326292735_research_paper_-
_A_STUDY_OF_SAVINGS_AND_INVESTMENT_PATTERN_OF_SALARIED_C
LASS_PEOPLE_WITH_SPECIAL_REFERENCE_TO_PUNE_CITY_INDIA
 https://www.buschinvestments.com/Types-of-Life-Insurance.c1073.htm
 https://en.m.wikipedia.org/wiki/Provident_fund
 https://www.investopedia.com/terms/investment.asp
 https://www.paisabazar.com/saving-schemes/post-office-time-deposit-schemes/amp/
 https://www.academia.EDU/32612497/A_STUDY_ON_INVESTMENT_PREFERE
NCE_OF_GOVERNMENT_AND AIDED COLLEGE TEACHERS
_ON_VARIOUS_INVESTMENT_AVENUES
63
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Investment Pattern of Teachers – An Empirical Analysis in

Submitted to the University of Calicut in partial fulfillment of the requirements

Under the Guidance of

PG DEPARTMENT OF COMMERCE AND MANAGEMENT STUDIES

This is to certify that Adila Nasreen.kp (GPASBBAR01), Fathima

This is to certify that the project report entitled “Investment Pattern of

We Adila Nasreen.KP (GPASBBAR01), Fathima Rabna.C

We thank God Almighty who is all merciful in inspiring me a spirit to study a

Adila Nasreen. KP (GPASBBAR01)

III Theoretical Framework

IV Data Analysis and Interpretation

V Findings, Conclusion and Suggestions

1.2 Significance of the study

1.3 Statement of the problem

1.4 Scope of the study

1.5 Objectives of the study

1.6 Methodology and database

1.6.2 Collection of Primary Data

1.6.3 Sampling design

1.6.4 Method of Collection of Data

1.6.5Tools and techniques

1.7 Limitations of the study

1.8 Chapter scheme

2.2 Literature Review

Dr N. Manika Mahesh and M. Selvakumar (2015)state the behavior on investment of

2.3 Research Gap

It is a term used in business management, finance and economics, related to saving or

Investments can be stocks, bonds, mutual funds, interest-bearing accounts,

3.2 Why does investment matter?

3.3 What is investment?

3.4 Reasons to make investments

3.4.1 Hit the inflation hard

3.4.2 Pension and retirement savings

3.4.3 Let your money work

3.4.4 Meet your financial goals

3.4.5 Increase your wealth

3.4.6 Secure your families future along with yours

3.6 Learn how to invest on timely basis and systematically

3.7 Types of Investment

3.7.1 Provident fund

3.7.2 Bank deposit

3.7.3 Fixed deposit

Benefits of fixed deposits

Features of recurring deposit

The main features of recurring deposit account are as follows:

Benefits of Investing in Recurring Deposit

What is life insurance?

Life insurance is a contract with between an individual and an insurance company, in

How insurance can be useful

 Post-retirement income for NRIs

Advantages of mutual funds

Disadvantages of Mutual Funds

3.7.6 Post office deposit

3.7.8 Post Office Savings Deposit

3.7.9 Share market

Stock investment offers plenty of benefits:

1. Takes advantage of a growing economy: As the economy grows, so do corporate

Here are disadvantages to owning stocks:

Figure - 4.1: Age wise classification

Figure – 4.2: Gender wise classification

Figure –4.3: Classification based on college type

Figure – 4.4: Years of Service in College