A STUDY ON SAVINGS AND INVESTMENT BEHAVIOUR OF

SALARIED PEOPLE WITH SPECIAL REFERENCE TO

THANJAVUR CITY
Project report submitted to
PRIST UNIVERSITY

In partial fulfillment of the requirements for the Award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by
AMARJEET RAM
Reg. No:(501418603)

Under the guidance of

Ms. C. SUBHA MBA., M.Phil.
Assistant Professor

PRIST SCHOOL OF BUSINESS

PRIST UNIVERSITY
THANJAVUR 613 403

JUNE 2016

1
 DECLARATION

I AMARJEET RAM hereby declare that the dissertation entitled A STUDY ON

SAVINGS AND INVESTMENT BEHAVIOUR OF SALARIED PEOPLE WITH SPECIAL
REFERENCE TO THANJAVUR CITY submitted to the PRIST University, Thanjavur for the
award of the degree of Master of Business Administration is my original work and has not formed
the basis for the award of any degree or diploma, fellowship, associate ship, or any other similar
title.

Place: AMARJEET RAM

Date: Signature of the candidate

2
 PRIST SCHOOL OF BUSINESS
PRIST UNIVERSITY
VALLAM, THANJAVUR 613 403

Date: .

CERTIFICATE

This is to certify that the project report entitled A STUDY ON SAVINGS AND
INVESTMENT BEHAVIOUR OF SALARIED PEOPLE WITH SPECIAL
REFERENCE TO THANJAVUR CITY, is the bonafide record of the work done
by AMARJEET RAM (Reg. No.501418603) a full time student of PRIST
SCHOOL OF BUSINESS, in partial fulfillment of requirements for the award of
the degree of Master of Business Administration. This project to the best of my
knowledge has not formed the basis for the award of any degree or any other similar
title and that it represents entirely an independent work on the part of the candidate
under my overall supervision.

Signature of the Guide Signature of the Director

Signature of the External Examiner

ACKNOWLEDGEMENTS
3
I express my gratitude to the Almighty for His blessings showered upon me, which has helped me
to complete this project work successfully.

I owe my sincere thanks to our honorable CHANCELLOR, P. MURUGESAN,, PRIST

UNIVERSITY for providing an excellent environment and infrastructure for successfully
completing my MBA project work.

I express my deep sense of gratitude to our VICE CHANCELLOR, PRIST

UNIVERSITY for his motivation and successful completion of the project work.

I express my sincere thanks to our REGISTRAR, PRIST UNIVERSITY for his

motivation and successful completion of the project work.

With a deep sense of gratitude, I express my sincere thanks to the Dr. T. J. JAYASHOLAN
DEAN, PRIST SCHOOL OF BUSINESS for all the encouragement and whole hearted co-
operation extended in completing the project work successfully.

I express my deep sense of gratitude and indebtedness to Ms. C. SUBHA MBA., M.Phil.
Assistant Professor her kind, invaluable guidance and whole hearted advice, support and
encouragement for the completion of this project work in time and in a successful manner.

It is my pleasure to record my deep sense of thankfulness to Mr. JAMES DANIEL,

MARKETING EXECUTIVE who helped me in all my efforts throughout the journey of my
project.

Im thankful to the respondents who have answered the questions in spite of their busy
schedule. I would like to acknowledge the whole hearted support of my parents, faculty members
and friends who helped me at various stages in completing this project work successfully.

AMARJEET RAM

CONTENTS
4
CHAPTERS TITLE PAGE NO

INTRODUCTION
CHAPTER-1 6
1.1 INDUSTRY PROFILE

CHAPTER-2 REVIEW OF LITERATURE 16

CHAPTER-3 RESEARCH METHODOLOGY 19

CHAPTER-4 DATA ANALYSIS AND INTERPRETATION

22

CHAPTER-5 FINDINGS, SUGGESTION AND CONCLUSION 56

BIBLIOGRAPHY 60

ANNEXURE 61

CHAPTER - I

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 INTRODUCTION
Savings and Investment:
Investment is the employment of funds with the aim of getting return on it. It is the
commitment of funds which have been saved from current consumption with the hope that some
benefits will accrue in future. Thus, it is a reward for waiting for money. So the first step to
investment is Savings.

In common usage, saving generally means putting money aside, for example, by putting
money in the bank or investing in a pension plan. In a broader sense, saving is typically used to
refer economizing cutting costs, or to rescuing someone or something. In terms of personal
finance, saving refers to preserving money for future use typically by putting it on deposit, this is
distinct from investment where there is an element of risk.
Savings:

Savings is income not spent, or deferred consumption. Methods of saving include putting
money aside in, for example, a deposit account, a pension account, an investment fund, or as cash.
Saving also involves reducing expenditures, such as recurring costs. In terms of personal finance,
saving generally specifies low-risk preservation of money, as in a deposit account, versus
investment, wherein risk is higher; in economics more broadly, it refers to any income not used for
immediate consumption.

Saving differs from savings. The former refers to the act of increasing one's assets,
whereas the latter refers to one part of one's assets, usually deposits in savings accounts, or to all of
one's assets. Saving refers to an activity occurring over time, a flow variable, whereas savings
refers to something that exists at any one time, a stock variable. This distinction is often
misunderstood, and even professional economists and investment professionals will often refer to
"saving" as "savings".

Saving is closely related to physical investment, in that the former provides a source of
funds for the latter. By not using income to buy consumer goods and services, it is possible for
resources to instead be invested by being used to produce fixed capital, such as factories

6
and machinery. Saving can therefore be vital to increase the amount of fixed capital available,
which contributes to economic growth.

Savings in Personal Finance:

Within personal finance, the act of saving corresponds to nominal preservation of money
for future use. A deposit account paying interest is typically used to hold money for future needs,
i.e. an emergency fund, to make a capital purchase (car, house, vacation, etc.) or to give to
someone else (children, tax bill etc.).

Within personal finance, money used to purchase shares, put in a

collective investment scheme or used to buy any asset where there is an
element of capital risk is deemed an investment. This distinction is important
as the investment risk can cause a capital loss when an investment is realized,
unlike cash saving(s). Cash savings accounts are considered to have minimal
risk. In the United States, all banks are required to have deposit insurance,
typically issued by the Federal Deposit Insurance Corporation or FDIC. In
extreme cases, a bank failure can cause deposits to be lost as it happened at
start of the Great Depression. The FDIC has prevented that from happening
ever since.

Saving in Economics:

In Economics, Savings are defined as Income minus Consumption.

SAVINGS = INCOME CONSUMPTION.

The rate at which people can be expected to do this is called the Marginal propensity to
save or Average propensity to save. The rate of savings is directly related to both the interest rate
and investment, largely by way of the capital markets. It is worth noting that some investment is
considered savings. If investment merely replaces depreciated capital stock, rather than increasing
the capital stock and workforce, it is still considered part of savings.

In many instances the terms saving and investment are used interchangeably. For example,
many deposit accounts are labeled as investment accounts by banks for marketing purposes. As a

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rule of thumb, if money is "invested" in cash, then it is savings. If money is invested in a type of
asset which can fluctuate in nominal value, then it is an investment.

INVESTMENT:

Meaning:
Investment is an activity that is engaged in by people who have savings. But all savers are
not investors. Investment is different from savings. It means many things to many persons. One
person may purchase gold in large quantity for purpose of price appreciation and consider it as his
investment. Another person may take an insurance policy to avail so many benefits it offers in
future. That is his his investment. Yet another person may lend some amount to somebody with an
intension to get interest in future date may consider the same as his investment.
In all these cases, one thing is common i.e. the amount is invested with the aim of
achieving some additional income or growth in value. Hence, it involves the commitment of
resources that have been saved in the hope that some benefits will accrue in future.
Definition:
In the words of Donald E. Fisher and Ronald J.Jordon, an investment is a
commitment of funds made in the expectation of some positive rate of returns. If the
investment is properly undertaken, the return will be commensurate with the risk the
investor assumes.
According to F.Amling, the term investment means, the purchase by an individual or
institutional investor of a financial or real asset that produces to the risk assumed over some
future investment period.
Investment is time, energy,or matter spent in the hope of future benefits actualized within
a specified date or time frame.In Finance, investment is buying or creating an asset with the
expectations of capital appreciation,dividends (profit), interest earnings,rents or some combination
of these returns .This may or may not be backed by research and analysis.Most or all forms of risk
such as investment in equities,property,and even fixed interest securities which are subject among
other things of inflation risk.
Investment and investing is distinguished from other uses of money (such as saving,
speculation, donation, gifting), in that the deployment of money is done for the purpose of

8
obtaining a positive expected return. In finance, investment is the purchase of an asset or item with
the hope that it will generate income or appreciate in the future and be sold at the higher price. It
generally does not include deposits with a bank or similar institution. The term investment is
usually used when referring to a long-term outlook. This is the opposite of trading or speculation,
which are short-term practices involving a much higher degree of risk.
Financial assets take many forms and can range from the ultra safe low return government
bonds to much higher risk higher reward international stocks. A good investment strategy will
diversify the portfolio according to the specified needs.
The most famous and successful investor of all time is Warren Buffett. In March 2013 Forbes
magazine had Warren Buffett ranked as number 2 in their Forbes 400 list. Buffett has advised in
numerous articles and interviews that a good investment strategy is long term and choosing the
right assets to invest in requires due diligence.
Edward O. Thorp was a very successful hedge fund manager in the 1970s and 1980s that
spoke of a similar approach.Another thing they both have in common is a similar approach to
managing investment money. No matter how successful the fundamental pick is, without a proper
money management strategy, full potential of the asset cannot be reached.
Both investors have been shown to use principles from the Kelly criterion for money
management. Numerous interactive calculators which use the Kelly criterion can be found
online.In contrast, dollar (or pound etc.) cost averaging and market timing are phrases often used
in marketing of collective investments and can be said to be associated with speculation.
Investments are often made indirectly through intermediaries, such as pension funds, banks,
brokers, and insurance companies. These institutions may pool money received from a large
number of individuals into funds such as investment trusts, unit trusts, SICAVs etc. to make large
scale investments. Each individual investor then has an indirect or direct claim on the assets
purchased, subject to charges levied by the intermediary, which may be large and varied. It
generally, does not include deposits with a bank or similar institution. Investment usually involves
diversification of assets in order to avoid unnecessary and unproductive risk.

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Nature of Investment:

S L I
R A Q N A T
E F U U R E
T
RE I O F
U IT D IN V E
S T M
R SY IT
E N T
Y
N K
Risk:
Risk is inherent in any investment .It may relate to loss of capital, delay in repayment of
capital, non payment of interest etc. Some instruments like government securities and bank
deposits are almost riskless, while others are highly risky.

Return:
Return is an important factor which determines investment decision. In fact, investment is
made with the main objective of deriving a return. The return is of two types namely, yield and
capital appreciation.

Safety:
Safety of an investment is another factor, which an investor desires of his Investments.It
refers to the certainty of return of capital without loss of money or time. Every investor expects to
get back his capital on maturity without any loss or delay. Therefore, an investor who is very much

10
particular about safety of capital should carefully review the economic and industry trends before
selecting the investment avenues.

Liquidity:
An investment is said to be a liquid asset, it can be converted into cash without any delay at
full market value in any quantity. In other words an investment, which is easily saleable or
marketable without loss of time, is said to possess liquidity.
Some investments like company deposits, bank deposits, post office deposits, national
savings schemes etc., are not marketable. Some small instruments like preference shares and
debentures are marketable, but there are no buyers in some cases and hence their liquidity is
negligible. Equity shares of companies listed on stock exchange. Investment like stocks and
property or real estate cannot ensure immediate liquidity.
An investor generally prefers liquidity for his investments, safety of his funds, a good
return with minimum risk or minimisation of risk and maximisation of returns.

1.1 INDUSTRY PROFILE

Key of our financial success depends on selection of right investment option at right time. Right
investment options safeguards your money & provide capital appreciation. Survey reveals that
most of the people invest money either to save tax or for retirement. Most common investment
options that people opt are Mutual funds, Equity, FD & Gold. Apart from this common investment
options we have multiple other investment options. In this article I will discuss about 20 different
Investment options available for India.

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1. Fixed Deposit: Fix Deposit is common and most popular investment option in India. This
option is suitable for people who are usually conservative and dont want to take risk. Fixed
Deposit (FD) is a financial instrument where an investment is made for a fixed period of time
resulting in fix rate of interest in return.

a. Bank Fix Deposit: Bank Fix deposit is investment option where you invest money to bank and
bank gives fix return. The tenure can vary from 7, 15, 30, 45 days to 3, 6 months, 1 year, 1.5 years
and 5 years. Interest rate will vary from bank to bank. One important point to remember here is
income earned from interest is taxable.

b. Tax Saver Fix Deposit: If you invest money and save tax under 80 C this investment option
will help you. Investment tenure under this option is fixed 5 years. Interest rate again varies from
bank to bank.

c. Company Fix Deposit: This is another good investment option but riskier than Bank Fix
Deposit. This are kind of deposit which are made with a company/Financial Institutions/Non
Banking Financial Institutions (NBFC). The minimum deposit amount and rate of interest will
vary from company to company. Company Fix Deposit provides higher returns compare to Bank
Fix Deposit

2. RECURRING DEPOSIT: Recurring deposit is another good investment option popular in

salaried people who can save small amount of money every month. Recurring Deposit (RD) is
offered mostly by all banks. In this option you can put fixed amount every month in to RD account
and earn interest nearly applicable to FD.

3. PPF: PPF (Public Provident Fund) is long term investment option, usually taken for retirement
purpose. This investment option provides slow steady and secure return. For PPF investment you
have to open account with bank. PPF account tenure is for 15 years and can be extended for 5 year.
Interest rate is nearly equivalent to FD but varies year on year currently it is 8.7% (effective from
1st April, 2013). Minimum investment amount in PPF is 500 Rs/- per year & maximum is 70000
Rs/- per year. Amount invested in PPF can be claimed as tax saving. Good part about PPF is
interest earned from PPF is tax free

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4. SCSS: SCSS referred as Senior citizen saving scheme as name suggest this investment option is
only for senior. Who has attained age of 60 years or above are eligible for SCSS. The individual
may open one or more account in the multiple of INR.1000/-, subject to a maximum limit of
INR.15 lakh. Tenure of investment is fixed for 5 year. Interest rate is fixed. This interest can be
credited in account automatically. Investment under SCSS is qualified under tax benefit for section
80 C. This is one of the safest investment options for the Senior Citizens.

5. MIS: MIS referred as Monthly investment scheme, it is one of the safest investment options.
MIS account can be opened by post office. MIS is best suitable option for senior citizen or retired
person or individual who wants to ensure monthly return. Current interest rate of MIS is 8.4% and
tenure is 5 year.

6. NSC: National saving certificate or NSC was one of the most popular investment options in
olden days. As amount of return offer by this product in past was very good. People use to say that
if you want to double your money in few year just invest in NSC. But now picture has change.
NSC is now offering only 8% interest compounded half-yearly. Due the compounding, the
effective rate per annum works out to 8.16%. It is a cumulative scheme with a term of six years.
Investment under this scheme is exempted under 80c. Interest income under this scheme is taxable
but not deducted at source.

7. EQUITY or STOCK MARKET: This is very popular & high return coupled with maximum
risk. So it is high risk, high return game. This investment option is best suited for aggressive
investor. Stock selection and timing are most important creation for investment. Stock market
investment requires extreme care and enough knowledge. Stock investment is also controlled by
emotion you should be very careful while doing stock market investment. Also read: Emotion
over Investment Buy Low, Sell High Pick a stock based on your investment objective, risk
appetite and the fundamental parameters of the share (stock). Additional points to note are the
liquidity of the stock (Volumes of shares traded on a daily basis) and the volatility of the share (the
difference between the highest price and lowest price for the day.

8. MUTUAL FUND: Mutual fund is investment option where professionally managed

organization collects money from individual for investment in stock market, debenture & other
securities. This investment option is best suited for moderate investor as it carried moderate risk &
moderate return. Mutual funds are managed by fund manager who usually has enough experience

13
in stock market. Fund manager take decision of purchasing or selling stocks or instrument based
on market behaviour. Profit and loss are distributed to investor after deducting cost.

9. ELSS: ELSS is referred as Equity link saving scheme. ELSS is type of mutual fund only. ELSS
is used as tax saving instrument as investment is ELSS is exempted from Income tax under 80c.
By doing Investment in ELSS you have dual advantage you can enjoy capital appreciation and also
enjoy tax saving. Remember investment in ELSS has a lock in period of 3 years from the date of
investment.

10. Tax Free Bonds: Tax-free bonds are bonds are issued by entities such as the National Highway
Authority of India (NHAI) and Power Finance Corporation (PFC) as they are important to the
government in terms of building the countrys infrastructure. Money invested in tax free bonds will
be locked for 15 years. As per me if you surplus money you can think of this investment option.
This option can give absolute return of 8.2%-8.3% every year for 15 years.

11. NPS: NPS (National pension scheme) is often ignored investment option by many. NPS is a
defined contribution based pension system launched by Government of India. NPS is one of the
innovative investment options which provide benefit of both equity and debt. This scheme provide
flexibility to investor, Here Investor can select how much percentage of corpus goes to equity and
debt. If Investor does not carry competency to decide about investment percentages they may opt
for default option under which investment allocation is decided based on age. Up to 35 year of age
equity and debt exposure is 50% after that every 5 year equity investment reduces by 10%.
Minimum investment under this scheme is 500 Rs/- per month. If you exit this scheme before 60
years you have to invest 80% of accumulated saving to purchase a life annuity from IRDA regulate
life insurer. The remaining 20% may be withdrawn as lump sum. If you exit this scheme after 60
years you have to invest 40% of accumulated saving to purchase life annuity.

12. GOLD: Gold is most popular Investment option in India. Gold is considered as a safe haven
against all national, political and cultural crises. Gold Investment should not exceed 20% of your
portfolio. Gold has produced magnificent return in past and we expect gold to continue in
appreciation. It is generally observed that if economy is not stable Gold price appreciates more.
Investment in gold can be done in two form (1) Physical Gold Jewelry, Coin or Bar (2) Non
Physical Gold Gold ETF.

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13. GOLD ETF: GOLD ETF is Investment Option that give an opportunity to the investors to
invest in gold without taking the physical custody of the yellow metal. Gold ETF gives nearly
equal return as that of gold. Gold ETF can be purchased from market in small amount in lot of 1
costing 1gm of gold. Gold ETF gives multiple advantages over physical gold. Gold ETF are lower
in cost easy to buy and sell. You need not to pay any making charge or handling charges.

14. SILVER: Silver is poor mans gold & another investment option. Investors usually invest in
gold but very few investors still believe in Silver and they invest or trade in Silver. Price of silver
is driven by speculation and supply and demand. We have observed silver price is significantly
volatile in past this may be due to demand fluctuation. Investment in silver can be made in the
form of jewelry or silver coins.

15. REAL ESTATE: Real estate is investment option for rich as investment in real estate requires
lot of money. Real Estate refers to investment in immovable properties which includes land,
buildings, flats etc. Investment in real estate involves the purchase of real estate and selling it for a
profit. Investment in real estate is for high risk high return investor. Investor should consider risk
appetite, investment amount & future prospects before doing real estate investment.

16. BONDS & DEBENTURES: Bond as investment option is agreement between a borrower and
a lender. The borrowers include public financial institutions and corporations. The lender is the
bond fund, or an investor when an individual buys a bond. In return for the loan, the issuer of the
bond agrees to pay a specified rate of interest over a specified period of time. Debenture is debt
security investment option. Debenture is issued cooperates that is not secured by assets.

17. LIFE INSURANCE (ULIP): Life insurance is not investment product but ULIP (Unit linked
Investment plan) is investment option with insurance. It is a single contract comprising of
insurance cover with an investment benefit. The insurance company allots units to the ULIP
investors and the net asset value (NAV) is calculated and declared on a daily basis. ULIP is highly
adopted by many investors as many investors do not understand the terms or jargon mentioned in
the life insurance contract of ULIP & they end up making loss by purchasing ULIP. Life insurance
is different product you should never club it with investment.

18. FMP: FMP or Fix Maturity Plan is investment option similar to fixed deposit in terms of
tenure but varies in terms of assured returns. This is a kind of mutual fund scheme offered by
mutual fund companies providing an indication of the returns an investor can expect but do not

15
give assured returns. This are closed ended schemes which means that an investor can only enter
them when they are launched and exit them when their pre-stated term is over. One can exit them
earlier, but generally after paying an exit load that is high enough.

19. RGESS: Rajiv Gandhi Equity Saving Scheme is relatively new investment option. Investment
in RGESS brings tax saving for the assessee whose income is less than 12 lakh rupees. This
scheme is only for first time retail investor in equity market. Maximum Investment permissible
under the Scheme is Rs. 50,000 and the investor would get a 50% deduction of the amount
invested from the taxable income for that year.

20. Antique: Antique is less popular and not so adopted investment option. Investing in antique is
quite difficult for an average investor. Antiques are extremely vulnerable to fluctuations in public
demand, so they are considered high-risk, speculative investments. Investment in antique gives
dual benefit; it gives profit as well as enjoyment of beauty it carries. Ask yourself these questions
before investing.

CHAPTER- II
REVIEW OF LITERATURE

There are several pioneering models in behavioural finance theory. Amos Tversky and
Denial Kahnerman (1999) stated that the investors become more risk averse when making profits
and more risk taking when making a loss.

Rober J Shiller (2000) stated that the attitude changes among the investors with two basic
attitudes are explored bubble expectations and investors confidence. They concluded that the
investors confidence has remained vary flat.

Yoo (2001) said that the diminishing of risky assets over an individual s lifetime is not
uniform and individuals appeared to increase their investment in risky assets throughout their
working lifetime and decrease their risk exposure once they retire. He also used regressions and
found that age was a significant factor in determining the portfolio composition
.
Warren et.al. (2002) used lifestyle characteristics to differentiate investors by the size and
the nature of their investment holdings. He found that the failure to use lifestyle characteristics for

16
further segmentation blurs some real differences between individual investors and their financial
service needs.

Karthikeyan (2003) has conducted research on Small Investors Perception on Post office
Saving Schemes and found that there was significant difference among the four age groups, in the
level of awareness for kisan vikas patra (KVP), National Savings Scheme (NSS), and deposit
Scheme for Retired Employees (DSRE), and the Overall Score Confirmed that the level of
awareness among investors in the old age group was higher than in those of young age group. No
differences were observed among male and female investors except for NSS and KVP.

Nasir and Khalid (2004) assessed behaviour of saving and investment in Pakistan using
appropriate econometric and statistical technique and attempted to generate a model on the basis of
fundamental theories of saving and investment. They used data from 1971 to 2003, collected from
Economic Survey of Pakistan. Ordinary Least Square Method was used as an estimation technique.
The study concluded that Government Expenditures, Growth rate of Gross Domestic Product and
Remittances Growth were positively and significantly influencing National Savings.

Lewis A Sanders (2004) believes that people, irrespective of their location, have their own
bias and react differently when investing in financial assets.

Krishnamoorthy (2008).in his study has analyzed the profile and awareness of salaried
class investors and their attitude and satisfaction towards investment. In has been concluded that
all salaried people were aware of bank deposits, PF schemes, insurance schemes, post office
savings schemes, gold and however only few were aware 0f UTI.

An empirical study of Indian Individual Investors Behaviour by Syed Tabassum

Sultana (2010) was an attempt to know the profile of the investors and also to know their
characteristics so as to know their preference with respect to their investments. The study also tried
to unravel the influence of demographic factors like gender and age on risk tolerance level of the
investors.

17
 Bhardwaj Rajesh, Raheja Rekh and Priyanka (2011), propounded in their study that
saving and investment pattern of salaried class school teachers of govt. and private schools has
depended upon income and they both get salary but the scale of the salaries are different and
saving patterns thats why is so different. Govt. teachers prefer to invest the money for emergency
purposes and private teachers emphasis on children marriage and education.

Dr. S. Mathivannan and Dr. M. Selvakumar (2011) examined the saving and investment
patterns of salaried teachers of Sivakasi Taluk, Tamilnadu and they found that there is great
importance of money and moneys worth for them and They are regularly preparing budgets for
Expenditures and compare it with the actual expenditure and take necessary actions if there are any
deviations has arrived so far and they are influenced by fashionable and costly items.

Dr. Dhiraj Jain and Parul Jain (2012) concluded that the majority of the teachers the
money plays a big role and they initiated to prepare budgets and future forecasting for income and
expenditure and there is comparison between future and Standard budgets to find out the
deviations to meet certain money constraints It has been evident from the study that most of the
school teachers are saving their money for the purpose of their childrens education, marriage and
as security after retirement.

Dr. Ananthapadhmanabha Achar (2012) studied Saving and Investment Behaviour of

Teachers - An empirical study. In the analysis individual characteristics of teachers such as age,
gender, marital status, and lifestyle determined the savings and investment behaviour of teaching
community in the study region. They considered monthly family income, stage of family life cycle,
and upbringing status emerged as determinants of their savings and investment behaviour.

Dr. Varsha Virani (2012) propounded in her study that In spite of low income the teachers
have been saving for future needs. The major impact on savings is due to the level of income of the
school teachers. The research shows that majority of the respondents are saving money as Bank
deposits for the safety of an unpredictable future. The main avenues of investment are Bank
deposits and the main purpose of investment is for children education, marriage, and security after
retirement.

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 CHAPTER - III
RESEARCH METHODOLOGY

RESEARCH METHODOLOGY:

Research methodology is a way to systematically solve the research problem. It refers not
to the research methods but also the logic behind the method used in the research study, why only
particular methods used, why certain methods and techniques are not used and so on. Why a
research study has been defined what data has been collected, what method has been adopts and a
host of similar questions are usually answered when it is comes to research methodology.

3.1 OBJECTIVES OF THE STUDY:

To study the Savings and Investment behaviour of salaried people of Thanjavur.

To analyse the needs and expectations of the investors.
To study the knowledge level of the respondents about various investments avenues and the
areas of Investments.
To suggest measures to improve the Savings and investment attitude among the
Individuals.

3.2 RESEARCH DESIGN:

Descriptive research design is applied in this study. A Likert scale is used in analyzing. It is
the detailed outline of how a research work carried out.

3.2.1TYPE OF RESEARCH

This research is descriptive in nature.

3.2.2 TITLE OF THE STUDY

A study on Savings and Investment behaviour of salaried people with special reference
to Thanjavur city

3.2.3 AREA OF THE STUDY Thanjavur

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3.2.4 PERIOD OF THE STUDY

From January 2016-March 2016

3.2.5 SAMPLE FOR THE STUDY

50 Salaried people are taken as sample respondents.

3.2.6 SAMPLING TECHNIQUE

Probability-simple random sampling technique was used to select the sample.

3.2.7 DATA COLLECTION METHODS

PRIMARY DATA:

Primary data are considered as the first hand information collected from the respondents.The
primary data is collected through structured questionnaire.

SECONDARY DATA:

The secondary data are collected from the magazines, journals and internet.

3.2.8 QUESTIONNAIRE DESIGN

The survey questionnaire consist of 22 questions pertaining individual demographic

profile, to measure the savings and investment behaviour, investment choices and investment
knowledge of the respondents. Ordinal scale, Nominal scale and Interval scale have been used in
the questionnaire for data collection.

3.2.9 TOOLS FOR ANALYSIS

Low and high degree statiscal tools are used for data analysis. They are

1. Simple percentage
2. Chi square analysis

3.2.10 HYPOTHESIS USED

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TEST OF HYPOTHESIS

H - There is a relation between age of the respondents and investment avenues.

H1- There is no relation between age of the respondents and investment avenues.

H0 - There is a relation between the geographical location of the respondents and the
willingness of the respondents to invest in risky investments.

H1- There is no relation between the geographical location of the respondents and the
willingness of the respondents to invest in risky investments.

H- There is a significant relation between the family type of the respondents and
influencing factor for investment decision.

H1- There is a significant relation between the family type of the respondents and influencing
factor for investment decision.

3.2.11 SCOPE OF THE STUDY:

This study provides further scope of research towards saving pattern and Investments
Avenue of other companies. This study probe the problem that is faced by the investors will apply
for similar investors.

3.2.12 LIMITATIONS OF THE STUDY:

Total number of respondents is only 50.

Reliability of the information collected
Time constrain
The findings and suggestions provided are applicable only for the present study.

CHAPTER IV
DATA ANALYSIS AND INTERPRETATION
TABLE- 4.1

21
 GENDER WISE CLASSIFICATIONS OF RESPONDENTS

S.NO GENDER NO OF RESPONDENTS PERCENTAGE

1 Male 34 68

2 Female 16 32

3 TOTAL 50 100

Source: Primary data

INFERENCE

The above table shows the Gender of the respondents. It is inferred that majority

(68 Percent) of the respondents are male and only 32% respondents are female.

CHART- 4.1

CHART SHOWING THE GENDER OF RESPONDENTS

22
 Female

NO OF
RESPONDENTS

Male

0 5 10 15 20 25 30 35

TABLE - 4.2

AGE WISE CLASSIFICATIONS OF THE RESPONDENTS

S.NO AGE NO OF PERCENTAGE

RESPONDENTS

1 Below 30 24 48

2 31-40 13 26

3 41-50 7 14

4 Above 51 6 12

5 TOTAL 50 100

Source: Primary data

INFERENCE

23
The above table shows the age of the respondents. It is inferred that majority (48 Percent) of the
respondents belong to the age group of below 30years and only 26 Percent of the respondents
belong to the age group of 31-40years.

CHART- 4. 2

AGE WISE CLASSIFICATIONS OF THE RESPONDENTS

Above 51

41-50

NO OF RESPONDENTS

31-40

Below 30

0 5 10 15 20 25

TABLE - 4. 3

24
 EDUCATIONAL QUALIFICATIONS OF RESPONDENTS

S.NO NO OF
RESPONDENTS
EDUCATIONAL LEVEL PERCENTAGE

1 ILLITRATE 1 2

2 HIGHER PRIMARY 0 0

3 HIGH SCHOOL 1 2

4 PUC 6 12

5 DEGREE 22 44

7 OTHER HIGHER 20 40
QUALIFICATION

8 TOTAL 50 100

Source: Primary data

INFERENCE

25
The above Table shows the educational qualification of the respondents.It is inferred that majority
(44 Percent) of the respondents are degree holders and only 12 Percent of the respondents are
PUC.

CHART- 4.3

EDUCATIONAL QUALIFICATION OF THE RESPONDENTS

OTHER HIGHER QUALIFICATION

DEGREE

PUC

NO OF RESPONDENTS
HIGH SCHOOL

HIGHER PRIMARY

ILLITRATE

EDUCATIONAL LEVEL

0 5 10 15 20 25

TABLE 4. 4

FAMILY TYPE OF RESPONDENTS

26
 S.NO FAMILY TYPE NO OF RESPONDENTS PERCENTAGE

1 Unitary 28 56

2 Joint 22 44

3 TOTAL 50 100

Source: Primary data

INFERENCE

The above table shows the family type of the respondents. It is inferred that majority (56 Percent)
of respondents belong to unitary family and only 44 Percent of Respondents belong to joint family.

CHART 4. 4 - FAMILY TYPE OF RESPONDENTS

Joint

NO OF
RESPONDENTS

Unitary

0 5 10 15 20 25 30

TABLE 4.5

GEOGRAPHICAL LOCATION OF THE RESPONDENTS

27
 NO OF
RESPONDENTS
S NO CONTENT PERCENTAGE

1 Rural 11 22

2 Urban 29 58

3 Semi-urban 10 20

4 Total 50 100

Source: Primary data

INFERENCE

The above table it shows geographical location of the respondents. It is inferred that majority (58
Percent) of the respondents belong to Urban and only 20 Percent of the respondents belong to
semi-urban region.

CHART 4.5 - GEOGRAPHICAL LOCATION OF THE RESPONDENTS

Semi-urban

Urban NO OF RESPONDENTS

Rural

0 5 10 15 20 25 30

TABLE 4. 6

MONTHLY INCOME OF THE RESPONDENTS

S.NO MONTHLY NO OF PERCENTAGE

28
 INCOME RESPONDENTS

1 5000-15000 17 34

2 15001-25000 15 30

3 25001-35000 8 16

4 35001-Above 10 20

5 TOTAL 50 100

Source: Primary data

INFERENCE

The above table shows the monthly income of the respondents.It is inferred that majority (34
Percent) of respondents are having the monthly of 5000-15000 and only 16 Percent of the
respondents are having the monthly income of 25001-35000.

CHART 4. 6 - MONTHLY INCOME OF THE RESPONDENTS

35001-Above

25001-35000

NO OF RESPONDENTS
15001-25000

5000-15000

0 2 4 6 8 10 12 14 16 18

TABLE 4. 7

MONTHLY FOOD EXPENSES

S.NO MONTHLY NO OF RESPONDENTS PERCENTAGE

EXPENDITURE

29
 1 500-1000 8 16

2 1000-3000 22 44

3 3000-ABOVE 20 40

4 TOTAL 50 100

Source: Primary data

INFERENCE

The above table shows the monthly expenditure of the respondents.It is inferred that majority (44
Percent) of the respondents spent 1000-3000 for food and only 16 Percent of the respondents spent
500-1000 for food.

CHART 4.7 - MONTHLY FOOD EXPENSES

3000-ABOVE

NO OF RESPONDENTS
1000-3000

500-1000

0 5 10 15 20 25

TABLE 4. 8

MONTHLY TRANSPORT EXPENSES

S.NO MONTHLY NO OF RESPONDENTS PERCENTAGE

EXPENDITURE

1 500-1000 30 60

30
 2 1000-3000 16 32

3 3000-Above 4 8

4 TOTAL 50 100

Source: Primary data

INFERENCE

The above table shows the monthly expenditure of the respondents regarding transport.It is
inferred that majority (60 Percent) of the respondents spent 500-1000 for transport and 32 Percent
of the respondents spent 1000-3000 for transport per month.

CHART 4.8 - MONTHLY TRANSPORT EXPENSES

3000-Above

1000-3000 NO OF RESPONDENTS

500-1000

0 5 10 15 20 25 30

TABLE 4. 9

MONTHLY HEALTH EXPENSES

S.NO MONTHLY NO OF RESPONDENTS PERCENTAGE

EXPENDITURE

1 500-1000 34 68

2 1000-3000 12 24

3 3000-Above 4 8

31
 4 TOTAL 50 100

Source: Primary data

INFERENCE

The above table shows the monthly expenditure of the respondents for health. It is inferred that
majority (68 Percent) of the respondents spend 500-1000 and only 8 Percent of the respondents
spend above 3000 for health per month.

CHART 4. 9 - MONTHLY HEALTH EXPENSES

3000-Above

1000-3000 NO OF RESPONDENTS

500-1000

0 5 10 15 20 25 30 35

TABLE 4.10

MONTHLY ELECTRICITY EXPENSES

S.NO MONTHLY NO OF RESPONDENTS PERCENTAGE

EXPENDITURE

1 500-1000 36 72

2 1000-3000 11 22

3 3000-Above 3 6

4 TOTAL 50 100

32
Source: Primary data

INFERENCE

The above table shows the monthly expenditure of the respondents regarding electricity. It is
inferred that majority (72 Percent) of the respondents spent 500-1000 and only 6 Percent of the
respondents spend above 3000 for electricity.

CHART 4.10 - MONTHLY ELECTRICITY EXPENSES

3000-Above

1000-3000 NO OF RESPONDENTS

500-1000

0 5 10 15 20 25 30 35 40

TABLE 4. 11

MONTHLY MISCELLANEOUS EXPENSES

S.NO MONTHLY NO OF RESPONDENTS PERCENTAGE

EXPENDITURE

1 500-1000 22 44

2 1000-3000 15 30

3 3000-ABOVE 13 26

4 TOTAL 50 100

33
Source: Primary data

INFERENCE

The above table shows the monthly expenditure of the respondents regarding miscellaneous. It is
inferred that majority (44 Percent) of the respondents spent 500-1000 for and 26 Percent
respondents spent above 3000 for miscellaneous expenses.

CHART 4. 11 - MONTHLY MISCELLANEOUS EXPENSES

3000-ABOVE

1000-3000 NO OF RESPONDENTS

500-1000

0 5 10 15 20 25

TABLE 4.12

ANNUAL SAVINGS OF THE RESPONDENTS

S.NO EARNINGS PER NO OF RESPONDENTS PERCENTAGE

ANNUM

1 Below 1 Lakh 36 72

2 1lakh - 2lakhs 10 20

3 2lakhs - 4lakhs 4 8

4 Above 4lakhs 0 0

5 TOTAL 50 100

34
Source: Primary data

INFERENCE

The above table shows the annual savings of the respondents.It is inferred that majority (72
Percent) of the respondents save below one lakh and only 8 Percent of the respondents save 2
lakhs-4 lakhs per annum.

CHART 4.12 - ANNUAL SAVINGS OF THE RESPONDENTS

Above 4lakhs

2lakhs - 4lakhs

NO OF RESPONDENTS
1lakh - 2lakhs

Below 1 Lakh

0 5 10 15 20 25 30 35 40

TABLE 4. 13

MOST PREFERRED INVESTMENT AVENUE.

S.NO INVESTMENT
AVENUE
NO OF RESPONDENTS PERCENTAGE

1 Stock Market 2 4

2 Banks 25 50

3 Mutual fund 3 6

4 Gold 13 26

5 Real Estate 1 2

6 Insurance 6 12

7 TOTAL 50 100

Source: Primary data

35
INFERENCE

The above table shows the most preferred Investment Avenue which the respondents prefer to
invest. It is inferred that 50 Percent of the respondents prefer to invest at Banks and 26 Percent of
the respondents prefer to invest in Gold.

CHART 4.13

MOST PREFERRED INVESTMENT AVENUE

Insurance

Real Estate

Gold
NO OF RESPONDENTS
Mutual fund

Banks
TABLE 4.14
Stock Market
KEY OBJECTIVES OF SELECTED INVESTMENT
0 5 10 15 20 25

36
 S.NO CHOICE OF NO OF RESPONDENTS PERCENTAGE
INVESTMENT

1 Safety 24 48

2 Higher return 5 10

3 Emergency 10 20

4 Tax benefits 2 4

5 Education 3 6

6 Any other 6 12

7 TOTAL 50 100

Source: Primary Data

INFERENCE

The above table shows the reason for choosing the investment avenue as their choice. It is inferred
that majority (48 Percent) of the respondents have chosen safety and 20 Percent of the respondents
have chosen Emergency.

CHART 4.14

KEY OBJECTIVES OF SELECTED INVESTMENT

37
 Any other

Education

Tax benefits

NO OF RESPONDENTS
Emergency

Higher return

Safety

0 5 10 15 20 25

TABLE 4.15

OPINION ABOUT THE SATISFACTION OF INVESTMENTS MADE

S.NO SATISFACTION NO OF PERCENTAGE

RESPONDENTS

1 Yes 43 86

2 No 7 14

38
 3 TOTAL 50 100

Source: Primary Data

INFERENCE

The above table it shows the satisfaction of the respondents from their investment. It is inferred
that majority (86 Percent) of the respondents are satisfied with their investment and only 14
Percent of the respondents are not satisfied with their investment.

CHART 4.15 - OPINION ABOUT THE SATISFACTION OF INVESTMENT MADE

No

NO OF RESPONDENTS

Yes

0 5 10 15 20 25 30 35 40 45

TABLE 4. 16

RANKING OF THE OBJECTIVES OF INVESTMENTS BY THE RESPONDENTS

S.NO INVESTMENT NO.OF PERCENTAGE

OBJECTIVES RESPONDENTS

1 Higher return 10 20

2 Safety 31 62

3 Capital Appreciation 2 4

39
 4 Stable Income 3 6

5 Tax Exception 4 8

6 TOTAL 50 100

Source: Primary data

INFERENCE

The above table shows the ranking of the investment objective by the respondents.It is inferred that
majority (62 Percent) of the respondents ranked safety as their investment objective and only 20
Percent of the respondents have higher return as their investment objective.

CHART 4.16

RANKING OF THE OBJECTIVES OF INVESTMENTS BY THE RESPONDENTS

40
 Tax Exception

Stable Income

Capital Appreciation NO.OF RESPONDENTS

Safety

Higher return

0 5 10 15 20 25 30 35

TABLE 4.17

FREQUENCY OF THE INVESTMENT

S.NO FREQUENCY NO OF PERCENTAGE

RESPONDENTS

1 Yearly once 20 40

2 Monthly 13 26

3 Half-Yearly 11 22

4 Quarterly 6 12

5 TOTAL 50 100

Source: Primary data

INFERENCE

The above table shows the frequency of investment made by the respondents .It is inferred that
majority (40Percent) of the respondents invest yearly once and only12 Percent of the respondents
invest quarterly.

CHART 4. 17

41
 FREQUENCY OF THE INVESTMENT

FREQUENCY OF INVESTMENT DONE BY RESPONDENTS

Quarterly

Half-Yearly NO OF RESPONDENTS

Monthly

Yearly once

0 2 4 6 8 10 12 14 16 18 20

TABLE 4.18

WILLINGNESS TO INVEST IN RISKY INVESTMENTS

S.NO CONTENTS NO OF PERCENTAGE

RESPONDENTS

1 Yes 6 12

2 No 44 88

3 TOTAL 50 100

Source: Primary Data

INFERENCE

The above table it shows willingness of the respondents to invest in risky investments.It is inferred
that majority (88Percent) of the respondents are not interested to invest on risky investment and
only 12 Percent of the respondents are interested to invest in risky investment.

CHART 4.18 - WILLINGNESS TO INVEST IN RISKY INVESTMENTS

42
 No

NO OF RESPONDENTS

Yes

0 5 10 15 20 25 30 35 40 45

TABLE 4.19

SATISFACTION TOWARDS RETURN ON INVESTMENT

S.NO CONTENTS NO OF PERCENTAGE

RESPONDENTS

1 Yes 42 84

2 No 8 16

43
 3 TOTAL 50 100

Source: Primary data

INFERENCE

The above table shows the satisfaction of the respondents from the return of their investments.It is
inferred that majority (84 Percent) of the respondents are satisfied with the return from their
investment .And only 16 Percent of the respondents are dissatisfied.

CHART 4.19 - SATISFACTION TOWARDS RETURN ON INVESTMENT

No

NO OF RESPONDENTS

Yes

0 5 10 15 20 25 30 35 40 45

TABLE 4.20

OPINION ABOUT FEELING SECURED WHILE MAKING AN INVESTMENT

S.NO CONTENTS NO OF PERCENTAGE

RESPONDENTS

1 Yes 45 90

2 No 5 10

44
 3 TOTAL 50 100

Source: Primary data

INFERENCE

The above table shows whether the respondents feel secured when they make an investments.It is
inferred that majority (90Percent) of the respondents feel secured when they make an investment
and only 10 Percent of the respondents does not feel secured while making an investment.

CHART 4.20 - OPINION ABOUT FEELING SECURED WHILE MAKING AN

INVESTMENT

No

NO OF RESPONDENTS

Yes

0 5 10 15 20 25 30 35 40 45

TABLE 4. 21

FACTOR INFLUENCING INVESTMENT DECISIONS

S.NO INFLUENCING NO OF PERCENTAGE

FACTOR RESPONDENTS

1 Self decision 24 48

2 Family & Friends 22 44

3 Neighbors 2 4

45
 4 colleagues 0 0

5 Investment agents & 2 4

houses

6 Total 50 100

Source: Primary data

INFERENCE

The table shows the most influencing factor for respondents in making investment decisions. And
it is inferred that majority (48Percent) of the respondents make self- decision and only 4 Percent of
the respondents are influenced by neighbours and colleagues while making investment decision.

CHART 4. 21

FACTOR INFLUENCING INVESTMENT DECISIONS

46
 Investment agents & houses

colleagues

Neighbours NO OF RESPONDENTS

Family & Friends

Self decision

0 5 10 15 20 25

TABLE 4.22

AWARENESS ABOUT THE FEATURES OF INVESTMENTS

S.NO CONTENTS NO OF PERCENTAGE

RESPONDENTS

1 Yes 44 88

2 No 6 12

3 TOTAL 50 100

Source: Primary data

INFERENCE

The above table shows the awareness level of the respondents regarding the features of
investments avenues.And it is inferred that majority (88 Percent) of the respondents are aware
regarding the features of the investment avenue and only 12 Percent of the respondents are not
aware regarding the feature of the investment avenue.

47
CHART 4.22 - AWARENESS ABOUT THE FEATURES OF INVESTMENTS

No

NO OF RESPONDENTS

Yes

TABLE 4.23

CHI SQUARE TEST

0 5 10 15 20 25 30 35 40 45

48
 INVESTMENT AVENUES

AGE TOTAL

Stock Banks Mutual Gold Real Insurance

Market funds Estate

Below 1 12 1 4 0 6 24
30

31-40 1 9 1 2 0 0 13

41-50 0 1 1 4 1 0 7

Above 0 3 0 3 0 0 6
51

Total 2 25 3 13 1 6 50

Hypothesis:

H - There is a relationship between age of the respondents and investments avenue.

49
H1 - There is no relationship between age of the respondents and investments avenue.

CALCULATION TABLE

TABLE 4.23.1

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

1 0.96 0.04 0.0016 0.001

1 0.52 0.48 0.23 0.442

0 0.28 -0.28 0.078 0.278

0 0.24 -0.24 0.057 0.237

12 12 0 0 0

9 6.5 2.5 6.25 0.961

1 3.5 -2.5 6.25 1.785

3 3 0 0 0

1 1.44 -0.44 0.193 0.134

1 0.78 0.22 0.048 0.061

1 0.42 0.58 0.336 0.8

0 0.36 -0.36 0.129 0.358

4 6.24 -2.24 5.017 0.804

2 3.38 -1.38 1.904 0.563

4 1.82 2.18 4.752 2.610

3 1.56 1.44 2.073 1.328

0 0.48 -0.48 0.23 0.479

0 0.26 -0.24 0.057 0.219

1 0.14 0.86 0.739 5.278

0 0.12 -0.12 0.014 0.12

6 2.88 3.12 9.734 3.379

0 1.56 -1.56 2.433 1.559

0 0.84 -0.84 0.705 0.839

50
 0 0.72 -0.72 0.518 0.719

22.954

Calculations:

2= (O-E) 2

Calculated value = 22.954

Confidence level = 95%

Degree of Freedom = (R-1) (C-1)

= (4-1) (6-1)

=35

= 15 Level of significant = 5% Table value = 24.996

Conclusion:

If the calculated value is less than the table value then accept the null hypothesis i.e., there
is a relationship between age of the respondents and Investment avenue.

TABLE 4.24

Geographical Willingness to invest in risky investment Total

location Yes No

Rural 1 10 11

Urban 3 26 29

Semi-Urban 2 8 10

Total 6 44 50

51
Hypothesis:

H - There is a relationship between geographical location of the respondents and the willingness
of the respondents to invest in risky investments.

H1 - There is no relationship between geographical location of the respondents and the willingness
of the respondents to invest their in risky investments.

CALCULATION TABLE

TABLE 4.24.1

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

1 1.32 -0.32 0.102 0.077

3 3.48 -0.48 0.23 0.066

2 1.2 0.8 0.64 0.53

10 9.68 0.32 0.102 0.0105

26 25.52 0.48 0.23 0.009

8 8.8 -0.8 0.64 0.072

1.3585

52
 Calculations:

2= (O-E) 2

Calculated value = 1.3585

Confidence level = 95%

Degree of Freedom = (R-1) (C-1)

= (3-1) (2-1)

=21

=2 Level of significant = 5% Table value = 5.991

Conclusion:

If the calculated value is less than the table value then accept the Null hypothesis i.e. there
is a relationship between geographical location of the respondents and willingness of the
respondents to invest in risky investments.

TABLE 4.25

Influencing factor for investment decision

Family Type Total

Self- Family& Neighbors Colleague Investm

Decision Friends ent

Unitary 13 14 0 0 1 28

53
Joint 11 8 2 0 1 22

TOTAL 24 22 2 0 2 50

Hypothesis:

H - There is a relationship between family type and the influencing

factor for investment.

H1 - There is no relationship between family type and the influencing

factor for investment.

CALCULATION TABLE

TABLE 4.25.1

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

13 13.44 -0.44 0.19 0.014

11 10.56 0.44 0.19 0.017

14 12.32 1.68 2.822 0.229

8 9.68 -1.68 2.822 0.291

0 1.12 -1.12 1.254 1.119

2 0.88 1.12 1.254 1.425

0 0 0 0 0

0 0 0 0 0

1 1.12 -0.12 0.0144 0.12

1 0.88 0.12 0.0144 0.12

54
 3.335

Calculations:

2= (O-E) 2

Calculated value = 3.335

Confidence level = 95%

Degree of Freedom = (R-1) (C-1)

= (2-1) (5-1)

= 1 4

=4

Level of significant = 5%

Table value = 9.488

Conclusion:

If the calculated value is less than the table value then accept the null hypothesis i.e. there
is a relation between family type of the respondents and influencing factor for investment decision.

55
 CHAPTER V
FINDINGS AND SUGGESTIONS
5.1 FINDINGS

Majority (44%) of respondents are degree holders.

Majority (56%) of respondents belong to unitary family.
Majority (58%) of respondents belong to urban.
Majority (34%) of respondents belong to the monthly income of 5000-15000.
Majority (72%) of respondents save below 1 lakh per annum.
Majority (50%) of respondents prefer Banks as their investment avenue.
Majority (48%) of respondents have chosen Safety as their key objective of selected
investment avenue.
Majority (86%) of respondents are satisfied with their investment.
Majority (62%) of respondents have safety as their main motive to invest.
Majority (42%) of respondents invest yearly once.
Majority (88% )of respondents are not interested to invest on risky investment
Majority (84%) of respondents are satisfied with the return from their investment.
Majority (90%) of respondents feel secured when they make an investment.

56
 Majority (48%) of respondents investment decisions are self decision.
Majority (88%) of respondents are aware of about features of the investment avenue.

5.2 SUGGESTIONS

To create awareness regarding various investment avenues by giving information

about attractive return on investment.
Investments in government sector should increase.
Investor who wants to avoid risk should invest in saving account, FD, provident
funds, National Saving Certificate, post office, Life insurance etc.
To increase the investors in various investment avenues, the investment avenues can
use various strategies to create the importance of investment.
To increase the saving behaviour among the salaried people.
To create awareness regarding the features of the investment avenue.
To create awareness among the women investors regarding various investment
avenues.

57
 5.3 CONCLUSION

At the outset from this project we can conclude that savings and investment
behaviour is important for every individual. Savings are done by reducing the
expenditure from income and saving must be invested in various investment
avenues to increase the value. By forecasting the future requirements savings are
done. Most of the salaried individuals do savings and investment for safety purpose.
Analysis of the study was undertaken with the help of survey conducted
.After the analysis and interpretation of data it is concluded that Investors are aware
about Investment Avenues available in India but still investors are preferred to
invest in bank deposits, real estate, metals (gold). The data analysis reveals that the
safety is important factor while doing investment so remaining avenues is less
considerable while doing investment by investors.

58
 BIBLIOGRAPHY

Investment Principles and techniques -V N S Raman

Investment management - Preeti sigh
Fundamentals of Investment -Gardon .J.Alexander
-William F.Sharpe
-Jeffery V.Bailey
Investments -Herbert .B.Mayo
Investment Management -Dr.L.Natarajan

RESEARCH METHODOLOGY:

D.K. Bhattacharya
C.R.Kothari

59
Aditan Bhujanga Rao

Websites:
www.moneycontrol.com
www.financewalk.com
www.scribd.com
www.mbainfolin.com
www.joaag.com

APPENDIX
A Study on Savings and Investment Behaviour of Salaried People with Special Reference to
Thanjavur City

Questionnaire

1. Name -

2. Age

A) Below 30 B) 31-40 C) 41-50 D) Above 51

3. Gender:

A) Male B) Female

4. Educational background:

A. Illiterate
B. Higher primary
C. Elementary high school

60
 D. PUC
E. Degree
F. Other Higher Qualification.

5. Family Type: Unitary / Joint

6. Family Size: Adults (Numbers) Children (Numbers)

7. Nature of Work:

8. Geographical Location:

A) Urban B) Rural C) Semi-Urban

9. Monthly Income:

A) 5000-15,000 B) 15,001-25,000 C) 25,001-35,000 D) 35,001& Above

10. Monthly Expenditure:

500-1000 1000-3000 3000-Above

Food -

Transport

Health

Electricity

Miscellaneous

11. How much you save from your earning per annum?

A) Below 1lakh B) 1lakh 2lakhs C) 2lakhs-4lakhs D) Above 4lakhs

12. Which investment avenues do you most prefer to invest your Savings?

A) Stock Market B) Banks C) Mutual Fund D) Gold E) Real Estate F) Insurance

61
13. Why do you prefer such Investment as your choice?

A) Safety B) Higher Return C)Emergency D)Tax Benefits E)Education F)Any Other

14. Are You Satisfied With Your Investment?

A) Yes B) No

15. How do you rank the following Objectives of your Investment? (Rank from 1 to 5)

A) High Return ________

B) Safety ________
C) Capital Appreciation. ________
D) Stable income ________
E) Tax Exemption ________

16. What is the Frequency of your investment?

A) Yearly Once B) Monthly C) Half-Yearly D) Quarterly

17. Are you willing to invest your money in risky investments?

A) Yes B) No

18. Are you satisfied with the return from your Investment?

A) Yes B) No

19. Do you feel secured when you make an investment?

A) Yes B) No

20. Which is the most Influencing factor of your Investment Decision?

A. Self decision
B. Family & Friends
C. Neighbours
D. Colleagues
E. Investment agents and Houses

21. Are you aware about the features of your investment avenues before your investment?

62
A) Yes B) No

63