Assignment 1

Introduction
The importance of investment is not to earn more money, but to generate money for betterment
of life. Financial dedication is the career of resources with an aim of getting the returns. It is the
resource which have been stored from present consumption with a hope to get benefits later on.
It is a compensation for awaiting cash. So saving is the first step to investment. In common
utilization, saving usually means placing cash aside, consider example, by putting cash secured
or getting a retirement plan. In a wider perspective, saving is generally used to make reference
for economizing, reducing expenses. With regards to personal fund, saving represents protecting
cash for upcoming use like putting on deposit, investing in assets, in equity, gold etc.
Main components of Investment strategies are Time, Return and Risk.
This research is designed to comprehend the behavior pattern of financial commitment among
the working professions. It would help in understanding the perception of individuals in various
financial alternatives. It gives the scope to understand the issue related with investment by
different professions.
Problem Statement
To analyze the investment pattern of working professions like teaching professionals, Self
Employed, IT professionals, Class1 Employees, Bankers, Hospitality Professionals in Pune.
Objective
To study investment pattern of working professions
To analyze the investment decision of different class of people
To study the investment option preferred
To analyze the investment of economically developed area
To understand the perception of different professions
Limitation
The investment pattern of above mentioned six working professions
It is limited to Pune only
Methodology
It is a Descriptive research
Questionnaire will be prepared
Primary data will be collected
Sample size will be total 80
Research Design
For understanding the investment pattern of working professions, we will use descriptive
research. The sample survey will be conducted using questionnaire. It is important to decide
research design before collecting the data. It helps in understanding the method and procedures
for the required information. Here Descriptive research is used to analyze the behavior of
working professions.
Descriptive research is selected due to following reasons:
It describes the characteristics of group
It determines the interest of people who behave in similar fashion
To make appropriate prediction
It helps in understanding the relationship between two or more variables like income and
investment etc.
Sample
The study includes the 80 working professions in teaching, Self Employed, IT professionals,
Class1 Employees, Bankers, and Hospitality Professionals in Pune. Both male and females
are included for the criteria.


Tool
The data is collected using questionnaire. A questionnaire is prepared which consists mixed
pattern of questions like open ended, close ended. It should be prepared carefully to cover all the
aspects. After this sample plan is decided for the sampling size, unit and procedure. The analysis
can be done on the basis of results obtained from it. Its not possible to cover all the population
so a group is selected which would represent whole population.

The investment opportunities which are available are:
Fixed income investment.
Protective investments.
Speculative investment.
Growth investment
Tax oriented investment.
Emotional investment.















Questionnaire

Dear Sir/Madam
I am Sushmita Goyal, student of MIT-SOB doing PGDM. I am conducting a survey to study the
investment pattern of working professions. I request you to give your valuable time to fill the
questionnaire.

Name: ___________________________________________________

Select your Gender: Male Female

1. What is your Age Group?
20-35 35- 45 45-55 55 and above

2. What is your Occupation?
Teaching professionals Self Employed IT professionals
Class1 Employees Bankers Hospitality Professionals

3. Your Monthly income?
Rs. 20000-25000 Rs. 25,000-40,000
Rs. 40,000 -60,000 Above Rs. 60,000

4. What percentage of income do you save?
0-15% 15-25% 25-30% 30-40%

5. Have you invested savings?
Yes No





6. Which of the following alternative have you opted?
Banks Insurance Equities Real Estate
Govt securities Mutual fund Gold others_________(Specify)

7. How many times you invest?
Monthly Quarterly Half yearly Annually

8. Do you take advice on your investment decisions?
Magazines & newspapers Broker Chartered accountants
Family & friends Bank Other______________
9. What is the investment horizon of your saving?
Less than 1 year 1-3 years
3-5 years More than 5 years
10. What is the short term goal of your investment?
Liquidity Return Risk
11. What is the long term goal of your investment?
Family future Retirement
Dream House Any other (please specify) ________________
12. Your decision of investment depends upon?
Past performance Economic scenario Industry analysis
Company analysis Credit rating Others___________
13. The level of risk you are ready to undertake for your investment?
Low risk Moderate risk High risk



14. Do you find difficulties in differentiating various investment alternatives?
If yes Specify________________________________________________________________ __
NO

15. Suggestions if any
________________________________________________________________________________________
_________________________________________________________________________________________
________________________________________________________________________

(Signature)

Thank you Sir / Madam for giving your valuable time in filling up Questionnaire.



















Analysis of the survey
1. What is your Age Group?
a) 20-35 b) 35- 45 c) 45-55 d) 55 and above


It can be observed that 72% are between the age group of 20 to 40 years. The survey has been
conducted to 80 different working professions. The percentage of 45 years and above is less
compare to young and middle age professions.
2. What is your Occupation?
a) Teaching professionals b) Self Employed c)IT professionals d) Class1
Employees
e) Bankers f) Hospitality Professionals g) Other
44%
32%
18%
6%
Age Group
20-35 years
35- 40 years
45-55 years
55 years and above

The survey has included both males and females. We can observe from the graph that IT
professions are maximum in Pune while bankers are less compare to other. As we know Pune is
the second IT hub in India after Bangalore so the maximum profession are from IT background
and number of males and females are almost same in this profession. Self-employed people are
also more because they like to be master of their own and cannot live under restrictions.
3. Your Monthly income?
a) Rs. 20000-25000 b) Rs. 25,000-40,000 c) Rs. 40,000 -60,000 d) Above Rs. 60,000


The maximum percentage of monthly salary is 47% for the range of Rs. 25000-40000. The
reason is as simple, the IT professions are more so their income vary in this range only. The
12
15
23
10
9
11
Occupation
24%
47%
16%
13%
Monthly income
20000-25000 25000-40000 40000-60000 Above 60000
people who are having more experience are getting more income. Self-employed, banker and
hospitality professions are earning more.








4. What percentage of income do you save?
a) 0-15% b) 15-25% c) 25-30% d) 30-40%

The percentage of your saving depends upon your income and life-style. We can see that
maximum are saving 15-25% of their income. The young starters are not saving much but those
who are in their respective professions for more time can save more and plan their future better.
5. Have you invested savings?
a) Yes b) No
0
5
10
15
20
25
30
35
0-15% 15-25% 25-30% 30-40%
% of savings

As the percentage of saving lies between 15 to 25% then professionals like to invest their money
for the betterment of their life. The graph depicts that 92% invest their saved money while only
8% do not invest. Those who are investing money are the fresh starters and like to enjoy their life
to fullest.
6. Which of the following alternative have you opted?
a) Banks b) Insurance c) Equities d) Real Estate
e) Government securities f) Mutual fund g) Gold h) others_________(Specify)




92%
8%
Invest in saving
Yes No
Banks
27%
Insurance
11%
Equities
10%
Real estate
16%
Govt. securities
10%
Mutual fund
8%
Gold
18%
INVESTMENT OPTION
We can see that many alternatives are available for the investment. Maximum population about
27% invest their income in banks for the fixed deposit etc. only 10% invest in the equity because
risk in more. Generally people opt for safe and secure investment where risk is less.









7. How many times you invest?
a) Monthly b) Quarterly c) Half yearly d) Annually

The graph indicates that maximum invest their money on the half yearly basis. They choose such
a plan so they can collect enough money in six year and then invest to earn maximum benefits. It
varies from profession to profession. Teaching, hospitality and It professions invest their saving
on half yearly basis.
8. What is the investment horizon of your saving?
a) Less than 1 year b) 1-3 years c) 3-5 years d) more than 5 years
12
19
28
21
0
5
10
15
20
25
30
Investment
Monthly Quaterly Half yearly Annualy


From the graph we can observe 32% invest for the horizon of 1-3 years. Very less invest for less
than one year about 19%. They can get good returns within 3 years then they shift to other plans
for the investment. So maximum opt for the moderate horizon.
10. What is the short term goal of your investment?
a) Liquidity b) Return c) Risk

From the above graph we can observe that maximum consider risk as a main factor for the short
term investment. The returns are less in short term but it is less risky and we get the money back
19%
32% 26%
23%
Investment Horizon
Less than 1 year 1-3 years 3-5 years More than 5 years
0
1
2
3
4
5
6
7
8
Liquidity Return Risk
SHORT TERM
with some added value. The liquidity is also high in short term. Only 19% invest for the short
time and main factor they consider is Risk involved. The alternatives preferred for short term are
equities, fixed deposit.
11. What is the long term goal of your investment?
a) Future perspective b) Retirement
c) Dream House d) Any other (please specify) ________________

Only 23% invest their saving for the long term. Those who are having higher income like to
invest their money for long duration. In between they add more amount to get higher returns. It is
observed that class one employees, self-employed and bankers invest their money for longer
period. They choose the alternatives like real estate, gold, bank securities, mutual fund and
insurance. We can observe from bar graph that people think for future perspective more and
living their life in better way. Less professions think about retirement because the maximum
population is age group of 20 to 40 years.
13. The level of risk you are ready to undertake for your investment?
a) Low risk b) Moderate risk c) High risk
0
2
4
6
8
10
12
14
16
18
20
Future perspective Retirement Dream house
LONG TERM

We can observe that 49% take moderate risk for the investment. Very few are ready to for high
risk. People who invest their money in equity like alternatives are taking more risks.

Findings:
Survey from 80 different working professions are conducted to know their investment pattern.
The findings are:
It can be observed that IT professions are maximum because response are taken from
pune only which is known as second IT hub
47% population are having the monthly income in the range of Rs. 20000-40000
IT professions are having the salary ranging between Rs. 250000-350000
Maximum save 15-25% of their income which is further invested to earn more benefits
over time
92% of the professions invest their money to get the returns from future perspective
The professions like IT, Hospitality, Class1 employees mostly prefer Fixed deposits and
Banking options and take less risk
Those who are having more income go for equity, government securities and gold and
take high risk
The professions who takes high risks are self-employed, bankers and class 1 employees
High risk takers are 16 % only and maximum professions about 49% go for moderate
risks alternatives
35%
49%
16%
Risk taker
Low risk Moderate risk High risk
About 32% invest for 1-3 years and 23% opt for the investment options of more than five
years

Conclusion:
Thus we can conclude that this research helped us in understanding the investment pattern of
different working professions. For choosing the different investment options, professions take
help of their friends, family, bank and external brokers. The professions are very choosy while
selecting the investment options and different profession depicts different behavior.
Research gives the result that attitude of professions depends on their life style, personality, level
of financial knowledge and holdings. The research shows that peoples knowledge for pensions
are poor. The option of mutual fund is most preferred among young generation. People invest
their money for the tax saving purpose also. IT professions go for Banks security and real estate
while class 1 employee, banker and self-employed choose higher risks and invest in gold, equity
etc.