MR Assgnmnt

8/12/2019 MR Assgnmnt

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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


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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.


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Questionnaire

Dear Sir/MadamI 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


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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


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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.


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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


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The survey has included both males and females. We can observe from the graph that ITprofessions 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

10 911

Occupation

24%

47%

16%

13%

Monthly income

20000-25000 25000-40000 40000-60000 Above 60000


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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


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As the percentage of saving lies between 15 to 25% then professionals like to invest their moneyfor 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 Estatee) 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


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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


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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


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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


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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 frompune 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 andtake 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


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About 32% invest for 1-3 years and 23% opt for the investment options of more than fiveyears

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.

Documents

MR Assgnmnt