INTRODUCTION

The developing countries in world, like India face as seen the enormous task
of finding sufficient capital to utilize in their development efforts. Most of countries
find it difficult at stage to get out of the vicious circle of poverty that is prevailing of
low income, low saving, low investment, low employment etc and the list goes on.
With high capital output ratio, that is observed India needs very high rates of
investments that would take and make leap forward in her efforts continues of
attaining high levels of growth. The major features that are seen in an investment are
safety of principal amount, liquidity, income and its stability, appreciation and lastly
easy transferability. A different variety of investment avenues in abundance and
types are available such as shares, bank, companies, gold and silver, real estate, life
insurance, postal savings. All the investors invest who wish to invest, invest their
surplus money in the above mentioned avenues that are available based on their risk
taking attitude and capacity bearing.

Key Differences between Savings and Investment: The differences between savings
and investment are explained in the following points:

1. Savings means to set keep aside a part of your earned income for future use.
Investment is often defined as the act of putting funds into the productive uses, i.e.
investing in such investment vehicles which can reap money over a period of time.

2. People often save money, to fulfill their unexpected and sudden expenses or
urgent money requirements. Conversely, investments are made or done to generate
returns over the period so that it can help in capital formation of an individual.

3. With an investment, there is follows always a risk of losing money. Unlike savings,
there are comparatively fewer chances of the losing the hard-earned money.

4. Investment provides higher returns than savings, as there is a assured and nominal
rate of interest on savings. However, the investments in turn can earn money more
than the invested amount, if invested wisely.
5. You can have easily have access to your savings, anytime because they are highly
liquid and flexible, but in the case of investment you cannot have easy access to
money as compared , because the process of selling the investments and making
liquid takes some time. Investment Option Available: There are a large number of
investment instruments available today. The people has to choose proper avenue
among those available, depending upon their specific need, risk preference, and
return that are expected.

Different Investment avenues can be broadly categories under the following heads.

1. Equity

2. Debt

3. Mutual Funds

4. Corporate

5. Debentures

6. Company Fixed Deposits

7. Fixed Deposits

8. Post office Savings

9. Public Provident Fund

10. Real Estate

11. Life Insurance

12. Gold/Silver/Others
 Any action that is performed today in order to yield profit at a later stage is
described as an investment. It is also described as the link between having savings
and harvesting returns. It has the potential to transfer the surplus funds of one
person to another who needs those funds. The significance of investment varies in
finance and economics. Finance investment means investing money into something
and expecting gain in return in a specific period of time. It is done with thorough
analysis and has a high degree of security for the principal amount as well as return
with the help of an analyst. The analyst analyzes securities on behalf of the firm and
its clients to provide valuation advice apt for the firm’s holdings or portfolio. The
analysis that is used for making investment decisions regarding specific securities are
provided in the form of reports. Investments are made indirectly through
intermediaries, e.g. banks, brokers, credit unions, insurance companies and lenders.
Money invested in the right instrument at the right time for the right tenure will
mean financial success. Investment is an art and a science, key to successful
investment is focused and effective investment planning. Recently, the study of
dynamic relation between savings and investment has received considerable
attention especially in emerging economies like India.

Savings and investment has an important role in upholding economic growth

of India. It is considered that, savings and investments are two critical
macroeconomic variables with microeconomic foundations. It helps for promoting
employment opportunities and achieving price stability thereby contributing to
economic growth. There are two views of the topic titled Savings and Investment.
One is considered to apply to real physical macroeconomic activity, the “Keynesian”,
or National Accounts view. The other is considered to apply to money and banking,
the “Monetarist” view. Keynesians start with accounting definitions, where Savings =
Investment, by construction, and tend to emphasize the non-productive (zero sum)
nature of all vehicles by which savings eventually ends up as capital. Monetarists
tend to focus on technical distinctions of how savings is transformed from money
balances, eventually into capital, and emphasize the value of those vehicles in
selecting which capital to invest in.

A mutual fund is a trust or a pool of investments by investors who share a

common financial goal. This pool is invested in several financial instruments such as
shares, debt instruments, bonds etc. by the company managing that trust. This
company is called an Asset Management Company. Returns so generated are later
distributed among the members of the pool in the ratio of their investments. The
AMC invests its money in a manner that while the returns are maximized, the risks
are kept to a minimum level. In India, it is mandatory for every Asset Management
Firm to be registered with the Securities and Exchange Board of India (SEBI), a body
that regulates all securities instruments. The first company that dealt in mutual funds
was the Unit Trust of India. It was set up in 1963 as a joint venture of the Reserve
Bank of India and the Government of India. The objective of the UTI was to guide
small and uninformed investors who wanted to buy shares and other financial
products in larger firms. The UTI was a monopoly in those days. One of its mutual
fund products that ran for several years was the Unit Scheme 1964. Today there are
more than 100 Mutual Fund Companies offering different types of fund for the
investments to the investors. Investment has always been considered something that
gives one returns. Investment is made by people with different motives. Some want
to make huge profits; some want to earn steady income while some to get their
adrenalin pumping. So, whatever be the motive behind investing, investment has
seen certain trends during various periods throughout history. Investment of people
during boom and during depression is an interesting matter of study.

The general belief is that investment is a male dominated area and hence more men
than women actively invest. This study has tried to understand if there has been a
change in the investment patterns of females. With more and more women working
and becoming independent, it is important to understand how educated they have
become in taking investment decisions. The next matter being addressed is with
regard to the level of income of the respondents. It would be interesting to know
which income group invests more and in what. Also have they done any investment
at all - that’s another area of this study. The occupation of people is another factor
which influences people in taking investment decisions. The study also aimed at
understanding the investment attitude of people across a wide range of industry. Age
is another demographic which influences the investment decision of people.
Generally younger people are considered to be risk takers than the aged ones. There
is no idea what kind of investment sentiments have been triggered in the minds of
the people during this pandemic. Also, the current employment status was
considered since the pandemic has resulted in job cuts or salary cuts to few. The
employment status is another major factor which influences investment decisions.

Investment is the employment of funds with the aim of getting return on it. In
general terms, investment means the use of money in the hope of making more
money. In finance, investment means the purchase of a financial product or other
item of value with an expectation of favorable future returns. Investment of hard
earned money is a crucial activity of every human being. Investment is the
commitment of funds which have been saved from current consumption with the
hope that some benefits will be received in future. Thus, it is a reward for waiting for
money. Savings of the people are invested in assets depending on their risk and
return demands. Investment refers to the concept of deferred consumption, which
involves purchasing an asset, giving a loan or keeping funds in a bank account with
the aim of generating future returns. Various investment options are available,
offering differing risk-reward tradeoffs. An understanding of the core concepts and a
thorough analysis of the options can help an investor create a portfolio that
maximizes returns while minimizing risk exposure.

The “Investor” can be an individual, a government, a pension fund, or a

corporation. Similarly, this definition includes all types of investments, including
investments by corporations in plant and equipment and investments by individuals
in stocks, bonds, commodities, or real estate. This text emphasizes investments by
individual investors. In all cases, the investor is trading a known rupee amount today
for some expected future stream of payments that will be greater than the current
outlay. Investment Objectives Investing is a wide spread practice and many have
made their fortunes in the process. The starting point in this process is to determine
the characteristics of the various investments and then matching them with the
individuals need and preferences. All personal investing is designed in order to
achieve certain objectives. These objectives may be tangible such as buying a car,
house etc. and intangible objectives such as social status, security etc. similarly; these
objectives may be classified as financial or personal objectives. Financial objectives
are safety, profitability, and liquidity. Personal or individual objectives may be related
to personal characteristics of individuals such as family commitments, status,
dependents, educational requirements, income, consumption and provision for
retirement etc.,

Elements of investments are Risk and Return relationship, Time, Liquidity, Tax
savings. Diversification of funds is an important principle of investment for earning
higher rate of interest. Investment Alternatives Wide varieties of investment avenues
are now available in India. An investor can himself select the best avenue after
studying the merits and demerits of different avenues. Even financial advertising,
newspaper supplements on financial matters and investment journals offer guidance
to investors in the selection of suitable investment avenues.
Problem of the Study:

Salaried people often fallaciously believe that they do not need any financial
planning as their income and expenses are regular. In the areas of investment
pattern of investors and individuals in various financial and physical investment
avenues like bank deposits, real estate, and assets like gold and silver, it becomes all
the more important to study and analyse by adopting advanced research in the
preferences and level of investment towards various investment avenues available to
the salaried employees.
Scope and Significance of the Study:

The study survey was conducted with the help of a well-structured questionnaire
consisting of relevant questions. The focus was on understanding the preference of
investors with regard to investment avenues, their educational qualifications and
investment awareness level. The responses help in analysing the profile and investing
habits of the investor and factors influencing the investor. This study will help the
salaried class employees to plan investment towards maximizing the returns.
Limitations of the Study:

Though the research study has designed carefully, it is subjected to the following
limitations.

1. The study is limited to South Coimbatore city only and therefore the results cannot
be generalized.

2. The study has been restricted to few respondents due to the time constraints.

3. The study being primary one, the accuracy and reliability of data depends upon
the information provided by the respondents.

4. The respondents’ views and opinion may hold good for the time being and may
vary in future.

Objectives of the Study:

 1. To analyses the awareness level of salaried class investors towards the nature
of investment.
2. To identify the time origin which they make their investment.
3. To analyses the factors influencing the investor in choosing the type of
investments

HYPOTHESIS:

H0: Investment pattern is depends on the Amount or Volume of Salary.

H1: Investment Pattern is influenced by Age of the salaried people.

RESEARCH METHODOLOGY
The authors define research methodology as "the strategy or architectural design by
which the researcher maps out an approach to problem-finding or problem-solving."
Research Design.

The present study is descriptive and analytical in nature

Sampling Design

The survey is not taken from the entire population. Where only a few units of
population under the study are considered for analysis, it is called as sampling. As for
the present study, the population size is infinite; the adoption of sampling method
was inevitable. The sampling plan consists of sample unit, sample size and sampling

method.

(a) Sample Unit

The sample unit refers to the respondents who are to be surveyed. The Sampling
Unit may be Geographical, Construction Unit, Social unit or it may be an individual.
The size of this study comprises of the individual Salaried Employees in Coimbatore.
It included the Employees of various Industries.

(b) Sample Size

The sample size refers to the number of items to be selected from the universe to
constitute a sample. A sample of 220 respondents has taken for the study.

(c) Sampling Method

This study has based on convenience sampling method.

Method of Data Collection:

Direct Interviews and Online survey

RESEARCH INSTRUMENT:
Questionnaires provide a relatively cheap, quick and efficient way of obtaining large amounts of
information from a large sample of people.

PERIOD OF THE STUDY:

Dec 2022 – Apr 2023

STATISTICAL TOOLS USED FOR THE STUDY:

ANOVA, Simple Percentage Analysis, Chi Square Using SPSS

Review of Literature:

The study on investment pattern and the factors influencing investment decisions of
an individual (Ajinkya Kumawat, 2020 )finds that the research and interpretation
done on the basis of data analysis clearly indicate that age, income and Education are
primary factors that affects the Decision of investment of a particular individual.

The study on the investment pattern of investors towards mutual fund in the
Ludhiana city (Praveen Kaur, Radhika Jinda, 2019) finds that mutual fund industry has
still tonStruggle to gain more investors. Financial literacy Among females and youths
will definitely bring huge Success to this industry. For that reason the Government is
looking to provide financial studies at The school level. Adults who are already
investing in Mutual funds should not withdraw from the same as They attain
experience in the field.

The study a study of investment pattern of central government Employees after the
implementation of sixth pay ( PROF. SAMITA KHER)finds that bank realize that
technology has become a strategic resource for achieving competitive Advantage and
sustainable business growth. Technology tools and solution like data warehousing
and data mining will enable banks to get Customer insight, which would have been
impossible a few years ago. Through this study it was found that employees are
ready to work or accept the challenges With advanced technology.

A study of savings and investment pattern of semi-medium And medium farmers

with special reference to western Maharashtra plain zone - literature review (MS.
SNEHAL J. MIRAJKAR, DR. AVADHOOT POL2021) finds that savings and investment
pattern is only related to deposits, loans, and livestock, Etc. It’s observed that
farmers are not aware of other investment avenues. From the study, it’s observed
that government should frame policies to increase Savings and investment of
farmers in the study area.

The study saving and investment pattern of youth in Mumbai (SIDHANT LODAYA,
UDAYVEER SINGH SEKHON, SOHAM KAPADIA, 2020)finds that for the investment
companies join the advertising campaigns the target audience should be the youth
Who is able to save but not invest. For the youth seek more information by utilising
the online resources and nancial Newspapers.

The study investment pattern among Working women with special Reference to
eranad taluk in Malappuram district,kerala(DR. M SARAVANAN , ANEES BABU, 2018)
finds that the study is conducted to delve in to the income, savings and investments
habits of working women. A special Attention has been attributed to the investment
pattern of working women in ernad taluk of malappuram district, Kerala."

The study a study of investment pattern of a common man (DIVYA VERMA, DR.
DEEPAK SAHNI2020) finds that investment is process of saving money to meet the
future Needs. After analyzing the papers it is been observed that People want to save
money but many of them are not aware About the other investment avenues like
equities, bonds, Mutual funds etc. As they don’t have enough financial Knowledge
about risk and return, they preferred the Traditional modes of investment like gold,
bank deposits or Investment in land,. Investment of salaried class people Depend on
age and they make investment in order to get Regular return and to avoid tax
liability.
A study on middle income persons investment Pattern in tirunelveli city (Arumugha
Kani.A 2016) finds that the study shows how different factors and Instruments have
different risks returns and tax Consideration while taking investment decision and
are Of diverse natures.

A study on investment pattern of Salaried people with reference to Coimbatore city

(MS. NEENA THERASA, 2022) finds that in this study, the researcher has made an
effort to investigate the investment pattern of salaried class Investors. Additionally,
to the current, basic objective of salaried people for creating an investment is regular
income. Through Analysis, investors are preferring to speculate their money in fixed
deposits and gold. It will be concluded that, they're conscious of various investments
and satisfied with their investments.

Karan Sabharwal (2016) has studied the saving habits of undergraduate and post
graduate students in the universities of Delhi/NCR. The study was done to know the
general behavior of students towards savings and their preference towards various
saving methods. For this purpose, personal survey method was used for data
collection. The study nds that although many students realize the importance of
saving money and have a positive attitude towards the same, the amount that they
are actually able to save is very little due to self-control problems and wanting to live
in the present. Studies showed that saving habits can be developed through
nancial literacy and policies can be framed to encourage saving habits among
students.

Zainal Azhar, Juliza, Nor Azilah, Amirul Syafiq (2017) have studied the level of
investment awareness among the youth and various factors affecting the same. The
primary data was collected by sending 120 questionnaires among young adults
around Selangor, Malaysia. The studies show that many respondents felt that the
general awareness on investment still seems to be lacking. The results of the study
also indicate that two factors, namely nancial literacy and personal interest played
a major role in affecting the investment awareness of the younger generation and
inuencing their decision to invest in some specic nancial instruments.

Mr. Sudarshana Saikia has studied the savings and investment pattern of selected
college going students belonging to the age-group of 7-25 years in the city of
Mumbai who have just begun to earn. The study also looks into the basic nancial
literacy amongst the youth; how they go about educating themselves, and how do
they look at risk, returns and various modes of investments and what determines the
same. Primary data was collected using a survey method. The information generated

during data collection was both qualitative and quantitative. The study nds that
safety and security, which were always important reasons for investment, are still
inuential in determining the direction of investment. returns on investment was
the most considered factor followed by risk. The study shows that young investors
were aware about the investment options but were not sure about how to go about
it in newer ways.

Prof. CA Yogesh P Patel, Prof. CS Charul Y Patel studied the behavioural pattern of
investment among the salaried people working in private sector and the difference in
perception of an individual related to various investment alternatives. It also aims to
provide an insight into factors considered for an appropriate investment. Primary
and Secondary data was collected for the research. A questionnaire was framed
consisting of 20 closed end questions and open- end questions covering the personal
and demographic prole, the awareness related to methods, modes, reasons of
saving and investment and other related data were collected. The study nds that
the reason why youngsters want to invest id to multiply their savings and get
maximum tax rebate. It shows that youngsters are no more interested in traditional
investments to play safe but at the same time they take calculated risk by investing in
mutual funds which is the most favoured form of investment.

The study an analysis of investment pattern of salaried Employees (MRS. D.

PURNIMA, 2021) finds that after the analysis & interpretation of data by the
researcher it is concluded that investors are Very well aware about investment
avenues that are available in visakhapatnam, india but still Investors are preferring to
invest in their money in bank deposit, real estate.

A study on investment pattern and awareness of salaried Class investors in

coimbatore district(S.Umamaheswari, 2013)finds that the studies especially relevant
for the salaried and business people the Inside of how and investment pattern get
affect by the socio-economic Variables helps the targeted respondents to make out
the investment Pattern.

A study of investment pattern of indian women (Ayushi Modi,2015 ) finds that the
primary purpose which drives women to save is uncertainty regarding future
situations or unpredictable future Emergencies. From the analysis it can be
concluded that, women (higher income group) deploy most of their money in fixed
Deposits, then in share, debentures and bonds and least in futures and options
contracts.

The study the investment patterns of investors in Different financial products in

dakshina Kannada(AKSHATHA PRABHU, 2017) finds that the study also draws an
important conclusion from the study that the investors are a keen to invest in long
term And less risk products, high return and low risk, and much interested to can
good return on their take string Decisions while investing money.
Research Gap:

There are many papers defining the Investment Patterns of Peoples in

Coimbatore City. But all the study shows how an investor sees the investment and
investment material with their available knowledge source. Here in this paper I tried
to evaluate the reasons why an investor invests in a particular investment and how
he/she designs his pattern of investment. We also try to give a suggested pattern for
each category of Investors according to their Income and return expected from the
Investment.