1. Brihan Maharashtra College of Commerce, Pune.
M. Com. Part I – Semester III (2018-19)
SUBJECT- SKILL DEVELOPMENT -II
On the topic
SAVING AND INVESTMENT AWARENESS IN
In the partial fulfilment of Skill Development Activity
UNDER THE SUPERVISION OF:
SURVE SAURABH SURESH
Roll no -252
I, Saurabh Suresh Surve, student of Master of Commerce studies Brihan Maharashtra
college of commerce ,Pune (BMCC), declare that the work done and the project report titled ‘‘Saving
and Investment Awareness in Middleclass People’’ is original work carried out by me. All
references ,made to any published material in this report, have been duly acknowledged .This report
has not been submitted to any University / Academic Institution for the award of any degree or
diploma .I solemnly declare that I am singularly responsible for any infringement on the Intellectual
Property of anybody else in this report.
This is to certify that Mr. SURVE SAURABH SURESH of Master Of
Commerce - Semester IV (2018-19) has successfully completed the project on
SAVING AND INVESTMENT under the guidance of Dr.J.R.LANJEKAR.
Project Guide/ Internal Examiner
Before we get into thick of things, I would like to add a few words of
appreciation for the people who have been a part of this report right from its
inception. The writing of this report has been one of the significant academic
challenges I have faced and without the support ,patience, and guidance of the
people involved, this task would not have been completed. It is to them I owe
my deepest gratitude. It gives me Immense pleasure in presenting this project
report on " SAVING AND INVESTMENT AWARENESS IN
MIDDLECLASS PEOPLE". It has been my privilege to have a team of report
guide who have assisted me from the commencement of this report .I hereby
take this opportunity to add a special note of thanks for Dr.J.R.LANJEKAR,
who undertook to act as my mentor despite her many other academic and
professional commitments. Her wisdom, knowledge, and commitment to the
highest standards inspired and motivated me .Without her insight, support, and
energy, this project would not have kick-started and neither would have reached
fruitfulness. The report is dedicated to all those people, who helped me while
doing this research report.
Sr. no. Title Page no.
1. Introduction 01
2. Objective of study 02
3. Research methodology 04
4. Data collection and Analysis 05
5. Finding 10
6. Conclusion 11
7. Bibliography 12
In India the socio-economic profile of the people changes dramatically. Today people
are not only spending on products and services, earlier considered a luxury but are also
looking at smarter ways of investing their money. This is mainly due to the fact, that people
today not only have a wider choice of investing in different saving instruments, but are also
more educated and aware about their choices. People are now moving beyond the traditional
saving options of fixed deposits, post office savings to wider investment options in the form
of insurance, mutual funds, bonds, equities and even property. Saving is income not spent, or
deferred consumption. Methods of saving include putting money aside in a bank or pension
plan. Saving also includes reducing expenditures, such as recurring costs. In terms of
personal finance, saving specifies low-risk preservation of money ,as in a deposit account,
versus investment, wherein risk is higher .
What is savings?
Income – expenditure = savings.
In today’s rapidly changing financial environment, it is critical that individuals not
only protect and enhance their current financial resources, but also prepare for future security
and against loss of income. This requires careful planning and prudent management of one’s
financial assets. Financial planning is the key and the first step towards fulfilling ones dreams
and aspirations whether it is about providing for the family, buying a home or a car. Good
planning also ensures financial security for the family throughout life, even in the eventuality
of the death of the earning member of the family. Financial Planning Advisers who can assist
in determining the right plan and amount of coverage required. Consumers are now exposed
to an array of modern and innovative products. Depending on the needs of the customers.
What is Investment ?
Investment is the certain p resent value for the uncertain future reward. It entails
arriving at numerous decision such as types, mix, amounts, timing, grade etc. of investment
and disinvestment .further such decision making has not only to be order to get return on it’s
in the future, which is known as investment .There are various investment avenues such as
equity, bonds, insurance and bank deposit etc. A portfolio is a combination of different
investment assets mixed and matched for the purpose of achieving gold. There are various
factors which affects investors Portfolio such as annual income government, policy natural
calamities, economical changes etc.
7. Features of an investment program:
In choosing specific investment investor will need definitely ideas regarding features which
their investment avenues should possess. These features should be consistent with the
investor general objectives an in addition, should afford them all the incidental convenience
and advantages. Which are possible under the circumstances? The following are the
suggested features as the ingredients from which many successful investors compound their
1. Safety of principle: The investor to be certain of the safety of principle should
carefully review the economics and industry trends before choosing the types of
investments. Error are avoidable and therefore, to ensure safety principle, the investor
should consider diversification of assets
2. Liquidity: Even investor requires a minimum liquidity in his investment to meet
emergence .liquidity will be ensured if the investor buys a proposition of readily
saleable securities out of his total portfolio.
3. Income stability: Regularly of income at a consistent arte is necessary in any
investment pattern. Not only stability, it is also important to see that income is
adequate in after taxes. It is possible to fins outcome good securities, which pay
particularly all their earnings in dividends.
4. Appreciation and purchasing power stability: Investor should balance their
portfolio s to fight against any purchasing power stability .Investor should judge price
level inflation, explore their possibility of gain and loss in the investments available to
5. Legally and freedom from care: All investments should be approved by law. Law
relating to minors, trusts, shares and insurance be studied will brings out many
problem for the the investor.
Key Differences between Savings and Investment :
Saving is setting aside money you don’t spend now for emergencies or for a future
purchase. It’s money you want to be able to access quickly, with little or no risk, and with the
least amount of taxes. Financial institutions offer a number of different savings options.
Investing is buying assets such as stocks, bonds, mutual funds or real estate with the
expectation that your investment will make money for you. Investments usually are selected
to achieve long-term goals. Generally speaking, investments can be categorized as income
investments or growth investments.
8. OBJECTIVE OF THE STUDY:
1) To know the mode of investments of the middleclass people in various investment
2) To study the factors influencing the investment behaviour of the Middleclass People.
3) To analyse the pattern of investment and saving among the investors.
4) To find the problems that are faced by the investors.
5) To study the factors influencing enquires into the profile, portfolio practices, experiences
,preferences & risk, perceptions, and intentions of Middleclass People.
NEED OF THE STUDY:
This analysis on individual investor’s behaviour is an attempt to know the profiles of
the investor and also know the characteristic of the investors so as to know their preference
with respect to their investments. The study also tries to unravel the influence of demographic
factors like age on risk, tolerance level of the investor.
SCOPE OF THE WORK:
This analysis is based upon investor’s behaviour for saving and investment
preference, awareness, during normal time Vis-a-vis recessionary period. This analysis would
be focusing on the information from the middleclass people about their knowledge,
perception, and behaviour on different financial products. As the analysis is based on primary
as well as secondary data. Investment pattern has been analysis has been limited to only 40
9. RESEARCH METHODOLOGY:
Sample Size: The sample size denotes the number of elements selected for the study. For the
present study, the sample size is 40 individuals/responded.
Data was collected by using main two methods i.e. primary data and secondary data.
Primary data: - Primary data are those collected by the investigator himself/herself for the
first time and thus they are original in character, they are collected for particular purpose.
Combination of non-probability connivance sampling technique and snowball sampling will
be used for collecting the data from different investor. The middleclass people are selected by
the connivance sampling method. The selection of units from the population based on their
easy availability and accessibility to the researcher is known as sampling. Information is
collected by conducting a survey by distributing a questionnaire to 40 people. These 4people
are of different age group, different occupation, different income level and different
Questionnaire Design: - Here in our research we set questions for salaried individuals and
answer can be easy to fill out with minimum amount of time and efforts and request the
customer to answer these questions with correct information .The questionnaire consisted of
Close ended questions .
Secondary Data: Secondary data are those, which have already been collected by some
other persons for their purpose. Secondary data are usually in shape of finished products.
External data: was generated from internet websites
Statistical Tools: There are various statistical tools which are used in analysing data. The
following tools are used for representing and analysing data. Data Representation:
10. DATA COLLECTION NAD ANALYSIS
Gender and Age
0-25 25-40 40-50 Above 50
Age Male Female
0-25 12 12
25-40 5 4
40-50 2 1
Above 50 3 1
Post graduate 25
11. Annual Income
Are you aware of the saving and investment concept?
From which source you come to know about various Investment option?
Annual income People
Below ₹ 2 lakhs 13
2-5 lakhs 14
5-10 lakhs 9
Above 10 lakhs 4
12. What is your saving objective?
In which sector do you prefer to invest your money ?
13. Do you consult your friends and / or relatives before making an
What % of your income do you invest?
14. What is the time period you prefer to invest?
Which factor do you consider before investing?
which option prefer to investment?
1. Most of the Middleclass people are aware about the saving and investment concept.
2. Study reveals that major information sources for investments option are friends/relative,
3. Most of the middleclass investors saving objective is to achieve long term growth.
4. Most of Middleclass investor prefer to invest in Government and private sector.
5. Study reveals that major investor sometime consult your friends and relatives before
making an investment.
6. Study reveals that majority of the individuals consider High return.
7. Majority of the investor prefer Long-term to invest.
8. Majority of the investor prefer to invest their money in to Mutual funds, Bank deposit and
This report is a reflection of the awareness and factors considering, risk taking ability of the
various categories of middleclass investors. Selection of the perfect investment avenue is a
difficult task to an middleclass investors. An effort is made to identity the taste and
preference of a sample of individuals selected by connivance and snowball sampling. This
report concentrated in identifying the factors considered individuals before investment,
awareness level of middleclass people towards various investment avenues are identified
based on their occupations, investors risk in selecting a particular avenue . After the analysis
& interpretation of data by the researcher it is concluded that Investors are very well aware
about investment and saving option available in the market though the relative/friends and
bank /brokers ,and this invest and saving made for the purpose of achieving long term
growth. The most of the middleclass investors are preferring to invest in their money in
government and private sector specially in mutual fund ,bank deposit, gold . In this research
study data analysis of research reveals that the high return and safety of principle is
concerned as important factor while doing investment, so remaining factor are less
considerable while doing investment by investors.
Finally I am concluded that the middleclass investor prefer to invest their money in
mutual fund ,bank deposit and gold for the purpose of high return and saving.