Summer Internship Project Report

On
‘A survey on preference of salaried class on various investment options available’
At
United Shippers Limited Jamnagar

Submitted to
Institute Code: 755
Institute Name:
Sardar Patel College of Administration and Management

Under the Guidance of

Ms. MitalParmar
(Assistant professor)

In partial Fulfillment of the Requirement of the award of the degree of

Master of Business Administration (MBA)
Offered By
Gujarat Technological University
Ahmedabad

Prepared by:
ROBINSAMUEL
177550592109
MBA (Semester - III)
Month & Year:

1
 INDEX

SR.No. Particulars Page No.

1 INTRODUCTION OF THE PROJECT 3-5
2 SHIPPING SECTOR IN INDIA 6-10
3 SHIPPING SECTOR IN GUJARAT 11-15
4 INVESTMENT (BRIEF) 15-19
5 COMPANY STUDY 20-27

6 DEPARTMENT DETAILS
 MARKETING DEPARTMENT 28
 HUMAN RESOURCE DEPARTMENT 29
 OPERATIONS DEPARTMENT 30
 FINANCE DEPARTMENT (C.F STATEMENT) 31
7 INTRODUCTION OF THE STUDY
 INVESTMENT PREFERENCE OF SALARIED 32
EMPLOYEES
8 LITERATURE REVIEW 33-35
9 PROBLEM STATEMENT 36
10 RATIONALE OF STUDY 37
11 OBJECTIVE OF THE STUDY 38
12 HYPOTHESIS 39
13 RESEARCH METHODOLOGY 40
14 RESEARCH DESIGN 41
15 SOURCE OF DATA 42
16 DATA COLLECTION METHOD 43
17 POPULATION (SAMPLE SIZE) 44
18 SAMPLING METHOD 45
19 DATA COLLECTION INSTRUMENTS 46
20 LIMITATIONS OF STUDY 47
21 DATA ANALYSIS & INTERPRETATION 48-58
22 HYPOTHESIS TESTING 59-60
23 RESULTS & FINDINGS 61
24 SUGGESTIONS 62
25 CONCLUSION 63
26 BIBLIOGRAPHY 64
27 ANNEXURE (QUESTIONNARE FORM, CF 65-70
STATEMENT)

2
 INTRODUCTION OF THE PROJECT

The Indian shipping industry plays an important role in the Indian economy as almost
90% of the country’s international trade is conducted by the sea. Today, India has
around 1071 ships with 722 coastal and 349 overseas ships; Indian coastal shipping is
highly fragmented.

1. The Ministry of Shipping, a branch of the Government of India, is the apex body
for formulation and administration of the rules and regulations and laws relating to
Shipping. It encompasses within its fold shipping and ports sectors which include
shipbuilding and ship-repair, major ports, national waterways, and inland water
transport.

2. The first ship building factory of India was established at Vishakhapattanam in

1941. It was later, adopted by the Indian Government in 1952 and was named as
‘Hindustan Shipyard Limited’.

3. Kolkata, Goa, Mumbai and Kochi are the major ship building centres.

4. The Kochi Dockyard, developed in collaboration with Japan, which is the largest
and most recent Dockyard of the country, whereas the Mazagaon Dockyard (Mumbai)
builds the naval ships for the Indian Navy.

5. India is one of the main maritime nations of the world with 6.8 million Gross
Registered Tonnages (GRT), with rating 17th in the world.

6. The Shipping Corporation of India Ltd. (SCI) was formed in 1961 and in 1992; it
was changed from a Private Limited Company to Public Limited Company. On
August, 2009, it conferred as ‘Navratna’ status.

7. Indian Maritime University (IMU) was set up in 2008 in Chennai with campuses at
Chennai, Kolkata and Vishakhapatnam as a Central University.

3
List of Public Sector Undertakings (PSUs) of Shipping Industry in India

PSUs under Ministry of Shipping Description

Shipping Corporation of India, Mumbai Established on October 2, 1961

Hindustan Shipyard Ltd., Visakhapatnam 1. Established on June 22, 1941.

2. JalUsha was the first India’s ship to be

constructed fully in India was built here in
1948.

Cochin Shipyard Ltd., Cochin 1. Established in 1972.

2. It is the only shipyard in India which can

build and repair ships upto 1,10,000 DWT
and 1,25,000 DWT respectively.

Dredging Corporation of India Ltd. 1. Established in the year 1976 to provide

(MSIL), Visakhapatnam dredging services to the major ports of the
country in India.

2. It is in a schedule B and Mini ratna

Category-1 PSU.

Hooghly Dock and Port Engineers Ltd., 1. Established in 1819 in Private Sector
Kolkata and called as Hooghly Docking and
Engineering Company Ltd.

Subsequently, Port Engineering works was

merged with it and the Hooghly Dock and
Ports Engineers Ltd. was formed.

4
India has a long coastline of about 7517 km, spread on the western and eastern shelves on
the mainland and also along the Islands. It is an important natural resource for the
country’s trade. The Ministry of Shipping was formed in 2009 by bifurcating the
erstwhile Ministry of Shipping, Road Transport and Highways into two independent
ministries. The industry acts as a primary means of international transport of any essential
commodity. The global shipping industry can be broadly classified into wet bulk (like
crude and petroleum products), dry bulk (like iron ore and coal) and liners (like containers
and others). Further, there are various benchmarks that determine freight rates for these
segments. The prominent amongst them are Baltic Freight Index, Baltic Dry Index (for
dry bulk segment) and Baltic Clean and Dirty Tanker Index (for tankers).

Freight rates and earnings of the shipping companies are primarily a function of demand
and supply in the markets. Demand drivers are a function of trade growth and
geographical balance of trade (which determines the length of haul required). On the
other hand, the supply drivers are a function of new ship building orders as well as
scrapping of existing tonnage. The industry is regulated by the rules and regulations of
International Maritime Organization (IMO), classification society, and the requirements
of the flag state. Apart from these, there are also the rules and regulations of various
countries where the vessel operates.

5
 Industry Study

Shipping Sector in India

Indian Ports - Traffic Growth & Highlights

The port & maritime industry plays a vital role in growth of economic activity &
trade. India has an extensive coastline of 7,517 km with around 13 major ports and
over 200 non-major ports are strategically located on the world maritime route.
Presently, the Indian Ports are handling around 95% of the country’s external trade by
volume & 70% by value of India’s Global merchandise trade.All the major ports are
governed by the Major Port Trusts Act of 1963, except the Ennore port, which is
under the provisions of the Companies Act, 1956. However, non major-ports are the
under the jurisdiction of the state governments & governed by respective State
Governments All the Indian ports together handled about 976 MMT of traffic in
2013-14 of which Major Ports together have handled 556 MMT. In the year 2013-14,
the total traffic handled by the Ports of India was 976 MMT.

6
Further, India's domestic coal production has also improved over the years leading to
fewer coal imports. All these factors have led to decline in demand for commodities,
thereby reducing commodity moments. The trend is quite visible from the Baltic Dry
Index or BDI. If the slowdown in China widens and the movement of coal remain as
it is now, the future prospects in this space seem unfavorable.The statistical forecasts
for India, however, seems bright. The cargo traffic is expected to witness growth and
is said to reach 2,493.1 MMT by 2017. This is against 1,806.8 MMT recorded in
2015. The increase in India's refining capacity will benefit the offshore shipping lines
as demand for their services picks up. As a result of the commissioning of large
domestic refining capacities, the imports are expected to jump in the future. This
would benefit shipping majors operating in India.

7
On the other hand, there would be a negative impact on the demand for tankers if the
OPEC decides to cut output in the future as a result of global supply glut. The
shipping industry is impacted by numerous short term and regional factors such as
political fallouts, weather changes, etc. This could result in great amount of volatility
in the freight market.Lastly, china has been the main driving factor of the shipping
demand.

8
Therefore you need shipping companies which are help to meet this demand.In fact,
not just for crude oil we need shipping companies but they can also export goods to
other countries. If the country has some of the best shipping companies in the world
then we could easily expand the economic growth of the country.In future, a lot of
things would depend upon these shipping companies.

9
Companies operating in this space not only face competition from the domestic
players but also from international shipping companies. In order to import oil, India
has to have ships which can carry crude oil in heavy quantity. Therefore you need
shipping companies which are help to meet this demand.In fact, not just for crude oil
we need shipping companies but they can also export goods to other countries. If the
country has some of the best shipping companies in the world then we could easily
expand the economic growth of the country.In future, a lot of things would depend
upon these shipping companies.

10
 Shipping Sector in Gujarat

Gujarat - The Gateway of India

Gujarat is strategically located with India’s longest coastline of 1600 km and is the
nearest maritime outlet to Middle East, Africa and Europe. The state has 42 ports
which includes 1 major port and 41 non-major ports .The state has the highest number
of operational ports and commercial cargo ports. The first state in India to invite
Private Sector Participation through competitive bidding .The first state in India to
have a dedicated Chemical Terminal. The first private port of India – Pipavav is in
Gujarat .The state also has the world’s one of the largest ship recycling yards at Alang
Gateway of India’s two LNG Terminals amongst three in India.

Types Of Ports In Gujarat

Major Ports
(Come under the purview of the
Central Government)

Non- Major Ports

(Come under the purview of the
State Government)

11
1

Ports run by Gujarat

Maritime Board Private Ports GMB Jetties
(GMB)

Captive Jetties
(Private) Private Jetties

Gujarat Ports Sector : Important milestones

1982 Formation of Gujarat Maritime Board, the first

maritime board
1983 Establishment of Alang Ship Recycling Yard,
the largest in the world
1995 Announcement of the first Port Policy of the
country
1996 Port of Pipavav became the first private port of
India
1997 Commencement of first BOOT Policy, new
model of port development
2001 Establishment of first Chemical Terminal at
Dahej by GCPTCL
2003 Commencement of first Doublestack container
train at Pipavav
2004 Establishment of first LNG Terminal at Dahej
by PLL
2010 Announcement of first Shipbuilding Policy in
the Country

12
2010 India’s most advanced VTMS unveiled in the
Gulf of Cambay
2012 Solid Cargo Port Terminal, Dahej

2013 Coal Terminal at Mundra

Gujarat Ports: Traffic Analysis

Gujarat ports account for 40.7% of traffic in the total national port traffic –

constitutes 32% share.

With 309.9 MMT, Gujarat accounts for 74.1 % of traffic for non-major ports of India
in 2013-14.

Share of GMB in Total Maritime Traffic of

India
0% 0%

Traffic at GMB
Ports
32%
National Maritime
Traffic excluding
GMB
68%

13
 Share of GMB in Total Traffic at Non-Major
Ports
0%
0% Traffic at GMB
Ports 309.9 T
28%

Traffic at Non-
Major Ports 110.6
72%

What is an Investment?

An investment is an asset or item acquired with the goal of generating income or

appreciation. In an economic sense, an investment is the purchase of goods that are
not consumed today but are used in the future to create wealth. In finance, an
investment is a monetary asset purchased with the idea that the asset will provide
income in the future or will later be sold at a higher price for a profit.

The term "investment" can refer to any mechanism used for generating future income.
In the financial sense, this includes the purchase of bonds stocks or real estate
property. Additionally, a constructed building or other facility used to produce goods
can be seen as an investment. The production of goods required to produce other
goods may also be seen as investing.

Taking an action in the hopes of raising future revenue can also be considered an
investment. For example, when choosing to pursue additional education, the goal is
often to increase knowledge and improve skills in the hopes of ultimately producing
more income.

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Sorts of Financial Investments

• Mutual Funds

• Fixed Deposits

• Bonds

• Stock

• Equities

• Real Estate (Residential/Commercial Property)

• Gold/Silver

• Precious stones

What is meant by investment???

An investment is an asset or item acquired with the goal of generating income or

appreciation. In an economic sense, an investment is the purchase of goods that are
not consumed today but are used in the future to create wealth. In finance, an
investment is a monetary asset purchased with the idea that the asset will provide
income in the future or will later be sold at a higher price for a profit.

15
 Advantages and Disadvantages of Financial Investment

Advantages of Financial Investment

Odds of Good Returns in Short Time

Indeed, even in the past individuals have increased great profits for their securities
exchange investments, and they generally have a decent opportunity to acquire
enormous benefits when one choose to put resources into securities exchange. In this
way, when you put resources into securities exchange India, in spite of the fact that
you put yourself at a ton of dangers, you are likewise in a position to acquire great
returns in a brief timeframe.

Minority Ownership

All things considered, it sounds like a misrepresentation, yet when one put his/her
cash in a rumored organization’s stocks, one moves toward becoming turned into a
section proprietor of the organization, regardless of however littler offer they have.
One can enhance remaining in the market by placing cash in various organizations. In
addition, you can exit at whatever point you need to.

Financial investments are right now the most mainstream investment vehicle and give
a few favorable circumstances to speculators, including the accompanying.

Advanced Portfolio Management

one need to pay an administration expense as a major aspect of the expense

proportion, which is utilized to employ an expert portfolio supervisor who guides you
in purchasing and offering stocks, bonds, and so forth. This is a generally little cost to
pay for help in the administration of an investment portfolio.

16
Dividend Reinvestment

As profits and other premium wage is pronounced for the reserve, it can be utilized to
purchase extra offers in the common store, in this manner helping your investment
develop.

Risk Reduction (Safety)

A decreased portfolio hazard is accomplished through the utilization of

diversification, as most shared assets will put resources into somewhere in the range
of 50 to 200 distinct securities – relying upon their core interest. A few record stock
common finances claim at least 1,000 individual stock positions.

Convenience and Fair Pricing

Shared assets are normal and simple to purchase. They ordinarily have less or low
least investments (some around $2,500) and they are exchanged just once every day at
the closing net resource value (NAV). This dispenses with value change for the
duration of the day and different arbitrage openings that informal investors hone.

17
Disadvantages of Financial Investment

High Expense Ratio & Sales Charges

If you’re not paying attention to mutual fund expense ratios and sales charges; they
can get out of hand. Be very careful when investing in funds with expense ratios
higher than 1.20%, as they will be considered on the higher cost end. Be wary of 12b-
1advertising fees and sales charges in general. There are several good fund companies
out there that have no sales charges. Fees reduce overall investment returns.

Management Abuses

Churning, turnover and window dressing may happen if your manager is abusing his
or her authority. This includes unnecessary trading, excessive replacement and selling
the losers prior to quarter-end to fix the books.

Tax Inefficiency

Like it or not, investors do not have any choice when it comes to capital gain payouts
in mutual funds. Due to the turnover, redemptions, gains and losses in security
holdings throughout the year, investors typically receive distributions from the fund
that are an uncontrollable tax event.

18
Poor Trade Execution

If you place your mutual fund trade anytime before the cut-off time for same-day
NAV, you’ll get the same closing price NAV is for buy or sell on the mutual fund.
For investors searching for faster execution times, maybe because of short investment
horizons, day trading, or timing the market, mutual funds provide a weak execution
strategy.

Volatile Investments

Investment in BSE is subjected to many risks since the market is volatile. The shares
of a company fluctuate so many times in just a single day. These price fluctuations are
unpredictable most of the times and the investor sometimes have to face severe loss
due to such uncertainty.

19
 Company Study

UNITED SHIPPERS LIMITED (USL)

20
COMPANY NAME UNITED SHIPPERS LIMITED
UNITED INDIA BUILDING,
HEAD OFFICE
2nd Floor

Sir P.M. Road Fort Mumbai – 400001

Telephone:- (27) 66668300/301

JAMNAGAR OFFICE Corporate House, 2nd Floor

P.N. Marg Opp. St. Ann’s High School

Jamnagar-361008
Telephone :- 0288 2569200

WEBSITE www.unitedshippers.com

UNITED SHIPPERS LIMITED (USL) is a closely held Public Limited Company and
was incorporated in November, 1952 to carry out the business of shipping, logistics
and its related activities.

The promoters of USL are the Parekh and Somani families. The Company also has a
strategic foreign investor namely Logiscor Ltd. (Scorpio Group) of Marshall Island
who is a world leader in various fields of shipping activities and trading. The Head
Office of the Company is at Mumbai and work offices at Jamnagar, Navlakhi,
Dahanu, Goa and Tuticorin to look after the operations of the Company.

The Company has weathered the loss of its Managing Director, Mr. Sunil S. Parekh in
the terror attack in Mumbai on 26/11/2008. Mr. Parekh devoted his life to enhancing
USL’s business. After this tragic loss, his father, Mr. S. J. Parekh, Chairman, has
taken on the additional responsibility of Managing Director. He is ably supported by a
team of executives, with the zeal to take forward late Mr. Sunil S. Parekh’s vision.

Our investors and promoters have shown consistent support and faith in the Company,
and are committed to ensuring that USL remains at the pinnacle of providing end-to-

21
end logistics solutions in India for the foreseeable future.
At the outset, the Company was involved with providing lighterage services through barges
owned by the Company. Since 1995, it expanded into providing integrated services including
stevedoring, the chartering of coastal vessels, rail road and sea logistic services to its
customers.

Lighterage, Stevedoring, and Logistics

The lighterage, stevedoring, and logistics business of the company includes the
loading and unloading of bulk cargo from or to the mother vessel, and the delivery of
the same to the required destination, either by rail or by road. The company caters to
clients operating through various public and private ports located on the West coast of
India.

22
 Board Of Directors

Mr. SevantilalJivanlal Parekh Chairman& Managing Director

Mrs. Sujata P. Kumar
Mr. SuhridSomani
Captain Dinyar P Karai
Mr. ParasDakalia
Mr. Vishnunarain D Khanna
Dr. Suresh Parikh
Joint Managing Director
Director
Director & CEO
Director & Finance
Independent Director
Independent Director

23
Our control over the entire logistics we have pioneered the concept of chain results in
Minimal Delays, Highest demmurage/ despatch guarantees in efficiency, improved
reliability barging operations in India. The company operates out of Gujarat ports
such as Navlakhi, Bedi, Sikka, Sanghipuram and Jaffarabad, as well as Dahanu and
Mumbai Port Trust in Maharashtra and Panjim in Goa. The Head Office of the
Company is in Mumbai, in addition to offices in Jamnagar, Navlakhi, Dahanu, Goa
and Tuticorin.

The Company typically handles varied cargo such as coal, petcoke, polypropylene
polymer, extraction, cement, clinker, sulphur, steel plates & pipes, iron ore, bauxite,
fertilizers, molasses, salt, sugar, clean water, soya bean meal, peas and more, with
multifold expansion over the last decade.

24
 The Advantages we Offer

 Convenience of one point of  Self owned offshore & onshore

contact for all logistics needs at
competitive prices
 Operating efficiencies derived
from years of experience in all
facets of logistics including
transport, warehousing,
distribution, clearing, barging,
stevedoring & ship chartering
handling equipment
 Largest barge fleet in India
 Exclusive user of few jetties &
operation at other minor ports
and berths
 We offer highest load &
discharge rates in the business
 Control over entire logistics
chain

Type of Cargo Handled by USL

Bulk Cargo

Coal

Cement

Petcoke

Sulphur

Cement Clinker

Bauxite

Salt

Rock Phosphate

Millscale

Iron Ore

Fertilizers

scrap
25
Green peas

Yellow peas

Break Bulk
 Container
 Poly propylene
 Project Cargo
 Steel Plates
 Debars
 Steel Coils
 Steel pipes

Typical Logistics Chain – Import Cargoes

Complete stevedoring on board mother vessel

Coordinating clearance of documents

Loading of Cargo into barges

Barging from mother vessel to jetty

Unloading of cargo from barge at jetty

26
Loading of cargo on to trucks for transporting to plot

Weighment of trucks

Unloading of cargo from trucks at plot

Typical Logistics Chain – Export Cargoes

Complete stevedoring on board mother vessel

Coordinating clearance of documents

Loading of Cargo into barges

Barging from mother vessel to jetty

Unloading of cargo from barge at jetty

Loading of cargo on to trucks for transporting to plot

Weighment of trucks

27
 Unloading of cargo from trucks at plot

Providing secured plot for storing cargo

MARKETING DEPARTMENT

The marketing of United Shippers Limited is the science of B2B marketing which deals with
the satisfaction of charter’s shipper’s needs for the carriage of goods by sea, with main aim
the profit of the enterprise.

The Marketing Head or Chief Marketing Officer (CMO) of the company is Mr. Manish Holani.
He is given the authority of managing all the marketing department of all the branches of
the company including Mumbai, Goa and Jamnagar Branch.

The trade partner of the company are Reliance, Essar, ACC Ltd., Adani Group & many more.

The benefits which they offer to the clients is easy clearance of all the shipping related legal
documents from the IRS department (Indian Register of Shipping), Easy shipping licensing to
various companies. The company provides nominal freight charges.

There are round about 20 marketing staffs, that means 5-6 marketing staff in all the
branches.

The marketing staff set an appointment with the companies after fixing appointment with
other companies the marketing executive will make a visit & convince the clients.

The company has a website www.unitedshippers.com in which all the details of the
company is provided along with the assets owned by the company.

28
 HUMAN RESOURCE DEPARTMENT

All the H.R procedure & recruitment is been done at headoffice that is in Bombay.
The company used to consult other consultancy firm. They used to pay a certain
amount of fees to the consultancy firm then their name will be shortlisted along with
the required post. Then the selected candidates will be contacted with the help of
phone call or through mail.

In Jamnagar Branch the H.R. activities are mainly managed by Mr. DigvijaysinhZala.

Then personal interview will be conducted by various department afterwards the

selected candidates will be explained with the job post & training of minimum 3
months will be given. Afterwards the CTC will be discussed with the employees.
Soon after completion of 3 months training “Universal Account Number” will be
created in which all the details of employees Provident Fund will be deposited or
provided. Then the employees details will be recorded in a software named “IBoss” in
which employees attendance, leave taken everything will be recorded and salary
details and salary slip will be developed or generated with the help of software.

There are 200 employees working in USL. Employees are provided with various
incentives like Petrol Expense, Bus Facility, Mobile Expense.

The in and out time of employees is from 9.00 am - 7.30 pm

Lunch hours from 1 pm – 3 pm.

29
 OPERATIONS DEPARTMENT

Our control over the entire logistics chain results in minimal delays, highest
efficiency, improved reliability. We have pioneered the concept of demurrage
despatch guarantees in barging operations in India. Operations are mainly done in
ports.

Multi port midstream lighterage operations.

Handling of geared and gearless vessels

Flexible to all cargo types

Integrating land-sea-rail logistics

Efficient

Operates on self owned infrastructure

The company offers various advantages such as.

Convenience of one point of contact for all logistics needs at competitive prices.

Operating efficiencies derived from years of experience in all facets of logistics

including transport, warehousing, distribution, clearing, barging, stevedoring & ship
chartering.

Self owned offshore & onshore handling equipments.

Largest barge fleet in India.

Exclusive user of few jetties & operations at other minor ports and berths.

We offer highest load & discharge rates in business.

30
 FINANCE DEPARTMENT

The roles & responsibilities of finance department of USL are:-

Book keeping

Management of company’s cash flow

Budgets and forecasting

Advising and sourcing long term finance

Management of Taxes

Financial Reporting and Analysis

USL has obtained finance from below banks

Indusind Bank

State Bank Of India

Axis Bank

This bank provides following facilities to USL

Cash Credit

Letter of Credit

Bank guarantees

Short term loan

Term loan

Salary A/C.

31
 INTRODUCTION OF THE STUDY

Financial products act as an investment avenue and provide the required financial
security to the investors based on the risk-return profile of the financial products. In
the past, traditional financial products were offered in India by banks (deposit
account, credit account), Life Insurance Corporation (LIC), and postal department
(recurring deposit, National Saving Certificate, KisanVikasPatra). However, in recent
years with the advent of liberalization of financial services industry, diverse financial
products have been introduced such as mutual funds, shares, derivatives, life and non-
life insurance schemes (Unit Linked Investment Plans (ULIPs), pension plans,
children education plans, etc.). Investment preference differs from person to person,
as every individual behaves differently while investing. Investment behaviour of an
individual is guided by his own set of circumstances. With an expectation of
generating high returns over a period of time and certain levels of risk, individuals
invest in different financial products. Today, a number of investment avenues are
available to an individual but an individual, after a thorough market study and
according to his needs and circumstances, has to decide which investment avenue has
to be chosen. The present study is an attempt to analyze the investment preferences of
salaried individuals towards various financial products based on demographic factors.
Over the last few decades, the common man‘s interest in the stock market has grown
exponentially. Despite their popularity, however, most people don‘t fully understand
the intricacies of stock market. Much is learned from wrong information
communicated among people. Based on a get-rich-quick mentality, people thought
that stocks were the magic answer to instant wealth with no risk. Stocks, bonds and
mutual funds will be the major components of almost every portfolio, but some
investors will also devote a portion of their invested funds to more advanced, and, at
times, exotic investments. Investment is sacrificing present consumption for future
gains. It is a planned decision to put money in financial assets with a risk return trade
off. It is definitely different from speculation and gambling; where one try to make
quick gains in a short period of time.

32
LITERATURE REVIEW

L Pandiyan, Dr.T. Aranganathan (2012), analyzed the investment climate must

attract the people to save from their income at times even by forgoing the enjoyment
of comforts & luxuries. Countries can never sustain development unless they have
adequate savings. So, favourable climate is to be assured by the government to
provide investment climate guaranteeing acquisition, maintenance and liquidation of
assets.

Achar (2012), in his research paper titled saving and Investment Behaviour of
Teachers - An empirical study, found that 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.

Chitra and Sreedevi (2011), analyzed the influence of seven personality traits—
emotional stability, extraversion, risk, return, agreeability, conscientiousness and
reasoning—on the choice of the investment pattern. The results of the study show that
these personality traits of the investors have an impact on the individuals while taking
decisions and also have a strong influence on determining the method of investment.
The study found that the influence of personality traits on the investment decision is
more compared to that of demographic variables.

Davar and Gill (2009) investigated the underlying dimensions in the selection of
different investment avenues for the households. The results of the study revealed
emphasis on familiarity, satisfaction, opinion and demographic dimensions for all
investment avenues.

Nagpal and Bodla (2009), studied the lifestyle characteristics of the respondents and
their influence on investment preferences. The study concludes that investors’
lifestyle predominantly decides the risk taking capacity of investors. The study found

33
that inspite of the phenomenal growth in the security market, the individual investors
prefer less risky.

Verma (2008), studied the effect of demographics and personality on investment

choice among Indian investors and found that mutual funds were popular amongst
professionals, students and the self employed. Retirees displayed their risk aversion
by not investing in mutual funds and equity shares. It was also found that higher the
education, higher was the level of understanding of investment complexities.
Graduates and above in qualification preferred to invest in equity shares as well as
mutual funds.

investments, viz., life insurance policies, fixed deposits with banks and post office,
PPF and NSC.

Gupta and Jain (2008), on the basis of an all-India survey of 1463 households found
the preferences of investors among the major categories of financial assets, such as
investment in shares, indirect investment through various types of mutual fund
schemes, other investment types such as exchange-traded gold fund, bank fixed
deposits and government savings schemes. The study provides interesting information
about how the investors’ attitude towards various investment types are related to their
income and age, their portfolio diversification practices, and the over-all quality of
market regulation as viewed by the investors themselves.

Dulebohn& Murray (2007), in their research paper, Retirement Savings Behavior Of

Higher Education Employees , they found that attitudinal preference towards a risk
and a perception of opportunity served as mediators for the relationships among
employees‘ dispositional characteristics and their retirement saving behavior. They
also found that investment knowledge directly affected the risk taking behavior.

Gupta et al. (2001), studied the Indian household investors’ preferences, future
intentions and experiences and found that bonds were regarded as an investment for
the retired people but that did not have much appeal for young people. The market
penetration achieved by mutual funds was found to be much lower than equity shares
for all age classes.

34
Hope (1997), in his paper, Growth, savings and investment in Botswana / Croissance,
the results suggests that there is no significant relation between the gross domestic
investment and growth. This paper also concludes that only government investment is
preferred by investors and private investment remains weak and needs to be enhanced

35
PROBLEM STATEMENT

What are the various investment options available for salaried class people?

36
 RATIONALE OF THE STUDY

With the help of this report we have come to know about various investment options
available for various salaried class peoples and we have also come to know the
importance of of investments. As it is said that every coin has 2 sides there are even
various advantages and disadvantages of investments. We have also come to know
that how many employees are interested in the investment pattern of various financial
products

37
 OBJECTIVES OF THE STUDY

•To study the investment preference of salaried individuals towards various financial
investments.

•To study the association between demographic variables & investment preference of
salaried individuals towards financial instruments.

•To know the purpose behind the investment.

•To study the awareness level of employees based on various investment patterns
available.

38
 HYPOTHESIS

A number of researches have shown that investment choice is affected by various

individual. The target population of this research work is salaried individuals who are
assumed to have relatively more exposure, hence expected to behave rationally
irrespective of various factors like age, marital status, employment status and income.

Ho:- More than 60% employees objective behind investmentis for Quick Gain

H1:- Less than 60% employees objective behind investment is not for Quick Gain.

39
 RESEARCH METHODOLOGY

Research methodology is a term that basically means the science of how research is
done scientifically. It is a way to systematically and logically solve a problem, help us
understand the process not just the product of research, and analyzes methods in
addition to the information obtained by them. The process used to collect information
and data for the purpose of making business decisions. The methodology may include
publication research, interviews, surveys and other research techniques, and could
include both present and historical information. A wide range of research methods are
used in psychology. These methods vary by the sources from which information is
obtained, how that information is sampled, and the types of instruments that are used
in data collection. Methods also vary by whether they collect qualitative data,
quantitative data or both.

40
 RESEARCH DESIGN

The research design which I have used in my research is Descriptive Method.

I have gained all the information regarding research from Questionnaire which comes
under descriptive method.

41
SOURCE OF DATA

There are 2 types of sources of Data. Primary Data and Secondary Data

Here in our research process we have used the Primary Sources of data which is a
Questionnaire. Data is been collected with the help of Questionnaire which has been
prepared.

42
 DATA COLLECTION METHOD

QUALITATIVE METHODS

FOCUS GROUP INTERVIEW

DEPTH INTERVIEW

PROJECTIVE INTERVIEW

Here in our research process we have used the Primary Sources of data which is a
Questionnaire. Data is been collected with the help of Questionnaire which has been
prepared.

43
 POPULATION

A research population is generally a large collection of individuals or objects that is

the main focus of a scientific query. It is for the benefit of the population that
researches are done. However, due to the large sizes of populations, researchers often
cannot test every individual in the population because it is too expensive and time-
consuming. This is the reason why researchers rely on sampling technique. Population
is also known as a well-defined collection of individuals or objects known to have
similar characteristics. All individuals or objects within a certain population usually
have a common, binding characteristic or trait.

There are 200 employees working in “UNITED SHIPPERS LIMITED”.

44
 SAMPLING METHOD

Sampling methods are used to select a sample from within a general population.
Proper sampling methods are important for eliminating bias in the selection process.
They can also allow for the reduction of cost or effort in gathering samples. Common
methods of sampling include simple random sampling (completely random selection
from the population), systematic sampling (ordering the population and selecting at
regular intervals), stratified sampling (splitting the population into categories and
randomly selecting from within each category), matched random sampling
(population is divided into pairs based on a criterion and then randomly assigned to
groups), and panel sampling (applying the same test over time to randomly selected
groups).

The sampling method which I have chosen here is Simple Random Sampling

I have selected a sample of 50 employees out of 200 employees.

So my sample size is 50.

45
DATA COLLECTION INSTRUMENTS

QUESTIONNAIRE METHOD

INTERVIEWS

FOCUS GROUP

OBSERVATION METHOD

DOCUMENT ANALYSIS

In our research process Data Collection Instrument which we have used here is
Questionnaire Method.

46
 LIMITATIONS OF STUDY

 Reluctances of the people to provide complete information about them can

affect the validity of the responses.
 The lack of knowledge about financial instruments can be a major limitations.
 The information can be biased due to use of questionnaire.
 Time Limitation was one of the major problem which has been faced by me at
the time of training period.

47
 DATA ANALYSIS & INTERPRETATION

 Gender

Particulars Frequency (out of 50) Percentage

MALE 25 50%
FEMALE 25 50%
TOTAL 50

60

50

40

30 FEMALE
MALE
20

10

0
1 2

Interpretation:-

Out of 50 salaried employees there are 25 Males i.e. 50% and 25 Female i.e. 25
Females.

48
1) Years of experience?

Particulars Frequency (out of 50) Percentage

Less than 5 years 5 10%
5-10 years 24 48%
10-15 years 17 34%
More than 15 years 4 8%
TOTAL 50

30

25

20

15 Series2
Series1
10

0
Less than 5 5-10 years 10-15 years More than 15
years years

Interpretation:-

Out of 50 salaried employees 5 employees are having experience less than 5 years that
is 10%. 24 employees are having experience between 5-10 years that is 48%.17
employees are having experience between 10-15 years that is 34%. 4 employees are
having experience more than 15 years that is 8%.

49
2) Monthly Income:-

Particulars Frequency (out of 50) Percentage

10,000-20,000 3 6%
20,000-30,000 24 48%
30,000-40,000 17 34%
50,000 & above 6 12%
TOTAL 50

10,000-20,000
6%

50,000 &
above
12%

30,000-40,000 20,000-30,000
34% 48%

Interpretation:-

Out of 50 employees 3 employees are having salary between 10,000 -20,000 that is
6%. 24 employees are having salary between 20,000 – 30,000 that is 48%. 17
employees are having salary between 30,000 –40,000 that is 34%. 6 employees are
having salary above 50,000 that is 12%.

50
3) Do you invest your money?

Particulars Frequency (out of 50) Percentage

Yes 50 100%

Yes
60

50

40

30
Yes
20

10

0
1 2

Interpretation:-

Out of 50 employees all 50 employees responded to Yes that is 100%.

51
4) Where do you get investment information?

Particulars Frequency (out of 50) Percentage

Friends 8 16%
Relatives 10 20%
Newspapers 8 16%
Consultants 16 32%
Electronic Media 7 14%
TOTAL 50

18
16
14
12
10
8 Series2

6 Series1

4
2
0
Friends Relatives Newspapers Consultants Electronic
Media

Interpretation:-

Out of 50 employees 8 of employees got information regarding investment from

friends that is 16%. 10 employees got information from relatives that is 20%. 8
employees got information from newspapers that is 16%. 16 employees got

52
information from consultants that are 32%. 7 employees got information from
electronic media that is 14%.

5) What are the objectives behind your investment?

Particulars Frequency (out of 50) Percentage

Tax Benefit 12 22%
Quick Gain 30 60%
Liquidity 8 16%
TOTAL 50

Tax Benefit
Quick Gain
Liquidity

Interpretation:-

Out of 50 employees 12employees main objectiveof investment is for Tax benefit.30

employees for quick gains & 8 employees for liquidity.

53
6) From the following investment options where do you invest your
money?

Particulars Frequency (out of 50) Percentage

Savings A/c 12 24%
Bank FD 15 30%
Post Office Savings 1 2%
Mutual Fund 6 12%
Real Estate 9 18%
Gold/ Silver 1 2%
L.I.C 6 12%
TOTAL 50

16
14
12
10
8
Series1
6
Series2
4
2
0
Savings Bank FD Post Mutual Real Gold/ L.I.C
A/c Office Fund Estate Silver
Savings

54
Interpretation:-Out of 50 employees 12 employees invest in Savings A/C, 15 invest
in FD, 1 invest in Post Office Savings, 6 Invest in Mutual Fund, 9 invest in Real
Estate, 1 Invest in Gold/ Silver& 6 employees invest in LIC.

7) How frequently do you invest in securities?

Particulars Frequency (out of 50) Percentage

Once in a year 15 30%
Every Month 12 24%
Whenever I get lump sum 9 18%
amount
Whenever the market is 10 20%
good
Whenever good 3 6%
opportunities comes

16
14
12
10
8
6
4
2 Series2
0
Series1

Interpretation:-

55
Out of 50 employees 15 of employees invest once in a year that is 30%. 12 employees
invest every month that is 24%. 9 employees invest whenever lump sum amount is
received that is 18%. 10 employees invest whenever the market is good that is 20%. 3
employees invest whenever good opportunities comes that is 6%.

8) When have you started investing in small savings in since............

years?

Particulars Frequency (out of 50) Percentage

0 11 22%
1 4 8%
2 5 10%
3 8 16%
4 2 4%
5 5 10%
6 5 10%
7 4 8%
8 1 2%
10 3 6%
11 1 2%
12 1 22%
TOTAL 50

12
10
8
Series1
6
Series2
4
Series3
2
0
1 2 3 4 5 6 7 8 9 10 11 12

Interpretation:-

Out of 50 employees 11 employees have not started investing in small savings that is
22%. 4 employees have started investing in small savings that is 8%.5 employees for

56
2 years that is 10%. 8 employees for 3 years that is 16%.2 employees for 4 years that
is 4%.5 employees for 5 years that is for 10%.5 employees for 6 years that is for
10%.4 employees for 7 years that is 8%.1 employees for 8 years that is 2%. 3
employees for 10 years that is 6%.1 employees for 11 years that is for 2%. 1
employee for 12 years that is for 22%.

9) How frequently you change your investment ?

Particulars Frequency (out of 50) Percentage

6 Months 6 12%
1 Year 5 10%
1- 3 Years 14 28%
Above 3 Years 25 50%
TOTAL 50

100%

100%

99%

99% Series2
Series1
98%

98%

97%
6 Months 1 Year 1- 3 Years Above 3 Years

Interpretation:-

Out of 50 employees 6 employees usually used to change investment for 6 Month that
is 12%.5 employees change their investment plan for 1 years that is 10%. 14
employees change their investment plan for 1-3 years that is 28% & 25 employees
change their investment plan above 3 years.

57
10) Do you invest your money in share markets?

Particulars Frequency (out of 50) Percentage

Yes - -
No 50 100%

No

50

40

30 No

20

10

0
- -

Interpretation:-

Out of 50 employees none of the employees invest their money in share markets that
is 100%.

58
HYPOTHESIS TESTING

Ho:- More than 60% employees objective behind investment is for Quick Gain

H1:- Less than 60% employees objective behind investment is not for Quick Gain.

Particulars Frequency
Tax Benefit 12
Quick Gain 30
Liquidity 8

Test and CI for One Standard Deviation: Frequency

Method

The standard method is only for the normal distribution.

The adjusted method is for any continuous distribution

Statistics

Variable N StDev Variance

Frequency 3 11.7 137

95% Confidence Intervals

CI for CI for

Variable Method StDev Variance

59
Frequency Standard (6.1, 73.7) (37, 5424)

Adjusted ( *, *) ( *, *)

One-Sample Z

Test of mu = 28 vs not = 28

The assumed standard deviation = 11.7

N Mean SE Mean 95% CI Z P

50 25.00 1.65 (21.76, 28.24) -1.81 0.070

@95% confidence level z= (-1.81) where it falls under (-1.96) so hypothesis is

alternative is accepted.

Therefore

Ho:- More than 60% employees objective behind investment is for Quick Gain

60
 RESULTS & FINDINGS

1) Study reveals that major employees are having experience of 5-10 years and
10- 15 years.

2) From this study it has been revealed that most of the employees are having salary
between 20,000- 30,000 and 30,000-40,000.

3) Most of the salaried employees prefer to invest their money.

4) Study reveals that major source of investment options are consultants and relatives.

5) Majority of the salaried individuals main objective of investment is for quick gain.

6) Most of the employees invest their money in Fixed Deposit and Savings A/C.

7) Above study reveals that most of the employees invest in securities once in a year
and every month.

8) Study reveals that most of the employees frequently change their investment plan
above 3 years.

9) Majority of the employees does not invest their money in share markets.

61
 CONCLUSIONS & SUGGESTIONS

SUGGESTIONS

Study reveals that individuals most prefer to get information related various
investment plans through consultants. So as per my suggestions consultancy firm
should keep contact with different companies, so that whenever any employees want
to invest consultancy firms can contact them easily and will be provided proper
guidance to employees.

Investor who wants to avoid risk should invest in Savings A/c, Bank Fixed Deposit,
National Saving Certificate, Post Office Savings, Mutual Fund, Real Estate etc.

Investment avenues like share market & mutual funds need more awareness among
salaried individuals so that more individuals can be attracted.

As per my suggestion promotion of regarding various investments should be provided

to various people with the help of various Electronic Media & Social Media.

62
CONCLUSIONS

This report is a reflection of the awareness & factors considering risk taking ability of
various categories of salaried individuals. Selection of the perfect investment avenues
is a difficult task to individuals. An effort as been made to know the individual
awareness of various investment avenues & many employees are not also interested in
investing their money in share markets.

The individual investor still prefers to invest in financial products which give risk free
returns. This confirms that individuals even if they are of high income, well educated,
independent are conservative individuals prefers to play safe.

63
BIBLIOGRAPHY

(n.d.). Retrieved from www.oecd.org.

(n.d.). Retrieved from www.unitedshippers.com.

(n.d.). Retrieved from uslshipping.com.

www.policybazaar.com

www.investopedia.com

www.bankbazaar.com

www.jagranjosh.com

www.equitymaster.com

www.vibrantgujarat.com

www.google.com

64
 ANNEXURE

QUESTIONNAIRE
Dear Respondent,

Subject:- Request to fill the questionnaire regarding research study

I am a MBA student persuing at Sardar Patel Education Campus (SPEC). I am

conducting a research study on “Investment Pattern Of Salaried People”. This
research is taken as a partial requirement for the completion of my MBA. I seek your
kind assistance in completing the attached questionnaire which would take approx 10
minutes of your valuable time. Your response will be treated as strictly confidential.

 Name of employee:-
 Designation:-
 Educational Qualification:-
 Gender:-..................

(i) HSC (ii) UG (iii) PG (iv) Professional (v) Others

 Years of experience :-
(i) Less than 5 years (ii) 5-10 years (iii) 10-15 years (iv) More than 15
years

 Monthly Income:-
(i) 10,000-20,000
(ii) 20,000-30,000
(iii) 30,000-40,000
(iv) 50,000 and above

65
(1) Do you invest your money ?

(i) Yes (ii) No

(2) Where do you get investment information ?

(i) Friends

(ii) Relatives

(iii) Newspapers

(iv) Consultants

(v) Electronic Media

(3) What are the objectives behind your investment?

(i) Tax Benefit

(ii) Quick Scan

(iii) Liquidity

(4) Are you aware of the following investment avenues?

(i) Savings A/C Yes No

(ii) Bank Fixed Deposit Yes No
(iii) National Savings Certificate Yes No
(iv) Post Office Savings Yes No
(v) Mutual Fund Yes No
(vi) Life Insurance Yes No
(vii) Debenture Yes No
(viii) Bonds Yes No
(ix) Real Estate Yes No
(x) Gold/ Silver Yes No

66
(5) From the following investment options where do you invest your

money?

Particulars Please Tick

Savings A/c
Bank FD
Post Office Savings
Mutual Fund
Real Estate
Gold/ Silver
LIC

(6) When have you started investing in small savings in

since.............................years?

(7) How much is your monthly commitment for expenses/investments ?

(i) Your family expense per month ...................................

(ii) Children’s Education ...................................

(iii) Medical expense including ................................

children and parents

(8) What are the other sources of income do you have ?

Source Of Income Amount per Month

(i) Spouse Income

(ii) Income from children
(iii) Agriculture Income
(iv) Rent from house
(v) Other Income (Specify)

67
(9) How frequently you change your investment?

(i) 6 Month

(ii) 1 Year

(iii) 1-3 Year

(iv) Above 3 Year

(10) Do you invest your money in share markets?

(i) Yes (ii) No

(11) What are the objectives behind your investment ?

(i) Tax Benefit

(ii) Quick Gain

(iii) Liquidity

68
CASH FLOW STATEMENT OF USL

69
70