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A Study On
Investment Preferences among Employees
With Reference To Kurnool City
DOWLATH AHAMMAD 1 , Dr. B.C. LAKSHMANNA 2
1
Research Scholar, Dept. of Management, Regd. No. PP MAN 0372, Rayalaseema University, Kurnool,
A.P., India
E-Mail: dowlath.mba@gmail.com
2
Professor & Research Supervisor, Crescent Institute of Management, Anantapur, India
Abstract:
Investment is the commitment of funds which have been saved from current consumption
with the hope that some benefits will be received in future. Savings are invested in assets
depending on person’s knowledge of different investment options, risk taking ability and
demand of return. Investors are investing their money with the different objectives such as
return, safety, security, appreciation, Income stability etc. Researcher has studied the different
areas of investments as well as the factors while selecting the investment with the sample size
of 100 salaried employees by conducting the survey through questionnaire in Kurnool City,
India. The study is based on personal interviews with salaried peoples, using a structured
questionnaire. Actually, the present study identifies the preferred investment avenues among
the individual investors using self assessment test. The study is based on primary sources of
data which are collected by distribution of a close ended questionnaire. The data has been
analyzed using percentage and chi-square test with the help of statistical software. The
researcher has analyzed that salaried employees consider the safety as well as good return on
investment with high liquidity on regular basis. Respondents are aware about the investment
avenues available in India.
Ms. K. Parimalakanthi and Dr. M. Ashok kumar from the universe comprising the city of
(2015) in their study Pertaining to Investment Amritsar was selected. The study analyzed in
Behaviour of Individual Investors in Coimbatore case of adopters that transparency, safety,
City have found that investors prefer to invest in convenience and economy judged as an
banks to enjoying the maximum safety. important feature of net trading followed by
V.R.Palanivelu &K.Chandrakumar(2013) market quality and liquidity whereas in case of
examined the choice in Investment of salaried non-adopters economy and convenience were the
class in Namakkal Taluk, Tamilnadu, India with important features
the help of 100 respondents as a sample size. In
his study he found that as per Income level of followed by the other factors like market quality,
employees, invest in different avenues. safety and liquidity.
Demographic factors are also important while
doing investments. Prasad (2009) examined the perception of the
investors and their awareness on various
Avinash Kumar Singh (2006) the study analyzed investment alternatives available. A sample of
the investment pattern of people in Bangalore 100 investors has been taken from the twin cities
city and Bhubaneswar. The analysis of the study of Hyderabad and Secunderabad. The result of
was undertaken with the help of survey method. findings showed 75% Net traders were using
After analysis and interpretation of data it is online stock trading requiring strong technology
concluded that in Bangalore investors are more base whereas Traditional traders felt online
aware about various investment avenues & the trading not an acute process of stock trading and
risk associated with that. All the age groups give they didn’t participate in net trading due to risk
more important to invest in equity & except of a system failure.
people those who are above 50 give important to
insurance, fixed deposits and tax saving benefits. Significance of the Study:
Karthikeyan (2001) has conducted research on Salaried employees will have fixed
Small Investors Perception onPost office Saving income and their investments patterns may
Schemes and found that there was significant different. In connection with this Researcher will
difference among the four age groups, in the try to find out investment preferences of
level of awareness for kisan vikas patra (KVP),
investors in Kurnool region. This research paper
National Savings Scheme (NSS), and deposit may help to the research scholars as well as
Scheme for Retired Employees (DSRE), and the students for their further studies in respective
Overall Score Confirmed that the level of area.
awareness among investors in the old age group
was higher than in those of young age group.
Objectives of the Study:
Sandhu and Singh (2004) The study was based
on structured primary data. The survey was
conducted during October and November 2004.
The sample of 50 adopters and 50 non-adopters
The present study is an attempt to understand the investment avenues and the result of that have
Investment preferences of employees of Kurnool, been presented in the following table
India. The objectives are as follows:
Investment Preferences Table 1
Investment Freque Percen
1. To study the investment preferences by Rank
Avenue ncy t
salaried employees of Kurnool region, India. Equity 6 6% 8
2. To know the motivational factors of Fixed Deposits 14 14% 2
employees to invest. Provident Fund 9 9% 6
Life Insurance 12 12% 4
3. To determine the factors that influence to
Post Office-NSC 5 5% 9
prefer an investment avenue by the
Gold/Silver/Preci
employees. 23 23% 1
ous stones
Real Estate 10 10% 5
Hypotheses of the Study Mutual Fund 8 8% 7
Chits 13 13% 3
I. H0 : There is no significant influence of Total 100 100%
Gender on investment preference. Source: Primary data
II. H0 : There is no significant influence of Table1 shows that out of 100 respondents 23%
income level on investment preference highly prefer to invest in Gold/Silver/Precious
III. H0 : There is no impact of educational stones next priority goes to Bank Fixed Deposits
qualification on the selection of i.e. 14% as well as 13% investors are saving
investment avenues their money in Chits followed by Insurance,
Real Estate, PF, Mutual Funds and others.
3. Research Methodology:
For this research data has been collected Motivational / Influencing Factors for
through questionnaire.. The study is carried out investment
based on the data collected from individual
investors in Kurnool. The sampling technique There are various elements that influence or
followed in this study is probability sampling. motivate the investors to make investments in
Simple random techniques are used to select the particular securities. The result is displayed in
respondent from the available database. following Table
Accordingly the researcher has selected 100
salaried employees in the study area. Motivational Factors for investment Table 2
Chi- Square Test than the table value so, Null hypothesis is
Value Df Accepted. Hence it can be conclude that “There
Chi-Square 13.19327 8 is no significant influence of Gender on
investment preference”
Table 4
250000-
1 5 2 4 0 5 1 3 5 26
400000
400000-
1 4 2 2 0 7 3 3 1 23
550000
550000
3 3 3 3 0 8 6 2 1 29
& above
Total 6 14 9 12 5 23 10 8 13 100
Source: Primary data
Chi- Square Test which is more than table value so hypothesis
Value Df is rejected. Hence it is concluded that there is
Chi-Square 40.1131 24 a significant influence of Income level on
Table 6 investment preference
Bank Gold/Si
Provi Post Real
Qualificat Fixed Insur lver/Pre Mutual
Equity dent Office Estat Chits Total
ion Deposit ance cious Fund
Fund -NSC e
s stones
SSC 0 4 2 0 5 1 0 0 5 17
Inter 1 4 2 3 0 5 0 0 5 20
UG 1 3 2 4 0 7 4 4 2 27
PG 4 3 3 5 0 10 6 4 1 36
Total 6 14 9 12 5 23 10 8 13 100
Source: Primary data