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*Ph.D Research Scholar in Commerce Research Center, St. Mary’s College (Autonomous)
Thoothukudi, affiliated to Manonmaniam Sundaranar University, Tirunelveli.
** Assistant Professor of Commerce & Research Supervisor, St. Mary’s College
(Autonomous), Thoothukudi affiliated to Manonmaniam Sundaranar University, Tirunelveli.
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Saving and Investment are two key variables which play a significant role in economic growth,
control of inflation, stability and promotion of employment especially in the context of
developing countries. In general, to invest is to distribute money in the expectation of some
benefit in the future. This paper concern about IT sector employees and their investment
pattern. Obviously, India is the world’s leading outsourcing destination, and offers an advanced
ecosystem for foreign investors looking at the information technology (IT) sector. Nearly 24%
of High salaried people are from IT sector. However, this paper narrow down its view to IT
sector employees who are from rural areas and not urban areas. This paper studied the different
types and avenues of investments as well as the factors that are required while selecting the
investment by using stratified random sampling with the sample size of 60 IT employees
through questionnaire using Google form in Chennai city. Actually, the present study identifies
about the preferred investment avenues among IT investors from backward areas using their
own self-assessment test. This paper analyse and found that IT sector employees from rural
areas consider more safety as well as good return on investment rather than taking risk, when
compared to urban IT sector employees.

Keywords: Investment, Savings, IT Sector, Rural, Urban, Profit, Risk and Return
Introduction of Topic

India is the world’s leading outsourcing destination, and offers an advanced ecosystem for
foreign investors looking at the information technology (IT) sector. However, the IT sector is
undergoing a critical transition phase as it adapts to the disruptions caused by automation and
allied technologies popularly referred to as SMAC or social media, mobility, data analytics,
and cloud computing. This has altogether resulted in restructuring efforts by the sector’s
leading IT firms, leading to the layoff of competent, technically trained, and experienced
technology professionals. So, those who are fully competent are taken the vital role.

Here the employees from rural and urban cities are noted. Their perception is varying with
respect to savings and their mode of investment. Technology professionals that have been laid
off can participate in the country’s vibrant start up scene, while others will be available for
employment with new market entrants. Meanwhile, the sector’s investment in new verticals,
along with the upskilling of the domestic talent pool, will only strengthen the world-class
infrastructure and service capabilities currently in place.

Especially rural Investors are always investing their money by analysing various modes of
investment, that suits to their needs and requirements such as profit, security, appreciation
and income stability. 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 have a certain salary 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 modes which can reap benefit over a certain period.

2. People often save money, to fulfil their unexpected and uncertain 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 employee.

3. With an investment, there 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 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. One can 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 various number of financial instruments available today for investment purpose. The
employee 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 modes

1. Equity 3. Mutual Funds

2. Debt 4. Corporate
5. Debentures 9. Public Provident Fund
6. Company Fixed Deposits 10. Real Estate
7. Fixed Deposits 11. Life Insurance
8. Post office Savings 12. Gold/Silver/Others Commodities

Objective and Scope of Study

a. To know the investment preference of IT sector employees who are from different rural
areas in Tamilnadu and working in Chennai city IT Companies.
b. To know the factor that are influencing their investment behavior of the employees.
c. To analyze the pattern of investment and saving mode of investors.
d. To analyze the problems that are faced by the investors.
e. To know the mode of investments of the salaried respondents in various investment

Review of Literature

Avinash Kumar Singh (2006) the study analysed the investment pattern of people in
Bangalore city and Bhubaneswar & analysis of the study was undertaken with the help of
survey method. After analysis and interpretation of data it is concluded that in Bangalore
investors are more aware about various investment avenues & the risk associated with that

V.R.Palanivelu & K.Chandrakumar (2013) examined the Investment choices of salaried

class in Namakkal Taluk, Tamilnadu, India with the help of 100 respondents as a sample size
& it reveals that as per Income level of employees, invest in different avenues. Age factor is
also important while doing investments.

Sandhu and Singh (2004) The study was based on structured primary data. The sample of 50
adopters and 50 non-adopters from the universe comprising the city of Amritsar was selected.
The study analyzed in case of adopters that transparency, safety, convenience and economy
judged as an important feature of net trading followed by market quality and liquidity whereas
in case of non-adopters economy and convenience were the important features followed by the
other factors like market quality, safety and liquidity.

Karthikeyan (2001) has conducted research on Small Investors Perception on Post office
Saving Schemes and found that there was significant difference among the four age groups, in
the level of awareness for kinas vikas patra (KVP), National Savings Scheme (NSS), and
deposit Scheme for Retired Employees (DSRE), and the Overall Score Confirmed that the level
of awareness among investors in the old age group was higher than in those of young age group.

Manish Mittal and Vyas (2008) Investors have certain cognitive and emotional weaknesses
which come in the way of their investment decisions. Over the past few years, behavioural
finance researchers have scientifically shown that investors do not always act rationally. They
have behavioural biases that lead to systematic errors in the way they process information for
investment decision. This paper classifies Indian investors into different personality types and
explores the relationship between various demographic factors and the investment personality
exhibited by the investors.

Sonali Patil (2014) studied preferred investment avenues among salaried people with reference
to Pune City, India. A sample size of 40 investors has been taken from the Pune City, India.
The result of finding showed 60% investors were aware about the investment avenues whereas
40% were unaware.

Research Design: This study is based on exploratory study as well as descriptive one. It is
hence done to understand the investment pattern of the IT employees who are coming from
Rural background and their approach towards investment avenues.
Sample Size: Sampling size is 60 for convenience i.e.60 employees who are not belongs to
urban cities fill the questionnaire for this purpose.

Sampling Technique: Sampling technique is the technique used to select the sample size.
Stratified sampling technique used in this research. In this, Investors were taken according to
the convenience of the research study.

Sampling design: Since the information is to be taken from Investors, a questionnaire has
prepared for knowing the investment pattern of IT employees.

Data collection source: The study is based on both primary and secondary data. The secondary
information will be collected from different published materials i.e. Books, Journals,
magazines & websites etc. and primary data were collected by communicating with
respondents through a structured questionnaire. The study was done with the help of primary
data using the questionnaire as a tool to analyse the investment and its behaviour. A closed
ended questionnaire was also prepared with total several characteristics of attributes to analyse
and assess with the help of five-point Likert scale. The secondary data was collected through
various webs and published data sources.

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:

 Table  Percentage analysis

 Diagram  Charts analysis

Chi square test & Testing of Hypothesis Table 1:

“There is no significant relationship between the Gender and the Investment awareness level”.

Observed Frequency:

Gender Awareness Unawareness Total Percentage

Male 30 8 38 78.94%
Female 14 8 22 63.63%
Total 44 16 60 73.33%
(Source: Primary Data)

Chi-Square Test:

O E (O-E) (O-E)2 (O-E)2/E

30 27.86 2.14 4.57 0.1640
08 10.13 -2.13 4.53 0.4472
14 16.13 -2.13 4.53 0.2808
08 5.87 2.14 4.57 0.7785
Total 1.0593

fe (1, 1) = (38 x 44)/60 = 27.86 fe (2, 1) = (22 x 44)/60 = 16.13

fe (1, 2) = (38 x 16)/60 = 10.13 fe(2, 2) = (22 x 16)/60 = 5.87

Degree of freedom: v= (r-1) (c-1), v= (2-1) (2-1) , v= 1

Chi-square results in 1.0593 is less than the 0.05 level significance 3.841. So, Null hypothesis
is accepted.

Conclusion: Hence it is concluded that there is no significant relationship between the Gender
and the Investment awareness level.

Testing of Hypothesis Table No.02:

“There is no significant relationship between the income level & awareness of the

S. No. Income Group Awareness Unawareness Total

1. Less Than Rs. 100000 1 2 3
2. Rs. 100000 to Rs. 300000 5 5 10
3. Rs. 300000 to Rs. 600000 24 5 29
4. Rs. 600000 to Rs. 1000000 14 3 17
5. Above Rs. 1000000 1 0 1
Total 45 15 60
(Source: Primary Data)

Chi-Square Test:

O E (O – E) (O – E)2 (O – E)2/E
1 2.25 -1.25 1.56 0.69
2 0.75 1.25 1.56 2.08
5 7.5 -2.5 6.25 8.33
5 2.5 2.5 6.25 2.5
24 21.75 2.25 5.06 0.23
5 7.25 -2.25 5.06 0.69
14 12.75 1.25 1.56 0.12
2 4.25 -2.25 5.06 1.19
1 0.75 0.25 0.06 0.08
0 0.25 -0.25 0.06 0.24
Total 16.15

fe (1, 1) = (3 x 45)/ 60 = 2.25

fe (1, 2) = (3 x 15)/ 60 = 0.75

fe (2, 1) = (10 x 45)/60 = 7.5

fe (2, 2) = (10 x 15)/60 = 2.5

fe (3, 1) = (29 x 45)/60 = 21.75

fe (3, 2) = (29 x 15)/60 = 7.25

fe (4, 1) = (17 x 45)/60 = 12.75

fe (4, 2) = (17 x 15)/60 = 4.25

fe (5, 1) = (1 x 45)/60 = 0.75

fe (5, 2) = (1 x 15)/60 = 0.25

Degree of freedom: v= (r-1) (c-1) , v= (5-1) (2-1) , v= 4

Chi-square results 16.51 is greater than the 0.05 level significance 9.48. So, Null hypothesis is

Conclusion: Hence it is concluded that there is significant relationship between the income
level & awareness about the investments modes

Percentage wise monthly saving of salaried class people

Saving Range No. of Respondents Percentage

10% to 20% 14 23%
21% to 30% 21 35%
31% to 40% 12 21%
41% to 50% 10 16%
Above 50% 3 5%
Total 60 100%
(Source: Primary Data)

Factors Influencing While Selecting Investment Avenues

Sr. No Factors No. of Respondents Percentage

1. Safety 11 18.33
2. Liquidity 12 20.00
3. Tax Saving 14 23.33
4. Diversification 9 15.00
5. Affordability 7 11.67
6. Simplicity 7 11.67
Total 60 100%
(Source: Primary Data)

Objectives of the Investment

Sr. No Factors No. of Respondents Percentage

1. Future Security 16 26.67
2. Good Returns 11 18.33
3. Liquidity 7 11.67
4. Capital Appreciation 5 8.33
5. Tax Savings 10 16.67
6. Children Career 10 16.66
7. Other 1 1.67
Total 60 100%
(Source: Primary Data)

Most Preferable Investment Modes

20 10 11
10 7 6 5 6
0 2 3 1

Most Preferable Investment Options

S. No Investment Avenues No. of Respondents Percentage

1. Stock Market 7 11.67
2. Bank Deposit 10 16.67
3. Real Estate 6 10.00
4. Mutual Funds 11 18.33
5. Metal ( Gold/Silver/Others) 5 8.33
6. Insurance 9 15.00
7. Commodity 2 3.33
8. Tax-Saving Schemes 6 10.00
9. Debt Market 3 5.00
10. Others 01 1.67
Total 60 100%
(Source: Primary Data)
Level of Risk Involved in the Investment Schemes



30 Very High
Very Low

Comparative Analysis of Review

From the above statements of research that was conducted and based on the data that was
collected it can be clearly stated that there is no relation between the gender and the level of
awareness of different modes of investments.

Further it is also observed that there is direct relationship between the income level and
awareness of the different modes of investment. A person having a high level of income tends
to have more knowledge about the different sources and avenues of investment that are
available in the market. A person having more income will obviously tend to invest more

Further bank deposit and mutual funds are the most preferred sources of investments by the IT
investors from rural areas. Every respondent feels that there is high level of risk in investments.

1. Among 60 respondents 73.33% Investors are aware about the investment avenues whereas
26.67% are unaware.

2. There is as such no significant relationship between the Investment awareness and Gender
level as 65.23% and 78.38% among female and male respondents respectively are aware about
different investment modes.
3. There is significant relationship between the awareness of investments and income level
among respondents as comparatively based on the income level, awareness also high when the
income level is high and vice-versa.

4. Among 60 respondents, 74% respondents are of the opinion that educational qualification
affects the selection of investment modes. It was found that on an average of 22% savings
from their monthly salary is made by the respondents.

6. Safety mode is the major factor while doing investments as 18.33% of the respondents are
investing their money due to safety purpose and 22.33% of the respondents are investing their
money in tax saving scheme for tax benefit purpose is higher.

7. The main objective of the investors are good returns in future on investments as percentages
are 26.67 and 18.33 respectively.

8. The study reveals that self-awareness is main source of investment as percentage is 26.89%.
Mutual Funds are the first preference given by the investors for investment as the percentage
is 18.93%.

10. It was found that 33.34% and 28.67% of respondents prefer to invest their money for yearly
and half yearly basis respectively.


Mutual fund is also found as most favoured option by the IT employees today.
Investment in mutual funds through the way of Systematic Investment Plan (SIP) is a favoured
investment option by the youngsters. Awareness programs have to be conducted by stock
broking firms, because most of the respondents i.e. investors are thinking that these avenues
are loss making and doesn’t have no good return on it. Hence this study concluded that most
of the investors prefer secured regular income on investment rather than taking risk.


The study has made an attempt to analyse the savings and investment pattern of IT investors.
The data analysis of research reveals that the safety mode is concerned as important factor
while doing investment, so remaining avenues are found less considerable while doing
investment by investors. Questions like why people to save and what make them not to invest
are also analysed in-depth and interpreted. Especially in a city like Chennai where Real estate
is always on the high preference, but there is no fixed return and the risk and amount of
investment is high. It is absolutely essential and needed to save earned income, to have a plan
for future, and to resist the spending funds that already owned.

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New Delhi, 1999, pp. 21-151
3. Dr. L. Natarajan, Investment Management, Margham Publications, Chennai, 2005,
4. L. Bajtelsmit and A. Bernasek “Why do women invest differently than men?” Financial
Counseling and Planning, vol. 7, 1996, pp. 1-10
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2006, p.3.
6. Sancheti, D.C., & Kapoor, V.K. 2009. Statistics, Theory, Method and Application. New
Delhi : Sultan Chand & Sons.
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Management . Bombay: Himalaya Publishing House.
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Journal of Finance and Management.2 (1) :19-33.12.
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special reference to Rajkot City, Gujrat. Abhinav National Refereed journal of
research in Commerce and Management. 2(4) :2277-1166.
10. .Dr. Jagdeesh R. Lanjekar & Prof. Sanket L.Charkha ,2018.A Study Of Saving And
Investment Pattern of Salaried Class People with Special Reference To Pune City
(India) published in Research Gate
11. The new issue of India Briefing magazine, titled “The IT Sector: Time to Invest in
India” is published in the Asia Briefing Publication Store
12. I G. Durai Murugan, Dr. G. Chandrasekaran,2014. A Study on The Opinion and
Attitude of Investors Towards Investment Schemes in Tirupur District (With Special
Reference to Salaried Class) in International Journal on Research in Management and
Business studies (IJRMBS 2014) ISSN: 2348-6503