G.H.

PATEL POST GRADUATE INSTITUTE OF

BUSINESS MANAGEMENT
(SARDAR PATEL UNIVERSITY)

A
REPORT OF RESEARCH METHODOLOGY ON
A STUDY ON CHANGING
INVESTMENT PATTERN AMONG
YOUTH

SUBMITTED TO :
Dr. Darshana Dave
SUBMITTED BY:
AJAYKUMAR BAROT (17047)
NAVEEN SAHA (17066)
PRERNA SAMTANI (17070)
AMRUTA CHOUGAONKAR (17048)
DIV: B
(BATCH: 2017-19)

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 DECLARATION

We hereby declare that the Research Report, submitted for the Project entitled “A
Study On Changing Investment Pattern Among Youth Of V.V Nagar And Vadodara” submitted in

partial fulfilment for the Subject Research Methodology. The project work carried out
at G.H.PATEL POST GRADUATE INSTITUTE OF BUSINESS MANAGEMENT under the
supervision of Dr. Darshana Dave and that no part of this report has been directly
copied from any students’ reports or taken from any other source.

Name of the Students

1) AJAYKUMAR BAROT (17047)

2) NAVEEN SAHA (17066)

3) PRERNA SAMTANI (17070)

4) AMRUTA CHOUGAONKAR (17048)

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 ACKNOWLEDGEMENT

This report titled “A STUDY ON CHANGING INVESTMENT PATTERN AMONG YOUTH” With
Reference To the Youth of V.V. Nagar and Vadodara” wouldn’t have been accomplished without
the help and support of various personnel. It is difficult to draw up a list of persons to be thanked
because several people have helped me in the preparation of this report. As knowledge itself is
cumulative so it is difficult to acknowledge intellectual ideas.

First, we would like to sincerely thank our professor Dr. Darshana Dave for giving us this
opportunity of taking up such a challenging project which has enhanced our knowledge about
changing investment pattern among youth in V.V. Nagar and Vadodara.

We would also like to express our sincere gratitude to all the respondents who have spent their
valuable time from their busy schedule in filling our questionnaires. Last but not the least, thanks
to all the people who have directly or indirectly contributed in the preparation of this report.
Without the priceless contribution and coveted guidance of all the above-mentioned people, this
project would have never got a shape of reality and emerged before all of you in the manner and
in the style as it now appears.

April,2018

V.V.Nagar

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 CONTENTS

Chapter No. Topic Page No.

Executive Summary

Chapter 1 Introduction 5-7

Chapter 2 Review of Literature 8 - 12

Chapter 3 Research Design and Methodology 13 - 15

Chapter 4 Analysis of Data 13 - 43

Chapter 5 Conclusions and Recommendations 44

Bibliography 45

Annexure 46 - 50

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 ABSTRACT

The aim of this research was to examine the changing investment pattern among youth in
V.V.Nagar & Vadodara. The rationale behind choosing this research topic is the premise that the
different class and youth in India has gained attention of the economists, policy makers & the
marketers, as still there remains a considerable untapped potential in this income class of India.
The research has been conducted to answer few important questions on the preference of the
investment instruments & investment pattern of the youth, to know the various objectives of
investment of the youth and to know whether there has been any increase in their savings & the
reasons for the same. It is not only the income of the family of youth. Therefore the paper has
also been directed towards finding the difference in choice of investment avenues in different
income level.

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 INTRODUCTION

Theoretically speaking when a youth chooses an avenue to earn return on the surplus income it
has, it is known as savings. Whereas, those instruments or avenues from which one earns
income & wealth is known as investment.

Financial dictionaries define investment as the purchase of a financial product or other item of
value with an expectation of favourable future returns. In general terms, investment means the
use money in the hope of making more money. Saving is left over of the disposable income
whereas when these savings are used to generate further returns it is known as investment.
Investing wisely not only generates returns for the individual investor but is mobilised to the
economy by entering into the chain of capital formation.

Reserve Bank of India however does not differentiate between savings & investments made by
the youth per se. The Reserve Bank of India classifies the youth savings in two heads i.e.
Financial assets like in shares & mutual funds, insurance, bank deposits etc. & Physical assets i.e.
in real estate & gold. Cash held in hand is neither a saving nor investment.
Investment instruments can be divided into two basic heads:
1. Physical savings like in real estate & gold
2. Financial savings that are the bank deposits, shares & mutual funds, insurance & other small
saving schemes.

Saving & investment behaviour has always been an area of interest to the economists. The
economic cycles of boom, recession, depression & recovery not only effect the level of GDP but
also the income of the youth & hence the saving ratio & investment behaviour. The movement
of the economy from one phase of the economic cycle to another brings a change in the saving
& investment behaviour of the people.
The financial globalization of the world economy has led to the integration of various financial
markets of the world. The research conducted by Andrés Solimano & Mario Gutiérrezin their
paper "Savings, investment and growth in the global age: analytical and policy issues" found that
there is an ambiguous effect of financial variables on national savings. Deeper financial markets
and strengthened prudential regulation of financial institutions help to enhance saving (and
investment) opportunities by offering a wider variety of financial instruments to channel savings
and also by providing more security (in the case of effective regulation) to investors.
The changes in one part of the world bring an immediate effect on the other part of the
world. This integration of the world financial markets lead to the change choice of saving &
investment avenues available to the investors. The recent downturn in 2008 of the world

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economy not only led to change in the return paid by the investment options (both financial &
physical) but also changed the way investors invested their funds.

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 LITERATURE REVIEW

Factors affecting perception of investors towards Mutual Funds

–By.Dr. Neha Parashar(Assistant Professor, Symbiosis Centre for Management and Human
Resource Development, Pune (Maharashtra)) (2016)
-The study has identified five factors towards MF, among them the most important is
monetary factor and Investors expectation and least is Risk and return. Better customer care
service and capital appreciation are ranking high in second factors.NAV is considered as the third
important factor and bases of investment. The fourth is promotional factor which says that
advertisement by Mutual Fund Company and image of fund manager influence the investor. The
last factor are considered less risky.

A STUDY ON INVESTMENT BEHAVIOR OF MIDDLE CLASS HOUSEHOLDS IN NAGPUR

– By. DR.APARNA SAMUDRA, DR.M.A.BURGHATE (INTERNATIONAL JOURNAL OF SOCIAL
SCIENCES & INTERDISCIPLINARY RESEARCH )(2014)
-The result pointed out that the bank deposits remain the most popular instrument of
investment followed by insurance with maximum number of respondents investing in these fixed
income bearing option.

Investors’ Preference towards Investment Avenues with Special Reference to Salaried

Personnel in North Gujarat Region .
-By-Neha S Shukla (IJSART - Volume 2 Issue 1 –JANUARY 2016 )
-When it comes to investment and patterns of investment various demographic factors
have different effect on behaviour of respondents. For age and income, for obvious reasons
investment has significant relationship, while gender and Education does not have significant
relationship with investment. Though different respondents invest in different avenues, it was
evident that they tend to invest much in Fixed Deposits, Post office scheme and Gold and Silver.
Majority of respondents invest for purchasing home and long term growth.

Investor expectations, protection, awareness and fund selection behaviour

-By- Vidyashankar , Atmaramani and Jambodkar ( JAN 2016)
-The studies indicate that the evolution of mutual funds has been a matter of concern in
India for the researchers, academicians, fund managers and financial analysts to a greater extent
after 1985. The reviews bring to light the importance of mutual funds in the Indian financial
scenario; highlight the need for adequate investor protection, single regulatory authority, higher
return for a given risk as per investors‟ expectation, greater convenience and liquidity, and the
expectations that mutual funds should act as a catalytic agent of economic growth and foster
investors‟ interest

The Growth and Structure of Savings in India.

By-Pandit.B.L (Jan 16)
-The Study indicates that have established a relationship between savings and factors
affecting savings households, private corporate sector and government sector. Thus, the findings
have revealed that the main factor affecting savings rate in India are the growth in Income,
sectoral and functional distribution of income.

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 Liquidity Preference among Employed Women
-By-T.Vijayalakshmi (2009),
-The Study identified that all the respondents preferred that liquid cash for transaction
and precautionary motives. They have no speculative motive regarding bank deposits. They did
not prepone or postpone their deposits according to the fluctuations in interest rates. Most of
the respondents preferred to invest in chit funds than bank deposits. They felt that there are
many formalities in bank transactions and also it is time consuming. Moreover investments in
chit funds are more beneficial than the meager interest rate from bank deposits. Thus, from the
study it is concluded that Chit funds are more beneficiary.

Investment Preferences and Risk Level: Behavior of Salaried Individuals

–By- Dr. Taqadus Bashir, Hassan Raza Ahmed, Sheraz Jahangir, Samina Zaigham, Hifza Saeed &
Sameera Shafi.(IOSR Journal of Business and Management (IOSR-JBM) )
-The research it is concluded that demographic factors have significant relationship with
risk level, stock investment and gambling. Reliability analysis is calculated for all variables. But
another thing is that people have knowledge and income but still they are not willing to
invest.They have fear of losses, reluctance and religious factor. During survey when respondents
of high salary are disagree for investment and gambling. In Gujrat people are not much aware
form stocks investments. Neither there are brokerage houses nor adviser available to advise or
construct the portfolio according to the risk tolerance of salaried individuals.

A Study of Investment Preference of Working Woman of North Gujarat Region

– By- Neha S Shukla (IJSART - Volume 2 Issue 2 FEBRUARY 2016 )
- From the study it is evident that working women invest in various investment avenues.
In addition to that understanding the demographics with the help of the Chi-Square test, it was
found that there is no relationship between education with investment while there is significant
relationship between Age and Income.

Perception of Investors towards the Investment Pattern on Different Investment

Avenues. -By- Dr. MUTHUMEENAKSHI M (Journal of Internet Banking and Commerce)
(2015)
- In this fast affecting world, we keep extra money added risk directs to more profit. For
the example total liquidity, income stability a variety as share, bank companies, gold and silver,
real estate, life insurance postal etc. but most of the investors are to preferred bank deposit
because more respondents invested for purchasing home and long-term growth but, most of the
investors could not aware of investing their money in mutual funds. Therefore, mutual funds will
give more compliment and awareness it will help to invest their money in the mutual funds and
the capital market.

The spending and savings habit of youth in the city of Aurangabad.

By- Abhijeet Birari & Umesh Patil (2014)
-The study finds that significant difference exists in the spending habits of students
belonging to different education levels. The study finds that most of the youth in the sample
spend a large portion of the money on consumable goods and that due to lack of awareness, the
amount of money saved or invested is very little.

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 Youth saving patterns and performance in Ghana’
By- Gina Chowa, Mat Despard & Isaac Osei-Akoto (2012)
-Study attempted to find whether the youth will participate in savings via formal financial
services if given the opportunity. The study found that most youth in the sample, set aside
money regularly, hold onto their set aside money for short periods of time and use it mostly for
short-term consumptive purposes. The study concluded that, youth of a developing country
have a high propensity to save but, lack of proper knowledge and information restricted the
youth from venturing out into the area formal savings and investments.

The Investment Perspective Of Salaried People.

By- Patel & Patel (2012)
-The paper aimed at studying the behavioural pattern & difference in perception of an
individual related to various investment alternatives. The study finds that the youth that was
surveyed preferred investments over savings. The study also discovers that, rather than safe and
secure investments, the youth prefer investments that are high risk but also yield high returns.

Study reveal that female investors dominate the investment market in India.
By- Murithi Suriya, Narayanan and Arivazhagan (2012),
-According to their survey, majority of the investors are found to be considering two or
more sources of information to make investment decisions. Most of the investors discuss with
their family and friends before making an investment decision.
Shanmugasundaram and Balakrishnan (2011) conducted research to analyse the factors
influencing the behaviour of investors in capital market. They concluded that demographic
factors influence the investors' investment decisions.

Study On “Individuals’ Affect-Based Motivations To Invest In Stocks:

By- Jaakko and Tikkanen (2011)
-Beyond Expected Financial Returns and Risks” found that most investors had affected
based extra motivation to invest in stock, over and above financial return expectations. The
more positive an individual's attitude towards the company was, the stronger was his extra
investment motivation.

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 The potential of Youth Savings Accounts (YSAs) as a vital intervention in youth
development and financial inclusion. (2014)
By- Deshpande & Zimmerman
The paper finds that the best way to encourage youth savings and asset accumulation is by
offering major financial incentives to jump start the savings process. The paper found evidence
that youth savings may have the potential to be a high leverage intervention, with positive
effects on youth development and financial inclusion.

A Study the factors which affect individual investment decision

By- Matoussi, H (2015)
-A Study the factors which affect individual investment decision and differences in the
perception of investors in the decision of investing on the basis of age and gender and found
that investors' age and gender predominantly decides the risk taking capacity of investors.

A Survey of the Tunisian Investors Behaviors

By- Zoghlami, F. and Matoussi, H (2009)
-In their study on Tunisian investors in “ A Survey of the Tunisian Investors Behaviors”
revealed psychological particularities that are not expected by financial behavioral literature.

The Effect Of Demographics And Personality On Investment Choice Among Indian

Investors
By-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.

Study Preferences Of Investors Among The Major Categories Of Financial Assets

By-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

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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.

Study the household portfolio

By- Rob Alessie et al (1999)
Study found household portfolio heterogeneity and found that non-capital income, total
net worth, interest on financial matters, employment status had positive impact on the
ownership of different asset classes. Household size was found to have a negative impact, while
age followed a hump shaped profile

From the review of literature it can be inferred that various studies on investment pattern and
preferences provide only glimpses of investment pattern of youth. Very few studies on
investment pattern of youth have been carried out in India.

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 OBJECTIVE AND SCOPE OF STUDY

Objectives:

Primary Objective:-

To study the investment behaviour and level of awareness of youth investors.

To study the Changing investment behaviour of youth.
To study the relative preference of investment instruments.

Secondary Objectives:-

To study the influence of importance assigned to the economic performance attributes of

investment instruments while choosing.
To compare different investment instruments on the basis of factors like risk and return
profile, tax saving, etc.
To ascertain the flexibility of Mutual funds in terms of choosing a scheme that matches
the investor’s investment objective.
To study the influence of reference groups and middlemen in investment decisions.
To find out reason for non-investment.

Scope of Study :-

The study involves different types of investment pattern based on income groups and
avablility of different types of investment options
The respondents involved in this research study were selected from the V.V.Nagar and
Vadodara with the condition of having had experience in Investments.
The Study was based on a Schedule of Questions.

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 RESEARCH METHODOLOGY

RESEARCH OBJECTIVE :

To know and understand the youth’s perception and awareness about Investment pattern and
there behaviour . This will help to know the attitude and perception of youth towards
Investment and what are the factors which Change behaviour of youth about investment
decision. Also what are key concerns from the point of view of youth while investing their
Money?
Determination of information needs and sources. The following was the information required:

What is youth’s attitude towards Investment?

What are the key concern areas for youth while taking investment decision?
Which factors shape the youth’s attitude towards Investment?
How has been recent shift taking place in Investment ?

DATA COLLECTION METHOD :

PRIMARY DATA :

It is original primary data, for specific purpose of research project. For this project, we have to
use following common research instrument or tool-
QUESTIONNAIRE :

Questionnaire development is the critical part of primary data collection method. For this we will
prepare a questionnaire in such a way that it will be able to collect all relevant information
regarding the project. The questionnaire was designed using various scaling techniques. The
questionnaire was used mainly to test the model proposed for Changing in Investment pattern
among youth. Liker five point scales ranging from Strongly Agree to strongly disagree was used
as a basis of Questions. The data collection was done over a period of 2 weeks
This was done by going directly to the respondents.

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SECONDARY DATA

It will be collected to add the value to the primary data. This may be used to collect necessary
data and records by different websites, magazines, annual reports, journals, reference books,
and newspapers, etc.

SAMPLE DESIGN

SAMPLE UNIT

For studying Changing in Investment pattern among youth, samples were selected from Vallabh
Vidya Nagar And Vadodara.
Our sample consisted of young investors. With age groups between 25-40.

SAMPLING METHODS
Sampling methods fall under two broad categories-
a) Convenient Sampling

SAMPLE SIZE : - 200

RESEARCH PLACE : - Vallabh Vidya Nagar and Vadodara

SAMPLE DESIGN
We have prepared this project as descriptive type, as the objective of the study.

HYPOTHESIS:

H1: Investors are not well aware of the investing options they have.
H2: Youth investors are more inclined towards modern investment patterns.
H3: Traditional investment involves less risk.

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DATA ANALYSIS

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Frequency Table

Investment_Safety
Cumulative
Frequency Percent Valid Percent Percent
Valid 1.00 28 17.7 18.7 18.7
2.00 17 10.8 11.3 30.0
3.00 18 11.4 12.0 42.0
4.00 11 7.0 7.3 49.3
5.00 15 9.5 10.0 59.3
6.00 61 38.6 40.7 100.0
Total 150 94.9 100.0
Missing System 8 5.1
Total 158 100.0

Investment_Liquidity
Cumulative
Frequency Percent Valid Percent Percent
Valid 1.00 7 4.4 4.6 4.6
2.00 28 17.7 18.5 23.2
3.00 26 16.5 17.2 40.4
4.00 25 15.8 16.6 57.0
5.00 29 18.4 19.2 76.2
6.00 36 22.8 23.8 100.0
Total 151 95.6 100.0
Missing System 7 4.4

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Total 158 100.0

Investment_Return
Cumulative
Frequency Percent Valid Percent Percent
Valid 1.00 32 20.3 21.1 21.1
2.00 11 7.0 7.2 28.3
3.00 16 10.1 10.5 38.8
4.00 8 5.1 5.3 44.1
5.00 19 12.0 12.5 56.6
6.00 66 41.8 43.4 100.0
Total 152 96.2 100.0
Missing System 6 3.8
Total 158 100.0

Investment_Reliability
Cumulative
Frequency Percent Valid Percent Percent
Valid 1.00 6 3.8 3.9 3.9
2.00 12 7.6 7.8 11.8
3.00 5 3.2 3.3 15.0
4.00 38 24.1 24.8 39.9
5.00 46 29.1 30.1 69.9
6.00 46 29.1 30.1 100.0
Total 153 96.8 100.0
Missing System 5 3.2
Total 158 100.0

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Investment_Risk
Cumulative
Frequency Percent Valid Percent Percent
Valid 1.00 11 7.0 7.2 7.2
2.00 8 5.1 5.2 12.4
3.00 13 8.2 8.5 20.9
4.00 33 20.9 21.6 42.5
5.00 49 31.0 32.0 74.5
6.00 39 24.7 25.5 100.0
Total 153 96.8 100.0
Missing System 5 3.2
Total 158 100.0

Investment_Others
Cumulative
Frequency Percent Valid Percent Percent
Valid 1.00 6 3.8 4.2 4.2
2.00 11 7.0 7.6 11.8
3.00 21 13.3 14.6 26.4
4.00 32 20.3 22.2 48.6
5.00 24 15.2 16.7 65.3
6.00 50 31.6 34.7 100.0
Total 144 91.1 100.0
Missing System 14 8.9
Total 158 100.0

Knowledge_RealEstate
Cumulative
Frequency Percent Valid Percent Percent
Valid 5 3.2 3.2 3.2
No 47 29.7 29.7 32.9
Yes 106 67.1 67.1 100.0
Total 158 100.0 100.0

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 Knowledge_Shares
Cumulative
Frequency Percent Valid Percent Percent
Valid 5 3.2 3.2 3.2
No 54 34.2 34.2 37.3
Yes 99 62.7 62.7 100.0
Total 158 100.0 100.0

Knowledge_Gold
Cumulative
Frequency Percent Valid Percent Percent
Valid 4 2.5 2.5 2.5
No 31 19.6 19.6 22.2
Yes 123 77.8 77.8 100.0
Total 158 100.0 100.0

Knowledge_MF
Cumulative
Frequency Percent Valid Percent Percent
Valid 3 1.9 1.9 1.9
No 64 40.5 40.5 42.4
Yes 91 57.6 57.6 100.0
Total 158 100.0 100.0

Knowledge_PostOffice
Cumulative
Frequency Percent Valid Percent Percent
Valid 10 6.3 6.3 6.3
No 56 35.4 35.4 41.8
Yes 92 58.2 58.2 100.0
Total 158 100.0 100.0

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 Knowledge_BFixedDep
Cumulative
Frequency Percent Valid Percent Percent
Valid 5 3.2 3.2 3.2
No 20 12.7 12.7 15.8
Yes 133 84.2 84.2 100.0
Total 158 100.0 100.0

Knowledge_Debt
Cumulative
Frequency Percent Valid Percent Percent
Valid 9 5.7 5.7 5.7
No 97 61.4 61.4 67.1
Yes 52 32.9 32.9 100.0
Total 158 100.0 100.0

Knowledge_Insurance
Cumulative
Frequency Percent Valid Percent Percent
Valid 6 3.8 3.8 3.8
No 34 21.5 21.5 25.3
Yes 118 74.7 74.7 100.0
Total 158 100.0 100.0

Knowledge_FD
Cumulative
Frequency Percent Valid Percent Percent
Valid 6 3.8 3.8 3.8
No 22 13.9 13.9 17.7
Yes 130 82.3 82.3 100.0
Total 158 100.0 100.0

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 Knowledge_PF
Cumulative
Frequency Percent Valid Percent Percent
Valid 10 6.3 6.3 6.3
No 61 38.6 38.6 44.9
Yes 87 55.1 55.1 100.0
Total 158 100.0 100.0

Knowledge_Derivatives
Cumulative
Frequency Percent Valid Percent Percent
Valid 10 6.3 6.3 6.3
No 98 62.0 62.0 68.4
Yes 50 31.6 31.6 100.0
Total 158 100.0 100.0

Knowledge_Chits
Cumulative
Frequency Percent Valid Percent Percent
Valid 9 5.7 5.7 5.7
No 119 75.3 75.3 81.0
Yes 30 19.0 19.0 100.0
Total 158 100.0 100.0

Age_OfInvestment
Cumulative
Frequency Percent Valid Percent Percent
Valid .00 1 .6 .7 .7
7.00 1 .6 .7 1.4
12.00 2 1.3 1.4 2.8
14.00 3 1.9 2.1 5.0
15.00 4 2.5 2.8 7.8
16.00 4 2.5 2.8 10.6
17.00 1 .6 .7 11.3
18.00 11 7.0 7.8 19.1

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 19.00 3 1.9 2.1 21.3
20.00 24 15.2 17.0 38.3
21.00 20 12.7 14.2 52.5
22.00 14 8.9 9.9 62.4
23.00 13 8.2 9.2 71.6
24.00 10 6.3 7.1 78.7
25.00 8 5.1 5.7 84.4
26.00 4 2.5 2.8 87.2
27.00 4 2.5 2.8 90.1
28.00 4 2.5 2.8 92.9
29.00 6 3.8 4.3 97.2
30.00 2 1.3 1.4 98.6
32.00 2 1.3 1.4 100.0
Total 141 89.2 100.0
Missing System 17 10.8
Total 158 100.0

Frequency
Cumulative
Frequency Percent Valid Percent Percent
Valid 12 7.6 7.6 7.6
Every month 25 15.8 15.8 23.4
i don,t invest in securities 1 .6 .6 24.1
Never 2 1.3 1.3 25.3
Never 2 1.3 1.3 26.6
No 1 .6 .6 27.2
No investment 4 2.5 2.5 29.7
Once in a year 17 10.8 10.8 40.5
Whenever good opportunity 41 25.9 25.9 66.5
comes
Whenever I get lump sum 37 23.4 23.4 89.9
amount
Whenever the market is 16 10.1 10.1 100.0
good
Total 158 100.0 100.0

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 Savings_Tax
Cumulative
Frequency Percent Valid Percent Percent
Valid 8 5.1 5.1 5.1
Agree 45 28.5 28.5 33.5
Disagree 18 11.4 11.4 44.9
Neither Disagree nor agree 46 29.1 29.1 74.1
Strongly Agree 28 17.7 17.7 91.8
Strongly Disagree 13 8.2 8.2 100.0
Total 158 100.0 100.0

Savings_Return
Cumulative
Frequency Percent Valid Percent Percent
Valid 9 5.7 5.7 5.7
Agree 63 39.9 39.9 45.6
Disagree 8 5.1 5.1 50.6
Neither Disagree nor agree 28 17.7 17.7 68.4
Strongly Agree 44 27.8 27.8 96.2
Strongly Disagree 6 3.8 3.8 100.0
Total 158 100.0 100.0

Savings_Risk
Cumulative
Frequency Percent Valid Percent Percent
Valid 8 5.1 5.1 5.1
Agree 57 36.1 36.1 41.1
Disagree 8 5.1 5.1 46.2
Neither Disagree nor agree 47 29.7 29.7 75.9
Strongly Agree 32 20.3 20.3 96.2
Strongly Disagree 6 3.8 3.8 100.0
Total 158 100.0 100.0

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 Savings_Liquidity
Cumulative
Frequency Percent Valid Percent Percent
Valid 10 6.3 6.3 6.3
Agree 59 37.3 37.3 43.7
Disagree 14 8.9 8.9 52.5
Neither Disagree nor agree 55 34.8 34.8 87.3
Strongly Agree 16 10.1 10.1 97.5
Strongly Disagree 4 2.5 2.5 100.0
Total 158 100.0 100.0

Savings_Info
Cumulative
Frequency Percent Valid Percent Percent
Valid 9 5.7 5.7 5.7
Agree 65 41.1 41.1 46.8
Disagree 10 6.3 6.3 53.2
Neither Disagree nor agree 53 33.5 33.5 86.7
Strongly Agree 12 7.6 7.6 94.3
Strongly Disagree 9 5.7 5.7 100.0
Total 158 100.0 100.0

Savings_Agent
Cumulative
Frequency Percent Valid Percent Percent
Valid 9 5.7 5.7 5.7
Agree 46 29.1 29.1 34.8
Disagree 13 8.2 8.2 43.0
Neither Disagree nor agree 67 42.4 42.4 85.4
Strongly Agree 13 8.2 8.2 93.7
Strongly Disagree 10 6.3 6.3 100.0
Total 158 100.0 100.0

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 Usual_Saving_Behaviour
Cumulative
Frequency Percent Valid Percent Percent
Valid 6 3.8 3.8 3.8
Don’t save 2 1.3 1.3 5.1
No regular savings plan 61 38.6 38.6 43.7
Save regularly, put money 61 38.6 38.6 82.3
aside each month
Spend income of one family 9 5.7 5.7 88.0
member and save the
income of other family
members
Spend regular income and 19 12.0 12.0 100.0
save other income
Total 158 100.0 100.0

Rank_PostOffice
Cumulative
Frequency Percent Valid Percent Percent
Valid 6 3.8 3.8 3.8
Least Preferable 12 7.6 7.6 11.4
Less Preferable 19 12.0 12.0 23.4
More Preferable 38 24.1 24.1 47.5
Most Preferable 26 16.5 16.5 63.9
Preferable 57 36.1 36.1 100.0
Total 158 100.0 100.0

Rank_Land
Cumulative
Frequency Percent Valid Percent Percent
Valid 5 3.2 3.2 3.2
Least Preferable 25 15.8 15.8 19.0
Less Preferable 27 17.1 17.1 36.1
More Preferable 40 25.3 25.3 61.4
Most Preferable 31 19.6 19.6 81.0
Preferable 30 19.0 19.0 100.0
Total 158 100.0 100.0

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 Rank_Gold
Cumulative
Frequency Percent Valid Percent Percent
Valid 8 5.1 5.1 5.1
Least Preferable 14 8.9 8.9 13.9
Less Preferable 22 13.9 13.9 27.8
More Preferable 34 21.5 21.5 49.4
Most Preferable 37 23.4 23.4 72.8
Preferable 43 27.2 27.2 100.0
Total 158 100.0 100.0

Rank_Shares
Cumulative
Frequency Percent Valid Percent Percent
Valid 6 3.8 3.8 3.8
Least Preferable 28 17.7 17.7 21.5
Less Preferable 40 25.3 25.3 46.8
More Preferable 29 18.4 18.4 65.2
Most Preferable 16 10.1 10.1 75.3
Preferable 39 24.7 24.7 100.0
Total 158 100.0 100.0

Rank_MF
Cumulative
Frequency Percent Valid Percent Percent
Valid 5 3.2 3.2 3.2
Least Preferable 22 13.9 13.9 17.1
Less Preferable 36 22.8 22.8 39.9
More Preferable 17 10.8 10.8 50.6
Most Preferable 29 18.4 18.4 69.0
Preferable 49 31.0 31.0 100.0
Total 158 100.0 100.0

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 Age
Cumulative
Frequency Percent Valid Percent Percent
Valid 1.00 96 60.8 61.5 61.5
2.00 25 15.8 16.0 77.6
3.00 28 17.7 17.9 95.5
4.00 7 4.4 4.5 100.0
Total 156 98.7 100.0
Missing System 2 1.3
Total 158 100.0

Gender
Cumulative
Frequency Percent Valid Percent Percent
Valid 1.00 101 63.9 64.7 64.7
2.00 55 34.8 35.3 100.0
Total 156 98.7 100.0
Missing System 2 1.3
Total 158 100.0

Education
Cumulative
Frequency Percent Valid Percent Percent
Valid 1.00 58 36.7 38.4 38.4
2.00 71 44.9 47.0 85.4
3.00 8 5.1 5.3 90.7
4.00 1 .6 .7 91.4
5.00 13 8.2 8.6 100.0
Total 151 95.6 100.0
Missing System 7 4.4
Total 158 100.0

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 Organisation
Cumulative
Frequency Percent Valid Percent Percent
Valid 2.00 15 9.5 16.1 16.1
3.00 45 28.5 48.4 64.5
4.00 19 12.0 20.4 84.9
6.00 14 8.9 15.1 100.0
Total 93 58.9 100.0
Missing System 65 41.1
Total 158 100.0

Experience
Cumulative
Frequency Percent Valid Percent Percent
Valid 1.00 116 73.4 77.3 77.3
2.00 25 15.8 16.7 94.0
3.00 9 5.7 6.0 100.0
Total 150 94.9 100.0
Missing System 8 5.1
Total 158 100.0

MonthlyIncome
Cumulative
Frequency Percent Valid Percent Percent
Valid 1.00 68 43.0 43.6 43.6
2.00 36 22.8 23.1 66.7
3.00 37 23.4 23.7 90.4
4.00 15 9.5 9.6 100.0
Total 156 98.7 100.0
Missing System 2 1.3
Total 158 100.0

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 Other_sources_income
Cumulative
Frequency Percent Valid Percent Percent
Valid 1.00 26 16.5 26.8 26.8
2.00 21 13.3 21.6 48.5
4.00 1 .6 1.0 49.5
5.00 2 1.3 2.1 51.5
6.00 41 25.9 42.3 93.8
7.00 4 2.5 4.1 97.9
8.00 2 1.3 2.1 100.0
Total 97 61.4 100.0
Missing System 61 38.6
Total 158 100.0

Bar Charts

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43 | P a g e
 CONCLUSIONS

The research on Changing Investment Pattern Among Youth conducted in Vallabh Vidyanagar and
Vadodara consisted of a sample size of 151 chosen on the basis of convenient sampling. Research
Methodology used was descriptive type of study. A questionnaire consisting of various personal and
investment attributes was used for this research and analysis was done using statistical software like SPSS
and Google Sheets. Due to constraint of time, research was conducted by recording 151 responses instead
of 200. The responses to the questionnaire show the following results:

1. Maximum responses (62.3%) were received from age group between 20-25.
2. Maximum responses (64.7%) were received from the male gender.
3. It has been observed that, maximum respondents have started investing from the age of 20 years
and 74% of them have insurance policies on their names.
4. Also, most respondents get investment information from their friends/relatives and internet.
5. Most respondents save in proportion to their expenditure in the ratio 30:70, and prefer to invest in
long term investments.
6. It has been observed from the responses that the objective of large number of youth respondents is
inclined towards good returns from investment, rather than safety, risk and other factors.
7. Also, factors determining investment are Consistency of returns and investment information being
available.
8. Most respondents save regularly and put money aside each month.
9. Most preferred type of investment is Post Office/Bank Deposits and Mutual Funds.

It can be inferred from above study that, most respondents prefer return over traditional attitudes of
safety and liquidity. However most respondents choose to invest a part of their savings in safe areas
like Post office and Bank Deposits, Gold and another part in high return and risk segments like Mutual
Funds.

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 BIBLIOGRAPHY

PWC Report Mutual Fund Summit 2012.

Mutual Fund saving ka naya tarika Article by AMFI

www.amfi.com• Bloomberg business news channel.

India Wealth Report 2011 by Karvy Private Wealth.

Economics Times news paper.• www.investopedia .com

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 ANNEXURE

QUESTIONNAIRE

A STUDY ON CHANGING INVESTMENT PATTERN AMONG YOUTH

We are the students of G. H. Patel Postgraduate Institute of Business Management. All Your
answers to this Questionnaire will be treated confidentially and used only for academic purpose.
Thank you for being willing to complete this questionnaire.

I. Profile:

1. Age: a) 20 – 30 b) 31 – 40 c) 41 – 50 d) above 50

2. Gender : a) Male b) Female

3. Marital Status: a) Married b) Unmarried c) Divorced d) widow

4. Educational qualification: a) HSC b) UG c) PG d) Professional e) Others

6. Type of Organisation: a) Private b) Government C) Self Employee d) Business

7. Years of Experience: a) Less than 5 Years b) 5 – 10 years

c) 10 – 15 years d) More than 15

8. Nature of Organisation: 1) Service 2) Education 3) Finance/Banking 4) Others

9. No. of dependants in the family: a) Below 3 b) 3 – 5 c) Above 5

10. Monthly Income: 1) Less than Rs.25000 2) Rs.25,000 to Rs.50,000

3) Rs.50,000 to Rs.1,00,000 4) above Rs.1,00,000

11. What are the other sources of income do you have?

Sources of Other Income

a) Spouse income

b) Income from children

c) Agriculture income

d) Rent
e) Others

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 II. Investment attributes:
1. Where do you get investment information?
a) Friends b) Relatives c) Newspapers d) Consultants e)others f)TV g) ads h) internet.

2. What is the proportion of savings and expenditure in your earnings?

Savings: Expenditure.
1)10:90 2) 20:80 3) 30:70 4) 40:60 5) 50:50.

3. Type of Investment:

a) Long term (greater than 3 years)

b) Medium term (1 to 3 year)
c) Short term (less than 1 year).

4. Of your savings, what proportion of it is saved for Long-term, medium and short term?
a) 10:20:70
b) 20:30:50
c) 30:40:30
d) others please specify

5. Objective of your investment: Rank ( 1, 2, 3,….)

a)Safety b) Liquidity c) Return d) Reliability 6) Low risk f) Other factors

6. Your Knowledge on various types of investment and the investments made.

Type of investment Awareness (please tick)

1. Real estate a) Yes b) No
2.Shares a) Yes b) No
3.Gold a) Yes b) No
4.Mutual funds a) Yes b) No
5. Post office a) Yes b) No
6. Bank fixed deposits a) Yes b) No
7. Debt securities (Bonds etc) a) Yes b) No
8. Insurance policies a) Yes b) No
9.Fixed deposite with company a) Yes b) No
10.Provident Fund a) Yes b) No
11.Future/option/derivation a) Yes b) No
12.Contribution to chits a) Yes b) No
13.Deposite with Privet party a) Yes b) No
14.Other a) Yes b) No

7. How frequently you change your investment?

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 a) 1 month b) 1-6 months c) 1 year d).above 1 year.

8. What rate of return on investment you expect and got?

Expected Received

Less than 20% Above 20% Less than 20% Above 20%

9. When have you started investing in small savings since ______________ years.

10.How many LIC policies do you have for your family?

a) On your name b) On your spouse c) for children

11. How frequently do you invest in securities?

a) Once in a year
b) Every month
c) Whenever I get lump sum amount
d) Whenever the market is good
e) Whenever good opportunity comes.

12.Factors determining savings:

Disagree Neither Agree Strongly

Strongly Disagree nor agree
Disagree agree
1.You save to
reduce tax
2.Consistency
of return
3.Less Risk
4.Problem of
Liquidity
5.Investment
information
available
6.Comfortable
with service
provided by
agent

13. Please tick the one response that best describe your usual saving behavior.
a) Save regularly, put money aside each month ____
b) Spend regular income and save other income _______
c) Spend income of one family member and save the income of other family members_________

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d) No regular savings plan _______
e) Don’t save _______

14. Investor perception towards savings and investment:

Disagree Neither Agree Strongly

Strongly Disagree agree
Disagree nor agree
1.Betterment
of servicing
of investors
attracts more
investor
2.Consultants
play a vital
role in
mobilizing
the savings of
people
3.Investment
tenure is very
significant in
deciding the
return.
4.PPF is
really helping
the
unorganized
sector
5.Bank is a
better place of
investment
than in other
investment
avenues
6.Household
saving help
the economic
development
of the country
7.Govt. can
give tax
exemption for
all long term
investment
8.All Indians
are having
good saving
habit

Thank You 

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