Investment Pattern Of IT employees in Pune

Submitted bySayali Chodankar

Apoorva Shrivastava

INTRODUCTION

• “Investing is the intersection of economics and psychology.”-SETH KLARMAN

• Financial planning is the process of meeting one’s life’s goals through proper management of their finances

• To make a wise investment, one has to make proper study or knowledge of all possible investment avenues available according to risk and return parameters

Introduction

• It depends on the risk appetite of the investors that where they want to put their money and how much risk are they ready to take.

• In early days only conventional investment options were available

• with the emergence of technology, the investment options also grew.

• Many new investment avenues available such as Mutual Funds, Derivatives, ETFs, REIT etc

Why IT

• IT employees are technologically advance. • They are the new crop of India and are also the

present and future of our country• There are more than 2.5 million IT employees in

India currently.• They make a huge customer base for Wealth

management firms, Banks, NBFCs etc.• It’s beneficial to understand their investment

preferences.

Why Pune

• Pune has one of the largest IT population in India.• After Bangalore it’s the second most popular IT hub• There are more than 500 IT companies having their

operations in Pune. • It’s the fastest growing IT city and in future more

and more IT companies will enter here.• Approximately 40% of Pune’s population consist of

IT employees .(source Times of India)

Hypothesis HA(0) There is no significance between risk appetite of male and female. HB(0) There is no significance between risk appetite of various age groups. HC(0) There is no significant relationship between risk appetite and marital

status. HD(0) There is no significant relationship between risk appetite and

monthly salary. HE(0) There is no significant relationship between risk appetite and nature

of employment. HF(0) There is no significant relationship between risk appetite and

investment knowledge (beginner/moderate/expert) HG(0) There is no significant relationship between risk appetite and

investment medium .

RESEARCH METHODOLOGY

• The study is based on Primary sources of data.• Data is collected by distribution of an online

questionnaire through Google Forms • Google form was floated through emails and

also was put on social media sites like facebook and whats app

• Secondary source of data was some previous research papers on similar topic for reference.

The Survey Form

RESPONSES

ANALYSIS (MS EXCEL)

ANALYSIS (SPSS)

• We have used Chi square and phi crammer’s test for analysis.

• For ease purpose we divided investment options into two groups –low risk and high risk

• Low risk consist of CASA, FD/RD,Government bonds,PPF

• High risk consist of Share market,gold commodity,real estate, MF, REITs etc .

FINDINGS AND CONCLUSION

• We found that the first preference for investment is Low Risk Avenues like Fixed Deposit and Recurring deposit also Bank accounts and Government Bonds.

• After conducting Pearson’s Chi Square Test and Phi Crammer Test ,we states that there is no significant relationship between risk appetite and demographics like gender, age, marital status as well as monthly salary, nature of employment , investment knowledge and investment medium.

Contd….

• After analysis and interpretation data it is concluded that IT sector employees do not have much knowledge about those avenues.

• They mostly prefer Low Risk options rather than High Risk.

• Since there is no significance relationship between demographics and Risk appetite, Hence the wealth manager can have common plan for IT employees and wealth managements and banks can focus on promoting low risk products among IT employees.