A Study on Investment Pattern of Salaried Individuals in Odisha

Savings and investments by individuals are important both for personal financial well-being and for economic growth. People with savings are better able to weather economic shocks such as a loss of income, to build assets for the future, and are less reliant on credit to cover unexpected expenses. Savings can also be turned into further increased income and wealth through proper and prudent investment. Proper investment spurs addition to wealth, as once people start investing, they begin to own assets and hence get an income from wealth in addition to their income from work. This study examined investment pattern of salaried individuals in Odisha. The underlying principle behind choosing this topic is the basis that the salaried class in India constitute majority of savers and has gained attention of the economists, policy makers and the marketers, as there remains a considerable untapped, unharnessed potential in this income class of India. The data was collected through a structured questionnaire from 100 salaried individuals from twin cities of Cuttack and Bhubaneswar where majority of salaried individuals reside or work. The research shows that the preferred mode of investment of respondents is bank deposits followed by life insurance. However, majority of the respondents are investing their lifetime savings/surplus income in real estate, though most have to borrow for this purpose. However, majority of the respondents have expressed that they are likely to invest in real estate followed by bank deposits, Life insurance in future. Though majority of respondents are likely to take moderate risk for moderate return, they attach more importance to safety and security of their investment.