Savings to Investments: A Study of Financial Behaviour among Salaried Individuals

Abstract

The transition from saving to systematic investment has become increasingly significant in emerging economies, particularly among salaried individuals who rely on fixed monthly incomes. This study examines the financial behaviour, investment preferences, and risk orientation of salaried individuals through an empirical investigation. Primary data were collected from 150 respondents using a structured questionnaire, and statistical tools including descriptive analysis, Chi-square tests, Spearman’s correlation, and One-Way ANOVA were applied to examine relationships between demographic factors and investment
choices. The findings indicate a strong preference for traditional and low-risk investment avenues such as bank deposits, insurance policies, and post office savings schemes. Return on investment and time horizon emerged as dominant determinants influencing investment decisions, while overall risk tolerance was found to be low among most respondents. The study reveals variations in investment patterns across demographic groups. Age demonstrated a statistically significant influence on risk tolerance levels. Despite moderate levels of financial awareness, most respondents allocate a relatively small proportion of their savings toward investment, highlighting the need for improved financial planning and literacy initiatives. The results provide insights for financial institutions, policymakers, and advisors seeking to design targeted investment products and educational  programs tailored to salaried investors.