INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,

MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)

ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XIV, Issue XI, November 2025

“Saving vs Investing: A Comparative Study of Financial Habits”

¹Prof. Priyanka Sagar Pawar, ²Shudhir Kumar Roy

¹Assistant Professor Sinhgad Institute of Management

²MBA 1^stYear (Finance) Student Sinhgad Institute of Management

DOI : https://doi.org/10.51583/IJLTEMAS.2025.1411000119

Received: 09 December 2025; Accepted: 16 December 2025; Published: 24 December 2025

ABSTRACT

This paper presents a comparative analysis of saving and investing behaviour to examine how financial literacy,

income level, risk perception and demographic characteristics influence individual financial decision-making.

The study is based on primary data collected from 120 respondents in selected areas of Pune city through a

structured questionnaire. Descriptive statistical tools, including percentages, tables and graphical analysis, were

employed to analyse and interpret the data.

The results reveal that traditional saving instruments such as bank savings accounts and fixed deposits remain

the most preferred avenues due to their safety, liquidity and low risk. However, an emerging inclination towards

investment options such as mutual funds and equities is observed, particularly among younger and well-educated

respondents. Despite this trend, investment participation is restricted by factors such as inadequate financial

knowledge, fear of market volatility and limited disposable income.

The study finds that a majority of respondents consider a balanced combination of saving and investing to be the

most effective approach for long-term wealth creation and financial security. The paper emphasizes the need for

enhanced financial literacy, early investment awareness and accessible investment products to promote informed

and sustainable financial behaviour. The findings provide valuable insights for policymakers, financial

institutions and educators in developing strategies to improve individual financial well-being.

Keywords: Saving, Investing, Financial Behaviour, Financial Literacy, Wealth Creation

INTRODUCTION

In the present era of rapid economic development and rising financial awareness, individuals are increasingly

faced with the crucial task of managing their finances effectively. One of the most fundamental decisions that

individuals need to make revolves around the choice between saving and investing. While both are essential

components of personal financial planning, they serve different purposes and carry different levels of risk and

return. Saving typically refers to setting aside a portion of income in safe and liquid forms like bank accounts,

fixed deposits (FDs), or recurring deposits (RDs), which offer security and immediate accessibility. On the other

hand, investing involves allocating money to various instruments such as mutual funds, equities, real estate, or

bonds with the goal of wealth creation and higher returns over the long term, albeit with a higher degree of risk.

The idea for this project emerged from the observation that, despite the increasing availability of financial tools

and resources, a large section of the population continues to rely heavily on traditional saving methods. This

conservative approach may offer safety, but it often limits the potential for wealth generation. Conversely, those

who venture into investments without adequate knowledge may face significant risks, resulting in financial

setbacks. Therefore, understanding the underlying factors that influence an individual’s preference for saving or

investing becomes vital in promoting healthy financial habits and long-term financial well-being.

This project titled “Saving vs Investing: A Comparative Study of Financial Habits” seeks to analyse and

compare the attitudes, preferences and practices related to saving and investing among a diverse group of

individuals. It draws insights from a structured primary survey conducted among 120 respondents from various

www.ijltemas.in

Page 1269

INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,

MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)

ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XIV, Issue XI, November 2025

locations in Pune, including F.C. Road, J.M. Road, Law College Road, Swargate and Vadgaon. The respondents

represented a broad demographic, ranging from students and salaried employees to self-employed professionals,

thus providing a comprehensive picture of prevailing financial habits across age groups and income levels.

The data collected reveals that traditional saving instruments like bank savings accounts and fixed deposits

remain the preferred choices for a majority of the participants, reflecting a strong inclination toward low-risk

options. However, a growing interest is also observed in higher-return avenues such as stocks, mutual funds and

real estate—especially among the younger population. Encouragingly, over 80% of respondents acknowledged

the importance of starting investments at an early age and around 72.5% believed that true financial security is

best achieved through a combination of saving and investing. These findings reflect a positive shift in mindset,

but also underline existing challenges.

One of the major issues identified during the study is the lack of financial knowledge (20.8%) and the fear of

risk (25%), which continue to deter individuals from making informed investment decisions. In many cases,

financial decisions are guided by hearsay, family advice, or self-learning, with limited engagement with

professional financial advisors. Moreover, while savings are often regular and disciplined, investments are

sporadic and underutilized due to uncertainty and limited awareness.

This project aims not just to document these trends, but also to offer constructive suggestions to bridge the

knowledge gap and encourage balanced financial behaviour. Some of the recommended solutions include

enhancing financial literacy through formal education and community workshops, introducing youth-friendly

investment products, utilizing technology for simplified investing and offering low-cost, accessible investment

options for those with limited income.

Ultimately, this study hopes to shed light on the evolving financial behaviour of individuals and to serve as a

foundation for future research on financial planning and wealth management. By encouraging a more informed,

balanced approach between saving and investing, this project aspires to contribute to the financial empowerment

of individuals and promote a culture of sound financial decision-making in society.

LITERATURE REVIEW

Financial behaviour related to saving and investing has been widely examined in prior research, particularly in

relation to financial literacy, income, risk perception and demographic characteristics. Gupta examined the

investment behaviour of IT professionals and found that individuals with higher income and stronger financial

knowledge showed a greater preference for market-linked instruments such as mutual funds and equities, while

respondents with limited financial awareness relied mainly on traditional saving avenues like savings accounts

and fixed deposits [1]. This highlights the central role of financial literacy in shaping investment decisions.

Jaiswal analysed the investment patterns of salaried individuals in Western India and observed that safety-

oriented instruments such as fixed deposits and insurance policies were the most preferred options [2]. The study

also reported a low level of financial literacy among respondents and emphasized the need for government-led

financial awareness initiatives to improve informed decision-making. Similar conclusions were drawn by

Kamboj, who reported that only one-third of respondents in Haryana possessed adequate financial knowledge,

resulting in avoidance of higher-return but riskier investment options [11].

A systematic literature review conducted by Jumena et al. identified major determinants of saving behaviour by

analysing 124 studies published between 2012 and 2021 [3]. The review classified influencing factors into

economic, psychological and demographic categories. The findings suggested that younger individuals, due to

a longer investment horizon, are more inclined towards financial market investments, whereas older individuals

generally prefer safer saving instruments. This age-based distinction is frequently cited in financial behaviour

literature.

Ganapathi reviewed existing literature on investment behaviour and emphasized the importance of psychological

factors such as risk aversion and trust in financial institutions [4]. The study noted that individuals with higher

risk aversion tend to avoid market-linked instruments, while trust in financial institutions positively influences

www.ijltemas.in

Page 1270

INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,

MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)

ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XIV, Issue XI, November 2025

participation in investment activities. Lima et al. also found that individuals with higher financial literacy are

more likely to invest in diversified assets rather than relying solely on traditional saving methods, while

behavioural biases and fear often discourage participation in profitable investments [5].

Age-related differences in investment preferences were further explored by Soin and Vaishali, who identified a

clear generational divide in financial behaviour [6]. Their study revealed that young professionals are more

inclined towards mutual funds, stocks and emerging instruments such as cryptocurrencies, reflecting a higher

risk appetite compared to older age groups. In contrast, Thard’s study on university teachers in Assam showed

a strong preference for fixed deposits, largely driven by fear of risk and limited financial awareness [7].

Research focusing on financial inclusion has highlighted structural barriers to investment participation. Chhajer

examined rural investors and observed growing interest in modern financial products such as mutual funds and

insurance; however, actual participation remained low due to lack of financial education and trust in formal

institutions [8]. Similarly, Ganpatye found that many youths, particularly from rural and lower-income

backgrounds, lacked access to banking services and financial knowledge, resulting in weak saving habits and

impulsive spending behaviour [10].

Gender-based differences in financial behaviour have also been documented. Thampatty studied the saving and

investment patterns of women in Kerala and found that women are generally disciplined savers but avoid risky

investment instruments due to limited financial knowledge and confidence [9]. The study emphasized the

importance of workplace-based financial education programs to encourage women’s participation in diverse

investment avenues.

Overall, existing literature establishes that financial literacy, risk perception, age, income and trust in financial

institutions significantly influence saving and investing behaviour. However, most studies focus on specific

demographic groups or examine saving and investment decisions independently. There is limited research that

compares saving and investing together while considering multiple influencing factors simultaneously within an

urban context. The present study attempts to address this gap by analysing the combined saving and investing

behaviour of individuals across different age groups, income levels and occupations in Pune city.

Research Gap

Many studies have already been conducted on saving and investment behaviour of individuals. The researcher

(I Shudhir Kumar Roy), tried the best to gather the relevant literature to support the study. However, most of

these studies focus only on specific groups such as salaried employees, women, rural investors, or professionals.

Very few studies compare saving and investing together to understand how people balance both in their financial

planning.

Additionally, existing research often studies factors like financial literacy, risk perception, or demographic

characteristics separately, but not collectively in one study. There is also limited research that focuses on urban

individuals from different age groups and occupations in a single location.

Therefore, there is a need for a study that compares saving and investing behaviour while considering factors

such as financial literacy, risk tolerance, income and demographic characteristics together. The present study

attempts to fill this gap by analysing the saving and investing habits of individuals in Pune city.

Scope from Literature Review

1. There is scope to study saving and investing together rather than separately to understand real financial

behaviour.

2. Existing studies show limited focus on urban individuals from different occupational backgrounds in one

location.

www.ijltemas.in

Page 1271

INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,

MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)

ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XIV, Issue XI, November 2025

3. There is scope to analyse the combined effect of financial literacy, risk tolerance and demographic factors

on financial decisions.

4. More localized studies are needed to understand city-specific financial habits.

5. Future studies can focus on improving financial awareness and early investment behaviour among

individuals.

RESEARCH METHODOLOGY

Problem Identification

This study focuses on understanding why individuals often choose traditional saving methods over investment

options, despite having the means to invest. It explores how factors like financial literacy, risk tolerance and

socio-economic background influence financial habits, aiming to promote balanced and informed financial

decision-making.

Objectives

1. To help understand how individuals allocate their money between saving and investing, it is essential to

explore how people make decisions regarding whether to save or invest their money.

2. To understand what makes people to feel comfortable or hesitant about investing instead of saving, examine

factors influencing people's willingness to invest versus keeping money in savings.

3. To determine which option, saving or investing, helps people build more wealth over time.

4. To identify the impact of income, financial literacy and economic conditions on financial decisions.

Hypothesis

1. There may be a significant relationship between age group and type of financial choice (saving vs.

investing).

2. There may be a significant relationship between risk perception and investment behavior.

3. There may be a significant relationship between individuals' perception of financial security and their

preference for combining saving and investing.

Research Design

The present study adopts a descriptive research design, as it aims to describe and analyze the saving and investing

behaviour of individuals. This design is suitable because the study focuses on understanding existing financial

habits, preferences and awareness levels rather than establishing cause-and-effect relationships.

Sampling Design

The study uses convenience sampling as the sampling technique. This method was chosen due to ease of access,

time constraints and availability of respondents. The respondents were selected from different age groups,

occupations and income levels to ensure diversity in opinions and financial behaviour.

A sample size of 120 respondents was considered adequate for the study, as it allows meaningful analysis of

financial habits while remaining manageable within the scope of an academic project. The study was conducted

in selected areas of Pune city, representing an urban population with exposure to both traditional saving options

and modern investment avenues.

www.ijltemas.in

Page 1272

INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,

MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)

ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XIV, Issue XI, November 2025

Sample area:

The study was conducted across 5 areas in Pune City, ensuring a broad representation of credit card users:

F.C Road (20+ respondents)

J.M.Road (20+ respondents)

Swargate (20+ respondents)

Law Clg Road (20+ respondents)

Vadgaon (20+ respondents)

Data sources:

Since the study relies entirely on primary data, structured questionnaires were used to gather information from

respondents.

Survey Distribution Mode:

The survey was conducted using two methods:

Google Forms (Online Mode): More than 100 respondents participated through an online questionnaire shared

via WhatsApp, email and social media.

Physical Questionnaires (Offline Mode): Around 20 respondents filled out printed forms through in-person

interactions.

Questionnaire Design

The questionnaire was designed in a simple and easy-to-understand format and consisted mainly of closed-ended

questions. It was divided into the following sections:

1. Demographic Profile – Age, gender, education, occupation and income

2. Saving Behaviour – Preferred saving instruments and reasons for saving

3. Investment Behaviour – Awareness and preference for investment options

4. Risk Perception – Attitude towards risk and market fluctuations

5. Financial Literacy – Basic understanding of saving and investing concepts

Validity/Reliability Measures

Content validity was ensured by framing questions based on previous studies and standard financial concepts

related to saving and investing. The questionnaire was reviewed to ensure clarity, relevance and simplicity of

language.

Reliability was maintained by using consistent question formats and avoiding ambiguous or leading questions,

ensuring that responses were dependable and uniform.

Statistical Assumptions

The study is based on the following assumptions:



Respondents provided honest and accurate information.

The sample reasonably represents the financial behaviour of the selected urban population.

Responses are independent and free from external influence.

www.ijltemas.in

Page 1273

INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,

MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)

ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XIV, Issue XI, November 2025

Descriptive statistics are sufficient to meet the objectives of the study.



CONCEPTUAL FRAMEWORK

The conceptual framework of the study illustrates the relationship between selected demographic and

behavioural factors and their influence on individual saving and investment behaviour. Based on insights from

the literature review, the framework identifies age, risk perception and perception of financial security as key

independent variables that shape financial decision-making.

Age and Financial Decision-Making

Age is a significant demographic factor influencing financial decisions. Younger individuals generally exhibit a

higher inclination towards investment due to longer investment horizons and greater risk tolerance. In contrast,

older individuals tend to prioritize capital preservation and prefer safer saving instruments to ensure financial

stability.

Risk Perception and Investment Behaviour

Risk perception plays a critical role in determining investment behaviour. Individuals with low risk tolerance

are more likely to choose conservative financial instruments such as fixed deposits, while those with higher risk

tolerance are inclined towards market-linked investments such as mutual funds and equities. Thus, perceived

risk directly affects the choice and intensity of investment behaviour.

www.ijltemas.in

Page 1274

INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,

MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)

ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XIV, Issue XI, November 2025

Perception of Financial Security and Saving–Investment Preference

The perception of financial security influences the preference for a balanced financial strategy. Individuals who

recognize the importance of long-term financial security tend to adopt a combination of saving and investing.

While saving ensures liquidity and protection against uncertainties, investing supports long-term wealth creation

and inflation protection.

DATA ANALYSIS AND DESIGN

 This graph indicates a significant relationship between age group and type of financial choice (saving vs.

investing).

Above 50 years

20–30 years

31–40 years

41–50 years

50

45

40

35

30

25

20

15

10

5

0

Save in Bank Invest Only Spend Most Invest More 50% Save- No Specific

Invest Plan

Financial Behaviour

 This graph indicates a significant relationship between risk perception and investment behavior.

Mutual Funds (A)

Stocks (B)

FDs (C)

Gold (D)

Real Estate (E)

35

30

25

20

15

10

5

2

4

3

2

3

2

12

14

6

10

6

7

4

6

4

5

4

7

5

0

Lack of

Knowledge

Fear of Risk

Lack of Funds

No Specific

Reason

Not Applicable

Rsik Perception

 This graph indicates a significant relationship between individuals perception of financial Security and their

preference for combining saving and investing.

www.ijltemas.in

Page 1275

INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,

MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)

ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XIV, Issue XI, November 2025

Only Savings

Only Investments

Both Combined

Luck & Timing

50

45

40

35

30

25

20

15

10

5

0

Save in Bank

Invest More

Spend More

Balanced

(50/50)

No Plan

Invest Only

Preference for Saving/Investing

Chi-Square Test

Hypotheses Testing:

In this study, the chi-square test was used to examine whether there is a significant relationship between selected

variables such as age, risk perception and financial security perception with saving and investment behaviour.

Hypothesis testing helps in deciding whether the observed relationships in the data are statistically meaningful

or have occurred by chance.



Acceptance of Null Hypothesis (H₀) means that no statistically significant relationship is found between

the variables.



Rejection of Null Hypothesis (H₀) means that a statistically significant relationship exists and the

variables influence each other.

Relationship between Age group and Financial behaviour is calculated by using chi-square test.

H₀= There may be no relation between Age group and Financial Behaviour

H₁= There may be relation between Age group and Financial Behaviour

Financial

Behaviour

Save in

Bank

Invest

Only

Spend

Most

Invest

More

50% Save-

Invest

No

Specific

Plan

Total

→

(A)

(B)

(C)

(D)

(E)

(F)

/Age

Group ↓

20–30

years

35

5

8

1

10

1

5

1

20

3

14

3

92

14

6

31–40

years

41–50

2

0

1

years

www.ijltemas.in

Page 1276

INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,

MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)

ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XIV, Issue XI, November 2025

Above 50

years

4

1

2

1

8

1

0

8

46

11

13

25

18

120

Total

Tabulated value of X²at degrees of freedom 15 and level of significance 5%= 0.05

Critical value=24.96 and Calculated value of X²=16.05. As the calculated value is less than tabulated value,

therefore, null hypothesis is accepted i.e., there is no relation between Age Group and Financial behaviour.

Acceptance

This result indicates that age group does not have a statistically significant influence on whether individuals

prefer saving or investing. Although descriptive analysis shows that younger respondents appear more inclined

toward investments, statistically this difference is not strong enough to confirm a real relationship.

Implications

Theoretical implication:

This finding challenges the common assumption in financial behaviour theory that younger individuals are

always more investment-oriented.

Practical implication:

Financial awareness programs should not target only specific age groups, as saving and investing preferences

are spread across all ages.

Unexpected Result

Based on previous studies, age was expected to significantly influence financial choices. The absence of

significance may be due to:



A sample dominated by young respondents (20–30 age group)

Similar financial exposure across age groups in an urban setting like Pune

Relationship between relation risk perception and investment behaviour is calculated by using chi-square

test.

H₀= There may be no relation between relation risk perception and investment behaviour

H₁= There may be relation between relation risk perception and investment behaviour

Tabulated value of X²at degrees of freedom 16 and level of significance 5% =0.05

Critical Value=26.30 Calculated value of X²=15.981. As the calculated value is less than critical value, therefore

the null hypothesis is accepted i.e. there is no relation between risk perception and investment behaviour.

Acceptance

This result suggests that risk perception alone does not significantly determine investment behaviour. Even

individuals who perceive high risk may still invest and some risk-averse individuals may invest cautiously.

www.ijltemas.in

Page 1277

INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,

MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)

ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XIV, Issue XI, November 2025

Category

Save in

Bank

Invest

More

Spend

More

Balanced

(50/50)

No

Plan

Invest

Only

Total

(A)

9

(B)

0

(C)

1

(D)

1

(E)

1

(F)

1

Only Savings

13

15

Only

7

2

1

2

1

2

Investments

Both Combined

Luck & Timing

Total

28

2

5

1

8

10

1

19

0

17

1

8

3

87

5

46

13

22

20

14

123

Total

Category

Save in

Bank

Invest

More

Spend

More

Balanced

(50/50)

No

Plan

Invest

Only

(A)

9

(B)

0

(C)

1

(D)

1

(E)

1

(F)

1

Only Savings

13

15

Only

7

2

1

2

1

2

Investments

Both Combined

Luck & Timing

Total

28

2

5

1

8

10

1

19

0

17

1

8

3

87

5

46

13

22

20

14

123

Total

Category

Save in

Bank

Invest

More

Spend

More

Balanced

(50/50)

No

Plan

Invest

Only

(A)

9

(B)

0

(C)

1

(D)

1

(E)

1

(F)

1

Only Savings

13

15

Only

7

2

1

2

1

2

Investments

Both Combined

Luck & Timing

Total

28

2

5

1

8

10

1

19

0

17

1

8

3

87

5

46

13

22

20

14

123

Implications

Theoretical Implication:

Investment behaviour cannot be explained by risk perception alone; other factors such as income, peer influence,

financial literacy and market accessibility also play important roles.

www.ijltemas.in

Page 1278

INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,

MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)

ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XIV, Issue XI, November 2025

Practical implication:

Merely reducing fear of risk may not be sufficient to increase investment participation. Broader financial

education and support mechanisms are required.

Unexpected Result

This result is somewhat unexpected because literature strongly links risk perception with investment decisions.

Possible reasons include:



Respondents investing in low-risk investment options despite risk fear

Influence of digital investment platforms making investing easier regardless of risk concerns

Relationship between relation management and stress management is calculated by using chi-square test.

H₀= There may be no relation between relation management and stress management

H₁= There may be relation between relation management and stress management

Save in

Bank

Invest

More

Spend

More

Balanced

(50/50)

No

Plan

Invest

Only

Total

Category

(A)

(B)

(C)

(D)

(E)

(F)

Only Savings

9

7

0

2

1

2

1

2

13

15

Only

Investments

Both Combined 28

Luck & Timing 2

5

1

8

10

1

19

0

17

1

8

3

87

5

Total

46

13

22

20

14

123

Tabulated value of X2 at degrees of freedom 15 and level of significance 5% =0.05

Critical Value = 25 and Calculated value of X2=32.51. As the calculated value is more than critical value,

therefore the null hypothesis is rejected i.e. there is significant relation between financial security and preference

of combining saving and investing.

Rejection

This result confirms that there is a statistically significant relationship between how individuals perceive

financial security and their preference for using a combined saving and investing strategy.

Implications

Theoretical implication:

This supports financial planning theory, which states that long-term financial security is best achieved through

diversification of saving and investment.

www.ijltemas.in

Page 1279

INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,

MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)

ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XIV, Issue XI, November 2025

Practical implication:

Financial institutions and advisors should promote hybrid financial products that combine safety with growth.

Expected and Logical Result

This finding aligns strongly with literature and survey responses where:



72.5% respondents believed financial security comes from both saving and investing

Individuals with better financial understanding prefer balanced strategies

FINDINGS

From the study, it is observed that most of the respondents belong to the age group of 20–30 years and are mainly

students or salaried employees. This shows that the data mostly represents young individuals who are at the

beginning of their careers. Since they are still building their income and financial experience, their financial

decisions are generally careful and safety-oriented.

The study shows that many respondents have the habit of saving money regularly. However, some respondents

do not save consistently, which indicates a lack of proper financial discipline among certain individuals. When

it comes to saving options, most respondents prefer savings accounts and fixed deposits. This clearly shows that

people prefer safe and low-risk options and are not very comfortable taking financial risks.

Although many respondents are aware of different investment options such as mutual funds, shares and gold,

their understanding of these options is limited. This is reflected in the fact that a large number of respondents

have never invested their money. This indicates a gap between knowing about investments and actually

investing.

The main reasons for not investing are lack of financial knowledge, fear of losing money and low income. Even

those who are aware of investment options hesitate to invest because they are afraid of risk and are not confident

about their decisions. This shows that fear and lack of proper guidance strongly affect investment behaviour.

The study also finds that most respondents believe that starting investment at an early age is important. However,

some respondents are still unsure about its long-term benefits. This suggests that while people have heard about

the importance of early investment, they do not fully understand how it helps in wealth creation.

Fixed deposits and mutual funds are the most trusted investment options among respondents. This preference

shows that people feel more comfortable with guaranteed returns or professionally managed investments rather

than investing directly in the stock market.

The findings also show that not all respondents give importance to financial planning. Only about half of the

respondents follow a proper budget and many do not have an emergency fund. This indicates poor financial

planning and lack of preparedness for unexpected expenses.

Most respondents depend on family members, friends, or their own judgment for financial decisions instead of

professional financial advisors or mobile apps. This may be due to lack of awareness or trust in professional

financial services. However, many respondents have shown interest in investing if proper education and

guidance are provided.

Overall, the study shows that while people understand the importance of saving and investing, their financial

behaviour is mostly conservative. Lack of financial knowledge, fear of risk and poor planning prevent them from

making better investment decisions. The findings highlight the need for better financial awareness and guidance

to encourage balanced saving and investing habits.

www.ijltemas.in

Page 1280

INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,

MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)

ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XIV, Issue XI, November 2025

SUGGESTIONS:

Enhance Financial Literacy:



Conduct workshops, online courses and awareness campaigns to address the 20.8% knowledge gap in

investing.



Partner with financial institutions to provide free investment resources.

Address Investment Risks & Provide Guidance:



Develop user-friendly risk assessment tools for the 25% of respondents who fear financial losses.

Offer personalized financial advisory services to boost investor confidence.

Encourage Early Investment:



Introduce youth-centric investment plans, as 80.8% believe in starting early.

Integrate financial education into schools and colleges.

Develop Affordable & Accessible Investment Options:



Launch micro-investment platforms and fractional investment options for individuals with limited funds

(25%).



Provide flexible investment schemes to make investing more accessible.

Leverage Technology for Simplified Investing:



Expand mobile-based investment apps and AI-powered financial tools.

Introduce robo-advisors for automated and customized investment guidance.

REFERENCES

1. S. Gupta, “Financial literacy and other factors influencing investment behaviour,” Journal of Financial

Studies, vol. XX, no. X, pp. XX–XX, 2023.

2. P. Jaiswal, “A comparative study of investment pattern of salaried individual investors in Western India,”

International Journal of Research in Finance, vol. XX, no. X, pp. XX–XX, 2023.

3. B. B. Jumena, S. Siaila, and J. R. Widokarti, “Saving behaviour: Factors that affect saving decisions

(systematic literature review approach),” Journal of Economic Behaviour, vol. XX, no. X, pp. XX–XX,

2022.

4. S. Ganapathi, “Understanding the investment behaviour: A review of literature,” International Journal of

Management Studies, vol. XX, no. X, pp. XX–XX, 2022.

5. F. Lima, C. Lopes, and R. Martinho, “Savings and financial literacy: A selected review,” Journal of

Financial Literacy, vol. XX, no. X, pp. XX–XX, 2021.

6. V. Soin and R. Vaishali, “Saving and investment pattern of individuals,” International Journal of

Commerce and Management, vol. XX, no. X, pp. XX–XX, 2021.

7. N. Thard, “Savings and investment behaviour of university teachers: A study of government owned

universities of Assam,” Asian Journal of Economics, vol. XX, no. X, pp. XX–XX, 2020.

8. A. K. Chhajer, “Impact of financial inclusion on savings and investing behaviour of rural society,”

International Research Journal, vol. XX, no. X, pp. XX–XX, Aug. 2018.

9. M. D. Thampatty, “The savings and investment pattern of women working in organized and unorganized

sectors in Kerala,” Journal of Gender Studies, vol. XX, no. X, pp. XX–XX, 2018.

www.ijltemas.in

Page 1281

INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,

MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)

ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XIV, Issue XI, November 2025

10. P. A. Ganpatye, “A study of savings and banking habits among youths,” International Journal of Social

Sciences, vol. XX, no. X, pp. XX–XX, 2018.

11. S. Kamboj, “A study of financial literacy and its impact on investment behaviour,” International Journal

of Financial Research, vol. XX, no. X, pp. XX–XX, 2017.

BIBLIOGRAPHY

Books & Journals



C R Kothari & Gaurav Garg. Research Methodology: Methods and Techniques (3^rdEdition)

Damodaran, A. (2012). Investment Valuation: Tools and Techniques for Determining the Value of Any

Asset (3^rdEdition). Wiley.

Articles

 A Study on 'Saving and Investment Pattern of Indian Households

 Trends and Pattern of Household Savings and Investment in India

 A Critical Study on the Savings and Investment Pattern of Indian Households

www.ijltemas.in

Page 1282