INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,  
MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)  
ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XIV, Issue XII, December 2025  
"A Review of Investment Choices Made by Salaried Employees"  
Ardra. C.S., Capt. Dr. Regina Sibi Cleetus  
Mar Ivanios College (Autonomous), Nalanchira, Trivandrum.  
DOI : https://doi.org/10.51583/IJLTEMAS.2025.1412000127  
Received: 27 November 2025; Accepted: 02 December 2025; Published: 15 January 2026  
ABSTRACT  
This study investigates the investment preferences of salaried employees in Ettumanoor Municipality, Kerala,  
India. It aims to identify factors influencing their investment decisions, assess their knowledge and risk-taking  
capacity, and evaluate their levels of satisfaction. The study employs a questionnaire-based survey with 100  
respondents.  
Key findings reveal a preference for bank deposits among respondents, driven primarily by savings motives.  
Most respondents exhibit moderate awareness of investment avenues and are comfortable with moderate risks.  
Factors influencing investment decisions include age, income, and family responsibilities. While satisfaction  
levels are generally high, respondents express concerns about potential risks and seek professional advice.  
The study suggests that promoting investment awareness, providing financial literacy training, and simplifying  
investment procedures can enhance employee investment behaviour and contribute to economic growth.  
Keywords: investment preferences, salaried employees, financial literacy, investment risk, satisfaction levels.  
INTRODUCTION  
Investment has been an integral part of human activity since ancient times. Early civilisations recognised the  
importance of generating wealth through business activities, whether in the form of barter or monetary  
incentives. As societies evolved, so did their understanding of business and investment. The practice of  
reinvesting profits to ensure continued growth became central to business operations. The essence of investment  
lies in the present sacrifice made in exchange for future gains. This concept highlights two fundamental aspects  
of investment: the current allocation of resources and the potential for future rewards.  
Investment can be defined as the commitment of financial resources, in either physical or financial form, with  
the goal of generating future returns. However, this process is not without risk, as the expected return on  
investment may fluctuate due to various factors. This uncertainty is known as investment risk. Every investment,  
regardless of its nature, involves a delicate balance between risk and reward, making decision-making crucial  
for investors.  
Investment plays a critical role not only in the growth of individual wealth but also in the overall development  
of the economy. For any economy, the aggregate investment made in the present significantly influences the  
level of demand, employment, and economic growth. In the long term, investments contribute to the productive  
capacity of the economy, driving improvements in living standards and prosperity. Additionally, investments  
create financial markets, enabling companies to raise capital and further contributing to economic development.  
The nature of investment can be viewed from different perspectives. In financial terms, investment is often  
associated with the allocation of funds to various assets, such as stocks, bonds, real estate, and gold, with the  
expectation of future financial returns. From an economic standpoint, investment refers to the creation of new  
productive assets, such as infrastructure, machinery, and human capital, which are essential for the production  
of goods and services. Modern financial markets offer a wide array of investment opportunities, including  
corporate securities, government bonds, mutual funds, and more traditional avenues such as savings accounts  
and real estate.  
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INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,  
MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)  
ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XIV, Issue XII, December 2025  
In the context of salaried employees, investment decisions are often influenced by factors such as income levels,  
financial knowledge, and risk tolerance. With a plethora of investment avenues available, each offering different  
levels of risk and return, employees must navigate these options to make informed decisions that align with their  
financial goals. Some investment avenues, such as government bonds, provide stability with lower returns, while  
others, like the stock market, offer higher returns but come with increased risk. Understanding these trade-offs  
is essential for employees who seek to balance short-term security with long-term growth.  
This study focuses on understanding the investment preferences of salaried employees in the Ettumanoor  
Municipality, Kottayam district. It aims to identify the factors influencing their investment choices, such as risk  
appetite, financial awareness, and satisfaction with their current investments. The study examines a range of  
investment options, including traditional avenues like bank deposits and emerging alternatives like mutual funds  
and stock market investments. The objective is to analyse the level of awareness and knowledge employees have  
about various investment opportunities and how these factors influence their decision-making process.  
The research is significant because it sheds light on the importance of investment in today’s fast-paced financial  
world. Simply earning money is no longer enough; it must be invested wisely to ensure future security and  
growth. For salaried employees, who may have limited disposable income, selecting the right investment avenue  
is critical to achieving financial stability and growth. This study aims to provide insights into the challenges  
faced by these employees in making informed investment decisions and offers suggestions for improving their  
investment strategies.  
The findings of the study will help employers and policymakers understand the investment behaviour of salaried  
employees and identify the gaps in financial literacy. By addressing these gaps through targeted educational  
programs and providing access to investment advisory services, it is possible to enhance the financial well-being  
of employees and, in turn, contribute to the economic growth of the region. The goal of this study is to give  
salaried employees the information and tools so that they can initiate smart investment choices that fit their  
financial goals.  
Statement of the problem  
Investment is always made with an objective of earning a return. Now a days, a number of investment avenues  
are available in the market. It provides a high return to the investors. It helps to invest more and more in various  
investments. For a person, who can invest in different investment avenues are not free from all defects. Each  
investment has its own merits and demerits. Investors has to face so many problems while executing their  
investment such as; misrepresentation about investment avenues, insufficient economic growth, lack of security,  
lack of transparency, political changes, lowering value of currency, untimely investment etc. Due to the  
enormous benefits of investment most of the employees opt for various investment avenues. Thus, it is of  
immense important to study the extent to which the employees are satisfied with their investment and there arises  
an urgent need to study the preference of salaried employees towards various investment avenues. Investors  
usually involve a detailed analysis of these investment options to compare risk and earn returns.  
Scope of the study  
This study is conducted in Ettumanoor Municipality, Kottayam district, Kerala, India. It focuses on salaried  
employees and their investment preferences. The research explores various investment avenues, identifies  
factors influencing investment decisions, assesses investor knowledge and risk tolerance, and evaluates  
satisfaction levels with investment choices. The study aims to provide insights into the investment behaviour of  
salaried employees in the region, contributing to a better understanding of their financial decision-making  
processes and identifying potential areas for improvement in financial literacy and support services.  
Significance of the Study:  
This study is significant in providing insights into the investment behaviour of salaried employees in Ettumanoor  
Municipality. By understanding their preferences, knowledge, and risk tolerance, the study can contribute to a  
better understanding of the factors influencing investment decisions and identify potential areas for improvement  
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INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,  
MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)  
ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XIV, Issue XII, December 2025  
in financial literacy and support services. The findings can be utilized by financial institutions, policymakers,  
and employers to develop targeted financial education programs and support services, ultimately enhancing the  
financial well-being of employees and contributing to the economic growth of the region.  
Objective of the study  
Examining the investment preferences of salaried employees in Ettumanoor Municipality.  
Identifying the factors influencing their investment decisions.  
REVIEW OF LITERATURE  
Sonali Patil and Kalpana Nandawar (2014) discovered in their study that investment choices such as banks, gold,  
real estate, postal services, and mutual funds are investigated. The data was examined using percentages, the Chi  
Square test, and the Pearson correlation coefficient. They discovered that while investors are aware of the various  
investment opportunities in India, they still prefer to invest in bank accounts, real estate, and gold. Investors  
viewed security and consistent income from investments as essential factors when making investments.  
Murugan and Chandrasekaran (2014) in a study related to investment schemes have endeavoured to examine  
the saving and investment patterns of salaried class investors. A comprehensive examination is conducted to  
ascertain the degree of awareness, attitudes, influencing factors for investors, and the transformation of savings  
into investments along with investment preferences.  
S. Uma Maheswari and M. Ashok Kumar (2014) in a study addressed a person's investment priorities, which are  
determined by a variety of elements such as awareness, environment, intents, beliefs, and obligations. The article  
seeks to identify and bridge the financial goals of salaried middle-class investors with his desire for higher  
returns. The author points out that the psychological impact of the salaried middle class on their investment  
strategies might be pursued in different areas regions, districts, states, and nations to make specific forecasts  
about the global economy as a whole.  
V.R. Palanivelu and K. Chandrakumar (2013)" have disclosed the preferred investment avenues among salaried  
people in their study. The study's findings revealed that factors such as education, awareness of the existing  
financial system, investor age, and so on had a substantial impact on investing decisions. The data was examined  
using percentages and the Chi square test.  
R. Sreepriya, P. Gurusamy (2013) in a study has made an attempt to analyse the saving and investment pattern  
of salaried class investor. An in-depth analysis done to identify the attitude, factor influencing investors to save  
and savings preference of investors. It is hoped that the saving public (particularly salaried class) will analyse  
their saving and investment. This investigation pinpointed the investors' challenges and the potential solutions  
on the horizon.  
RESEARCH METHODOLOGY  
A research methodology is a systematic approach to solving research problems. The methodology which will be  
used for carrying out the project will be discussed as follows;  
Research design  
This study is an exploratory study to find out the preference among salaried employees towards various  
investment avenues. This research aimed to identifying the factors influencing the customers towards various  
investments avenues.  
Sources of data collection-The data used will be:  
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INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,  
MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)  
ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XIV, Issue XII, December 2025  
Primary data -The main source of data for this study is primary source. Salaried employees are the informants  
of the study. The primary data were collected from the salaried employees in Ettumanoor Municipality. For  
collecting the data from the respondents, a structured questionnaire was used.  
Secondary data - Secondary data needed for the study has been collected from the following sources: Journals,  
Books, Magazines, Newspapers, Studies undertaken by various research institutions, Websites  
Sample design  
Sample design consists of non-probability sampling such as convenience sampling. The data will be collected  
from hundred respondents of salaried employees.  
Sample size  
The number of sampling units selected from population is called the size of the sample. This study is based on  
100 respondents, that the sample size in this case is 100.  
Tools for data collection  
Structured questionnaire will be used for collecting primary data. Published and unpublished reports, documents,  
journals, internet etc. will be used for collecting secondary data.  
Tools for analysis and interpretation of data  
Appropriate statistical tools will be used for analysing the collected data.  
The study employs a quantitative research methodology, utilizing a questionnaire-based survey to collect data  
from salaried employees in Ettumanoor Municipality. The questionnaire covers a range of topics, including  
demographic information, investment knowledge, investment preferences, risk tolerance, and satisfaction levels.  
The findings of the study are expected to provide valuable insights into the investment habits and preferences of  
salaried employees in the region. These insights can be used by financial institutions, policymakers, and  
employers to develop targeted financial education programs and support services.  
In conclusion, this study offers a comprehensive exploration of the investment behaviour of salaried employees  
in Ettumanoor Municipality. By understanding their preferences, knowledge, and risk tolerance, the study aims  
to contribute to a more informed and financially empowered workforce.  
Hypothesis of Thestudy  
On the basis of objectives framed for the study, the following hypothesis has been framed.  
H0: There is no significant relationship between profession of a respondent and their satisfaction towards  
investment in different schemes.  
H1: There is a significant relationship between profession of a respondent and their satisfaction towards  
investment in different schemes.  
Table Showing the Relationship Between Profession and Satisfaction Level  
Highly Satisfied  
Satisfied  
Neutral  
12  
Unsatisfied  
Total  
22  
2
6
6
2
4
Government Employee  
Private Employee  
34  
11  
55  
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INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,  
MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)  
ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XIV, Issue XII, December 2025  
3
5
2
0
0
6
Self Employed  
NRI  
10  
4
4
5
13  
Total  
15  
49  
30  
100  
Decision Table  
Calculated Value  
Level Of Significance  
Degree Of Freedom  
Table Value  
28.618  
0.05%  
9
16.919  
Interpretation:  
From the above results, it transpires that the calculated value (28.618) of chi-square is greater than table value  
(16.919). This suggests that the null hypothesis (H0) is rejected, and the alternative hypothesis (H1) is accepted.  
In other words, there is a significant relationship between profession and satisfaction level of the respondents.  
FINDINGS OF THESTUDY  
1. Demographic Insights:  
- The respondent pool is almost evenly split by gender, with 51% female and 49% male participants.  
- A significant proportion (66%) of respondents fall within the 20-30 years age group, indicating that young  
salaried employees form the core of the study.  
- 58% of respondents hold an undergraduate degree, showcasing the educational background of the majority.  
2. Income and Savings Behaviour:  
- The income level of 44% of respondents falls between ₹15,000-₹30,000, a moderate-income bracket typical for  
salaried employees.  
- All respondents (100%) are engaged in savings, indicating a strong inclination towards financial prudence.  
- Bank deposits are the most preferred savings option for 50% of respondents, signifying trust in traditional and  
low-risk investment avenues.  
- Savings is the primary motive for 47% of the respondents, underscoring a conservative approach to financial  
management.  
3. Investment Preferences and Duration:  
-
-
39% of respondents have been using investment avenues for 1-3 years, suggesting that many are relatively new  
to investing.  
A majority of respondents (75%) prefer long-term investments, indicating a strategic approach to financial  
growth.  
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INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,  
MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)  
ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XIV, Issue XII, December 2025  
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Only 7% of respondents are willing to take high risks, while 35% are risk-averse, and 51% adopt a risk-neutral  
stance, showing that most employees favour stability over aggressive investment strategies.  
4. Challenges and Satisfaction:  
-
-
-
While 58% of respondents face challenges in investment avenues, only 5.17% experience excessive debt,  
indicating that the majority manage their finances well despite some difficulties.  
A small percentage (15%) of respondents express high satisfaction with their investments, pointing to potential  
gaps in investment knowledge or returns.  
84% believe that risk-taking is essential in investment, while 16% do not, reflecting a mixed attitude towards  
risk management.  
5. Recommendations and Future Intentions:  
-
-
A significant 90% of respondents are likely to recommend investments to others, showcasing confidence in the  
process despite existing challenges.  
88% of respondents plan to continue investing in the future, indicating a positive long-term outlook.  
6. Relationship Between Profession and Satisfaction:  
- There is a significant relationship between respondents' profession and their satisfaction levels with investments,  
suggesting that occupational factors may influence investment success.  
- No significant relationship was found between gender and awareness levels, implying that investment awareness  
is similar across male and female respondents.  
These findings provide an in-depth understanding of the investment preferences, challenges, and satisfaction  
levels among salaried employees, emphasizing the importance of education, risk management, and tailored  
financial strategies.  
Suggestions and Recommendations of the Study  
1. Minimizing Investment Risk for Aged Employees: Efforts should be made to create low-risk investment  
options tailored for older employees. This can encourage more participation from this demographic and ensure  
financial security.  
2. Increasing Awareness of Investment Avenues: Employers should conduct educational programs to raise  
awareness of the various investment avenues, highlighting their relative merits and demerits. This would enable  
employees to make more informed decisions based on their financial goals and risk tolerance.  
3. Investment Education: Employees should be educated about different types of investments, such as stocks,  
bonds, mutual funds, and government securities. Offering financial literacy programs within organizations can  
empower employees to diversify their investment portfolios.  
4. Training and Consulting: To enhance the effectiveness of investment strategies, employees should receive  
more training on portfolio management. It is also advisable for them to consult financial advisors before making  
significant investment decisions, ensuring a more tailored approach to their financial planning.  
5. Simplifying Investment Processes: Reducing the procedural formalities associated with certain investments  
can encourage more participation. Simplified and user-friendly investment procedures will make it easier for  
employees to invest with confidence.  
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INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,  
MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)  
ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XIV, Issue XII, December 2025  
6. Employee-Investor Guidelines: Clear and accessible investment guidelines should be provided to employees  
through their organizations. This will help them navigate the complexities of investment choices and ensure they  
follow best practices.  
7. Awareness Programs for Rural Areas: Special focus should be given to conducting investment awareness  
programs in rural areas, where financial literacy and access to investment information may be limited. This can  
bridge the gap between urban and rural investors.  
8. Highlighting Tax Benefits: Employees should be informed about the potential tax benefits associated with  
various investments. This knowledge can help them maximize returns while reducing their tax liabilities.  
9. Encouraging Professional Consultation: It is essential for investors to consult with investment professionals  
before making major investment decisions. Access to expert advice can help employees avoid unnecessary risks  
and select investments that align with their long-term financial objectives.  
By addressing these areas, the investment landscape for salaried employees can be enhanced, leading to better  
financial outcomes and greater satisfaction with their investment choices.  
CONCLUSION  
The study on *Investment Preferences Among Salaried Employees* provides valuable insights into the  
investment behaviour, preferences, and challenges faced by this demographic. The findings highlight a general  
inclination towards safe and traditional investment avenues, such as bank deposits, alongside a cautious approach  
to risk. While most employees are engaged in saving and investing, the majority exhibit moderate awareness of  
the various options available to them, signalling the need for enhanced financial education.  
To foster a more informed and strategic approach to investing, it is crucial to promote financial literacy and  
simplify the investment process. By offering tailored education, reducing procedural barriers, and encouraging  
the use of professional financial advice, salaried employees can better align their investments with their risk  
tolerance and financial goals. Additionally, focusing on creating awareness in rural areas and providing clarity  
on tax benefits can further empower employees to make sound financial decisions.  
Ultimately, improving the overall investment climate for salaried employees will not only enhance individual  
financial well-being but also contribute to broader economic growth by encouraging more active and diversified  
investment participation. The study underscores the need for continuous efforts in financial literacy, risk  
management, and accessibility to ensure long-term sustainability in investment behaviour.  
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