A Study on Saving and Investment Pattern of Salaried Class People with Special Reference to Surat City

Investment is an activity done by an investor for many purposes from their financial savings. It is the way in which salaried people can earn extra income or reduce the tax. The present study is considering different reasons for saving, investment avenues and factors affecting investment of salaried people working in different sectors. Structured questionnaire is designed and circulated among 214 prospective respondents with diversified age, income and education. Non probability sampling design yielded 153 responses from Surat - an economic capital of Gujarat state. The effort is made to factorize various desires for savings and to know saving and investment pattern of salaried people. Collected responses were factorized using exploratory factor analysis and the result includes seven statements, represented by two factors named as Living Augmentation and future Orientation, aggregately explained 42.72 percentage of variance. Correlation and one way ANOVA is also used to find a relationship between different variables from which conclusion has been made that income of salaried people and savings are significantly related and as saving increases investment also increases of the same class people. The study enables future researchers to expand the knowledge in the area of savings and investment by combining it with financial literacy or financial anxiety and various demographic characteristics of population of India.