A STUDY ON

FINANCIAL PREFERENCE OF RESIDENTS OF NARSAPUR.

A Project Report submitted in partial fulfilment of the requirement for the
award of the degree of BACHELOR OF BUSINESS ADMINISTRATION
(B.B.A) byAdikavi Nannaya University

BY

PUTTA BEN ELYON

Regd. No: 22025031

Under the guidance of

Sri. G. RUPANJANI SREE VATSAVI., MBA

DEPARTMENT OF MANAGEMENT STUDIES

SRI Y.N COLLEGE (Autonomous)

Affiliated to Adikavi Nannaya University, Rajamahendravarm
Thrice Accredited by NAAC with ‘A’ grade
NARSAPUR - 534275, W.G. Dist., A.P.

2020-2023

DEPARTMENT OF MANAGEMENT STUDIES

 SRI Y.N. COLLEGE (A)

Thrice Accredited by NAAC with 'A' grade

Recognized as "College with Potential for Excellence" by UGC

(Affiliated to AdikaviNannaya University, Rajamahendravaram.)

NARSAPUR - 534 275, W.G.DIST., A.P.

CERTIFICATE

This is to certify that this project work titled “A Study on Financial

preferences” Is the bonafide work of PUTTA BEN ELYON
Regd.No.22025048,B.B.A.2020-2023’ Batch, Submitted in partial fulfillment of
the requirements For the award of the Degree of Bachelors of Business
Administration By Adikavi Nannaya University.

Project Guide Head of the Department

(SRI G. RUPANJANI SREE VATSAVI) (Dr. R.PARDHASARADHI)

DECLARATION
I hereby declare that the project work titled ‘A STUDY ON SAVINGS AND
INVESTMENT’ is the original work done by me from July 28 th to August 30,
2022, and has been carried out by me At 14 ward in partial fulfillment of the
requirement for the award of the BBA degree by ADIKAVI NANNAYA
UNIVERSITY.

Place: NARSAPUR PUTTA BEN ELYON

Date: ( REGD.NO:22025031 )

ACKNOWLEDGEMENT
 I express my gratitude to Project Guide G. RUPANJANI SREE
VATSAVI, MBA. Department of Management studies, Sri Y.N. College (A),
Narsapur for his guidance in this Project Work.

I sincerely express my gratitude to, Dr. R. PARADHASARADHI

MBA, PhD, HOD, Director P.G. Courses Dr.N.CHINTA RAO M.Com, PhD,
Sri Y.N. College for his kind Guidance’s during my B.B.A. Programmed &
other faculty members department of management studies, SRI.Y.N College,
Narasapur for encouraging me at various levels in the successful completion of
my project work.

I also extend my sincere thanks to my parents and my friends, who had

directly/ indirectly helped me to complete my project successfully.
 CONTENTS

CHAPTER-I- INTRODUCTION

CHAPTER-II ANALYSIS OF THE SURVEY

CHAPTER-III SUMMARY OF SURVEY, FINDINGS &

SUGGESTIONS

● ANNEXURE

Questionnaire
 CHAPTER-I

INTRODUCTION

1. Introduction (3 to 5 Pages)

I. About the Village / Habitation

II. Objectives of the Study
III. Methodology of the Study
Narsapur Town is located at 16.32’ North latitude and 81 42’ East longitude, in
the Southern part of West Godavari District.  It is a rail bead on the Narsapur-
Nidadavole branch line.  It is situated at the outer edge of the town towards
Western side.  It is located on side of the Vasista Godavari River bank. Buses
bound for Nidadavole, Eluru, Bhimavaram, Tanuku and Hyderabad starting
from this place.

I have selected ward no 14, to do my community service project. There are 400
to 450 families in this ward.

Most of them are educated families. There are 1806 people living this ward
who are above 18 years. The no of females constitute 971 . There are 835 males
in the area. The people are mostly well educated middle class people
constituting 50% and the other 30 percent are lower middle class people with 8
% affluent people with 12% migrants living in rented houses.
1.2 OBJECTIVES OF THE STUDY

● The project work has been carried out with the following objectives:

● To study the investment preferences of the people residing in !4th ward of Narsapur.

● To assess the most invested instrument.

● To know the financial literacy among the people.

● To study the investment pattern of the people.

● To identify problems, if any in the financial performance of the Portfolio

and to make suggestions.
1.3 METHODOLOGY OF THE STUDY

Survey methodology as a scientific field seeks to identify principles about the

sample design, data collection instruments, statistical adjustment of data, and
data processing, and final data analysis that can create systematic and random
survey errors. Survey errors are sometimes analyzed in connection with survey
cost. Cost constraints are sometimes framed as improving quality within cost
constraints, or alternatively, reducing costs for a fixed level of quality. 

Sampling Design

It is a method of choosing a representative subset of a total population for

obtaining data for the study of the whole population subset known as a sample.
The sample size selected for the study will be 20 members. The technique of
sampling in this study is convenience sampling.

Convienience sampling

In this method the sample units are chosen primarily on the basis of the
convience to the researcher.

Tools for data collection Study conducted.

The primary data was gathered through personal interaction. The information
was gathered from the structured questionnaire.

The information for the study has been obtained from two sources, i.e.,
primary and secondary data
1.Primary Data :-
Primary data is collected through Survey. The instrument used is a
questionnaire.

2 . Secondary Data :Secondary data are collected from internet and text
books.
1.Gender : Gender is an important socioeconomic attribute. Approximately 65
percent of the population indicates Males. However, the representation of
females in socio-economic activity is found to be less. Table 1.2 deals with the
gender-wise classification of the respondents.

Table 1.1 Gender-wise classification of the consumer

S.No. Gender No. of respondents Percentage

1. Male 8 40
2. Female 12 60
Total 20 100

Table 1.2 reveals that out of the total sample of 20 consumer respondents,8
respondents belong to male and 12 respondents belong to female representing
40% and 60% respectively. The participation of female is a socially significant
variable.

70

60

50

40
1 Male
30 2 Female

20

10

0
No. of respondents Percentage
 2. AGE: Age is an important socio-economic attribute of any human group.
Age plays an important role in undertaking and pursuing any activity. Its impact
is found on the socio-economic activities of the population.

Table 1.2 Age-wise classification of the consumers

S.No. Age No. of respondents Percentage

1. 18-25 yrs 2 10
2. 25-35 yrs 4 20
3. 35-45 yrs 7 35
4. 45-60 yrs 6 30
5. Above 60 yrs 1 5
Total 20 100

No. of respondents
8

0
18-25 yrs 25-35 yrs 35-45 yrs 45-60 yrs Above 60 yrs

No. of respondents

The above table indicates that a large majority of respondents relating to

consumer in belong to 18-25 yrs group followed by 35-45 yrs, 25-35 yrs, 45-60
yrs and above 60 yrs with percentages being 10%, 20%, 35%, 30% and 5%
respectively.
3.EDUCATION:Education is a purposeful activity directed at achieving certain
aims, such as transmitting knowledge or fostering skills and character traits.
These aims may include the development of understanding, rationality,
kindness, and honesty.

Table 1.3 Educational status of the consumer

S.No Education No. of respondents Percentage

.
1. Upto 5th 0 0
2. 6th to 10th 0 0
3. Secondary 0 0
4. Senior secondary 4 20
5. Graduate 11 55
6. Post graduate and above 5 25
Total 20 100

No. of respondents
25

20

15
No. of respondents
10

0
Upto 5th 6th to Secondary Senior Graduate Post Total
10th secondary graduate
and
above

INTERPRETATION:

Table 1.3 reveals that a large majority of consumer Respondents are graduates
with 55% percentage. A good number of respondents have senior secondary
education, their percentage being 20%. The post graduate, secondary, 6th to 10th
and upto 5th represents 25%, 0%, 0% and 0% respectively.
4.OCCUPATION:An occupation is something that you spend time doing,either
for pleasure or because it needs to be done. Occupation is an occupying or being
occupied; specific, the seizure and control of a country or area by military
forces. Occupation is that which chiefly engages one's time.

Table 1.4 Occupational status of the consumer

S.No. Occupation No. of respondents Percentage

1. Salaried employee 6 30

2. Business 6 30

3. Daily wage earner 3 15

4. Retired person 1 5
5. Student 1 5
6. Home maker 1 5
7. Others 2 10
Total 20 100

35

30

25

20

15
No. of respondents
10 Percentage

0
Salaried Business Daily wage Retired Student Home Others
employee earner person maker

INTERPRETATION:

Table 1.4 indicates that 30% of the sample respondents of the consumers
represent employees. 30% of the sample belongs to business, 15% of the sample
belongs to student and daily earner, 5% belong to home maker and retired
person and remaining 10% belong to others.

5.INCOME:Income refers to the money that a person or entity receives in

exchange for their labor or products. Income may have different definitions
depending on the context—for example, taxation, financial accounting, or
economic analysis.

Table 1.5 Classification based on their income

S.No. Income No. of respondents Percentage

1. Upto 1 lakh 11 55
2. 1-5 lakh 6 30
3. Above 5 lakh 3 15
4. No income 0 0
Total 20 100

60

50

40

Income
30
No. of respondents
Percentage
20

10

0
1 2 3 4

Table 1.4 reveals that in case of consumers also a large majority of respondents
earn upto 1 lakh being 55% of the total consumers and the respondents who
earn 1-5 lakh and above 5 lakh are 30% and respectively. There are even some
individuals who do not earn a single penny and they are 0%.
6.BUDGET:Budget can be made for a person, a group of people, a business, a
government, or just about anything else that makes and spends money. All the
people do not have same budget. Some have more budget to spend and some
have less.

Table 1.6 Classification based on budget

S.No. Budget No. of respondents Percentage

1. Yes 9 45
2. No 11 55
Total 20 100

120

100

80

Budget
60
No. of respondents
Percentage
40

20

0
1 2

Table 1.6 indicates that only 45% of the total individuals have budget for their
family expenditure. The remaining 55% do not have any kind of budget for
their family expenditure.
7.MONEY IN BANK: When you look for ways to save money every month,
more often than not, they result in saving here and there while losing out on big.
This is not to say that saving small amount is insignificant, but the smart thing
to do is to see ways to save huge. 

Table 1.7 Save any money in bank

S.No. Save money No. of respondents Percentage

1. Yes 18 90

2. No 2 10

Total 20 100

120

100

80

Save money
60
No. of respondents
Percentage
40

20

0
1 2

INTERPRETATION:

Table 1.7 reveals that everyone I surveyed saves money in bank for their future
use or any other purposes. Saving money in banks is good idea. If we keep
money with us we cannot save them we spend it on unnecessary things. 90 % of
the people saves money in the bank and the remaining 10% of the sample says
they do not save it bank. They have other ways.
8.KIND OF SAVINGS:Savings refers to the money that a person has left over
after they subtract out their consumer spending from their disposable
income over a given time period. Savings, therefore, represents a net surplus of
funds for an individual or household after all expenses and obligations have
been paid.

Table 1.8 Kind of savings you have

S.No. Savings No. of respondents Percentage

1. FD 17 85
2. Postal deposits 3 15
Total 20 100

120

100

80

Savings
60
No. of respondents
Percentage
40

20

0
1 2

INTERPRETATION:

Table 1.8 indicates that there are two types of savings I have taken and they are
fixed deposits (FD) and postal deposits. The majority of people save their
money in FD who constitute 85% and the remaining 15% save their money in
postal deposits.
9.CAPITAL MARKET:A capital market is a financial market in which long-
term debt (over a year) or equity-backed securities are bought and sold, in
contrast to a money market where short-term debt is bought and sold. Capital
markets channel the wealth of savers to those who can put it to long-term
productive use, such as companies or governments making long-term
investments.

Table 1.9 Aware about capital market

S.No. Awareness No. of respondents Percentage

1. Yes 7 35

2. No 13 65

Total 20 100

120

100

80

Awareness
60
No. of respondents
Percentage
40

20

0
1 2

INTERPRETATION:

Table 1.9 indicates that only 35% of the total individuals of the survey are
aware about the capital market and the remaining 65% do not know about the
capital market.
10.SAVINGS TARGET: Savings Target means a dollar amount equal to at
least 4.5% of the outstanding principal of the Refunded Bonds; i.e., the present
value of (i) the aggregate debt service on the Refunded Bonds minus (ii) the
aggregate debt service on the Refunding Bonds, after payment of all costs of
issuance of the Refunding Bonds, must be at least 4.5% of the outstanding
principal amount of the Refunded Bonds.

Table 1.10 Savings target every year

S.No. Savings target No. of respondents Percentage

1. Yes 9 45

2. No 11 55

Total 20 100

120

100

80

Savings target
60
No. of respondents
Percentage
40

20

0
1 2

INTERPRETATION:

Table 1.10 indicates that only 45% of the people have savings target every year
and the remaining 55% do not have any kind of savings target every year. It is
important to maintain a savings target every year.
11.INVESTMENT OPTIONS: An investment is essentially an asset that is
created with the intention of allowing money to grow. The wealth created can
be used for a variety of objectives such as meeting shortages in income, saving
up for retirement, or fulfilling certain specific obligations such as repayment of
loans, payment of tuition fees, or purchase of other assets.

Table 1.11 From where do you know about investment options

S.No. Options No. of respondents Percentage

1. Banks 12 60
2. Broker 3 15
3. Friends 2 10
4. Advertisement 2 10
5. News 1 5
6. Others 0 0
Total 20 100

70

60

50

40
Options
No. of respondents
30 Percentage

20

10

0
1 2 3 4 5 6

INTERPRETATION:

Table 1.11 indicates that majority of the people know about investment
optionsfrom the banks followed by other ways.
12.SAVING OBJECTIVE: Saving is the portion of income not spent on current
expenditures. In other words, it is the money set aside for future use and not
spent immediately. There are many objectives for saving and everyone have
different objectives for saving money.

Table 1.12 Your saving objective

S.No. Objective No. of respondents Percentage

1. Children future 10 50
2. Health care 10 50
3. Retirement 0 0
4. Asset purchase 0 0
5. Others 0 0
Total 20 100

12

10

Objective
6
No. of respondents
Percentage
4

0
1 2 3 4 5

Table 1.12 indicates that the least majority of the people save only for their
retirement. Most of them save for the purchase of assets and followed by others.
13.SECTOR: A sector is an area of the economy in which businesses share the
same or related business activity, product, or service. Sectors represent a large
grouping of companies with similar business activities, such as the extraction
of natural resources and agriculture.

Table 1.13 In which do you prefer to invest

S.No. Sector No. of respondents Percentage

1. Private 5 25
2. Public 5 25
3. Government 10 50
4. Others 0 0
Total 20 100

60

50

40

Sector
30
No. of respondents
Percentage
20

10

0
1 2 3 4

INTERPRETATION:

Table 1.13 reveals that majority of the people prefer to invest in private sector
and the minority of the people prefer to invest in public sector.
14.CONSULTATION: Consultation means a meeting to discuss something or
to get advice. The process of discussing something with someone in order to
get their advice or opinion about it can also be known as consulation. Here we
are going to talk about consultation with friends before investing.

Table 1.14 Do you consult your friend before investing

S.No. Consultation No. of respondents Percentage

1. Yes, everytime 5 25
2. Yes, sometimes 14 70
3. No, never 1 5
Total 20 100

80

70

60

50

Consultation
40
No. of respondents
Percentage
30

20

10

0
1 2 3

INTERPRETATION:

Table 1.14 indicates that majority of the people do not consult their friends
before investing. If we consult them they may give us ideas or tell us the ways
where and when to invest.
15. PERCENT(%) OF INCOME: Income can be defined as the money that
is earned from doing work or received from investments. People have various
opinions on investing money. They invest different percent of their income for
their own purposes.

Table 1.15 Investing of income in percent (%)

S.No. Income percent No. of respondents Percentage

1. 0-15% 1 5
2. 15% to 30% 9 45
3. 30% to 50% 9 45
4. Above 50% 1 5
Total 20 100

50

45

40

35

30
Income percent
25
No. of respondents
20 Percentage

15

10

0
1 2 3 4

From the above table 1.15, we can see that most ofthe people invest only 0-15%
of their income followed by 5% to 45%, 45% to 5% and above 50%.
16.LENGTH OF TIME PERIOD: The length of time during which
an activity occurs or a condition remains is known as time period. It may be
measured either in seconds or in millions of years, depending upon the nature of
the activity of condition being considered.

Table 1.16 Length of time period you invest

S.No. Time period No. of respondents Percentage
1. Short term 6 30
2. Medium term 11 55
3. Long term 3 15
Total 20 100
60

50

40

Time period
30
No. of respondents
Percentage
20

10

0
1 2 3

INTERPRETATION:
Table 1.16 indicates that majority of the people prefer to invest in short term
with 30% followed by medium term and long term with 55% and 15%
respectively.
17.FACTORS CONSIDERED: A factor can be defined as a fact or
or situation that influences the result of something. It can also be referred to as
a particular level on some systems of measurement.

Table 1.17 Factors considered before investing

S.No Factors No. of respondents Percentage

.
1. Safety of principal 5 25
2. Low risk 7 35
3. High returns 5 25
4. Maturity 3 15
5. Tax savings 0 0
Total 20 100

40

35

30

25

Factors
20
No. of respondents
Percentage
15

10

0
1 2 3 4 5

INTERPRETATION:

Table 1.17 indicates that most people consider the factor of low risk with a
percent of 35% followed by the other factors like high returns, tax savings,
maturity and safety of principal with percent of 25%, 0%, 15% and 25%
respectively.
18.WHERE TO INVEST: An investment refers to any asset that is obtained for
cost on the grounds that it is expected to provide value in the future that will
exceed its initial cost and time to value. This happens due to an appreciation of
the asset’s value.

Table 1.18 Where do you prefer to invest

S.No. Invest options No. of respondents Percentage

1. Stocks 4 20
2. Mutual funds 3 15
3. Bank deposit 7 35
4. Real estate 2 10
5. Gold 3 15
6. Others 1 5
Total 20 100

40

35

30

25

Invest options
20
No. of respondents
Percentage
15

10

0
1 2 3 4 5 6

INTERPRETATION:

Table 1.18 reveals that bank deposit with a percent of 35% is the most
preferable investment option chosen by many people and others with a percent
of 5% is the least preferred option chosen.
19.INFORMATION ABOUT COMPANY: A company is a legal entity formed
by a group of individuals to engage in and operate a business—commercial or
industrial-enterprise. A company may be organized in various ways for tax and
financial liability purposes depending on the corporate law of its jurisdiction.

Table 1.19 Do you collect information about the company

S.No Information of company No. of respondents Percentage

.
1. Yes 13 65
2. No 7 35
Total 20 100

70

60

50

40
Information of company
No. of respondents
30 Percentage

20

10

0
1 2

INTERPRETATION:

From the above table 1.19, we can see that 1/5th respondents i.e., 4 out of 20
respondents do not collect any information about the company before investing
and the remaining 35% collect the information.
20.TYPE OF COMPANY: A company is a body corporate or an incorporated
business organization registered under the companies act. A business
entity which acts as an artificial legal person, formed by a legal person or a
group of legal persons to engage in or carry on a business or industrial
enterprise.

Table 1.20 Type of company chosen to invest

S.No. Company No. of respondents Percentage

1. Start up 7 35
2. Small scale industry 12 60
3. Giant company 1 5
Total 20 100

70

60

50

40
Company
No. of respondents
30 Percentage

20

10

0
1 2 3

INTERPRETATION:

Table 1.20 indicates that majority of the people (12 respondents) choose small
scale industry to invest and minority of the people with a percent of 35% choose
start ups to invest.
21.TYPE OF INVESTOR: An investor is either an individual or a business
entity or a financial entity who takes their financial capital and puts it (or better,
invests it) in a particular commodity, currency, or company in hopes of getting
some semblance of financial returns in the future.

Table 1.21 Which type of investor are you

S.No. Investor No. of respondents Percentage

1. Very adventurous 4 20
2. Average 13 65
3. Fairly cautious 3 15
Total 20 100

70

60

50

40
Investor
No. of respondents
30 Percentage

20

10

0
1 2 3

INTERPRETATION:

From the above table 1.21, we can see that the minority of people are very
adventurous with 2 people and a percent of 20%. And the majority of the people
are average type of investors with a percent of 65%.there are 15% of people
investors are fairly cautious.
22.RETURN EXPECTED: Return on investment (ROI) isa performance
measure used to evaluate the efficiency or profitability of an investment or
compare the efficiency of a number of different investments.ROI tries to
directly measure the amount of return on a particular investment, relative to the
investment’s cost.

Table 1.22 Return expected from your investments

S.No. Return No. of respondents Percentage

1. 1% - 10% 0 0
2. 11% - 20% 4 20
3. 21% - 35% 11 55
4. 36% - 50% 5 25
Total 20 100

60

50

40

Return
30
No. of respondents
Percentage
20

10

0
1 2 3 4

INTERPRETATION:

From the above table 1.22 we can see that the return 11% - 20% is the most
selected than others by 11 respondents with a percent of 55%. And the least
one is 1% - 10% by 1 respondent with a percent of 0%.
23.INSTRUMENTS: Investment Instrument means an investment instrument
under the Capital Market Undertakings Act with which You can trade in the
framework of investment services provided hereunder.

Table 1.23 Various Financial instruments

S.No. Instruments No. of respondents Percentage

1. Commercial papers 9 45
2. Treasury bills 2 10
3. Bonds 13 65
4. Debentures 0 0
5. Call money 0 0
Total 20 100

70

60

50

40
Instruments
No. of respondents
30 Percentage

20

10

0
1 2 3 4 5

INTERPRETATION:

Table 1.23 indicates that treasury bills is the most known instrument by the
individuals followed by commercial papers, debentures, bonds and call money.
FINDINGS

It is found that majority of the people are either graduates and post graduates in
the 30th ward

It is found that most of them are salaried employees and business people stood
at second place.

Majority of the people here belong to low income group with income less than 1
lakh.

45% of the people have budgets for their expenditure and everyone prefer to
save their amount in bank.

People generally preferred Fixed Deposits as their saving scheme. And 45% of
them are aware of capital markets and has a saving target every year.

Respondents shared that they were informed banks about various investment
options.

It is revealed that people are mostly investing for their child’s future and then
health care is preferred.

People are inclined to invest in private sector for more profits.

They generally maintain secrecy about their investment decisions and take their
own decisions.

Majority of them are investing only 15% of the total income. Only 10% of
people are investing more than 50 percent of the earning. And generally
expecting11 to 20% returns.
People prefer short term instruments more with low risk and high returns.Bank
deposits are more favourable investment avenues, followed by banks and Gold
SUGGESTIONS

 It is suggested that everyone should save their money

 Options like auto sweep should be enabled in savings account so that they
can get more returns
 It is suggested that there should be a special helpdesk for informing about
various financial avenues.
 It is suggested to a set a goal for investment and understand the risk
involved.
 Try to reinvest the tax refund and investing in exchange traded funds.
 Buy generic brands rather than marked up brands to promote local
business.
 Use cashback apps and coupons to save more and spend less
 It is suggested to invest in long term funds and mutual funds.