A Study of Investment Avenues of Information Technology (IT) Professional Towards Selected Investment Routes with Respect to Delhi City

Abstract

In the present times, investment has become a major activity undertaken by individuals to generate wealth and increase their earnings. Investment decisions of IT professionals also pave the way for them to save income tax. In the present scenario, investor behavior is playing a more important role in investment decision making. Therefore, this paper focuses on a behavioral dimension. The investment avenues selected by IT professionals are equity investments, mutual funds, insurance, provident funds, fixed deposits, postal savings products, government bonds, real estate and gold.

This paper examines the path they chose through primary data. And for this with a questionnaire based on random sampling technique, where 90 questionnaires were randomly sent over email. Of those, 84 responses were received and analyzed.

This paper also throws light on previous research papers for which secondary data was collected through doctoral theses, articles and websites. Ultimately, the results showed that less than 10% of savings are invested by professionals.

A large number of professionals are investing monthly, half-yearly and annually. SIPs (Systematic Investment Plans) of mutual funds, term insurance, fixed deposits, provident funds, residential property and jewelery are the types of investments that have been chosen in greater number among the investment avenues chosen for the study. Finally, chi-square results presented that “there is a significant relationship between the annual income of IT professionals and the type of investment avenue chosen”.