A STUDY ON PRIVATE SECTOR EMPLOYEES PERCEPTION ON RETURN ON INVESTMENT- AN EMPIRICAL STUDY

Abstract

An efficient financial sector mobilizes savings and allocates it to those investments which yield the highest rate of return. Savings are the difference between income and consumption. An increase in the volume of real domestic savings means that resources that would have been used for consumption are released for investment. India has high level of saving rate because of high level of saving motives. Everyone seems to understand the basic principle of investment. Investment means the purchase by an individual of a financial or real asset that produces a return proportion to the risk assumed over some future investment period, for achieving this investor has to decide on how and where to deploy his/her saving. Saving motive is a desire to reserve certain potion of income for future. The main objective of investor is to invest in different investment avenues that deliver expected returns and help to meet the risk in future. There should be some motives for making investments. Employees give more importance to create more reserve to meet the risk in future. Understanding the different investment avenues, can be helpful to increase in total investment. Thus, it is a reward for waiting for money. The study on people’s choice in Investment Choices has been undertaken with the objective, to analyze the return on investment choice of people in Coimbatore District. Analysis of the study was undertaken with the help of survey conducted. After analysis and interpretation of data it is concluded that in Coimbatore District respondents are medium aware about various investment choices but they do not know aware about stock market, equity, bound and debentures. Due to this, the return on investment is based on the physical asset investments.