1.
1 INTRODUCTION
Saving is the important variable for every country to be studied for the
economic growth and development of any country. Savings is the important macro
Economic variable to be studied under the preview of the economic arena on an
individual as well as household basis. According to classical economist like Adam
Smith, David Ricardo and J.S Mill, “Saving is an important determinant of economic
growth”. Saving components can be based on an individual or a household basis
which proves to be the well being. For an individual saving becomes the cushion for
facing the unforeseen and upcoming as well as the uncertain circumstances of life in
future is a part of the income earned by the individuals. The saving habits and pattern
of saving differ from rural to urban regions the higher but it helps the multiplier
process.
In rural areas the marginal propensity to consume is more rather than the
marginal propensity to save which seems to be vice versa in urban areas where the
marginal propensity to save is more than that of the marginal propensity to save is
more than that of the marginal to consume.
The study is an attempt to analyze the investment attitude of rural people in
Perinthalmanna Municipality and to determine various investment and savings
avenues used by them. Invest avenues are the various types of investment alternative
through which people can canalize their money to earn additional profit. There are
many investment and savings option like bank deposit, post office savings, provident
funds, shares and debenture etc...that are available for public. However many people
are un aware about many of those alternatives especially in rural areas. Thus this study
is attempt to know the awareness rural people towards the savings and investment
option
The present study focuses on examining the main determinants of saving
pattern in the rural households of Perinthalmanna municipality. Avenues of rural
people include local chit fund, post office deposits, investment in gold and very small
portion and insurance (LIC) and other small savings.
1.2 STATEMENT OF THE PROBLEM
Saving is a very important component which is responsible for combating or meeting
any emergency accrued by the individual or the households or any corporate agencies.
Saving is more of meant for meeting contingencies but sometimes it also acts as a
form of investment. But sometimes people are not inclined towards saving and the
very delicate reason is lack of awareness. The present study can be a relevant to know
thrift and saving among rural people. Aggregate saving in any economy is dependent
on a number of variables. For effective economic planning, the planners should have
an idea regarding the volume of saving of different groups of people and the method
by which saving can be improved more over in a better way. To advocate appeals for
saving, there is a need to know about the saving motives of the individuals.
Right now, saving more and spending more simultaneously has become the basic and
conflicting factor for the economy. Thus, there is an immediate need to carefully
understand the determinants of both the household savings and the saving pattern in
the rural households. This study is an attempt to find out the saving and investment
habits of rural people in Perinthalmanna municipality of Malappruam district.
1.3 OBJECTIVES
The objectives of the study are:
1. To understand the saving habits among the rural people.
2. To identify the sources of income.
3. To identify the different alternatives of saving.
4. To understand the purpose for which the savings are made.
5. To know the saving pattern of people in the study area.
6. To explore the various purpose of savings by the respondents.
1.4 SCOPE OF THE STUDY
The present study helps to evaluate the savings and investment habits of rural people .
Nowadays there is little bit change in the habits rural people, they get knowledge
about savings and investments and benefits in future. Rural people save their daily
income and also started to invest in small investment schemes. The study was
conducted at Perinthalmanna Municipality.
1.5 SIGNIFICANT OF THE STUDY
To study on rural savings in India need to look into four aspects namely, the
determinates of savings, the composition of savings, the method of measuring saving
and the pattern of savings. The present study tries to analyze the determinants of the
saving behaviour in rural households of Perinthalmanna municipality of Malappuram
district and which purpose for which savings are made, etc.....
1.6 RESEARCH METHODOLOGY
Research methodology deals with research the away proceeds, the way its
progress is measured and reported. The success of research depends up on the use of
an approximate methodology. If an approximate methodology is used in an correct
manner, the interpretations and analysis of the study could go wrong.
According to Robert Ross “Research is essentially an investigation a recording and an
analysis of evidence for the purpose of gaining knowledge.
Research methodology is the description explanation and justification of various
methods of conducting research.
1.6.a RESEARCH DESIGN
Sufficient a research design is a logical plan prepared for directing a research
study. It specifies the objective of the study, methodology and technology to be
adopted for achieving the objectives. The research is a conceptual structure with in
which research is conducted. It constitutes the blue print for the collection
measurement and analysis of data. It is premarital after formulating the research
problem.
1.6 B SOURCES OF THE DATA
Sources of data simply means the primary location from where data comes. For the study
both primary and secondary data used for collection
1) PRIMARY SOURCE
A primary data source is an original data source, that is , one in which the data are
collected first hand by the researcher for a specific research purpose. Primary data
collected through the detailed questionnaire.
2) SECONDARY SOURCE
Secondary source refers to data that is collected by someone other than the user. In the
study secondary data are collected from the magazines, internet and selected books
1.6 C SAMPLING DESIGN
A sampling design is the mathematical function that gives you the probability of any
given sample being drawn. Since sampling is the foundation of nearly every research
project the study of sampling design is a crucial part of statistics.
Population
50 People in Perinthalmanna Municipality will be the population.
sample size
Sample size will be 50
Sampling method
Convenient sampling method is used for data collection.
1.6 D TOOLS USED FOR THE STUDY
1) For data collection
Questionnaire prepared is used by the research to get needed information from
respondent.
2) For data analysis
In this research , simple percentage analysis is used for analyzing primary data .
3) For data presentation
In this research tables , diagrams , charts etc- are used for presenting data
1.6 E DURATION OF THE STUDY
The duration of the study is 21 days.
LIMITATIONS OF THE STUDY
The study is limited to Perinthalmanna municipality.
The sample size is limited to 50
As convenience sampling is used as the sampling technique the data’s
were not so accurate.
It was difficult to communicate with the rural people of disadvantaged
level as most of them were illiterate.
Chance of sampling errors while selection of samples.
