Ratio Analysis

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TABLE OF CONTENTS

1. Introduction …………………………………………………….… 2. Literature Review.………………………………………………. 3. Methodology ……………………………………………………… 4. Data Analysis and Interpretation ………………………………. 5. Conclusion and Result ……………………………………………. 6. Bibliography ………………………………………………………. 7. References …………………………………………………………. 8. Annexure …………………………………………………………..

INTRODUCTION
Mankind is insecure by nature. Unlike an animal whose requirements do not exceed beyond food for its survival and a territory to rest, man has perpetual desire. This perpetual desire is the driving force to make man accumulate things that he perceives to hold a store of value. Wealth is a creation out of holding of assets perceived to be a denominator of a measure of value. Traditionally, savings were invested in scarce metals, cut and polished stones, land etc., that was in short supply. This was extended to include buildings, property, paintings, sculptures, coins, artifacts, other assets which could be translated into quantifiable sums in terms of money when and if the rainy day came. Nevertheless, it could be handed over from one generation to another. With the changing times we have new measures of store of value that are perceived and induced by faith either in the principle or the practice of such issue. This could range from various promises to maintain to or add to the worth of the issue. These savings could be voluntary or induced by the state policy such as the tax laws. Investment

An investment is the current sacrifice of the present savings for future benefits. Most of us save in fact, Indians who are not very rich also have decent savings rate. In day to day life we come across several instances where investments are required to be made such as: * Investment in life insurance to save on taxes, automobile insurance, medic-claim insurance etc. * Depositing money into recurring deposits to, part-finance the down payment for a house. * Investment in children’s education, for their imminent weddings. * Investments to take care of our own needs after retirement.

When there are so many different reasons for investment, there cannot be a single, grand, all-purpose solution to the investment dilemma. Sometimes investors feel like putting all their money in equity or may be in mutual funds. There can be more investment alternatives like real estate futures market. But no investment avenue can, by itself, meet all the needs. Every investment need requires a combination of solutions, which can be met by building a suitable portfolio.

Objectives of the study
Based on the present domestic savings pattern and other aspects, the following objectives are formed. They are: 1. To study and analyze the investment pattern of salaried people in Delhi; 2. To identify the reasons for savings from their salary income; 3. To identify the savings option of the salaried people in Delhi; and 4. To study and analyze the demographic variables of the salaried people and compare with their savings pattern.

LITERATURE REVIEW
2.1. Importance of Investment
As result of reforms in financial and real sector new investment alternatives have emerged. There was a time when few individuals possessed majority of the wealth in the society. With the efforts of government our economy witnessed significant growth, which led to uniform distribution of income in society. As a result income of masses started rising and they started looking for suitable investment avenues, to achieve their financial goals. From savings accounts, fixed deposits, post office savings schemes, several other investment alternatives have emerged such as capital markets, mutual funds, commodities market, insurance derivatives etc. There has been a major shift towards risky investments in order to earn higher returns. There were also scams like US-64, Harshad Mehta’s Scam, which forced investors to make changes in their portfolio. But after...
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