Introduction

The country like India which having high population, development of these countries not that
easy to improve quickly. These countries aim at development in all the sectors of the country like
Social and Cultural development, Infrastructure development, Economic developmentetc.
savings from an important part of the economy of any nation. With the savings invested in
various options available to the people, the money acts as driver for growth of the country.

The country’s economic development depends on the good working capacity of the people and
their net income. If the income of the people is good, then the country’s economic growth
impossible. The basic thing that normal people do is make savings out of their earnings. Savings
means nothing but reducing the expenses and proper use of the money. This leads to Investment.
Investment may be in the form of money or money’s worth. And there are many ways to make
the proper investment. Savings and investment form an integral part of one’s life. Investment
refers to the employment of funds with an objective of earning a favorable return on it.
Investment in specified sectors gives more benefits. Specified investment indicates that
investment sectors which have low risk and more return. In regard to this we found the different
criteria for investment. We Indians have few Tax free investments schemes, tax sheltered
investment schemes, tax beneficiary Investment schemes.

The investment should be carefully analyzed so that the investment should ensure minimum risk
and maximum profit.so, good investments will improve financial position. This study includes
response of investors in choosing avenues and analysis has been for the respective performance
based on returns.
Need
Lending/ Investing of the amount by people in any of the Investment avenues, are the
basic and main source of fund for the government. The investment made by common people also
play an important role in the economic development of the country. As well as it is beneficiary
too for the investors. This study helps in knowing the avenues available for investors in India,
what are the tax benefits and taxable rates for those investments, as well as people opinions
about those investments. This study mainly concentrates on gaining the knowledge about Tax
impacts on those different types of Investments.

Objectives
1. To examine the demographic profile of the people.
2. To know the Tax benefits available for the investors to reduce the tax.
3. To study the Savings/investing ideology of the people.
4. To analyse investors preference in different avenues for investment.

Scope of the Study

 Geographical Scope: The scope of the study is limited to the geographical area of
Haveri district only. The study is based on direct interaction with real investors, few
of the employees of the city and few businessmen in that area. This complete study
undertaken in Haveri district only.

 Material Scope: The data or Samples used for this is by doing direct interaction with
the investors as Primary data and also take the information from Tax related websites
and Tax textbooks.
Research Methodology
initially a rough draft will be prepared keeping in mind the objectives of the research. A
study will be undertaken in order to know the accuracy of the questionnaire. Finally, the
questionnaire will be arrived only after certain important changes are incorporated. Convenience
sampling techniques will be used for collecting the data from different investors. The selection if
the units from the population based on easy availability and accessibility to researcher is known
as convenience sampling.

Sampling units

The respondents who will be asked to fill out the questionnaires are the sampling units.
These comprise of employees of different sectors, self-employed, professionals and other
investors.

Sampling size

The sample size will be restricted to only100, which comprised of mainly people from
different regions of Haveri district due to time constraints.

1 Primary data
It is collected directly by interacting with the investors and also by taking their
answers for the questionnaire which gives the necessary details for the study.
2 secondary data
As my study relates to Tax, so I go through few of the Tax related websites and
referred few textbooks regarding the Indian Tax laws.

Limitations of the study

This analysis is based upon the investor’s behavior for investment preferences during
normal time. This analysis would be focusing on the information from the investors about their
knowledge, perception and behavior on different financial products.

1. This study is based on the primary as well as secondary data, possibility of unauthorized
information cannot be avoided.
2. Reluctance of the people to provide complete information about them can affect the
validity of responses.
3. The lack of knowledge of costumers about the financial instruments can be a major
limitation.
4. The information can be biased due to use of questionnaire.