Observations Made on the Discretion of Salaried Class Investors’ Saving Strategies through Factor Analysis Method

Saving form an important part of the economy of any nation. With the saving invested in various options available to the people the money acts as the driver for growth of the country. Indian financial scence too presents a plethora of avenues to the investors. Though certainly not the best or deposits of markets in the world, it has reasonable options for an ordinary man to invest his savings. One needs to invest to earn return on their idle resources and generate a specified sum of money for a specific goal in life and make a provision for an uncertain future. One of the important reasons why one needs to invest wisely is to meet the cost of inflation. Inflation is the rate at which the cost of living increases. The cost of living is simply what is cost to buy the goods and services need to live. Inflation causes money to lose value because it will not buy the same amount of a good or services in the future as it does now or did in the part. The sooner one start investing the better. By investing early you allow your investment more time to grow, whereby the concept of compounding increase your increase your income, by accumulating the principal and the interest as dividend earned on it year after year. This analysis describes why an investor will opt a particular investment and the motive behind the investment and other objectives of investment.