Financial Management Practices of Investors:An Insight from Monthly Budgetary Allocation

With less than 1% of population in organized employment coupled with shifting of government focus from a regulator to a facilitator socialist welfare state the onus of retirement planning and life after retirement has been rested with individual. The budgetary allocation towards investment irrespective of its type has become imperative for investors in order to take care of their post retirement life. The study investigated budgetary allocation of retail investors for various budgetary heads which included daily necessities in order to fulfill their short term and long term goals. Two important constituents of financial management namely goal setting and budgetary allocation were inquired and it was found that majority of investors though acknowledge the importance of financial planning, they do fail to put it into practices and seldom engage themselves in record keeping and disciplined investing mode. Rather to achieve the goals majority of respondents do not have fixed provision or proportion of income that is set aside to achieve it.