savings and investment

(UIF) to help unemployed persons avoid the need to withdraw from their retirement funds. Households would also have to engage in both mandatory and voluntary retirement savings schemes. In addition, the private sector must promote savings by designing simple low-cost schemes for the poor (National Planning Commission, 2011, p. 370). This has been enacted. In order to encourage increased savings, National Treasury explored various savings vehicles and, in 2012, released proposals for potential tax incentives (StatsSA, 2013). In the 2013 National Budget speech, the Minister announced a tax relief of R7 billion in 2013. Such a policy stance leads to an increase in household disposable income that would either increase consumption and/or alternatively, increase savings. The increase in personal savings means more money is made available for borrowing by investors, culminating in increased investment and economic growth (Keynes, 1936). In addition, progressive reforms to the tax treatment of contributions to retirement savings were declared (StatsSA, 2013). This effectively increases retirement savings which are then availed to investors for borrowing by financial service providers (Prinsloo, 1994; 2000). Again this boosts personal savings.

This paper examines the relationship between the gross domestic savings, investment and growth for Nepal using annual time series data for the period of 1974/75 to 2009/10. The study employs the Autoregressive Distributed Lag (ARDL) approach to test for cointegration and Error correction based Granger causality analysis for exploring the causality between the variables. Empirical results show that there exist cointegration between gross domestic savings, investment and gross domestic product when each of these is taken as dependent variable. Granger causality analysis shows that there exists short-run bidirectional causality between investment and gross domestic product as well as between gross domestic savings and investment. Nevertheless, no short-run causality is found between gross domestic savings and gross domestic product. Thus, the policy of accelerating growth by promoting investment works to some extant only since the long-run investment multiplier is below one.

About the Index: The Bank of Ireland/ESRI Savings and Investment Index tracks household views on attitudes towards savings and investment as well as understanding their perspectives on the current and future savings and investment environment. Understanding savings behaviour provides insight into how households smooth consumption, plan to make big purchases and build up buffers which can be drawn down in times of economic stress. Monitoring household investment patterns gives an understanding of how they are putting their money to work, their financial diversification, and their appetite for risk. The Bank of Ireland/ESRI Savings and Investment Index also provides a risk barometer and a retirement optimism index to give insight into household risk taking and the retirement planning. These will be presented on alternate months. For October, only the Savings Items will be published until a sufficient dataset is developed on investment.

About the Index: The Bank of Ireland/ESRI Savings and Investment Index tracks household views on attitudes towards savings and investment as well as understanding their perspectives on the current and future savings and investment environment. Understanding savings behaviour provides insight into how households smooth consumption, plan to make big purchases and build up buffers which can be drawn down in times of economic stress. Monitoring household investment patterns gives an understanding of how they are putting their money to work, their financial diversification, and their appetite for risk. The Bank of Ireland/ESRI Savings and Investment Index also provides a risk barometer and a retirement optimism index to give insight into household risk taking and the retirement planning. These will be presented on alternate months. For October, only the Savings Items will be published until a sufficient dataset is developed on investment.

nancial distress, with the lower intermediation costs offered by markets in normal times. In choosing the optimal portfolio of assets, firms face a trade-off between investing more and get- ting higher profits in the future—conditional on receiving a favorable demand shock and not defaulting—and holding more cash, which implies that returns have a lower variance and firms have a higher chance of survival. As a result of this combination of trade-offs, for a comparable leverage, replacing bank debt with market debt exposes firms to larger default risks, thus incen- tivizing them to reallocate assets from capital to cash holdings. The model prediction matches well with the empirical stylized fact on the robustly positive correlation between cash holdings and corporate bond spreads, shown in Acharya, Davydenko and Strebulaev (2012). Moreover, an implication of the result is that the precautionary motives for saving are of first-order importance even for public firms with relatively good ratings, and suggests that these firms exhibit behavior that is qualitatively similar to that of more financially constrained firms. Indeed, the “precaution- ary savings” channel, through which aggregate shocks affect macroeconomic outcomes, plays a crucial role in explaining the convergence in investment dynamics among the financially uncon- strained and constrained firms, which is observed in the data since the 2007-09 financial crisis and at odds with the intuition suggested by the traditional “financial constraint” channel.

About the Index: The Bank of Ireland/ESRI Savings and Investment Index tracks household views on attitudes towards savings and investment as well as understanding their perspectives on the current and future savings and investment environment. Understanding savings behaviour provides insight into how households smooth consumption, plan to make big purchases and build up buffers which can be drawn down in times of economic stress. Monitoring household investment patterns gives an understanding of how they are putting their money to work, their financial diversification, and their appetite for risk. The Bank of Ireland/ESRI Savings and Investment Index also provides a risk barometer and a retirement optimism index to give insight into household risk taking and the retirement planning. These will be presented on alternate months. For October, only the Savings Items will be published until a sufficient dataset is developed on investment.

When looking at savings and investment in the U.S., it is important to note that ACLI member companies offer insurance contracts, and investment products, and services to employment-based retirement plans (including defined benefit pension plans, 401(k), SIMPLE, SEP, 403(b), and 457(b) plans) and to individuals (through IRAs and annuities) in addition to life insurance and long-term care and disability income insurance. Our members are also sponsors of retirement plans for their employees. In both capacities, life insurers believe that saving for retirement, managing assets throughout retirement, and utilizing financial protection products are vital to Americans' retirement income and financial security.

About the Index: The Bank of Ireland/ESRI Savings and Investment Index tracks household views on attitudes towards savings and investment as well as understanding their perspectives on the current and future savings and investment environment. Understanding savings behaviour provides insight into how households smooth consumption, plan to make big purchases and build up buffers which can be drawn down in times of economic stress. Monitoring household investment patterns gives an understanding of how they are putting their money to work, their financial diversification, and their appetite for risk. The Bank of Ireland/ESRI Savings and Investment Index also provides a risk barometer and a retirement optimism index to give insight into household risk taking and the retirement planning. These will be presented on alternate months. For October, only the Savings Items will be published until a sufficient dataset is developed on investment.

About the Index: The Bank of Ireland/ESRI Savings and Investment Index tracks household views on attitudes towards savings and investment as well as understanding their perspectives on the current and future savings and investment environment. Understanding savings behaviour provides insight into how households smooth consumption, plan to make big purchases and build up buffers which can be drawn down in times of economic stress. Monitoring household investment patterns gives an understanding of how they are putting their money to work, their financial diversification, and their appetite for risk. The Bank of Ireland/ESRI Savings and Investment Index also provides a risk barometer and a retirement optimism index to give insight into household risk taking and the retirement planning. These will be presented on alternate months. For October, only the Savings Items will be published until a sufficient dataset is developed on investment.

An obvious question is to find an optimal way to invest the initial stream of payments that will accumulate wealth in the savings period and also to keep the remaining investment during the withdrawal time. Any investor would prefer a strategy that will ultimately provide him with the highest return. However, the uncertainty about the evolution of the returns makes prediction impossible. We can only work with assumptions on the returns process and study the wealth dis- tribution at time 𝑇. The wealth distribution is the set of pos- sible returns together with the odds to achieve them. In this paper, instead of limiting our study to fixed terminal wealth distribution we will rather fix its downside risk level. There is a risk that the investor does not have enough resources to be able to withdraw a pension during retirement. Many investors could be enormously averse to the risk of ruin, or even to the risk that wealth at time 𝑇 falls below a certain level if they are interested in leaving a bequest to their heirs. The utility func- tion captures the preference, from the investor’s point of view, of the final wealth outcome (see, e.g., [6, 42, 43]).

10 About the Index: The Bank of Ireland/ESRI Savings and Investment Index tracks household views on attitudes towards savings and investment as well as understanding their perspectives on the current and future savings and investment environment. Understanding savings behaviour provides insight into how households smooth consumption, plan to make big purchases and build up buffers which can be drawn down in times of economic stress. Monitoring household investment patterns gives an understanding of how they are putting their money to work, their financial diversification, and their appetite for risk. The Bank of Ireland/ESRI Savings and Investment Index also provides a risk barometer and a retirement optimism index to give insight into household risk taking and the retirement planning. These will be presented on alternate months. For October, only the Savings Items will be published until a sufficient dataset is developed on investment.

This study mainly deals with the savings and investment pattern of household investors as well as their preferences towards investment. A pre-tested questionnaire we framed to collect the required data. The respondents for the survey are salaried investors, self employed professionals or entrepreneurs, who were screened and considered based on their knowledge about financial markets, and various savings options. Primary data has been collected through a personal interview and structured questionnaire.

About the Index: The Bank of Ireland/ESRI Savings and Investment Index tracks household views on attitudes towards savings and investment as well as understanding their perspectives on the current and future savings and investment environment. Understanding savings behaviour provides insight into how households smooth consumption, plan to make big purchases and build up buffers which can be drawn down in times of economic stress. Monitoring household investment patterns gives an understanding of how they are putting their money to work, their financial diversification, and their appetite for risk. The Bank of Ireland/ESRI Savings and Investment Index also provides a risk barometer and a retirement optimism index to give insight into household risk taking and the retirement planning. These

Say’s Law is the basis of classical macroeconomics and it is based on self-regulating markets. The self- regulating credit or money market ensures that savings does not invalidates Say’s Law. The credit market ensures that incomes that are saved by households flows into the hands of businesses that use them for investment expenditures. The classical economists believe that savings is an increasing function of interest rate and investment is a decreasing function of interest rate. Given that savings and investment depend on interest rate that is flexible in both downward and upward directions, the flexible interest rate will always adjust to equate savings by households with investment expenditures by businesses. The income that is withheld by households from circular flow of income is deposited in banks that lend it to businesses that inject it back into the income stream as investment. The classical economists believe that whatever amount of income is saved, it will be fully offset by investment expenditures.

“Commenting on the Bank of Ireland Savings and investments Index, Tom McCabe, Global Investment Strategist, Bank of Ireland Investment Markets said: “A key feature of October’s Savings and Investment Index was the rise in sentiment toward saving among Irish households. This was a direct result of more Irish people thinking that now is a good time to save, a trend that has become more visible over the last number of years.

The Bank of Ireland/ESRI Savings and Investment Index tracks household attitudes towards savings and investment as well as monitoring their perspectives on the current and future savings and investment environment. Understanding savings behaviour provides insight into how households smooth consumption, plan to make big purchases and build up buffers which can be drawn down in times of economic stress. Monitoring household investment patterns gives an understanding of how they are putting their money to work, their financial

The Bank of Ireland/ESRI Savings and Investment Index, which measures sentiment towards saving and investment, was unchanged at 102 in March, with investment and saving sentiment going in opposite directions. Investment sentiment improved on the back of a sharp increase in confidence about the outlook for markets. However, this was offset by softer saving sentiment which slipped back from February, when it reached an all-time high helped by ongoing uncertainty around Brexit.

Foreign remittances are favouring for a developing nation like India where a greater part of individuals are unemployed and poor. Remittances add to the GDP of the nation specifically as the measure of remittances got is expanding generously year after year. They have both large scale and micro level impacts on the economy of the nation. To the extent the large scale level impact is concerned it is watched that remittances influence nation's general savings, investments, utilization, neediness mitigation, foreign exchange, and so on and they influence the nation's full scale economic circumstance. Then again, foreign remittances influence the migrant's family's income, utilization, social insurance, instruction, investment in organizations, resources era. Be that as it may, different written works on the impacts of foreign remittances on households propose that remittances diminish destitution from the migrant's families by expanding their acquiring, enhancing their ways of life. Thus, one might say that remittances have positive socio-economic impact.

The purpose of this research was to disclose the nature of relationships regarding the importance of institutional freedoms for national savings, and investment. On empirically ground it is divulged that during study period democracy in Pakistan did not contribute remarkably toward above mentioned variable. According to results, democracy affected the national savings and investment in Pakistan positively but insignificantly. Reason is very simple; in Pakistan existence of democracy with all its dimensions and characteristics is proved impossible up till now. More than half of this study period was the era of Martial Laws or authoritarian administration. Remaining period was characterized by motionless democracy. Motionless in a sense that any elected government did not complete its time tenure. No government continued the economic policies of last administration, political instability of vulnerable democratic administrations did not contribute significantly towards national savings and investments in Pakistan. Economic freedom the other core explanatory variable affect the investment

Every family needs to save and accumulate funds for different reasons like education, marriage of children, property, loss of income, illness, death and other unforeseen contingencies. Savings also contribute families to ensure financial security in old age to meet their expenses in times of rising price and inflation. According to Virani (2012), Savings provide the financial protection to the individual saver at the time of emergency. It is necessary to have saving plans because it will help in meeting personal financial goals like secure future after retirement, children’s education and marriage, meeting the demands of the family. Achar (2012) mentioned that the important motives for savings and investment are assured returns, freedom from risk, and tax benefits. Risk coverage is also assumed an important place. Chaudhary et al. (2015) also highlights the main purposes of investments are children’s education, marriage, security and safety after retirement. Investment gives financial freedom, besides making financially independent, investment makes rich also therefore people save and invest their money for the various purposes like emergencies in future (sudden accident and death of loved ones, repairing of car, house construction).Investment also helps to cope up with financial situations and reduce future risks. Other reasons are tax concession, resale purpose (land and house). Sood and Kaur (2015) describes few reasons for savings are emergencies, education, save for vocations, security of money for future intends, to make house for residential, retirement, average life expectancy and other luxury items. Apart from the above mentioned most common reasons for investment, some people who are very generous to make investments to use the proceeds in future for social cause and some people are investing to obtain tax exemption. Consequently numerous varieties of investment decisions are available to invest surplus money.