5.2.1.1.

3 Factorisation of Motives
To reduce the number of variables into minimum manageable variables, factor analysis is performed. The suitability for factor analysis is tested using two analysis namely KMO test and Bartletts test of Sphericity. The Kaiser-Meyer-Olkin Measure of Sampling Adequacy is a statistic which indicates the proportion of variance in the variables which might be caused by new factors. High values generally indicate that a factor analysis may be useful with the data. If the value is less than 0.50, the results of the factor analysis probably wont be very useful.
TABLE 5.2.2 KMO AND BARTLETT'S TEST Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartlett's Test of Sphericity df Sig. 0.731 Chi-Square 804.442 28 0.000

The above table shows that the KMO value is 0.731 which indicates that the factor analysis is useful with the data. The chi-square value for Bartletts test of Sphericity is 804.442 and the significant value is 0.000 which is significant at more than 99 percent level of confidence. For the purpose of extraction, Principal Component Analysis is used and for the rotation Varimax rotation is used which is the standard rotation method (Kaiser, 1958). The factors which have Eigen value greater than unity are taken as reduced factors which are used as new factors for further analysis. From the factor analysis two factors are extracted from original eight variables. Five variables (motives) are grouped under the first factor and another three variables are included in the second factor. The first factor can be named as self support motive and the second factor can be designated as family oriented motive. The motives which are included in the each factor along with their loadings are given below. 5.2.1.1.3.1 Self Support Motive

Self support motive is a motive related to needs and wants of an individual. People mainly want to reserve some money for the purpose of meeting their own future contingencies. The variables included under this motive along with their respective loadings are given in the table 5.2.3.

TABLE 5.2.3 FACTOR LOADINGS FOR SELF SUPPORT MOTIVE Statements 1.1) I save because I desire to provide for anticipated future needs like old age. 1.2) I save because I desire to build reserve for unforeseen contingencies. 1.3) I save because I desire to enjoy an enlarged future income like interest and appreciation 1.4) I save because I desire to meet gradually increasing expenditure in order to improve the standard of living 1.5) I save because I desire to enjoy a sense of independence and power to do things Factor Loading 0.762 0.684 0.654 0.624 0.609

The need to save for future anticipated requirements and the need to save for future unexpected contingencies are the primary motives included under self support motive. People also save to live independently and to have higher standard of living. 5.2.1.1.3.2 Family Oriented Motive People not only reserve money for the purpose of meeting their own needs and they also give equal importance to family related needs. They want to leave some assets to their family members after their death. For the purpose of creating more assets to their family members, they may spend less during their life time and may involve into some business to earn more money.
TABLE 5.2.4 FACTOR LOADINGS FOR FAMILY ORIENTED MOTIVE Statements Factor Loading

2.1) I save because I desire to carry out speculation business. 2.2) I save because I desire to spend less (satisfy a purely miserly instinct) 2.3)I save because I desire to pass the fortune to next generation (bequeath a fortune)

0.830 0.686 0.636

From the above analysis, the eight motives of saving given by Keynes are reduced into two factors namely self support motive and family oriented motive. For the purpose of future analysis only these two motives are considered.

5.2.1.1.4 Strength of Motives By using factor analysis, the eight motives are factored into two motives and they are named as self support motive and family oriented motive based on variables loaded under each factor. The following table shows mean value for those two motives.
TABLE 4.2.5 STRENGTH OF MOTIVES S.No 1 2 Motive Self Support Family Oriented Mean 3.54 2.66 Rank I II

Of those two motives self support motive is very dominant than family oriented motive and its presence is very strong among individual investors. The average level of self support motive among individuals is 3.54 which indicates that its presence is very predominant among individuals.
TABLE 5.2.6 SELF SUPPORT MOTIVE CATEGORIES Disagree Agree Total Frequency Percentage 29 5.3 523 94.7 552 100.0

About 95 percent of people agree with the need to save to support them in future. The self support need mainly comprises of the need to save for meeting future unforeseen contingencies and future anticipated expenses. The presence of strong motives among

Indians indicates that people will definitely save if they have any surplus money after meeting their basic consumption needs.
TABLE 5.2.7 FAMILY ORIENTED MOTIVE CATEGORIES Frequency Percentage Disagree 265 48.0 Agree 287 52.0 Total 552 100.0

Of the total investors only 52 percent of investors agree with the need to reserve money for family oriented needs. The family oriented need is represented by need to create assets to leave it for their future family use. The presence of family oriented motives among investors is much less than self support motives. 5.2.1.1.5 Variance Explained The Eigen value and variance explained by each factor (motive) is given in the following table.
TABLE 5.2.8 VARIANCE EXPLAINED BY FACTORS S. No Factors 1 Self Support Motive 2 Family Oriented Motive Eigen Value 2.597 1.604 % Variance Explained 29.337 23.173 Cumulative % 29.337 52.510

The reduced two factors explain 52.5 percent of total variance which is fairly significant. Among the two motives, self support occupies pivotal position and it alone explains 29.3 percent of total variance. This indicates that the primary motive of every individual is self support motive and individuals differ from each other mainly on the level of their self support motive.