INVESTMENT BEHAVIOUR OF RURAL INVESTORS: INFLUENCE OF FINANCIAL

VS NON FINANCIAL LITERACY FACTORS

Introduction:
Research in investment behaviour is relatively trending. Within investment behaviour it is
assumed that information structure and the characteristics of market participants systematically
influence individuals’ investment decisions. There are lots of investment alternatives where
investor can invest such as Gold, silver, real estate, bank deposits, PPF, shares, derivatives,
organised and unorganised chit funds etc. which is combination of organised investments and
unorganised investments alternatives. For studying the savings and investment patterns of an
individual it is very important for me to figure out the behaviour and literacy level of the
individual. Because the literacy level gives the better opportunities to investment in best financial
products.
Financial literacy gives the potential growth of income, enhanced saving capacities, better access
to quality information which exposes the individuals to better investments options. While
financial illiteracy will have limited chances in growth of income thereby decreasing saving
potential not only this comparatively lower level of education and limited access to information
restrict their approach to selective investment alternatives.
In this paper I am tiring to find out the investment pattern of investors by considering the financial
and non financial factors.

Importance of the study:

The study is relevant from both the academic as well as the researcher’s perspectives. With regard
to the academic perspective, the study contributes to the existing body of knowledge, especially in
the Indian perspective where, to the best of the researcher‘s knowledge and information, such an
extensive study with regard to psychographic factors‘ impact on investment behaviour with
reference to non financial literacy has never been conducted.
From the researcher’s perspective, the study is even more relevant. The researcher proposes that
based on an in-depth assessment of the financial and non financial literacy factors of the target
investors, the financial decisions would be able to devise customized financial services and
processes for them in order to generate optimum satisfaction.

Scope of the Study:

The scope of the study is vast. The population of the study covers the entire set of rural
individuals in the entire country, India. I have consciously selected only rural individuals for the
study as the investment question is crucial particularly for the rural people who are the back bone
of the nation. This is the unique group of individuals, who is forever found of resources, has deep-
rooted self-created ethical and moral boundaries, has limited ambitions but is constrained by
numerous feasibility issues, and accessible to limited options.
Therefore, to construct a model for these puzzled individuals, the rural individuals seemed to be
the best scope for this study.
Objectives of the study:

1. To know the investment pattern of rural investors in different investment alternatives

2. To study the impact of financial and non financial literacy impact on the investment decisions
3. To determine the preferred investment behaviour of investors based on their psychological &
demographical factors.
4. To study how financial literacy level of rural individuals affect their awareness regarding
financial products
5. To comparatively analyse the investment behaviour of the individuals in organised and
unorganised financial products
6. To examine the Income –wise saving, consumption and Investment Behaviour of rural
individuals
7. To find out the association between components of investment behaviour and the level of
financial literacy
8. To analyse the risk tolerance level of the individuals.

 Financial assets familiarity

 Investment objective
 Future plans
 Income level
 Family background
 Tax plans
 Understanding the impact of Macro Economic elements

Order for the Research proposal

Proposed Title:
Introduction
Review of the literature
Should be in chronological order
Research gap
Need and scope of the study
Objectives
Proposed Methodology
Sample and sample analysis
Proposed framework for the research or conceptual framework
Proposed methodology (objective wise)—(may be you can consider as optional if you want to
mention it. Mention under the head proposal methodology).
Finding and suggestions will not be a part of Research Proposal.But under Expected behaviour or
findings you can mention (before that see the common pattern of the university, follow university
pattern even if you are not like it)
Conclusion :

Further Research

Referances