Chapter-III

Analysis of Socio Economic Factors of

Investors
 The basic purpose behind the savings of individuals differs from one person to
the other. All the savers are not the investors. Besides, the attitude of the individual for
investing differs from one saver to another. However, there is a particular behavior or
desired action among the investors. The normal perception is that Indian Investors are
high income people, well educated, salaried and independent in making investment
decisions and they are deemed to be conservative investors. The Indian Stock Market is
so volatile that the Investors’ Behavior is unpredictable. In the past couple of years, the
movement of share prices exceeded all the limits and had fluctuated remarkably
between low and high levels.

Retail Investors in Indian generally consider their investment needs, goals,

objectives and constraints while making investment decisions. But it is not possible for
all of them to make a successful investment decision at all times. Their attitude is
influenced by a variety of factors including socio economic factors. The socio
economic factors include gender, age, income, marital status while other factors cover
dividend, get rich quickly strategy, stories of successful investors, online trading,
investor awareness programme, etc. Hence it would be imperative to study the socio
economic profile of Sample Retail Investors.

3.0 Socio Economic Factors —Percentage Analysis

As stated above, the socio economic factors include gender, marital status, age,
education, annual income, place of living, number of dependants, work experience and
annual savings. The distribution of respondents to each category (factor), with
percentage in each province (Investment Centre), is discussed in this section.

67
3.1 Gender of Sample Respondents
The common belief in Indian Culture is that male investors are more risk takers and
like to invest in equity and other risky investment more than women. This belief is
evidenced by a smaller number of respondents in our survey, market enquiries, lower
trading volume and lower frequency of transactions attributable to females. The Equity
Retail Investors (respondents) were classified into male and female as there would be
difference in their attitude towards investment based on Sex. The gender-wise
classification of Sample Equity Retail Investors in Tamil Nadu is shown in Table - 3.1.

The above Table describes the gender wise classification of sample respondents
from each Investment Centre in Tamil Nadu. It is found from the above Table that 28
(70%) respondents were male and the rest 12 (30%) were female in Chennai. In
Coimbatore, 25 respondents (62.5%) were male and 15 (37.5%) were female. It is to be
noted that 30 male investors and 10 female investors were from Trichy, whereas in
Madurai, 32 (80%) were male respondents and 8 (20%) were female respondents. In
Nagercoil Centre, 30 respondents were male and the remaining 10 were female,
whereas in Tirunelveli, 26 were male and 14 were female respondents. Hosur Centre
recorded 29 male investors and 11 female investors. Tiruppur and Erode had 27 and 33
male and 13 female and 7 female respectively. It is evident that majority of respondents
287 (71.7%) were male and remaining 113(28.3%) were female. This indicates the fact
that women section do not participate equally in the equity investment. The appropriate
steps are to be taken to create awareness among women to help them to participate in
equity investment on a periodical basis.

Chart-3.1 clearly displays the gender wise classification of the Retail Equity Investors
from each investment centre in Tamil Nadu. It is clear from the above Chart that more
men were participating in equity whereas the women section did not participate equally
in the equity investment

68
 Table - 3.1: Gender wise Distribution of the Sample Respondents in Tamil Nadu

Gender Male Female Total

Number of Number of Number of

Investment Percentage Percentage Percentage
Respondents Respondents Respondents
Centre

Chennai 28 70 12 30 40 10

Coimbatore 25 62.5 15 37.5 40 10

Trichy 30 75 10 25 40 10

Madurai 32 80 08 20 40 10

Karaikudi 27 67.5 13 32.5 40 10

Nagercoil 30 75 10 25 40 10

Tirunelveli 26 65 14 35 40 10

Hosur 29 70 11 30 40 10

Erode 33 82.5 07 17.5 40 10

Tiruppur 27 67.5 13 32.5 40 10

287 71.7 113 28.3 400 100

Source: Primary Data

69
 Chart - 3.1: Gender wisee Distribution of the Sample Respondents in Tamil Na
adu

35
Total Number of Respondents

30

25

20

15 Male Number of
Respondents

10

Female Number of
5 Respondents

Source: Primary Data. Computed from Table 3.1

70
3.2 Marital Status of Sample Respondents (Investment Centre wise)
Marital Status is another factor that influences Investment in Stock Market. The
sample respondents in Tamil Nadu were divided into two groups of married and
unmarried respondents to test whether marital status plays any role in Investment in
Stock Market. It has long been believed that married people invest less compared to
individual, as married people have more financial commitment than single person. It is
also because that married investors have more dependents than a single person.

The marital distribution of sample respondents selected for the study is given in
Table - 3.2. It is revealed that out of the total (400) respondents, 282 (70.5%) were
married and the rest 118 (29.5%) were unmarried. It is further inferred that out of 282
married respondents, 28(70%) belonged to the Chennai Centre, 32 (80%) from
Coimbatore, 22 (55%) from Trichy, 27 (67.5%) from Madurai, 28(70%) from
Nagercoil, 32(80%) from Tirunelveli District, 29 (72.5%) from Hosur, 33 (82.5%) from
Erode, and 26 (65%) from Tiruppur District.

It is also noted that the rest of 118 (29.5%) sample respondents were unmarried
– 12 (30%) from Chennai, 8 (20%) from Coimbatore, 18 (45%) represented Trichy, 13
(32.5%) represented Madurai, 15 (37.5%) represented Karaikudi, 12 (30%) represented
Nagercoil, 8 (20%) Tirunelveli, 11 (27.5%) Hosur, 7 (17.5%) from Erode and 14 (35%)
from Tiruppur District of Tamil Nadu. The overall analysis of the above Table clearly
shows that the married investors do largely participate in the Stock Trading to earn
more returns so that they can manage the family well. However, necessary steps should
be taken to encourage the unmarried people of the society to actively participate in the
Capital Market Operations.

Chart 3.2 exhibits the Marital Status of the Sample Equity Respondents in
Tamil Nadu, Investment centre wise and the Total Number of Respondents who took
part in the Study.

71
 Table - 3.2: Marital Status of the Sample Respondents in Tamil Nadu
Marital Single Married Total
Status
Number of Number of Number of
Percentage Percentage Percentage
Respondents Respondents Respondents
Investment Centre
Chennai 12 30 28 70 40 10

Coimbatore 8 20 32 80 40 10

Trichy 18 45 22 55 40 10

Madurai 13 32.5 27 67.5 40 10

Karaikudi 15 37.5 25 62.5 40 10

Nagercoil 12 30 28 70 40 10

Tirunelveli 8 20 32 80 40 10

Hosur 11 27.5 29 72.5 40 10

Erode 07 17.5 33 82.5 40 10

Tiruppur 14 35 26 65 40 10

118 29.5 282 70.5 400 100

Source: Primary Data

72
 Chart - 3.2: Marrital Status of the Sample Respondents in Tamil Nadu

35

Total Number of Respondents

30

25

20

15
Single
Married
10

Investment Centres

Source: Primary Data. Computed from Table 33.2

73
3.3 Age of Sample Respondents
It is a known fact that the Investment Habit of an individual depends on his/her
age. Older individual tends to be less and less risk tolerant than younger individuals,
because older individuals have more fear because of lesser life time to fulfill their
commitments, goals and objectives.

Table - 3.3 shows age wise distribution of sample respondents selected for the
study. For the purpose of this study, these sample respondents were classified into five
groups such as less than 30 years, 31-40 years and 41 – 50 years, 51 -60 years and 61 &
above. It is interesting to note that out of the total (400) respondents, 43 (10.7%) were
less than 30 years, 136 (33.8%) were between 31 –40 years, 107 (26.6%) between 41 –
50 years, 102 (25.4%) between 51-60 years and the rest of 12 respondents (3%) were
61 years and above. It is clear that majority of respondents 136 (33.8%) were between
31 –40 years. This clearly indicates that Indian Youngsters are more interested in
investing in Stock Market and they love to trade every day.

Chart - 3.3 also illustrates the age wise distribution of sample respondents and
it could be clearly seen from the above chart that majority of the people who take part
in equity trading during the study period were youngsters.

74
 Table - 3.3: Age wise Distribution of Sample Respondents in Tamil Nadu
Age 60 years and
<30years 31-40 years 41-50 years 51-60 years Total
above

Respondents

Respondents

Respondents

Respondents

Respondents

Respondents
Percentage

Percentage

Percentage

Percentage

Percentage

Percentage
Number of

Number of

Number of

Number of

Number of

Number of
Investment
Centre
Chennai 5 1.25 17 4.25 8 2 6 1.5 4 1 40 10
Coimbatore 7 1.75 8 2 13 3.25 9 2.25 3 0.75 40 10
Trichy 8 2 6 1.5 8 2 18 4.5 - - 40 10
Madurai - - 11 2.75 10 2.5 19 4.75 - - 40 10
Karaikudi 7 1.75 15 3.75 9 2.25 9 2.25 40 10
Nagercoil 4 1 16 4 13 3.25 5 1.25 2 0.5 40 10
Tirunelveli 6 1.5 18 4.5 11 2.75 3 0.75 2 0.5 40 10
Hosur 2 0.5 13 3.25 16 4 8 2 1 0.25 40 10
Erode - - 17 4.25 14 3.5 9 2.25 - - 40 10
Tiruppur 4 1 15 3.75 5 1.25 16 4 - - 40 10
Total 43 10.7 136 33.8 107 26.6 102 25.4 12 3 400 100
Source: Primary Data

75
 Chart - 3.3: Age wisee Distribution of Sample Respondents in Tamil Nadu

20
Age wise distribution of Respondents

18

16

14

12

10
<30years
8 31-40 years

6 51-60 years
60 years and above
4

In
Source: Primary Data. Computed from Table 3.33

76
3.4 Educational Status of Sample Respondents
The presumption is that those who have more formal education tend to have a
better knowledge in trading off between risk and return of an investment and hence
they wish to invest more than the Illiterates.

The classification of respondents on the basis of their educational qualification

is provided in Table - 3.4. According to the above Table, the respondents were
classified into five groups as upto 12th, graduates, post graduates, professional & others.
It is understood from the above Table that out of the total (400) respondents, 56
(13.9%) had studied only upto 12th, 125 (31.1%) were graduates, 152 (37.8%) were
postgraduates, 55 (13.75%) were professionals and the rest 12 (3%) possessed other
qualifications. It is clear that majority of respondents 152 (37.8%) were post graduates
and 3% of the ‘others’ category consists of Diploma and ITI holders. It is heartening to
note that all sample investors do have education at Diploma Level or at least at +2
level. However, necessary steps should be taken to introduce as many courses as
possible in finance, for providing financial literacy to the investors. This would
encourage the investors to choose risky investments and earn better.

Chart-3.4 describes the educational qualification of the sample respondents. It

is to be noted that all respondents had atleast a basic qualification of upto 12th Standard
and some actively taking part in the equity trading were professionals.

77
 Table - 3.4: Education wise Distribution of Sample Respondents in Tamil Nadu
Education
Upto 12th Graduate Post Graduate Professional Others Total

Respondents

Respondents

Respondents

Respondents

Respondents

Respondents
Percentage

Percentage

Percentage

Percentage

Percentage

Percentage
Number of

Number of

Number of

Number of

Number of

Number of
Investment
Centre
Chennai - - 18 4.5 15 3.75 7 1.75 - - 40 10
Coimbatore - - 11 2.75 21 5.25 8 2 - - 40 10
Trichy 6 1.5 12 3 12 3 10 2.5 - - 40 10
Madurai 5 1.25 9 2.25 21 5.25 5 1.25 - - 40 10
Karaikudi 8 2 9 2.25 15 3.75 8 2 - - 40 10
Nagercoil 7 1.75 10 2.5 16 4 7 1.75 - - 40 10
Tirunelveli 8 2 14 3.5 13 3.25 5 1.25 - - 40 10
Hosur 9 2.25 12 3 14 3.5 5 1.25 - - 40 10
Erode 7 1.75 14 3.5 13 3.25 - - 6 1.5 40 10
Tiruppur 6 1.5 16 4 12 3 - - 6 1.5 40 10
Total 56 13.9 125 31.1 152 37.8 55 13.75 12 3 400 100
Source: Primary Data

78
 Chart - 3.4: Education wise Distribution of Sample Respondents in Tamil Nadu
25
Education wise Distribution of Sample Respondents

20

15

Upto 12th
10 Graduate
Post Graduate
Professional
5 Others

Investment Centres
Source: Primary Data. Computed from Table 3.4

79
3.5 Annual Income of Sample Respondents
Every individual invariably tries to allocate some amount of money from the
annual income towards investment in order to increase his/her wealth. Those who have
higher income tend to make higher investment than individuals with lower income
because higher income individual have enough resources to meet the mandatory
commitments. Moreover, they can invest surplus money and have greater capacity to
manage the risk. Hence the annual income of an individual has direct impact on their
living standards and investment behaviour.

Table – 3.5 depicts the sample investors’ annual income distribution. The
sample respondents were classified into five groups under income categories of less
than 100,000, 100001 -200,000, 200001 - 3,00,000, 3,00,001 – 400,000 and 400,001
and above. The above Table reveals the fact that out of the total (400) respondents, 96
(24%) earned less than one lakh annually, 128 (32%) between 100001 -200,000, 95
(23.75%) earned between 200001 - 3,00,000, 34 (8.5%) from Rs: 300001 - 4,00,000, 47
(11.75%) earned more than 4,00,001. It is interesting to note that though the majority of
investors fall under the lesser income group, still they set their mind on investing in the
Stock Market.

Chart 3.5 exhibits the annual income of the sample equity investors during the
study period from May 2010 to September 2010. According to the above Chart,
majority of the investors had more than one lakh earning per annum. The first priority
for them was to invest in Gold and the next priority was given for equity trading.

80
 Table - 3.5 : Annual Income wise Distribution of Sample Respondents in Tamil Nadu
Monthly 100001- 200001- 300001-
<100,000 >400,001 Total
Income- 200000 300000 400000
Rs

Respondents

Respondents

Respondents

Respondents

Respondents

Respondents
Percentage

Percentage

Percentage

Percentage

Percentage

Percentage
Number of

Number of

Number of

Number of

Number of

Number of
Investment
Centre
Chennai 6 1.5 8 2 12 3 6 1.5 8 2 40 10
Coimbatore 8 2 7 1.75 12 3 6 1.5 7 1.75 40 10
Trichy 7 1.75 14 3.5 11 2.75 4 1 4 1 40 10
Madurai 9 2.25 17 4.25 9 2.25 2 0.5 3 0.75 40 10
Karaikudi 11 2.75 13 3.25 10 2.5 3 0.75 3 0.75 40 10
Nagercoil 15 3.75 10 2.5 8 2 2 0.5 5 1.25 40 10
Tirunelveli 10 2.5 17 4.25 6 1.5 3 0.75 4 1 40 10
Hosur 11 2.75 12 3 7 1.75 3 0.75 7 1.75 40 10
Erode 9 2.25 11 2.75 9 2.25 5 1.25 6 1.50 40 10
Tiruppur 10 2.5 19 4.75 11 2.75 - - - - 40 10
Total 96 24 128 32 95 23.75 34 8.5 47 11.75 400 100
Source: Primary Data

81
 Chart - 3.5 : Annual Income wise Distribution of Sample Respondents in Tamil Nadu

20
Annual Income wise Distribution of Respondents

18

16

14

12
<100,000
10
100001- 200000
8 200001- 300000
300001- 400000
6
>400,001
4

0
Chennai Coimbatore Trichy Madurai Karaikudi Nagercoil Tirunelveli Hosur Erode Tiruppur

Investment Centres

Source: Primary Data. Computed from Table 3.5

82
3.6 Number of Sample Dependents
The number of persons making up each family is also an important factor that
influences the size of investment. If the family size is more, probably it is difficult for
investors to save and invest. The level of savings for an individual is different for a
married man, with more dependants. A person with more dependants obviously has to
spend on medical expense for his parents and kids, educational expense for the kids etc.
Hence it would be hard for a person with more dependants to save and invest, when
compared to an individual with no dependant to save and invest.

The distribution of sample respondents selected for the study on the basis of the
number of dependents is shown in Table - 3.6. For the purpose of the study, they were
classified as five groups (i.e) having one dependant, two dependants, three dependants,
four dependants and more than four dependants. It is clear from the above Table that
out of the total (400) respondents, 43 (10.7%) reported one dependent, 136 (33.8%)
two dependents, 107 (26.6%) three dependents, 102 (25.4%) four dependents and the
rest 12 (3%) four or more than four dependents. It could be clearly inferred that more
respondents, with a back ground of a single dependant, mainly participated in the Stock
Market in India during the study period.

Chart-3.6 describes Number of Dependents wise Distribution of Sample

Respondents in Tamil Nadu. It is to be noted that respondents who had one dependent
also actively participated in Stock trading and respondents who had four dependants
also took part actively in trading, which is quite interesting.

83
 Table - 3.6 : Number of Dependents wise Distribution of Sample Respondents in Tamil Nadu
Dependants 1 2 3 4 More than 4 Total

Respondents

Respondents

Respondents

Respondents

Respondents

Respondents
Percentage

Percentage

Percentage

Percentage

Percentage

Percentage
Number of

Number of

Number of

Number of

Number of

Number of
Investment
Centre
Chennai 5 1.25 17 4.25 8 2 6 1.5 4 1 40 100

Coimbatore 7 1.75 8 2 13 3.25 9 2.25 3 0.75 40 100

Trichy 8 2 6 1.5 8 2 18 4.5 - - 40 100

Madurai - - 11 2.75 10 2.5 19 4.75 - - 40 100

Karaikudi 7 1.75 15 3.75 9 2.25 9 2.25 - - 40 100

Nagercoil 4 1 16 4 13 3.25 5 1.25 2 0.5 40 100

Tirunelveli 6 1.5 18 4.5 11 2.75 3 0.75 2 0.5 40 100

Hosur 2 0.5 13 3.25 16 4 8 2 1 0.25 40 100

Erode - - 17 4.25 14 3.5 9 2.25 - - 40 100

Tiruppur 4 1 15 3.75 5 1.25 16 4 - - 40 100

Total 43 10.7 136 33.8 107 26.6 102 25.4 12 3 400 100
Source: Primary Data

84
Chart - 3.6 Number of Dependents wise Distribution of Sample Respondents in Tamil Nadu

20
Number of Dependents wise Respondents

18

16

14

12

10 1

8 2
3
6
4
4 More than 4

In
Source: Primary Data. Computed from Table 3.6

85
3.7 Annual Savings of Sample Respondents
The next important factor, which determines the investment decision, is the
monthly savings of investors. It has direct impact on their investment. The investors’
annual savings distribution is shown in Table - 3.7. The sample respondents were
classified into five categories (i.e) respondents who saved less than Rs. 50,000, Rs.
50001 -100,000, Rs. 100001 - 1,50,000, and Rs.1,50001 and above. The above Table
reveals that out of the total (400) respondents, 245 (61.25%) saved less than fifty
thousand annually, 78 (19.5%) between Rs. 50001 -100,000, 45 (11.25%) save between
Rs. 100001 – 1,50,000, 32 (8%) from Rs. 1,50,001 and above. Hence it is clearly
understood that majority of the investors were able save only less than Rs 50,000 and
obviously the investment amount was also less. Hence necessary steps should be taken
to encourage the investors to increase the percentage of their monthly / annual savings
more. This is possible by conducting Seminars / Awareness Camp by Financial Experts
as how to cut down the monthly expense and increase the savings.

Chart 3.7 illustrates the Annual Savings of Sample Respondents in Tamil Nadu. It is to
be noted that majority of the respondents saved only less than Rs 50,000/- every year
during the study period.

86
 Table - 3.7 Annual Savings wise Distribution of Sample Respondents in Tamil Nadu
Monthly 100001-
<50,000 50001- 100000 >151,001 Total
Income- 150000
Rs

Respondents

Respondents

Respondents

Respondents

Respondents
Percentage

Percentage

Percentage

Percentage

Percentage
Number of

Number of

Number of

Number of

Number of
Investment
Centre

Chennai 18 4.5 8 2 8 2 6 1.5 40 10

Coimbatore 20 5 9 2.25 7 1.75 4 1 40 10
Trichy 22 5.5 5 1.25 8 2 5 1.25 40 10
Madurai 32 8 6 1.5 - - 2 0.50 40 10
Karaikudi 24 6 7 1.75 7 1.75 2 0.50 40 10
Nagercoil 20 5 14 3.5 4 1 2 0.50 40 10
Tirunelveli 25 6.25 9 2.25 3 0.75 3 0.75 40 10
Hosur 24 6 11 2.75 2 0.50 3 0.75 40 10
Erode 24 6 9 2.25 2 0.50 5 1.25 40 10
Tiruppur 36 9 - - 4 1 - - 40 10
Total 245 61.25 78 19.5 45 11.25 32 8 400 100
Source: Primary Data

87
 Chart - 3.7: Annual Savings wise Distribution of Sample Respondents in Tamil Nadu

Annual Savins wise Distribution of Respondents 40

35

30

25

20
<50,000

15 50001- 100000
100001- 150000
10 >151,001

Investment Centres

Source: Primary Data. Computed from Table 3.7

88
3.8 Occupation of the Sample Respondents
The occupational status of the individual does influence the investment
decision/ behavior. The monthly salary / income of the individuals mainly depend on
the occupation of the individual. Better the occupation, higher will be the earnings.

The distribution of respondents selected for the study on the basis of their
occupation is given in Table - 3.8. The sample respondents were classified as salaried,
self employed, retired & others. The ‘other’ group constitutes students and few
unemployed youth. It is understood from the above Table that out of the total (400)
respondents, 247 (61.75%) were salaried people, 88 (22%) respondents were self
employed, 55 (13.75%) were retired and the remaining 10 (2.5) were ‘others’ (i.e)
students, unemployed youth but are active traders. It is heartening that salaried people
largely participated in the equity trading in India. It is noted that more salaried people
participated in the Stock Market.

Chart - 3.8 exhibits the respondents selected for the study on the basis of their
occupation. According to the above Chart, majority of the respondents who take part
actively in day to day trading were salaried people and the percentage of self employed
respondents who invest in Equity during the study period were very less and they need
to be encouraged.

89
 Table - 3.8 : Occupation wise Distribution of Sample Respondents in Tamil Nadu
Monthly Salaried Self Employed Retired Others Total
Income-

Respondents

Respondents

Respondents

Respondents

Respondents
Rs

Percentage
Percentage

Percentage

Percentage

Percentage
Number of

Number of

Number of

Number of

Number of
Investment
Centre

Chennai 24 5 8 2 6 2 2 0.5 40 100

Coimbatore 20 5 11 2.75 7 1.75 2 1 40 100

Trichy 22 5.5 7 1.75 9 2 2 0.5 40 100

Madurai 28 8 9 2.25 3 - - - 40 100

Karaikudi 24 6 7 1.75 9 1.75 - - 40 100

Nagercoil 20 5 14 3.5 6 1 - - 40 100

Tirunelveli 25 6.25 9 2.25 6 0.75 - - 40 100

Hosur 24 6 11 2.75 5 0.50 - - 40 100

Erode 24 6 9 2.25 5 0.50 2 0.5 40 100

Tiruppur 36 9 3 0.75 - 1 2 - 40 100

Total 247 61.75 88 22 55 13.75 10 2.5 400 100

Source: Primary Data

90
 Chart - 3.8 Occupation w
wise Distribution of Sample Respondents in Tamil Nadu

40
Occupation wise Distribution of Respondents

35

30

25

20
Salaried

15 Self Employed
Retired
10 Others

Investment Centre
Source: Primary Data. Computed from Table 3.8

91
3.9 Relationship between Gender, Marital Status and Occupation of the
Sample Respondents
Table – 3.9 describes the relationship between Gender, Marital Status and
Occupation of the Respondents. It is understood that out of the total (400) respondents,
207 were married male respondents and 80 of them were bachelor men whereas 62
female respondents were married and 51 female were spinsters. The above Table also
indicates that out of 400 sample respondents, 269 were married while only 131 were
unmarried. It is also clear from the above Table that 161 male respondents were
salaried, 76 male respondents were self employed, 45 male respondents were retired
and the remaining 5 male respondents were either students or unemployed youth. In the
case of sample female investors, 86 were salaried employees, 12 were self employed,
10 were retired and the remaining 5 were either students or home makers. This shows
the fact that more salaried women did participate in Equity Investment during the study
period. The self employed and unmarried people participating in stock trading were
comparatively less than salaried people and married people. Hence necessary steps
should be taken to encourage the unmarried and self employed to participate in stock
trading.

Chart-3.9 also describes the relationship between Gender, Marital Status and
Occupation of the Respondents. It is to be noted that more married people and salaried
people with more dependants took part in Equity Trading.

92
 Table 3.9 Relationship between Gender, Marital Status and Occupation of the Respondents

Marital Status Occupation

Self
Married Single Total Salaried Retired Others Total
Employed
Gender of the

Respondent

Male 207 80 287 161 76 45 5 287

Female 62 51 113 86 12 10 5 113

Total 269 131 400 247 88 55 10 400

Source: Primary Data

93
 Chart 3.9: Relationship betweeen Gender, Marital Status and Occupation of the Resp
pondents

300

250

200
Gender

150 Gender Male

Gender Female
Total
100

50

0
Married single Salaried Self Employed Retired Others

Marital Status Occupation

Source: Primary Data. Computed from Table 33.9

94
3.10. Relationship between Gender, Annual Income and Annual Savings of the

Sample Respondents

The relationship between Gender, Annual Income and Annual Savings of the

respondents is given in Table – 3.10. It is clear that out of the total (400) respondents,

51 male respondents earned annual income of Rs 1,00,000 whereas 45 female

respondents had an annual income of Rs 1,00,000. Besides, 93 of the male respondents

had an annual income of between Rs. 1,00,001 and Rs. 2,00,000 whereas 35 female

respondents had an annual income between Rs.1,00,001 and Rs.2,00,000. 73 of the

male respondents were able to earn between Rs.2,00,001 and Rs.3,00,000 but only 22

female respondents were able to earn between Rs.2,00,001 and Rs.3,00000. Besides, 23

male respondents had a higher annual income of 3,00,001 to 4,00,000 and ten female

respondents had the same income. 46 of the male respondents had more than four lakhs

income and two ladies had more than four lakhs income. It is heartening to note from

the above Table that more than 50% of the total respondents (245) were able to save

around Rs. 50000 and around 32 of them were able to save more than two lakhs every

year. This saving habit automatically helped the earner to invest in the Equity Market,

(i.e) equity trading which is profitable. Chart - 3.10 also illustrates the relationships

between Gender, Annual Income and Annual Savings of the respondents.

95
 Table 3.10 : Relationship between Gender, Annual Income and Annual Savings of the Respondents

Annual Income Annual Savings

1,00,001 2,00,001 3,00,001 4,00,000 Less 50001 100001 200001

Below
to to to and Total than to to and Total
1,00,000 50000 100000 200000 above
2,00,000 3,00,000 4,00,000 above

Male 51 93 73 23 46 287 173 51 40 23 287

Gender of the
Respondent

Female 45 35 22 10 2 113 72 27 5 9 113

Total 96 128 95 33 48 400 245 78 45 32 400

Source: Primary Data

96
 Chart - 3.10: Relationship between
n Gender, Annual Income and Annual Savings of the Respondents
R

250 Gender Male

Gender of Respondents

Gender Female
200
Total

150

100

50

0
2,00,000 3,00,0000 4,00,000 above

1,00,000 to to to and

Below 1,00,001 2,00,0011 3,00,001 4,00,000 Less than 50001 to 10000

01 to 200001 and
50000 100000 2000
000 above

Annual Inco
ome Annual Savings

Source: Primary Data. Computed from Table 3.10

97
 3.11 Relationship between Age, Annual Income and Annual Savings of the

Sample Respondents

Table – 3.11 shows the relationship between age, annual income and annual

savings of the respondents. It could be noticed from the above Table that mostly the

youth had higher income and savings. The high rate of savings normally enables the

respondents to invest. The investors in the age group of 41-50 had a high annual

income of more than four lakhs. Further more than 102 respondents in the same age

category of 41-50 had a very higher savings of more than two lakhs. It to be noted that

14 youngsters (below the age of 30) had an annual income of more than three lakhs but

it is surprising to note that only 4 respondents had more than one lakhs savings. This

clearly indicates that though the annual salary of the youngsters was very high, their

savings habit was poor and they must be encouraged to save more and invest in stocks.

Chart - 3.11 illustrates the Relationship between Age, Annual Income and

Annual Savings of the Sample Respondents. It is to be noted that the youngsters had

higher qualification with higher salary but their savings was not high

98
 Table – 3.11 : Relationship between Age, Annual Income and Annual Savings of the Respondents

Annual Income Annual Savings

Below 1,00,001 2,00,001 3,00,001 4,00,000 Total Less 50001 100001 200001 Total
1,00,000 to to to and than to to and
50000 100000 200000 above
2,00,000 3,00,000 4,00,000 above
Below 30 50 54 18 2 12 136 97 35 2 2 136

31 – 40 16 28 29 28 6 107 50 25 18 14 107
Age of the Respondent

41-50 15 36 25 2 24 102 69 7 13 13 102

51-60 6 1 3 1 1 12 5 6 1 0 12

60 and
9 9 20 0 5 43 24 5 11 3 43
above

Total 96 128 95 33 48 400 245 78 45 31 400

Source: Primary Data

99
 Chart – 3.11: Relationship bettween Age, Annual Income and Annual Savings of the Respond
dents

250
Age Below 30
Age 31 – 40
Age 41-50
200 Age 51-60
Age of the Respondents

Age 60 and above

150

100

50

0
2,00,000 3,00,000 4,00,000 above

1,00,000 to to to and

Below 1,00,001 2,00,001 3,00,001 4,00,000 Less than 50001 to 100001 to 200001 and
50000 100000 200000 above

me
Annual Incom Annual Savings

Source: Primary Data. Computed from Table 33.11

100
3.12 Relationship between Educational Qualification, Annual Income and

Annual Savings of the Sample Respondents

The relationship between Educational Qualification, Annual Income and

Annual Savings of Respondents is given in Table - 3.12. It is understood from the

above Table that the respondents, with professional qualification had a higher income

and they were also more in number (136). But it is surprising to note that these

professionals had a low saving habit (12). On the other hand, those investors, with

lower qualification, had a higher saving habit. Hence, some measures should be taken

to make the higher income group people to cultivate a regular savings habit.

Chart - 3.12 also exhibits the relationship between Educational Qualification, Annual

Income and Annual Savings of Respondents.

101
 Table – 3.12: Relationship between Educational Qualification, Annual Income and Annual Savings of the Respondents
Annual Income Annual Savings

Below 1,00,001 2,00,001 3,00,001 4,00,000 Total Less 50001 100001 200001 Total
1,00,000 to to to and than to to and
50000 100000 200000 above
2,00,000 3,00,000 4,00,000 above
Upto 12th 6 1 3 1 1 12 97 35 2 2 136
Educational Qualification

UG 16 28 29 28 6 107 50 25 18 14 107

PG 15 36 25 2 24 102 69 7 13 13 102

Professional 50 54 18 2 12 136 5 6 1 0 12

Others 9 9 20 0 5 43 24 5 11 3 43

Total 96 128 95 33 48 400 245 78 45 31 400

Source: Primary Data

102
 Chart – 3.12 : Relationship between Educational Qualification, Annual Income and Annual Savings of the Respondents

120

Educational Qualification Upto 12th

100
Educational Qualification

Educational Qualification UG

80 Educational Qualification PG

Educational Qualification Professional

60
Educational Qualification Others

40

20

0
2,00,000 3,00,000 4,00,000 above

1,00,000 to to to and

Below 1,00,001 2,00,001 3,00,001 4,00,000 Less than 50001 to 100001 to 200001 and
50000 100000 200000 above

Annual Income Annual Savings

Source: Primary Data. Computed from Table 3.12

103
3.13 Relationship between Investment Avenues, Marital Status, Age and

Education of the Sample Respondents

Table – 3.13 describes the relationship between Investment Avenues, Marital

Status, Age and Education of the Respondents. From the above Table, it is revealed that

both married and unmarried people love to invest first in Banks, second in Equity

Shares, third in Gold and fourth in Real Estate. The married people cultivated the

saving habit more than the unmarried. It is also interesting to find out from the above

Table that the sample respondents, who were more than 60 years (retired people), loved

to trade more in stocks rather than any other age group of people. The highest priority

was given by all the age groups for Bank Deposits followed Gold and Equity Shares.

From the comparison of the responses given by the sample respondents on the

basis of education and investment avenues, it is interesting to note that the less

educated group (upto 12th Std) were more comfortable with investing in Banks whereas

the graduates invested in Equity Shares and Gold. But, the investors with post graduate

qualification saved their money in Banks and Gold and the investors, with professional

qualification, loved to trade more in Equity Shares.

It is pertinent to refer to the recent study which reveals that Gold is given top

priority for investment as there is volatility in the share price. The crisis in USA

automatically affects the Indian Share Market. Due to this high volatility (bullish and

bearish market), the sample investors love to invest in Gold. Hence, the authorities

should take necessary steps to control the volatility, which would give investors more

confidence and encourage them to invest more money in the Capital Market.

Chart 3.13 exhibits the relationship between Investment Avenues, Marital Status, Age

and Education of the Respondents during the study period.

104
 Table - 3.13 : Relationship between Investment Avenues, Marital Status, Age and Education of the Respondents

Particulars Mutual Treasury

Post Office
Bank Life Funds, Bills, Equity Real
Savings & Debentures Bonds Gold Total
Investment Deposits Insurances Preference Chit Shares Estate
Certificates
Avenues Shares funds

Marital Married 61 33 28 20 19 10 10 46 87 32 346

Status Single 21 8 15 10 8 3 4 31 44 15 159
<30years 12 4 2 9 3 8 4 18 12 5 77
31-40 years 27 11 13 13 10 3 5 20 19 15 136
41-50 years 19 7 11 10 8 5 5 16 13 13 107
Age
51-60 years 18 7 17 10 8 3 4 16 13 12 108
60 Y &
12 4 12 - - 4 - 13 18 12 75
above
Upto 12th 32 6 6 1 3 3 2 9 8 7 77
Graduate 12 15 13 9 5 4 5 32 33 15 143
Post
Education 32 9 13 12 11 4 9 28 19 15 152
Graduate
Professional 11 6 6 1 3 2 2 19 28 7 85
Others 1 1 - - 1 1 - 1 8 13
Note: The percentage may go beyond 100% as the respondents have done multiple selections. Source: Primary Data

105
 Chart - 3.13: Relationships between Investment Avenues, Marital Status, Age and Education of the Respondents

100
Bank Deposits Post Office Savings & Certificates
90 Life Insurances Mutual Funds, Preference Shares
Treasury Bills, Chit funds Debentures
80
Bonds Gold
70 Equity Shares Real Estate

60

50

40

30

20

10

Graduate
Single

Post Graduate

Others
<30years

31-40 years

41-50 years

51-60 years

Upto 12th

Professional
60 Y & above
Married

Investment Avenues
Marital Status Age Education

Source: Primary Data. Computed from Table 3.13

106
3.14 Relationship between Investment Avenues, Annual Income, Number of
Dependants and Annual Savings of the Sample Respondents
The relationships between Investment Avenues, Annual Income, Number of
Dependants and Annual Savings of the Respondents are given in Table - 3.14. It is
encouraging to note that all income categories preferred more to trade in equity rather
than any other investment avenues. This shows that the people were ready to take risk
for more returns during the study period. The first priority by investors was given to
bank deposits and second priority for equity trading. Those who earned an annual
income of more than three lakhs, preferred to trade in equity stocks rather than
investing in any other investment avenues. This shows that the people were not
comfortable with the returns (interest) given by Banks even though it is safe because
they wanted more returns.

It is also understood, looking at the same Table, that the majority of the
respondents, though the family size was big, gave first priority to Bank Deposits,
second priority to Gold and the third priority to Equity Shares. It is interesting to note
from the above Table that when the annual savings was less than 50,000, the people
were more comfortable with Banks, whereas when the annual savings went higher and
higher, they prefer to invest in Gold and also to trade in Equity Stocks during the study
period.

Chart 3.14 exhibits the Relationship between Investment Avenues, Annual

Income, Number of Dependants and Annual Savings of the Sample Respondents.
According to the above Chart, first priority was given to deposit in Banks, second
priority for God and the third priority was given for investing in Equity Stocks.

107
 Table - 3.14: Relationships between Investment Avenues, Annual Income, Number of Dependants and Annual Savings of the Respondents
Particulars Mutual Treasury
Post Office
Bank Life Funds, Bills, Equity Real
Savings & Debentures Bonds Gold Total
Investment Deposits Insurances Preference Chit Shares Estate
Certificates
Avenues Shares funds
<100,000 25 4 8 7 4 2 2 22 23 9 106
100001-
30 15 13 9 5 4 5 22 18 15 136
200000
Annual 200001-
24 4 8 7 4 2 2 21 25 9 106
Income 300000
300001-
7 1 14 2 2 2 1 7 24 4 64
400000
>400,001 9 1 5 4 3 3 1 9 7 5 47
Number of 1 8 1 15 3 3 7 8 6 5 56
Dependants
2 27 11 13 13 10 3 5 20 19 15 136

3 18 8 10 10 9 4 5 17 14 12 107
4 19 6 11 10 8 3 4 15 13 13 102

>4 2 1 1 1 1 1 1 12 11 9 40
Annual <50,000 30 13 20 7 15 8 11 43 9 28 184
Savings
50001- 22 3 7 6 5 3 3 13 8 8 78
100000
100001- 9 15 3 3 3 1 19 36 5 94
150000
>151,001 7 1 14 2 2 2 1 25 24 4 82
Note: The percentage may go beyond 100% as the respondents have done multiple selections. Source: Primary Data

108
 Chart - 3.14 Relationships between Investment Avenues, Annual Income, Number of Dependants and Ann
nual Savings of the
Respondents
Bank Depossits Post Office Savings & Certificates
45
Life Insuran
nces Mutual Funds, Preference Shares
40 Treasury Bills, Chit funds Debentures

35 Bonds Gold
Equity Sharres Real Estate
30

25

20

15

10

>4
<100,000

200001- 300000

300001- 400000

>400,001

100001- 150000

>151,001
1

<50,000
100001- 200000

50001- 100000
Investment Avenues Annual Income Number of Dependants Annual Savings

Source: Primary Data. Computed from Table 3.14

109
3.15 Relationship between Investment Avenues, Occupation, Number of years
Trading of the Sample Respondents

Table - 3.15 interprets the relationships between Investment Avenues,

Occupation and Number of Years Trading in Stocks of the Respondents. According to
the above Table, the salaried people were more comfortable with the Banks and also
investment in Gold, but did not want to invest in Equity Shares. But the self employed
or business people liked to trade in equity but were not willing to deposit their money
in Banks. The retired loved to trade in stocks, as the equity trading kept them busy. But
one could note that they wanted to keep half of their savings safe in the Banks and the
remaining was traded in equity in order to earn more.

The comparison of the responses, as given by sample respondents, based on

trading experience and investment avenues, reveals the fact that when the trading
experience is less, more people invest in Banks and Gold. It is to be noted that when the
trading experiences became richer and richer, the size of investment in Banks and Gold
was reduced and investment in Equity Stocks was increased. This shows the striking
fact that once the investors earned trading experience in Equity Trading, they gained
confidence in equity trading and wanted to invest more only in Equity Stocks as it gave
them higher returns.

The Relationship between Investment Avenues, Occupation, Number of years Trading

of the Sample Respondents is exhibited in Chart - 3.15. According to the above Chart,
initially when they did not have much experience in trading they preferred Banks and
Gold as their priority for investments, whereas once they had more than a year of
experience in trading top priority was given for investment in Equity Stocks.

110
 Table - 3.15 : Relationship between Investment Avenues, Occupation and Number of years Trading of the Sample Respondents
Particulars Mutual
Post Office Treasury
Bank Life Funds, Equity Real
Savings & Bills, Chit Debentures Bonds Gold Total
Investment Deposits Insurances Preference Shares Estate
Certificates funds
Avenues Shares

Salaried 50 14 19 17 16 9 12 42 41 27 247

Self 26 4 8 6 5 3 3 14 10 9 88
Occupation Employed

Retired 11 4 6 5 3 2 2 9 7 6 55

Others 1 1 1 1 1 1 1 1 1 1 10

Number of < 1year 8 1 5 3 3 3 1 7 7 4 42

years 2years 24 4 8 6 5 3 3 14 10 9 86
Trading/
3 years 17 7 11 10 8 3 4 16 14 14 104
Investing in
Stocks >4 43 9 14 12 10 6 9 28 21 16 168

Source: Primary Data

111
 Chart - 3.15 Relationship between Investmeent Avenues, Occupation and Number of years Trading of the Samp
ple Respondents

50 Salaried
Self Employed
45
Retired

40 Others
Number of years Trading/ Investing in Stocks < 1year
35 Number of years Trading/ Investing in Stocks 2years
Number of Respondents

Number of years Trading/ Investing in Stocks 3 years

30
Number of years Trading/ Investing in Stocks >4
25

20

15

10

0
Investment avenues

Source: Primary Data. Computed from Table 3.15

112