Sharat - Project - 4th Sem - 184BCMD046

Factors influencing individual investors behaviour: An
empirical study of Bangalore city.

Project submitted in partial fulfilment of the requirements for the Award of the
degree of
MASTER OF BUSINESS ADMINISTRATION
OF
BANGALORE UNIVERSITY
By
SHARATH B SHETTY
184BCMD046
Under the guidance of
Dr. S. Md. KARIMULLA BASHA
INTERNATIONAL ACADEMY OF MANAGEMENT AND

ENTREPRENEURSHIP
Bangalore University
2018-2020
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DECLARATION
I hereby declare that “Factors influencing individual investors behavior: an empirical study of
Bangalore city.” is the result of the project work carried out by me under the guidance of
Dr.S.Md.KARIMULLA BASHA in partial fulfilment for the award of Master’s Degree in Business
Administration by Bangalore University.
I also declare that this project is outcome of my own efforts and that it has not been submitted
to any other university or institute for the award of any other degree or Diploma or
Certificate.
Place: BANGALORE SHARATH B SHETTY
Date: 184BCMD046
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ACKNOWLEDGMENT
I am grateful to my institution INTERNATIONAL ACADEMY OF MANAGEMENT AND

ENTREPRENEURSHIP for giving this opportunity to carry on my research study.
I am grateful to Dr. S SYED AHAMED, Head-Academics for his guidance and motivation in the
completion of the project.
I am thankful to my guide Dr. S.Md. KARIMMULLA BHASHA for the guidance, support and
encouragement in successfully completing the project.
I am also thankful to respondents who had helped me in completing my project by contributing their
precious time to fill up the questionnaire.
I take an opportunity to express my sincere gratitude to the people for their valuable inputs and support in
completing this project successfully.
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TABLE OF CONTENT
CHAPTER CHAPTER HEADING PAGE

NO NUMBER
1.0 Introduction 1
1.1 Stock market foundations in Concept 1
1.2 Types of investment 2
1.3 Factors Affecting Stock Market 2-15
2.0 Literature review 16-20
3.0 Research Methodology 21
3.1 Brief overview 21
3.2 Objectives of the study 21
3.3 Scope of study 21
3.4 Research Design 21
3.4.1 Research design selected 22
3.4.2 Sample Design 22
3.4.3 Sample unit 22
3.4.4 Sampling Technique 22
3.4.5 The Sample Size 22
3.5 Data Sources 22
3.5.1 Secondary Data 23
3.5.2 Primary Data 23
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3.5.3 Planning for Data Collection 23
3.6 Various statistical tools and test used 23
4.0 Data analysis
4.1 Factors influencing investment decision of individual 24-25

investor
4.2 To find relationship between most influencing factors of 26-45
stock investment decision and different demographic
profiles.
5.0 Findings and Conclusion
5.1 Findings on the level of influence of different factors on 46

investment decision of an individual investor
5.2 Findings on relationship between identified most 46-48
influencing factors and selected demographic profiles.
Conclusion 49
Bibliography 50
Annexure
52
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LIST OF TABLES
TABLE DESCRIPTION PAGE NO.

NO.
4.1.1 Factors influencing investment decision of 24
individual investor
4.2.1 Descriptive statistics 26
4.2.2 Analysis of variance on influence of long term 26

capital appreciation.
4.2.4 Analysis of variance on influence of stock market 27

performance.
4.2.6 Analysis of variance on influence of growth rate of 28

industry.
4.2.8 Analysis of variance on influence of firm’s status 29

in industry life cycle.
4.2.10 Analysis of variance on influence of Quality of 30

management
4.2.11 Descriptive Statistics 31
4.2.12 Analysis of variance on influence of stock price 31

per share.
4.2.14 Analysis of variance on influence of earnings per 32

share
4.2.16 Analysis on variance on influence od dividend 33

payout ratio.
4.2.18 Analysis of variance on influence of debt equity 34

ratio.
4.2.20 Analysis of variance on influence of inflation 35

rates.
4.2.22 Analysis of variance on influence of long-term 36

capital appreciation.
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4.2.24 Analysis of variance on influence of Stock market 37

performance.
4.2.26 Analysis of variance on influence of growth rate of 38

industry.
4.2.28 Analysis of variance on influence of firm’s status 39

in industry life cycle
4.2.30 Analysis of variance on influence of quality of 40

management.
4.2.32 Analysis of variance on influence of stock price 41

per share.
4.2.34 Analysis of variance on influence of earnings per 42

share.
4.2.36 Analysis of variance on influence od=f Dividend 43

payout ratio.
4.2.38 analysis of variance on influence of debt equity 44

ratio.
4.2.40 analysis of variance on influence of Inflation rates. 45
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EXICUTIVE SUMMARY
This research study intends to examine the impact of financial literacy, accounting information,
openness to experience and information asymmetry on individual investors’ decision making through
an empirical research of the people living in Bangalore city.
Any investment is made with the primary objective of earning return on the invested sum. And
depending on the degree of risk any individual can be classified as either risk taker or risk averter.
Duration of an investment is another aspect for any investment decision. Short term investments are
rather riskier than long term investments in securities. Quantitative research is conducted to determine
the relationship between desired explanatory and response variables. The study has identified Ten most
influencing factors. They are considered as independent variables and the has been analysis done on
them.
In this study I have used primary data, it has been collected through questionnaires. The research
method used here is quantitative method. The hypothesis are drawn based on literature review. The
research is limited only to the Bangalore city. The findings of the study can be used by the wealth
advisory organizations to improve their service.
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Chapter -1
Introduction
In the current economic situation, money is perceived as the root cause of all happiness.
Investment is a vital task for any human being. People are beginning to invest to safeguard
their lives from uncertainties. Investment is the allocation of funds saved from current use,
in the intention of gaining in the immediate future. Investment is a serious act that people
perform after becoming aware of that particular act. Investors have various avenues in which
to park their hard-earned money. Investor preference or selection depends on their risk profile
and return profile. In India there are many investment paths where some are marketable and
liquid and some are non-marketable and some are extremely risky and some are virtually
riskless. Investment is totally a subjective practice. The habits of investors rely on their
behaviours. The current research is focused on factors that influence investor behaviour.
Nowadays, everybody makes investment. These investments are not only in assets such as
shares and bonds, but also by involvement in pension plans, salvaging services for workers,
life insurance, real estate, banks, saving schemes for post offices, etc. Some are drawn to
investments because they will take part in the decision-making process and see their desired
outcomes. Not all investments can be successful, as investors do not always need to take the
right judgements to invest. Nonetheless, by maintaining a diversified portfolio of assets one
should gain a reasonable return. Investment portfolio decisions are affected by different
factors.
Individual investor behavior is influenced by a number of psychological factors,

circumstances. In recent years, the field of behavioral finance has evolved. It is still
commonly used to describe investments in stock. The Present the research explores certain
behavioral factors which have a major impact on the decisions made by the individual equity
investors, and also to find out whether such variables are related to gender and demographic
characteristics of the investor.
1.1 Stock market foundations in Concept
In order to create a suitable model, we need to analyze its components and the theoretical
foundations that underlie their inclusion in the model. The following parts give specifics of
the results of this study.
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1.2 Types of Investments:
Moderate Risk Avenue: Mutual funds, life insurance, debentures etc.
Safe & Low Risk Avenue: Insurance and savings Account, Bank Fixed Deposits,
Government Bonds, Public Provident Fund, etc.
Traditional Avenues: Art and Passion, Gold and Silver, Real Estate.
High Risk Avenues: market for equity bonds, market for commodities, market for hedge
funds.
The majority shouldn't necessarily obey the individual investor. Before investing, they must
try to find out about the investment. The investors must concentrate on stable avenues for
investment. People should cultivate the habit of investing in every stage of life. Saving
money is a normal practice and people need to spend their money to get full returns. The
investors must have total knowledge of the investment options to prevent any kind of
potential risks. The investor will be informed on what, where, why, when and how to make
investments in various investment options.
Decisions on capital investments are crucial both at firm and national level (Northcott, 1995).
Investment decisions at the company level will have consequences for other aspects of the
organizational operations and performance have an significant effect on sustainability,
productivity and growth. Good planning and allocation of capital expenditure at the national
level are important for the productive use of other resources; on the other hand, poor
expenditure has a negative effect on labour efficiency, materials and the future performance
of the economy. Hence research on Factors that affect the decision-making of individual
investors are given considerable attention.
1.3 Factors Affecting Stock Market
Today, most of us have many ambitions and expectations to achieve in life. And we are
taking the steps necessary to ensure we meet those goals. Meticulous financial planning
provides us with healthy returns, so that from our wish list we can check one box after
another. Investment is one of the key pillars of future financial planning. In order to fight
inflation and to create a corpus, we are investing our money in different financial elements
with the expectation that our investment will slowly expand like a well-watered plant.
Investment has many facets, with the most common being mutual fund investment, public
provident fund, cash, and real estate. They are mainly low-risk and low-yield investments,
which means there is some confidence that your investment is going to be secure, and at the
same time the expected returns are down. A stock market is a location or forum where
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investors are able to buy and sell financial instruments such as shares and bonds. A stock
exchange such as the Bombay Stock Exchange and the National Stock Exchange, BSE and
NSE in brief, respectively, are stock exchange mediators that allow stock to be purchased
and sold. In the most basic terms, when someone starts a business, they are the sole
proprietors of the company alone or a group of people who financed the company. However,
if they want to raise more capital for the company, either to expand internationally or to
branch out, then one of their choices is to make their business public. In the simplest of
words, making the company public means making the company available to the public in the
form of shares. When the company becomes public, people purchase shares within the
company and become the company's part owners.
• Inflation:
Inflation is a quantitative measure of the rate over which the average price level of the
selected goods and services basket in the economy increases over a certain period. It is the
increase in the general price point, where a currency unit actually buys less than it did in
previous times. Hence inflation, often measured as a percentage, signals a fall in the buying
power of a nation's currency.
Inflation is the pace at which the general price level for goods and services is increasing, and
thus currency buying power is decreasing. Inflation is divided into three types: Inflation with
demand-pull, inflation with cost-push and inflation with built-in. Consumer Price Index (
CPI) and Wholesale Price Index ( WPI) are the most widely used indices for inflation.
Depending on the individual point of view and rate of change inflation may be perceived
positively or negatively. Anyone with tangible assets, such as land or stored goods, would
like to see some inflation because it increases their asset value. Money holders can not like
inflation, as it erodes the value of their cash holdings. Ideally, promoting spending to some
extent rather than saving requires an optimum level of inflation, thus nurturing economic
growth. A single currency unit loses value as prices increase, as it buys less goods and
services. This loss of purchasing power has an effect on the overall cost of living for the
general public which ultimately leads to a deceleration in growth. The consensus view among
economists is that sustained inflation occurs when economic growth is outpaced by a nation's
money supply. In order to counteract this, the correct monetary authority of a country, like
the central bank, then takes the required steps to keep inflation within permitted limits and
keep the economy going smoothly.
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Inflation Causes
The root of inflation is rising prices, though this may be directly linked to different factors.
Inflation is divided into three groups in terms of causes: Demand-Pull inflation, Cost-Push
inflation and Built-In inflation.
Demand-pull impact
Demand-pull inflation occurs when the aggregate demand for goods and services in an
economy rises faster than the output capacity of the economy. This creates a demand-supply
gap with greater demand and lower supply, leading to higher prices. For example, when oil-
producing nations decide to cut oil production the supply will decrease. A reduced supply
for current demand contributes to price rises and tends to inflate. In addition, an rise in an
economy's money supply contributes to inflation too. With more resources available to
consumers, higher spending results in a better market mood. That increases demand, leading
to price increases. The monetary authorities may increase the supply of money either by
printing and offering the individuals more money, or by devaluing (reducing the value of)
the currency. For all these cases of rising demand, the money is losing its buying power.
Cost-Push Effect
Cost-push inflation is a reflection of the increase in the production process input prices.
Examples include an increase in labor costs to manufacture a product, or to provide a service,
or an increase in raw material costs. Such advances result in higher finished product or
service prices, which lead to inflation.
Built-In Inflation
The third factor related to adaptive expectations is built-in inflation. When the price of goods
and services increases, labor is anticipating and seeking more prices / wages in order to
sustain their living costs. Increased rising wages result in higher goods and services rates,
and this rise in wage inflation persists as one factor stimulates the other and vice-versa.
Monetarism technically sets out the relation between an economy's inflation and money
supply. For example, vast quantities of gold and particularly silver poured into the Spanish
and other European economies following the Spanish conquest of the Aztec and Inca
empires. Since the money supply had rapidly increased, prices spiked and the value of money
fell, contributing to economic collapse.
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Types of Inflation Indexes
Multiple types of inflation values are measured and tracked as inflation indexes, depending
on the chosen range of goods and services used. Consumer Price Index ( CPI) and Wholesale
Price Index ( WPI) are the most widely used indices for inflation.
The Consumer Price Index
The CPI is a measure that examines the weighted average of prices of a basket of goods and
services which are of primary consumer needs. They include transportation, food, and
medical care. CPI is measured by taking price changes in the fixed basket of products for
each commodity and multiplying them based on their relative weight over the basket. The
prices considered are the retail prices of each item, as available to individual people for
purchase. Changes in the CPI are used to measure price fluctuations related to living
expenses, making it one of the most commonly used indicators to describe periods of
inflation or deflation. The U.S. Bureau of Labor Statistics reports annually to the CPI and it
has been measured as far back as 1913.
The Wholesale Price Index
The WPI is another common measure of inflation which measures and monitors changes in
the pre-retail price of the goods. While WPI products vary from country to country, they are
mostly goods at the manufacturing or wholesale level. For example, it includes cotton prices
for raw cotton, cotton yarn, cotton gray goods, and cotton clothing.
The Producer Price Index
The producer price index is a family of indexes that calculate, over time , the average change
in sales prices earned by domestic goods and services producers. The PPI measures price
changes from the seller 's perspective, which differs from the CPI which measures price from
the buyer's perspective. In all of these variants it is possible that the price rise of one
component (say oil) to some extent cancels the price decline in another (say wheat). Overall,
each index reflects the average weighted cost of inflation for the constituents in question,
which may relate to the market, sector or product level as a whole.
Pros and Cons of Inflation
Inflation can be construed as either a good thing or a bad thing, depending on which side one
is taking and how quickly the transition is taking place. Example, people with tangible assets,
such as property or stored goods, may like to see more inflation because it increases the value
of their assets they can sell at a higher rate. Purchasers of these properties may not be satisfied
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with inflation, however, because they will be expected to shell out more. Other popular
option for investors to profit from inflation is inflation-indexed bonds.
Those who keep cash can not like inflation either, as it erodes the value of their cash holdings.
Investors aiming to shield their portfolios from inflation will find inflation-hedged asset
classes such as gold, energy, and REITs.
Inflation encourages spending, both by businesses in ventures and by individuals in corporate

stocks, because they expect better returns compared with inflation. There is also a need for
an optimal level of inflation to encourage consumption to some degree, rather than saving.
If the buying power of money remains the same over the years, saving and spending do not
vary. This will restrict spending, which will have a negative effect on the overall economy
as reduced circulation of money can reduce overall economic activity in one country. To
keep the inflation value in the optimum and desirable range, a balanced approach is required.
• Earnings per Share:
Earnings per share ( EPS) is measured as the income of a company divided by the outstanding
shares of its common stock. The resulting number serves as an measure of profitability for a
product. It is common for a company to disclose EPS adjusted for extraordinary items and
possible dilution of the shares. The higher the EPS of a product, the more competitive it is
seen as being. Earnings per share ( EPS) is the net income of a company, divided by the
amount of outstanding common shares it owns. EPS shows how much money a company
earns for every share of its stock and is a commonly used indicator for corporate income. A
higher EPS means more investment as investors would pay more for a higher-profit business.
EPS may be achieved in different ways, such as removing exceptional products or
discontinued activities, or diluted.
• Supply and demand
There are so many contributing factors on the market. But if you strip off anything out there
and look at the most fundamental aspect, it's simple: supply and deIf there's a sudden shortage
of potatoes and more and more people are lined up to buy them, the price of potatoes will
spike immediately. And, for all commodities, a supply-demand imbalance can lift stock
prices and lower them. Similarly, if a company is doing well and everyone wants to buy
shares of the same company, there will be a shortage of shares, which will cause the
company's stock price to go up. So, if there are so many shares available, the reverse happens
because nobody wants to buy them. In that case, the stock price would fall.
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• Company related factors
It is clear that if a company has public stock, then something that happens within the
company would influence the share price directly. So if the company is on the rise, with good
product launches, increased revenue, decreased debt and more equity capital inflows, then
the company's stock price is bound to rise, because everyone wants to buy shares of such a
company. Furthermore, if the company suffered losses, failed product, accrued debt, then a
majority of shareholders would decide to sell such a company's shares, thus reducing the
stock price. Certain factors that may cause stock prices to rise and fall include changes in the
company 's management, and mergers and acquisitions.
• Investor sentiment
The investor's own emotions can also affect stock market prices. The manner in which the
stock market works has something to do with how investors put money in. When investors
take higher risks and make aggressive investments then stock prices will increase. At the
other hand, if investors are more cautious, opting for protection over risk, then stock prices
will decline.
Bullish market:
A bullish market is one where the investor is much more confident while taking risks and
invests in a much more aggressive manner. When more people are investing confidently, the
demand goes up, leading to increased stock prices.
Bearish market:
A bearish market is one where the investor is more concerned about risks and loses his or
her money, and thus invests in protection with less trust in mind. It causes the economy to
stagnate, and then the stock price goes down.
• Interest rates
Goings on at India's Reserve Bank have a strong effect on stock prices. The RBI decides on
India's interest rates and keeps adjusting it to balance the Indian economy at regular intervals.
A higher interest rate would of course mean businesses will have to pay more for loans,
leading to lower income. This would boost market prices. Conversely, rising interest rates
mean the business can now borrow money from banks at even lower costs, thus saving their
money and making a higher profit. In this scenario the stock price will go up.
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• Politics
One of India's most important stock market factors is the country's political climate. When
the political climate is grim, the economy is poor, the possibility of war, or whether the
public's feelings towards the new government are not pleasant, stock prices will go down.
Likewise, if the government is solid, then the stock price would be healthier with good public
support. It would also cause investors to invest with greater enthusiasm if the government
has successful development policies, while government with a poor development policy may
lead to a fall in stock prices.
• Current events
The stock market is also influenced by news and other recent happenings. Current stock-
market developments include some political instability, civil war or protests or terrorist
attacks. All these events are expected to dramatically bring down stock prices and impact the
stability of the market.
• Exchange rates
One of the factors influencing share prices in India, too, is how the Indian rupee stands in
comparison to the dollar or other foreign currency. A strong rupee means our economy is
rising and contributing to higher stock prices. However in circumstances where our currency
output is involved, there are various consequences for different people. When the rupee value
rises, Indian commodity prices abroad are increasing, leading to lower demand, and exporters
are struggling, causing stock prices to decline. Importers can purchase goods at cheaper
prices at the same time, and their stock is increasing. If the rupee weakens, the exact opposite
happens, which is exporters' stock prices go up while importers' prices go down. Investing
in the stock market is also something which can produce the most returns relative to other
types of investment. But this also entails considerable risks. Although, no one can argue that
the yield would certainly equal the risks if these risks are measured. There are some of the
aforementioned factors that directly influence the stock market and a close eye on these
factors will help you decide when to buy or sell shares. Timing is important when it comes
to investing in the stock market.
• Capital appreciation
Capital appreciation applies to the part of an investment where the share price returns surpass
the selling price or cost basis of the initial investment. Capital appreciation can occur in
various markets and asset classes, for many different reasons. Capital appreciation is not paid
until an investment is sold, and that gain is realized when it becomes a capital gain. Tax rates
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on capital gains vary depending on whether the investment was a holding in the short or the
long term.
• Social Trends
How the perspectives on society will change after some time is a key subjective thought in
CAPEX choices. In the event that shoppers likely will incline toward more "green" items
over coming years, it wouldn't be insightful to construct an industrial facility regurgitating
earthy colored smoke from monster fireplaces, for instance. Likewise, the textures that are
relied upon to be popular quite a while from now, must be viewed as when fabricating a
manufacturing plant to deliver pieces of clothing. Social patterns likewise impact how long
laborers will function later on and what sorts of occupations they will accomplish for a given
compensation, which additionally impact what kinds of assembling offices are ideal.
• Political Factors
Business papers and magazines at times read like political distributions and dismember each
move in Congress, in light of the fact that political choices matter in how business is run.
How fares and imports will be burdened by Congress, for instance, regularly is the single
greatest factor while deciding the area of a production line. How such numerical
contributions as expense rates and least wages will get down to business rely upon subjective
variables dependent on political choices. Rising nationalistic supposition, a wide political
response to a particular global clash and comparable "delicate" inputs assume a job wherein
gathering will control later on and what choices it may make.
• Corporate Culture
Frequently a choice that may bode well dependent on hard figures neglects to yield the ideal
outcome since it is incongruent with the corporate culture. The speed with which a business
can act, how hard its representatives want to function and how it manages disappointment
all issue. A few companies exceed expectations at giving quality at a superior cost since they
utilize experienced and careful people who invest heavily in their work. Such a business
should reconsider before putting resources into a processing plant intended to make huge
quantities of modest things, for instance.
• GOVERNMENT POLICIES AND A STABLE ENVIRONMENT FOR INVESTMENT
an excess of vulnerability is the common adversary of long haul speculation. Visit changes
in the commercial center or vulnerability about the terms and headings of rivalry include a
noteworthy component of hazard to longer-term business choices, which drives
organizations to look for recuperation of their interests in the shorter timeframe and hoses
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interest in exercises that, by their very nature, will set aside significant effort to work out as
intended. Bureaucratic, state, and neighborhood governments assume a vital job in the
undertakings of industry. The arrangements, schedules, and practices of governments
caneither improve or dissolve consistency (decline or increment chance) in business sectors
and advances and in this manner decide if a domain is helpful or hostile to long haul
speculation.
• The Mixed Impact of Regulation and the Legal Environment
From one perspective, steady and unsurprising guideline for specialist and buyer wellbeing
and assurance of nature can drive significant and imaginative advancements with positive
long haul results. Waste and emanations principles set up fixed focuses for improving
procedures and, thusly, can urge creative ways to deal with issue arrangements; for instance,
item development in the car business to lessen contamination has brought about significant
advancements. Giving motivations to limit squanders in modern procedures not exclusively
may improve nature yet in addition may lessen creation costs essentially. The consequence
of these guidelines can be to make a dependable "playing field" for rivalry, in this way
improving the drawn out wellbeing and ability of these ventures, and to build seriousness in
unfamiliar markets. Then again, visit changes in charge strategy, administrative structures,
government authorizing rehearses, and different types of government collaboration with
industry can be very harming.
Different sorts of, and ways to deal with, administrative and lawful structures legitimately
and in a roundabout way influence the time skylines of associations in various manners.
Authorizing methods, patent lives, work place wellbeing guidelines, and natural guidelines
can either broaden or compel the time skylines of associations relying upon the circumstance
and the way where government laws and guidelines are executed.
Item obligation worries, for instance, are regularly refered to as a lawful limitation that can
inconclusively extend the recompense time for new item improvement extends by making
critical vulnerability about an organization's capacity to recoup speculations. At the point
when this happens the expanded hazard to a venture builds an organization's expense of
capital. A legitimate framework that hinders longer-term ventures as a result of its
unconventionality, delays, and corrective treatment of item obligation issues will hamper
financial development. It is difficult to anticipate all conditions in which another item will
be utilized; mechanical and monetary advances must depend somewhat on "admonition
emptor." On the other hand, a viable item risk framework can offer clients change against
truly deceitful or hazardous items that make it to the commercial center—a wellbeing net
that will make clients bound to believe makers' express or understood cases and in this
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manner all the more rapidly make an anticipated market for an item. To put it plainly,
compelling misdeed law is an exercise in careful control, which, contingent upon its usage,
can extend or abbreviate corporate time skylines.
• The Government's Role in the Creation of Stable Markets
Among the manners by which governments advance long haul venture is the job they play
in the formation of business sectors or commercial centers. To start with, the administration's
extensive purchasing power has made unsurprising markets for "open" products, some of
which have become private merchandise. Business traveler and cargo airplane, made to some
extent by government interests in, and interest for, guard airplane, are a great model.
Moreover, markets for private-part climate expectation and observing, ecological checking
and garbage removal, general wellbeing frameworks, or enormous scope satellite, PC, or
systems administration frameworks depend on, or were upheld by, business sectors made by
government buys, frequently in mix with government R&D.
Second, the utilization of guideline to make or settle markets is a significant open job in
empowering long haul speculation. Government guideline assumes a significant job in
making sheltered and dependable money related and air transport markets, but the meaning
of wellbeing in the two markets is very extraordinary. Government's capacity to make an
imposing business model (frequently controlled and intended to be impermanent) during
specific phases of an industry's advancement is another device to advance long haul venture.
This apparatus has been utilized with AT&T and the U.S. phone framework just as with
incalculable neighborhood exercises, for example, electric force, gas, water, sewer, and cab
administrations.(which are frequently managed through commissions) or business land
improvement (controlled through nearby zoning laws).
Third, the administration assumes a significant job in the making of stable markets through
its job in setting formal or true norms. As new markets and advances rise and create, norms
are regularly hazy or in steady transition. Sooner or later—when vital guidelines and
potential innovations become clear—government builds up formal norms, or takes an interest
in setting accepted principles, by turning into a purchaser and accordingly advancing long
haul interests in the creating business. Such mediations must be painstakingly coordinated to
abstain from freezing the framework too early or past the point of no return, however they
can be tremendous triumphs.
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• GOVERNMENT INVESTMENTS, COMPLEMENTARY ASSETS, AND PRIVATE-
SECTOR TIME HORIZONS FOR INNOVATION
David J. Teece, a teacher of business organization at the University of California, Berkeley,

has utilized the term correlative resources for depict the assortment of abilities or resources
that help a development:
In practically all cases, the fruitful commercialization of a development [technical

information about how to accomplish something better] necessitates that the expertise being
referred to be utilized related to different capacities or resources. Administrations, for
example, showcasing, serious assembling, and after-deals support are quite often required.
These administrations are frequently gotten from integral resources that are specific. For
instance, the commercialization of another medication is probably going to require the
dispersal of data over a specific data channel. At times, as when the development is
foundational, the correlative resources might be different pieces of the framework. For
example, PC equipment commonly requires particular programming, both for the working
framework and for applications. In any event, when an advancement is independent,
similarly as with plug-perfect parts, certain corresponding abilities or resources will be
required for effective commercialization (Teece, 1987, pp. 70-71).
The idea of correlative resources is especially valuable in understanding the job of

government interests in private-part time skylines; integral resources are the openly given
frameworks or administrations that grant, backing, or work related to private interests in
physical or human capital or R&D. Open foundation and freely upheld innovative work are
two significant models.
• Infrastructure
Conventional, physical, open framework frameworks are the most all around perceived type
of integral resources. For instance, government land awards, bond assurances, and guidelines
intended to build up the country's transportation frameworks—beginning with waterways
and streets and afterward railways—made significant, steady, reciprocal resources that
permitted and bolstered the improvement of agrarian, assembling, and retail organizations.
As the period of present day transportation and correspondences started, the legislature gave
prominent area to transmit and phone interchanges and helped organize norms for remote
radio, and later satellite communications. It financed and controlled the improvement of air
terminals, air courses, and Federal Aviation Administration correspondences and control
frameworks that make the present air linkages conceivable. Bureaucratic and state
governments likewise made gigantic interests in the land-award college frameworks that
12
turned into the center scholarly assets for the United States during its time of farming
development and industrialization.
In later years, governments have been the essential financial specialists in streets, dams,
stream support, clinics, schools, general wellbeing, open air diversion, space, and barrier
frameworks. The farming and massdistributed nourishments ventures in the United States
have been helped fundamentally by intensely bolstered government agrarian examination,
land use, water improvement and rural augmentation administrations, principles for
nourishments and bundling, and upheld frameworks of standard loads and measures. The
administration's arrangement of frameworks, certain appropriations, and direct markets have
given the more extended lead times, chance capital, and stable markets for a wide scope of
businesses.
Undertakings like the Tennessee Valley Authority, the Rural Electrification Administration,
and the Interstate Highway System not just made the first employments and benefits from
these activities. Each opened up immense new markets that in any case couldn't have been
reached by item makers, (for example, radio, TV, apparatus, vehicle, shipping, producers).
Generally little introductory ventures (financed by government) opened up entire monetary
areas to be significant markets and makers for current business and home innovations,
making enormous financial multiplier impacts for the entire nation. Such speculations
likewise prompted U.S. supremacy in the sorts of development these undertakings spoke to,
the items they permitted to be delivered, and the administrations frameworks they
encouraged. In macroeconomic terms it is all around reported that the proportion of capital
contributed to net national item is a key fixing in both financial development and seriousness.
Such speculations reach out to both the general population and the private area. Lately, the
proportion of the all out government spending plan committed to venture has fallen
consistently according to move installments and administrations qualifications. In particular,
the expansion balanced measure of government spending on physical foundation, about
$26.2 billion of every 1990, is about equivalent to its 1980 level (Congressional Budget
Office, 1991b). Note that level, expansion balanced consumptions over significant stretches
don't depict a condition of reliable degrees of government support; as GNP grows a
consistent degree of spending will speak to a littler venture comparative with the requests of
the economy.
13
• Research and Development
Government interests in hazardous or long haul research are the premise of another
arrangement of integral resources that the legislature accommodates businesses: access, at
almost no expense, to logical and designing data and assets paid for by government. It is all
around reported that, by and large, central government innovative work have built up any
longer time skylines for mechanical improvement than singular businesses or organizations
may have had the option to exhibit.7 Such open ventures decrease the danger of related
private speculations and influence a colossal assortment of enterprises, both
straightforwardly and in a roundabout way:
• The pharmaceutical and clinical items enterprises have been firmly upheld by numerous long
stretches of essential exploration through the National Institutes of Health and different
offices (bolstered by a solid item patent framework and the requests made by government-
bolstered social insurance).
• The broad help the government has given since the mid 1960s in microbiological, hereditary,
plant, ecological, and human wellbeing research is presently starting to create a
biotechnology industry and the bits of knowledge that will change clinical consideration,
agribusiness, and numerous mechanical and garbage removal forms.
• Through its drawn out exploration on materials and impetus advancements, in addition to the
arrangement of enormous scope testing offices, the administration made resources of
essential incentive to the U.S. airplane industry.
• The administration's initial interest in huge scope PCs and data systems for nuclear and
rocket research gave the preparation to the present PC foundation, which has given numerous
instructive establishments and examination units a huge upper hand over their partners in
most different nations.
• By permitting AT&T Bell Laboratories (before the dissection choice) semimonopoly
benefits and the option to gather a client expense from phone clients and to utilize this charge
in cutting edge interchanges research, the administration made extremely long haul venture
time skylines in correspondences, and for quite a long time those long time skylines gave the
United States a world initiative situation in this innovation.
• The Defense Department's proceeded with drive to locate the most noteworthy conceivable
execution materials and frameworks for military purposes has pushed ahead the outskirts of
the present microengineering, test hardware, fiber-polymer composites, and checking
burrowing microscopy imaging capacities.
14
• The Agriculture Department's drawn out interests in rural exploration prompted huge
numbers of the half and half seeds, plants, and agrarian strategies that individual or corporate
ranchers would never have created themselves.
• Government's coinvestments in satellite frameworks for climate expectations,
correspondences, and route made such frameworks conceivable some time before they would
have been carefully ''monetary" from a private financial specialist's perspective.
Time Horizons and the Public-Sector Investment Portfolio
Despite the fact that it isn't regularly respected in such a way, it is conceivable to imagine
considerable bits of the government financial plan as a national open products capital
spending plan or a speculation portfolio. In spite of the fact that move installments and uses
for momentum utilization (staff costs for the military, for instance) make up a most of the
government spending plan, a considerable segment of the financial plan is committed to
interests in seemingly perpetual open resources, for example, physical foundation or
innovative work. Now and again, such speculations make significant open products that have
barely any immediate uses for residents and organizations past their expressed reason (e.g.,
building an army installation makes "national security" with just side project financial
impacts). Different kinds of open speculations, in any case, can be viewed as making open
products that are likewise considerable correlative resources for private endeavors.
History shows that the national government's venture portfolio has permitted or driven the
advancement of significant new advances and, with the help of state and neighborhood
governments, has financed physical foundations that couldn't have been supported on an
arrival on-speculation premise by any single organization or industry. Furthermore, the
government and, less significantly, state and neighborhood governments, have given
financing and the executives to ventures that were excessively huge and had consummation
times excessively long for any single organization or consortium of private undertaking. By
interests in these and future mechanical regions, the legislature can impact the time skylines,
advancement, and seriousness of U.S. enterprises later on by accepting a portion of the
danger of growing new advancements and giving danger capital.
15
Chapter -2
LITRATURE REVIEW
(Monika, 2017) Monika, Dr Kirti Agarwal has done a study on “factors affecting the
investors choice for investment decision making”. This study states that the current economic
scenario has made different investment options available for the investors and there are
different motivating factors based on their socio-economic profile. The exploratory research
was used for the study. Data was collected through primary and secondary sources.
Questionnaire has been used to collect the primary data. Convenience sampling technique
was used to collect samples of 100 respondents. Chi-square test has been used to find the
significance of the factors. The study was concluded by finding that investors are
conservative in nature, they prefer traditional investment instruments where risk is less.
(jeet singh, 2016) in this study Jeet Singh and Preeti Yadav has tried to find out the factors
which have major impact on investment decision relating to share. Investors usually consider
the information which are possessed by them to invest but there are lot more information to
be consider like Technical and Financial analysis etc. The study has also tried to find the
male and female investors attitude towards different investment avenues. They have used
independent t-test, mean scores to test the hypothesis. The study concludes that the investors
should make fundamental, technical and financial analysis before investing the shares.
Investors whether male or female, should look in all available investment avenues while
investing.
(Akanksha) in this study aims to understand the behavior of individual investor in stock
market, specifically their attitude and perception with respect to the stock market. A survey
is conducted to collect data relating to the above subject. Respondents were classified into
different categories like income, profession, education status, sex and age in the city of
Indore. The study attempts to find the factors affecting the investment behavior of individual
investors such as their awareness level, duration of investment etc. The study analyses the
rationality of the investors of Indore during different market expectations, dividend and
bonus announcements, and the impact of age, income levels and other market related
information on investment decisions of investors.
(jekaterinakartasova, 2013) has identified basic factors forming Lithuanian individual

investors’ behavior on the stock market and illustrate the logical relationship between these
factors and individual investors’ personal characteristics such as gender, age, investment
16
experience and profession. The author combined psychological biases into closed-end
questions without stating the bias itself and
checked whether the investors felt the influence or not. According to the results, women are
more overconfident investors than men. In addition, the direct connection between
investment experience and influence of over confidence was noted. The purpose of the
research was to identify the irrational behaviour of individual investors, its forming factors,
and to assess their impact on the decisions of investors made in the stock market.
(ambrose, 2014) have analyzed that the most important factors that influence individual
investment decisions were: reputation of the firm, firm’s status in industry, expected
corporate earnings, profit and condition of statement, past performance firm’s stock, price
per share, feeling on the economy and expected divided by investors. Results of factor
analysis revealed that the most important factors were: Firms position and performance;
Investment returns and economic conditions; Diversification and loss minimisation; Third
party opinion; The goodwill of the firm and accounting information; Perception towards the
firm; Environmental factors; Firms feeling and Risk minimization. Friedman’s ranking was
used to identify the most important individual factors that influence investment decision in
NSE. The factors were reputation of the firm, firm’s status in industry, expected corporate
earnings, profit and condition of statement, past performance firm’s stock, price per share,
feeling on the economy and expected divided by investors. In conclusion this study tested
the tenets of the behavioral finance theory on the factors that influence investment decisions
under conditions of uncertainty.
(Capuano, 2011) had done their project in Australia on financial literacy. According to them
financially literate consumer will have more savings, they will manage their debt actively,
they will be more financially confident, they will more careful while choosing financial
product that are suitable for their needs, they will plan their finance, budget and know how
to be financially efficient. Financially literate people can better understand the financial
policies framed by any government.
(lusardi, 2011)in her paper declared that money skill has positive causative impact on
wealth holdings and saving behaviour. From this analysis, it's been found that money skill
will increase the attention for importance of savings and coming up with for retirement.
(andreas ohler, 2008) Has stated that financial literacy is very important in different stages
of life to make some important decisions, and financial education may help to alter the
behaviour related to Savings and Retirement Planning.
17
(Ronald P. Volpea, 2006) in their research they have tried to fond the issues which are
important to respondents in their Personal financial planning. Survey took place in US,
around 212 companies have participated in Respondents have given bigger importance to
retirement planning however the results showed that there's the big gap between importance
given to the current variable and actual information possessed by them. The Gap that was 11
known is that in future, a lot of focus is given to the areas that are thought of vital however
lacking in information. Financial educational programs are designed by looking into these
aspects.
(Stendardi, 2006) from the study researcher has concluded that gender has significant
impact on personal financial planning process. Researcher has also explained process
involved in personal financial planning. These are, gathering data, establishing financial
goals and objectives process and analyse the information recommend a comprehensive
financial plan, Implement the plan and monitor the plan.
(Tschache, 2009) In this study, a survey was given to teachers, administrators, parents,
business owners, and community members to determine the importance they placed on
financial literacy curriculum and what content they think should be included in a financial
literacy curriculum at Bozeman High School. The results of this survey showed that most
participants of the survey thought financial literacy was important and that financial literacy
curriculum was also important. The conclusions of this study were that financial education
is beneficial and that the concepts taught in that type of curriculum were valued.
(Tan, 2009) this study accesses the attitude of Malaysians towards personal financial
planning, which focus on money management, insurance planning, investment planning,
retirement planning, estate planning. A survey data from 400 Malaysians collected by using
set of questionnaires. The results showed that the job status of the respondents is the primary
factor which influences the financial planning decisions. The demographic profile like age,
gender, marital status, education levels are the secondary influencing factors.
(W.Kent, 2009)In this study they have attempted to find the attitude and awareness of
students on financial markets. They have collected 157 samples from undergraduate business
school students. The main aim of the study is to find the interest and awareness on financial
markets. The result of the study has showed that female respondents have less interest and
awareness on financial markets compared to men. Therefore, the study concludes that gender
has a significant impact on attitude and awareness of students with respect to financial
markets.
18
(Brigitte Fünfgeld, 2009)in their study they tried to find the impact of demographic variable
on financial attitude and behaviour. The study was conducted in Switzerland 1252
respondents were selected with convenience sampling method. The result showed five
dimensions of financial attitude. They are, anxiety, interests in financial issues, decision
styles, need for precautionary savings, spending tendency.
(Ratna_Khuzaimah_Mohamad., 2010) in this research stated that there is a significant

difference in financial literacy between gender and working sector. This research was done
in Malaysia. Researcher stated that the gender has a significant impact on frequency of
managing Financial Planning but working sector have no impact on frequency of managing
Financial planning.
(Hari K. Nagarajan, 2011)in association with SEBI they have done an analysis on saving
and investing patterns of households. 38412 households were taken from 44 cities and 40
villages. Survey revealed that only 20% of urban and 6% of rural are investors, still they are
using traditional avenues, eleven to twenty percentage of people still investing in post office
schemes. People with higher education level choose pension plans. Only 21%of people are
investing secondary market.
Pravin Mahmuni (MahmuniPravinNarayan, 2011) has done study on personal financial

planning of IT sector in Pune, India. The objective of the study was to find the interest of
investors towards financial planning and preference of investment avenues. 150 samples
were collected from Pune IT sector by using convenience sampling method. Result showed
that awareness on financial products is good but investors doesn’t have much awareness on
non-conventional investment avenues. One interesting finding is that respondents are
confused among the tax planning and financial planning.
Preethi Kulkarni (kulkarni, 2012) has published an article based on the survey done by
HDFC and value notes. The study says that in India financial awareness and planning of
young people, that is 20-30 age group people is very low. There is a lack of financial
awareness and also shows that their financial plans are not aligned with the financial goals,
this shows that lack of awareness of financial events.
Puneeth Bhushan (bhushan, 2104) in his paper he has explained the level of awareness and
investment behaviour of salaried individual on financial products. The study was conducted
in Himachal Pradesh. The sample was collected from both government and non-government
employees. The size of the sample was 516. To collect the sample five-point Likert scale was
used. The study revealed that respondents have high level of awareness on traditional
investment avenues and they don’t have much awareness on modern avenues like
19
derivatives. Researcher has also tried to link the financial literacy and behaviour of
respondents. In this study he concludes that the person with low financial literacy will choose
safe return investments like fixed deposits, and person with high financial literacy will invest
in derivatives, stocks etc.
Priya vasagadekar (vasagadekar, 2014) in her research she has tried to find the level of
awareness of working women on investment. For this study she has collected 80 samples
from different sector in Pune. In this she found that 85% of the respondents have awareness
on investments. 65% of the respondents are ready to invest in traditional investment avenues,
and only 20% are ready to invest in risky avenues. And the most interesting thing that found
was 90% of the respondents are dependent on their husbands to take investment decisions.
Prabha Shingle and Srivastava Anju (prabha shingla, 2014) had done survey in Bihar on
working woman to access the knowledge and practice of personal financial planning. Data
were collected from 300 respondents of Patna town with help of interview and mailed
questionnaire.
20
Chapter -3
Research Methodology
3.1 Brief overview

This chapter mainly describes the objectives of the study. It also explains how study has been
done, the research design used for the research, methods used for collecting samples, sources
of data from which data is collected. It also describes the statistical tools and techniques used
for the study.
3.2 Objectives of the study

• To access the level of influence of different factors on stock investment decisions of
individuals investors in Bangalore city.
• To find the relationship between most influencing factors of stock investment decision and
different demographic profiles.
3.3 Scope of study

The research carried out to find the to access the level of influence of different factors on
stock investment decisions of individuals investors . To conduct the study, a sample of 60
respondents has been collected from Bangalore city. The scope of this study is limited only
to the individual investors of Bangalore.
3.4 Research Design

Parahoo (2006), describes a research design as “a plan that describes how, when and where
data are to be collected and analysed”. It basically shows how study will be conducted to
fulfil the defined objectives. Malhotra and Dash (2009) states that there are major two ways
in which research design is identified, Exploratory Research and Descriptive Research.
Exploratory research is useful when researcher doesn’t have enough idea about how to
proceed with the research problem. If any formal research methods or protocol are not
employed in particular area then researcher may use Exploratory Research Design.
Descriptive Research helps to identify characteristics of groups or individuals. The major
purpose of descriptive research is description of the state of affairs as it exists at present. C
R Kothari (2004) descriptive research is gathering of information about prevailing conditions
21
or situations for the purpose of description and interpretation. This type of research method
is not simply amassing and tabulating facts but includes proper analyses, interpretation,
comparisons, identification of trends and relationships. (Dr. Y.P. Aggarwal, 2008).
3.4.1 Research design selected
To fulfil the objectives which was stated earlier Descriptive Research Design is most
suitable. Hence it has been selected for conducting study.
3.4.2 Sample Design
A sample design is the roadmap or framework which serves as the basis for selecting sample
for survey. It will include Sampling Unit, Sampling Technique and Sample Size.
3.4.3 Sample unit
Main objective of the study is to access the level of influence of different factors on stock
investment decisions of individuals investors in Bangalore city. Here the sample unit is
individual investors of Bangalore.
3.4.4 Sampling Technique
Sampling technique can be broadly classified into Non probability and probability sampling.
Here in this study probability sampling technique has been used to collect the samples.
3.4.5 The Sample Size
Determination of sample size is very important in empirical research. Selection of sample

size should be done more carefully so inference of entire population can be done from it. The
aim of the study is to access the level of influence of different factors on stock investment
decisions of individuals investors in Bangalore city.Therefore 50 samples have been
collected, out of which 20 from female respondents and 30 is from male respondents.
3.5 Data Sources
3.5.1 Secondary Data
Secondary data are those data which are already collected and published. For the study,
secondary data were collected from various books, journals, websites, newspapers, articles
etc.
22
3.5.2 Primary Data
Primary data are those data which are collected by the researcher to meet his own objectives.
For the study, primary data has been collected through structured questionnaire, which are
filled by the respondents.
3.5.3 Planning for Data Collection
For the purpose of primary data collection, survey method has been used, in which open
ended questions were asked with the help of structured questionnaire. In this study 60
samples were collected from individual investors in Bangalore city. Any individual investor
of the Bangalore city can be a sample unit.
3.6 Various statistical tools and test used
Initially Microsoft-excel was used for data entry. Later the data was exported to SPSS, this
has was used for descriptive analysis, frequency analysis etc and this software also used for
Anova calculation.
23
Chapter - IV
DATA ANALYSIS
4.1 Objective 1 :
To access the level of influence of different factors on stock investment decisions of
individuals investors in Bangalore city.
The following table of analysis shows the level of influence of different factors on stock
investment decisions of individuals investors. Based on the mean value and standard
deviation the most influencing factors can be identified.
Table 4.1.1 Factors influencing investment decision of individual investor
Mean Std.Deviation
sl.no Factors
3.04 1.068
1 Short_Term_Capital_Gains
4.06 1.114
2 Long_Term_Capital_Appreciation
3.70 1.147
3 Dividend_Income
3.06 1.504
4 Diversification
3.28 0.809
5 Friends_Recom
3.34 1.022
6 Brokers_Financial_Advisors_Recom
3.34 1.118
7 Newspapers_Magazines
3.72 1.196
8 Computer_Internet
3.70 1.418
9 Interest_Rates
3.62 1.159
10 Government_Stability
3.92 0.944
11 Stock_Market_Performance
3.50 1.216
12 Past_Performance_of_Industry
3.90 0.931
13 Growth_rate_of_Industry
3.90 1.093
14 Firm’s_Status_in_Industry_Life_Cycle
3.60 0.808
15 Firm_Product_Quality
3.50 1.111
16 Reputation_of_Firm
4.00 0.926
17 Quality_of_Management
3.70 0.995
18 Firm_Local_Operations
3.28 1.230
19 Firm_International_Operations
3.86 1.050
20 Stock_Price_per_Share
4.08 1.104
21 Earnings_Per_Share
4.02 1.204
22 Dividend_Payout_Ratio
3.90 0.953
23 Debt_Equity_Ratio
3.76 0.981
24 Return_on_Equity
4.00 1.262
25 Inflation_Rates
Source : SPSS
24
Interpretation:
The table 4.1.1 shows the 25 factors which have been used for the study along with their
mean value and standard deviation. Based on the mean values of the above table 10 most
influencing factors are identified they are long term capital appreciation
(M.4.06,Sd.1.114),stock market performance(M.3.92,Sd.0.944), growth rate of
industry(M.3.90,Sd.0.931), firm’s status in industry life cycle(M.3.90,Sd.1.093), Quality of
management(M.4.00,Sd.0.926), stock price per share(M.3.86,Sd.1.050),earnings per
share(M.4.08,Sd.1.104) dividend payout ratio(M.4.02,Sd.1.204),debt to equity
ratio(M.3.90,Sd.0.953),return on equity(M.3.76,Sd.0.981),inflation rates(M.4.00,Sd.1.262).
The table also shows the 5 least influencing factors, short term capital gains (M.3.04,Sd.1.068),
diversification (M.3.06,Sd.1.504), friends recommendation (M.3.28,Sd.0.809), financial advisors
recommendation (M.3.34,Sd.1.022), firm international operations (M.3.28,Sd.1.230). The above
table clears that the above 5 factors have their least influence on the stock investment
decision of an individual investor.
25
4.2 Objective 2 :
To find the relationship between most influencing factors of stock investment decision and
different demographic profiles.
A . This objective shows the relationship between identified most influencing factors
and gender.
Ho : There is no significant relationship between gender and long term capital

appreciation
Table 4.2.1 Descriptive statistics
Descriptive
95%
Confidence
Interval for
Mean
Std. Lower Upper

Mea Deviatio Std. Boun Boun Minimu Maximu
N n n Error d d m m
Long_Term_Capital_Appreciati Male 3 4.00 1.203 0.22 3.55 4.45 2 5
on 0 0
Femal 2 4.15 0.988 0.22 3.69 4.61 2 5
e 0 1
Total 5 4.06 1.114 0.15 3.74 4.38 2 5
0 8
Source : SPSS
Interpretation: The table 4.2.1 shows the descriptive statistics of influence of long term
capital appreciation as per gender. The mean value of 4.15 is maximum for female investors
and the mean value of 4.00 is minimum for male investors.
Table 4.2.2 analysis of variance on influence of long term capital appreciation
ANOVA
Sum of Mean
Squares df Square F Sig.
Long_Term_Capital_Appreciation Between 0.270 1 0.270 0.214 0.646
Groups
Within 60.550 48 1.261

Groups
Total 60.820 49
Source : SPSS
26
Interpretation: The above table4.2.2 depicts the results of Analysis of variance to check the
influence of long term capital appreciation. The p-value is 0.64 which is greater than 0,05
therefore the null hypothesis will be accepted.
Therefore there is a significant relationship between gender and long term capital appreciation.
Ho : There is no significant relationship between gender and Stock market
performance.
Descriptives
95%
Confidence
Interval for
Mean
Std. Std. Lower Upper

N Mean Deviation Error Bound Bound Minimum Maximum
Stock_Market_Performance Male 30 4.00 0.910 0.166 3.66 4.34 2 5
Female 20 3.80 1.005 0.225 3.33 4.27 2 5
Total 50 3.92 0.944 0.134 3.65 4.19 2 5
Source : SPSS
Interpretation: The table 4.2.3 shows the descriptive statistics of influence of Stock market
performance as per gender. The mean value of 4.00 is maximum for male investors and the
mean value of 3.80 is minimum for female investors.
Table 4.2.4 analysis of variance on influence of Stock market performance
ANOVA
Sum of Mean
Stock_Market_Performance Between 0.480 1 0.480 0.533 0.469
Groups
Within 43.200 48 0.900

Groups
Total 43.680 49
Source : SPSS
27
influence of Stock market performance. The p-value is 0.47 which is greater than 0,05
Descriptive
95%
Confidence
Interval for
Mean

Growth_rate_of_Industry Male 30 3.97 0.999 0.182 3.59 4.34 2 5
Female 20 3.80 0.834 0.186 3.41 4.19 2 5
Total 50 3.90 0.931 0.132 3.64 4.16 2 5
Therefore there is a significant relationship between gender and Stock market performance.
Ho : There is no significant relationship between gender and Growth rate of industry.
Source : SPSS
Interpretation: The table 4.2.5 shows the descriptive statistics of influence of Growth rate
of industry as per gender. The mean value of 3.97 is maximum for male investors and the
ANOVA
Sum of Mean
Growth_rate_of_Industry Between 0.333 1 0.333 0.379 0.541
Groups
Within 42.167 48 0.878

Groups
Total 42.500 49
mean value of 3.80 is minimum for female investors.

Table 4.2.6 analysis of variance on influence of Growth rate of industry
Source : SPSS
influence of Growth rate of industry. The p-value is 0.541 which is greater than 0,05 therefore
the null hypothesis will be accepted.
Therefore, there is no significant relationship between gender and Growth rate of industry.
28
Ho : There is no significant relationship between gender and Firm’s status in industry
life cycle.
Descriptives
95%
Confidence
Interval for
Mean

Firm’s_Status_in_Industry_Life_Cycle Male 30 4.00 1.174 0.214 3.56 4.44 2 5
Female 20 3.75 0.967 0.216 3.30 4.20 2 5
Total 50 3.90 1.093 0.155 3.59 4.21 2 5
Source : SPSS
Interpretation: The table 4.2.7 shows the descriptive statistics of influence of Firm’s status
in industry life cycle as per gender. The mean value of 4.00 is maximum for male investors
and the mean value of 3.75 is minimum for female investors.
Table 4.2.8 analysis of variance on influence of Firm’s status in industry life cycle
ANOVA
Sum of Mean
Firm’s_Status_in_Industry_Life_Cycle Between 0.750 1 0.750 0.623 0.434
Groups
Within 57.750 48 1.203
Groups
Total 58.500 49
Source : SPSS
Interpretation: The above table4.2.8 depicts the results of Analysis of variance to check
the influence of firm’s status in industry life cycle. The p-value is 0.47 which is greater
than 0,05 therefore the null hypothesis will be accepted.
Therefore, there is no significant relationship between gender and Firm’s status in industry
life cycle.
29
Ho : There is no significant relationship between gender and Quality of management.
Descriptive
95% Confidence
Interval for
Mean

Quality_of_Management Male 30 3.97 0.928 0.169 3.62 4.31 2 5
Female 20 4.05 0.945 0.211 3.61 4.49 3 5
Total 50 4.00 0.926 0.131 3.74 4.26 2 5
Source : SPSS
Interpretation: The table 4.2.9 shows the descriptive statistics of influence of Quality of
management as per gender. The mean value of 3.97 is minimum for male investors and the
mean value of 4.05 is maximum for female investors.
Table 4.2.10 analysis of variance on influence of Quality of management
ANOVA
Sum of Mean
Quality_of_Management Between 0.083 1 0.083 0.095 0.759
Groups
Within 41.917 48 0.873
Groups
Total 42.000 49
Source : SPSS
the influence of Quality of management. The p-value is 0.759 which is greater than 0,05
Therefore, there is no significant relationship between gender and Quality of management.
30
Ho : There is no significant relationship between gender and Stock price per share.
Descriptive
95%
Confidence
Interval for
Mean

Stock_Price_per_Share Male 30 3.70 1.088 0.199 3.29 4.11 2 5
Female 20 4.10 0.968 0.216 3.65 4.55 3 5
Total 50 3.86 1.050 0.148 3.56 4.16 2 5
Source: SPSS
Interpretation: The table 4.2.11 shows the descriptive statistics of influence of Stock price
per share as per gender. The mean value of 4.10 is maximum for female investors and the
mean value of 3.70 is minimum for male investors.
Table 4.2.12 analysis of variance on influence of Stock price per share
ANOVA
Sum of Mean
Stock_Price_per_Share Between 1.920 1 1.920 1.769 0.190
Groups
Within 52.100 48 1.085

Groups
Total 54.020 49
Source : SPSS
the influence of Stock price per share. The p-value is 0.19 which is greater than 0,05 therefore
Therefore, there is no significant relationship between gender and Stock price per share.
31
Ho : There is no significant relationship between gender and Earnings per share.
Descriptives
95% Confidence
Interval for
Mean

Earnings_Per_Share Male 30 3.97 1.159 0.212 3.53 4.40 2 5
Female 20 4.25 1.020 0.228 3.77 4.73 2 5
Total 50 4.08 1.104 0.156 3.77 4.39 2 5
Source : SPSS
Interpretation: The table 4.2.13 shows the descriptive statistics of influence of Earnings per
share as per gender. The mean value of 3.97 is minimum for male investors and the mean
value of 4.25 is maximum for female investors.
Table 4.2.14 analysis of variance on influence of Earnings per share
ANOVA
Sum of Mean
Earnings_Per_Share Between 0.963 1 0.963 0.788 0.379
Groups
Within 58.717 48 1.223

Groups
Total 59.680 49
Source : SPSS
the influence of Earnings per share. The p-value is 0.379 which is greater than 0,05 therefore
Therefore, there is no significant relationship between gender and Earnings per share.
32
Ho : There is no significant relationship between gender and Dividend payout ratio.
Descriptive
95%
Confidence
Interval for
Mean

Dividend_Payout_Ratio Male 30 3.90 1.373 0.251 3.39 4.41 1 5
Female 20 4.20 0.894 0.200 3.78 4.62 3 5
Total 50 4.02 1.204 0.170 3.68 4.36 1 5
Source : SPSS
Interpretation: The table 4.2.15 shows the descriptive statistics of influence of dividend
payout ratio as per gender. The mean value of 3.90 is minimum for male investors and the
mean value of 4.20 is maximum for female investors.
Table 4.2.16 analysis of variance on influence of Dividend payout ratio
ANOVA
Sum of Mean
Dividend_Payout_Ratio Between 1.080 1 1.080 0.742 0.393
Groups
Within 69.900 48 1.456
Groups
Total 70.980 49
Source : SPSS
the influence of Dividend payout ratio. The p-value is 0.393 which is greater than 0,05
Therefore, there is no significant relationship between gender and Dividend payout ratio.
33
Ho : There is no significant relationship between gender and Debt equity ratio.
Descriptive
95% Confidence
Interval for
Mean

Debt_Equity_Ratio Male 30 3.80 0.961 0.176 3.44 4.16 2 5
Female 20 4.05 0.945 0.211 3.61 4.49 2 5
Total 50 3.90 0.953 0.135 3.63 4.17 2 5
Source : SPSS
Interpretation: The table 4.2.17 shows the descriptive statistics of influence of Debt equity
ratio as per gender. The mean value of 3.80 is minimum for male investors and the mean
value of 4.05 is maximum for female investors.
Table 4.2.18 analysis of variance on influence of Debt equity ratio
ANOVA
Sum of Mean
Debt_Equity_Ratio Between 0.750 1 0.750 0.823 0.369
Groups
Within 43.750 48 0.911
Groups
Total 44.500 49
Source : SPSS
the influence of Debt equity ratio. The p-value is 0.369 which is greater than 0,05 therefore
Therefore, there is no significant relationship between gender and Debt equity ratio.
34
Ho : There is no significant relationship between gender and Inflation rates.
Descriptives
95% Confidence
Interval for Mean

Inflation_Rates Male 30 3.83 1.392 0.254 3.31 4.35 1 5
Female 20 4.25 1.020 0.228 3.77 4.73 2 5
Total 50 4.00 1.262 0.178 3.64 4.36 1 5
Source : SPSS
Interpretation: The table 4.2.19 shows the descriptive statistics of influence of Inflation
rates as per gender. The mean value of 3.83 is maximum for male investors and the mean
value of 4.25 is minimum for female investors.
Table 4.2.20 analysis of variance on influence of Inflation rates
ANOVA
Sum of Mean
Inflation_Rates Between 2.083 1 2.083 1.317 0.257
Groups
Within 75.917 48 1.582

Groups
Total 78.000 49
Source : SPSS
the influence of inflation rates. The p-value is 0.257 which is greater than 0,05 therefore the
null hypothesis will be accepted.
Therefore, there is no significant relationship between gender and Inflation rates.
35
B. This objective shows the relationship between identified most influencing factors and
income of respondent.
Ho : There is no significant relationship between income and long term capital

appreciation
Descriptives
95%
Confidence
Interval for
Mean
Long_Term_Capital_Appreciation Less than 13 3.69 1.109 0.308 3.02 4.36 2 5
1,20,000
1,20,000 25 4.16 1.143 0.229 3.69 4.63 2 5
--
5,00,000
5,00,000 11 4.18 1.079 0.325 3.46 4.91 2 5
--
12,00,000
above 1 5.00 5 5
12,00,000
Total 50 4.06 1.114 0.158 3.74 4.38 2 5
Source : SPSS
Interpretation: The table 4.2.21 shows the descriptive statistics of influence of long term
capital appreciation as per income. The mean value of 5.00 is maximum for the investors
whose income is above 12,00,000 and the mean value of 3.69 is minimum for the investors
whose income is less than 1,20,000.
Table 4.2.22 analysis of variance on influence of long term capital appreciation
ANOVA
Sum of Mean
Long_Term_Capital_Appreciation Between 3.054 3 1.018 0.811 0.494
Groups
Within 57.766 46 1.256

Groups
Total 60.820 49
Source : SPSS
the influence of long term capital appreciation. The p-value is 0.494 which is greater than
0,05 therefore the null hypothesis will be accepted.
Therefore, there is no significant relationship between income and long term capital appreciation
36
Ho : There is no significant relationship between income and stock market
performance.
Descriptives
95%
Confidence
Interval for
Mean
Stock_Market_Performance Less than 13 3.92 1.038 0.288 3.30 4.55 2 5
1,20,000
1,20,000 25 3.84 0.987 0.197 3.43 4.25 2 5
--
5,00,000
5,00,000 11 4.09 0.831 0.251 3.53 4.65 3 5
--
12,00,000
above 1 4.00 4 4
12,00,000
Total 50 3.92 0.944 0.134 3.65 4.19 2 5
Source : SPSS
Interpretation: The table 4.2.23 shows the descriptive statistics of influence of stock
market performamce.as per income. The mean value of 4.09 is maximum for the investors
whose income is above 5,00,000 - 1200000 and the mean value of 3.92 is minimum for the
investors whose income is less than 1,20,000.
Table 4.2.24 analysis of variance on influence of Stock market performance
ANOVA
Sum of Mean
Stock_Market_Performance Between 0.488 3 0.163 0.173 0.914
Groups
Within 43.192 46 0.939

Groups
Total 43.680 49
Source : SPSS
the influence of stock market performance. The p-value is 0.914 which is greater than 0,05
Therefore, there is no significant relationship between income and stock market performance.
37
Ho : There is no significant relationship between income and growth rate of industry
Descriptives
95% Confidence
Interval for
Mean
Growth_rate_of_Industry Less than 13 3.92 0.862 0.239 3.40 4.44 3 5
1,20,000
1,20,000 25 3.92 0.909 0.182 3.54 4.30 2 5
--
5,00,000
5,00,000 11 3.82 1.168 0.352 3.03 4.60 2 5
--
12,00,000
above 1 4.00 4 4
12,00,000
Total 50 3.90 0.931 0.132 3.64 4.16 2 5
Source : SPSS
Interpretation: The table 4.2.25 shows the descriptive statistics of influence of growth
rate of industry as per income. The mean value of 4.00 is maximum for the investors whose
income is above 12,00,000 and the mean value of 3.92 is minimum for the investors whose
income is less than 1,20,000.
Table 4.2.26 analysis of variance on influence of Growth rate of industry
ANOVA
Sum of Mean
Growth_rate_of_Industry Between 0.101 3 0.034 0.036 0.991
Groups
Within 42.399 46 0.922

Groups
Total 42.500 49
Source : SPSS
the influence of Growth rate of industry. The p-value is 0.991 which is greater than 0,05
Therefore, there is no significant relationship between income and growth rate of industry
38
Ho : There is no significant relationship between income and firm’s status in industry
life cycle
Descriptives
95%
Confidence
Interval for
Mean
Std. Lower Upper
Mea Deviatio Std. Boun Boun Minimu Maximu
N n n Error d d m m
Firm’s_Status_in_Industry_Life_Cycl Less than 1 4.08 1.188 0.32 3.36 4.79 2 5
e 1,20,000 3 9
1,20,000 2 3.88 1.130 0.22 3.41 4.35 2 5
-- 5 6
5,00,000
5,00,000 1 3.82 0.982 0.29 3.16 4.48 2 5
-- 1 6
12,00,00
0
above 1 3.00 3 3
12,00,00
0
Total 5 3.90 1.093 0.15 3.59 4.21 2 5
0 5
Source : SPSS
Interpretation: The table 4.2.27 shows the descriptive statistics of influence of firm’s
status in industry life cycle as per income. The mean value of 4.08 is maximum for the
investors whose income is less than 1,20,000 and the mean value of 3.92 is minimum for the
investors whose income is above 12,00,000.
Table 4.2.28 analysis of variance on influence of Firm’s status in industry life cycle
ANOVA
Sum of Mean
Firm’s_Status_in_Industry_Life_Cycle Between 1.301 3 0.434 0.349 0.790
Groups
Within 57.199 46 1.243

Groups
Total 58.500 49
Source : SPSS
the influence of firm’s industry life cycle. The p-value is 0.790 which is greater than 0,05
Therefore, there is no significant relationship between income and firm’s status in industry
life cycle
39
Ho : There is no significant relationship between income and quality of management
Descriptives
95% Confidence
Interval for Mean
Quality_of_Management Less than 13 3.77 0.832 0.231 3.27 4.27 3 5
1,20,000
1,20,000 25 4.04 0.889 0.178 3.67 4.41 3 5
--
5,00,000
5,00,000 11 4.09 1.136 0.343 3.33 4.85 2 5
--
12,00,000
above 1 5.00 5 5
12,00,000
Total 50 4.00 0.926 0.131 3.74 4.26 2 5
Source : SPSS
Interpretation: The table 4.2.29 shows the descriptive statistics of influence of quality of
management as per income. The mean value of 5.00 is maximum for the investors whose
income is above1200,000 and the mean value of 3.77 is minimum for the investors whose
Table 4.2.30 analysis of variance on influence of Quality of management
ANOVA
Sum of Mean
Quality_of_Management Between 1.823 3 0.608 0.696 0.559
Groups
Within 40.177 46 0.873
Groups
Total 42.000 49
Source : SPSS
the influence of Quality of management. The p-value is 0.559 which is greater than 0,05
Therefore, there is no significant relationship between income and quality of management
40
Ho : There is no significant relationship between income and stock price per share
Descriptives
95% Confidence
Interval for Mean
Stock_Price_per_Share Less than 13 3.69 1.182 0.328 2.98 4.41 2 5
1,20,000
1,20,000 25 3.80 1.041 0.208 3.37 4.23 2 5
--
5,00,000
5,00,000 11 4.09 0.944 0.285 3.46 4.73 3 5
--
12,00,000
above 1 5.00 5 5
12,00,000
Total 50 3.86 1.050 0.148 3.56 4.16 2 5
Source : SPSS
Interpretation: The table 4.2.31 shows the descriptive statistics of influence of stock price
per share as per income. The mean value of 5.00 is maximum for the investors whose
Table 4.2.32 analysis of variance on influence of stock price per share
ANOVA
Sum of Mean
Stock_Price_per_Share Between 2.342 3 0.781 0.695 0.560
Groups
Within 51.678 46 1.123
Groups
Total 54.020 49
Source : SPSS
the influence of stock price per share. The p-value is 0.560 which is greater than 0,05
Therefore, there is no significant relationship between income and stock price per share
41
Ho : There is no significant relationship between income and earnings per share
Descriptives
95% Confidence
Interval for Mean
Earnings_Per_Share Less than 13 3.85 1.144 0.317 3.16 4.54 2 5
1,20,000
1,20,000 25 4.04 1.136 0.227 3.57 4.51 2 5
--
5,00,000
5,00,000 11 4.36 1.027 0.310 3.67 5.05 2 5
--
12,00,000
above 1 5.00 5 5
12,00,000
Total 50 4.08 1.104 0.156 3.77 4.39 2 5
Source : SPSS
Interpretation: The table 4.2.33 shows the descriptive statistics of influence of earnings
per share as per income. The mean value of 5.00 is maximum for the investors whose
Table 4.2.34 analysis of variance on influence of Earnings per share
ANOVA
Sum of Mean
Earnings_Per_Share Between 2.482 3 0.827 0.665 0.578
Groups
Within 57.198 46 1.243
Groups
Total 59.680 49
Source: SPSS
the influence of Earnings per share. The p-value is 0.578 which is greater than 0,05 therefore
Therefore, There is no significant relationship between income and earnings per share
42
Ho : There is no significant relationship between income and dividend payout ratio

Descriptives
95% Confidence
Interval for Mean
Dividend_Payout_Ratio Less than 13 3.85 1.463 0.406 2.96 4.73 1 5
1,20,000
1,20,000 25 4.00 1.258 0.252 3.48 4.52 1 5
--
5,00,000
5,00,000 11 4.27 0.786 0.237 3.74 4.80 3 5
--
12,00,000
above 1 4.00 4 4
12,00,000
Total 50 4.02 1.204 0.170 3.68 4.36 1 5
Source : SPSS
Interpretation: The table 4.2.35 shows the descriptive statistics of influence of dividend
payout ratio per income. The mean value of 4.27 is maximum for the investors whose
income is 5,00,000-12,00,000 and the mean value of 3.85 is minimum for the investors
whose income is less than 1,20,000.
Table 4.2.36 analysis of variance on influence of Dividend payout ratio
ANOVA
Sum of Mean
Dividend_Payout_Ratio Between 1.106 3 0.369 0.243 0.866
Groups
Within 69.874 46 1.519
Groups
Total 70.980 49
Source : SPSS
the influence of Dividend payout ratio. The p-value is 0.866 which is greater than 0,05
Therefore, there is no significant relationship between income and dividend payout ratio.
43
Ho : There is no significant relationship between income and debt equity ratio

Descriptives
95% Confidence
Interval for Mean
Debt_Equity_Ratio Less than 13 3.85 0.899 0.249 3.30 4.39 2 5
1,20,000
1,20,000 25 3.80 0.957 0.191 3.40 4.20 2 5
--
5,00,000
5,00,000 11 4.09 1.044 0.315 3.39 4.79 2 5
--
12,00,000
above 1 5.00 5 5
12,00,000
Total 50 3.90 0.953 0.135 3.63 4.17 2 5
Source : SPSS
Interpretation: The table 4.2.37 shows the descriptive statistics of influence of debt equity
ratio per income. The mean value of 5.00 is maximum for the investors whose income is
above1200,000 and the mean value of 3.85 is minimum for the investors whose income is
less than 1,20,000.
Table 4.2.38 analysis of variance on influence of debt equity ratio

ANOVA
Sum of Mean
Debt_Equity_Ratio Between 1.899 3 0.633 0.683 0.567
Groups
Within 42.601 46 0.926

Groups
Total 44.500 49
Source : SPSS
the influence of Debt equity ratio. The p-value is 0.567 which is greater than 0,05 therefore
Therefore, there is no significant relationship between income and debt equity ratio
44
Ho : There is no significant relationship between income and inflation rates
Descriptives
95% Confidence
Interval for Mean
Inflation_Rates Less than 13 3.85 1.463 0.406 2.96 4.73 1 5
1,20,000
1,20,000 25 3.88 1.269 0.254 3.36 4.40 1 5
--
5,00,000
5,00,000 11 4.36 1.027 0.310 3.67 5.05 2 5
--
12,00,000
above 1 5.00 5 5
12,00,000
Total 50 4.00 1.262 0.178 3.64 4.36 1 5
Source : SPSS
Interpretation: The table 4.2.39 shows the descriptive statistics of influence of inflation
rates per income. The mean value of 5.00 is maximum for the investors whose income is
above1200,000 and the mean value of 3.85 is minimum for the investors whose income is
less than 1,20,000.
Table 4.2.40 analysis of variance on influence of Inflation rates
ANOVA
Sum of Mean
Inflation_Rates Between 3.122 3 1.041 0.639 0.594
Groups
Within 74.878 46 1.628

Groups
Total 78.000 49
Source : SPSS
the influence of Inflation rates. The p-value is 0.594 which is greater than 0,05 therefore the
null hypothesis will be accepted.
Therefore, there is no significant relationship between income and inflation rates
45
Chapter -V
Findings and Conclusion
Introduction:
This chapter includes the objective wise findings based on the analysis of data collected
across the Bangalore city.
5.1. Findings on level of influence of different factors on investment decision of an
individual investor.
• Based on the mean values of the different factors 10 most influencing factors are identified
they are long term capital appreciation, stock market performance, growth rate of industry,
firm’s status in industry life cycle, Quality of management, stock price per share, earnings
per share dividend payout ratio, debt to equity ratio, return on equity, inflation rates.
• The result of analysis also shows the 5 least influencing factors, short term capital gains,
diversification, friends recommendation, financial advisors recommendation, firm
international operations. It clears that the above 5 factors have their least influence on the
stock investment decision of an individual investor.
5.2. Findings on relationship between identified most influencing factors and selected
demographic profiles.
5.2.1. Based on Gender.

• The annova results shows that the p-value is 0.64 which is greater than 0,05 therefore the
null hypothesis will be accepted. Therefore there is a significant relationship between gender
and long term capital appreciation.
null hypothesis will be accepted. Therefore there is a significant relationship between gender
and Stock market performance.
null hypothesis will be accepted. Therefore, there is no significant relationship between
gender and Growth rate of industry.
gender and Firm’s status in industry life cycle.
gender and Quality of management.
46
gender and Stock price per share.
gender and Earnings per share.
gender and Dividend payout ratio.
• The annova results shows that the p-value is 0.369 which is greater than 0,05 therefore the null
hypothesis will be accepted. Therefore, there is no significant relationship between gender

and Debt equity ratio.
hypothesis will be accepted. Therefore, there is no significant relationship between gender
and Inflation rates.
5.2.1. Based on Income.
hypothesis will be accepted. Therefore, there is no significant relationship between income
and long term capital appreciation.
and stock market performance.
and growth rate of industry.
and firm’s status in industry life cycle.
and quality of management.
and stock price per share.
47
hypothesis will be accepted. Therefore, There is no significant relationship between income
and earnings per share.
and dividend payout.
hypothesis will be accepted. Therefore, there is no significant relationship between
income and debt equity ratio.

and inflation rates.
48
Conclusion:
Strengthening of any economy depends upon the financial well-being of the residents of the
country. Past researches show that financial well-being of an individual depends upon their
financial behaviour, which in turn depends upon decision towards stock investment and the
Financial Literacy of an individual. Balanced stock investment plan also plays vital role for
Financial Well Being of an individual. Many studies have been done in the area of financial
literacy in Indian context but very few studies have been conducted on factors influencing
investment decision, especially in Bangalore city. The present study had focused on different
factors influencing stock investment decision.
50 individual investors from Bangalore had been selected for the purpose of the study. Study
revealed 10 most influencing factors they are long term capital appreciation, stock market
performance, growth rate of industry, firm’s status in industry life cycle, Quality of
management, stock price per share, earnings per share dividend payout ratio, debt to equity
ratio, return on equity, inflation rates. The study clears that these factors have significant
relationship with demographic profiles.
49
BIBLIOGRPHY
• Andrea ohler, c. w. (2008). savings for retirement - a case for financial education in Germany
and UK? an economic perspective. journal of consumer policy, 253-283.
• Bhandari, R. (2014). a study of investor's awareness and selection of financial investment
avenues. international research journal business and management, 45-51.
• Bhushan, p. (2104). relationship between financial literacy and investment behavior of
salaried individual. blue ocean research journals.
• Brigitte Fünfgeld, M. W. (2009). Attitudes and behavior in everyday finance: evidence from
Switzerland. International Journal of Bank Marketing, 108-128.
• Capuano, A. &. (2011). THE FINANCIAL LITERACY OF YOUNG PEOPLE: SOCIO-
ECONOMIC STATUS, LANGUAGE BACKGROUND, AND THE RURAL-URBAN
CHASM. Australian and international journal of rural education, 54-66.
• Hari K. Nagarajan, K. C. (2011). national council of applied economic research. Retrieved
from ncaer.org: www.ncaer.org/publications
• Kulkarni, P. (2012, 05 05). The economic times wealth. Retrieved from
https://economictimes.indiatimes.com
• lusardi, a. (2011). financial literacy and retirement planning in germany. journal of pension
economies and finance, 556-584.
• MahmuniPravinNarayan. (2011). A Study On Personal Financial Planning For It Sector
Investor In Pune. International Journal of Management, IT and Engineering, 69-89.
• Prabha shingla, s. a. (2014). An Analysis of Knowledge and Practice of Personal . Patna:
home science .
• Ratna_Khuzaimah_Mohamad. (2010, January). Retrieved from PERPUSTAKAAN
SULTHANH BAHIYAH UNIVERSITI UTARA MALAYSIA: etd.uum.edu.my/2262/
• Ronald P. Volpea, H. C. (2006). An analysis of the importance of personal ﬁnance topics
and the level of knowledge possessed by working adults . u.s: semanticscholar.org.
• Stendardi, E. J. (2006). The impact of gender on the personal financial planning process:
Should financial advisors tailor their process to the gender of the client? humanomics, 223-
238.
• Tan, M.-m. L.-k. (2009). An Empirical Analysis of Personal Financial Planning in an
Emerging Economy . Malaysia: CiteSeerX .
• Tschache, C. A. (2009). IMPORTANCE OF FINANCIAL LITERACY AND FINANCIAL
LITERACY . Montana.
50
• vasagadekar, p. (2014). AWARENESS AMONG INDIAN WORKING WOMEN WITH
REFERENCE TO PUNE REGION. international journal of scientific & engineering
research.
• W.Kent, M. W. (2009). Gender Differences in Student Financial Market Attitudes and
Awareness: An Exploratory Study. Journal of Education for Business, 306-313.
51
ANNEXURE
Dear sir/madam, I am SHARATH B SHETTY, MBA student of Bangalore university. As a part of curriculum, I
am doing study on Factors influencing investment patterns of individual in stock with reference to Bangalore
city. So, you are requested to read and fill the questionnaire.
Name :-
1.Your Age?
18 to 30 years 31 to 45 years 46 to 60 years 61 years & Above
2. Your Gender?
Male Female
3.Your Education Level?
Under Graduate Post Graduate Doctoral Degree
4. Your Occupation?
Business Owner Corporate Employee Government Employee
Student
5. Your approximate annual household income in Rupees?
Less than 1,20,000 > 1,20,000 < 5,00,000 > 5,00,000 < 12,00,000 > 12,00,000
6.How long have you been involved in investing in stocks?
5 years or Less 6 to 10 year 11 to 15 years 15 to 20 years Above 20 years
7 What type of investor are you?
Aggressive investor willing to take more risk
Moderately aggressive investor willing to take some risk
Moderately conservative investor willing to take less risk
Conservative investor willing to take only minimal risk
10. What type of investment you prefer?
Equity Debt Mutual Funds Commodities Market Futures & Options Market
52
11.How important is each of the following factors to you in your decisions in investing or buying stocks? 1 –
Not Important 2 – Slightly Important 3 – Somewhat Important 4 – Important 5 – Very Important
Not Imp Slightly Somewhat Imp Very Imp

Imp Imp
Objective factors
Short Term Capital
Gains
Long Term Capital
Appreciation
Dividend Income
Diversification
Sources of Information Factors
Friends / Co-workers
Recommendation
Brokers / Financial
Advisors
Recommendation
Newspapers /
Magazines
Computer / Internet
Economic / Market Factors
Interest Rates
Inflation Rates
Government Stability
Stock Market
Performance
Industry Factors
Past Performance of
Industry
Growth rate of
Industry
Firm’s Status in
Industry Life Cycle
Company Qualitative Factors
Firm’s Product /
Services Quality
53
Reputation of Firm
Quality of
Management
Firm’s Local
Operations
Firm’s International
Operations
Company Quantitative Factors
Stock Price per
Share
Earnings Per Share
(EPS)
Dividend Payout Ratio
Debt to Equity
Ratio
Return on Equity
5. Rank the following factors Rank 1 Rank2 Rank3 Rank4 Rank5

according to Their importance. (Rank
1 – High Imp ; Rank 5 – Low Imp)
Objective Factors
Source of Information
Factors Economic / Market Factors
Industry Factors
Company Qualitative Factors
Company Quantitative Factors
54
55

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Factors influencing individual investors behaviour: An

empirical study of Bangalore city.

Under the guidance of

Dr. S. Md. KARIMULLA BASHA

INTERNATIONAL ACADEMY OF MANAGEMENT AND

Place: BANGALORE SHARATH B SHETTY

I am grateful to my institution INTERNATIONAL ACADEMY OF MANAGEMENT AND

CHAPTER CHAPTER HEADING PAGE

1.1 Stock market foundations in Concept 1

1.2 Types of investment 2

1.3 Factors Affecting Stock Market 2-15

2.0 Literature review 16-20

3.0 Research Methodology 21

3.1 Brief overview 21

3.2 Objectives of the study 21

3.3 Scope of study 21

3.4 Research Design 21

3.4.1 Research design selected 22

3.4.2 Sample Design 22

3.4.3 Sample unit 22

3.4.4 Sampling Technique 22

3.4.5 The Sample Size 22

3.5 Data Sources 22

3.5.1 Secondary Data 23

3.5.2 Primary Data 23

3.6 Various statistical tools and test used 23

4.0 Data analysis

4.1 Factors influencing investment decision of individual 24-25

5.1 Findings on the level of influence of different factors on 46

TABLE DESCRIPTION PAGE NO.

4.2.2 Analysis of variance on influence of long term 26

4.2.4 Analysis of variance on influence of stock market 27

4.2.6 Analysis of variance on influence of growth rate of 28

4.2.8 Analysis of variance on influence of firm’s status 29

4.2.10 Analysis of variance on influence of Quality of 30

4.2.12 Analysis of variance on influence of stock price 31

4.2.14 Analysis of variance on influence of earnings per 32

4.2.16 Analysis on variance on influence od dividend 33

4.2.18 Analysis of variance on influence of debt equity 34

4.2.20 Analysis of variance on influence of inflation 35

4.2.22 Analysis of variance on influence of long-term 36

4.2.24 Analysis of variance on influence of Stock market 37

4.2.26 Analysis of variance on influence of growth rate of 38

4.2.28 Analysis of variance on influence of firm’s status 39

4.2.30 Analysis of variance on influence of quality of 40

4.2.32 Analysis of variance on influence of stock price 41

4.2.34 Analysis of variance on influence of earnings per 42

4.2.36 Analysis of variance on influence od=f Dividend 43

4.2.38 analysis of variance on influence of debt equity 44

4.2.40 analysis of variance on influence of Inflation rates. 45

Individual investor behavior is influenced by a number of psychological factors,

1.1 Stock market foundations in Concept

Moderate Risk Avenue: Mutual funds, life insurance, debentures etc.

1.3 Factors Affecting Stock Market

The Consumer Price Index

The Wholesale Price Index

The Producer Price Index

Pros and Cons of Inflation

Inflation encourages spending, both by businesses in ventures and by individuals in corporate

• Earnings per Share:

• Supply and demand

• GOVERNMENT POLICIES AND A STABLE ENVIRONMENT FOR INVESTMENT

• The Mixed Impact of Regulation and the Legal Environment