CHAPTER 1

INTRODUCTION
 INTRODUCTION
Investment is done basically with the various objective which involve receiving a good return, creating
monetary base for future contingencies, for future planned expences like child’s education, daughter’s
marriage, parents medical exigencies, taxation benefits, safety purpose to meet the increased costs of living,
to have a peaceful life after retirement ,to leave a decent amount on the demise of investor to his or her legal
heirs and for personal satisfaction and gratification.

In olden days women’s income is considered as a additional income within the family. But in the present
world more importance given to income earned by women. Mainly it is related to the share in the total
household income and it also related to their control over the expenditure of the total household income.
Women investment is necessary for the individual to face unpredictable future in order to meet the
emergencies in their family. Investment means sacrificing the some expenditure in order to satisfy the future
commitments. The investment can be done in different ways by making bank deposits, post office,
jewellery, share, insurance etc. One of the best ways investment is to create a monthly investment plan.

According to women investor major features of an investment media are safety, profitability, speculation,
tax benefits, liquidity, income stability, appreciation and easy transferability. From the point of view of
women, investment is the accumulation of newly produced entities such as inventories, equipment,
buildings, etc

Financial markets help in accelerating investment activities in the country, investments can have a major
impact on an investor's well-being. There are a large number of women investors who have the ability to
make investments in insurance, real estate, bank deposits, share market, provident funds, chiti funds and post
office. Each of these investments has common features like potential return and risks.

A great number of women are being employed and their attitude towards investment avenues is also
changing instead of keeping their savings idle, women are showing interest in investing their money saved
in various investment avenues to get returns and to meet present and future expenditures with more
autonomy in decision making. Women are playing more active economic role due to diverse reasons. Such
as recent global financial crises and more men are losing job due to recession in the economy and
automation of jobs.
 STATEMENT OF THE PROBLEM

With the raising awareness of the development of women by various Social workers, concerns and
Government of India women have gained empowerment, education and employment has increased the
awareness of women. women are able to get financial knowledge by their reading habits, better
communication with expert and also from the work environment. Some women are independent to take
financial decision but some take decision along with the male members of the family like husband and
brothers. But how far behaviour of working women know about various investment avenues need to be
studied. The large amount of working women income and its appropriate allocation in investment avenues is
one of the critical policy issues. The life of working women and their income throughout their life is being a
long lasting affair and the allocation of fund in the different avenues has been the problem of the present
World. In this scenario this study is an effort to bring light in to those invested avenues and investment
behaviour of working women Fund have to be well managed which needs skill at management level. All
these aspects are important in the present day investment scenario. The study is thus having much practical
use and market significance.

SCOPE OF THE STUDY

The study deals with the topic “A STUDY ON INVESTMENT BEHAVIOUR OF WORKING WOMEN,
WITH SPECIAL REFERENCE TO PERINTHALMANNA MUNCIPALITY”. This involves the
investment behaviour of working women towards investment .And it covers various government and
private sector in perinthalmanna municipality.

Women investment is necessary for the individual to face unpredictable future in order to meet the
emergencies in their family. An attempt has been made to find out working women behaviour towards
investment. Investment can be done in different ways by making bank deposits, post office, jewellery,
shares, insurance, etc.
 RELEVENCE OF THE STUDY

Working women used to invest their savings which is to be used for periodical needs and future needs. This
study is very usefull to know the behaviour of investment among the working women in Perinthalmanna
municipality. Investment are important because of they fulfil their short term and long term needs
independently. This study help the investment avenues to the working women need, and this will also help
the investment avenues to understand the expectation and experience of the working women.

OBJECTIVES OF THE STUDY

 To study on investment behaviour of working women with special reference to Perinthalmanna
municipality
 To understand the investment objective of women investor.
 To study awareness level of investment avenues among working women.
 To study the factors influencing the investment decision taken by working women
 To examine the association between annual income and investment among the working women in
the study area.

RESEARCH METHODOLOGY
In this study combination of primary data and secondary data has been used. Primary data is used in the
form of a questionnaire method and secondary data has been used to support it.

RESEARCH DESIGN
The research strategy employed for the study is the survey strategy which allows an efficient way to gather
the needed information from the population of the study. Survey strategy uses questionnaire in collecting
data and this study then uses quantitative approach in analysing the data.

SOURCES OF DATA COLLECTION

Two methods are used for data collection.

1. Primary data:

Primary data were collected through a structured questionnaire that was disturbed among working women.

2.Secondary data:

For this study, secondary data was collected through various sources such as internet, books and journals
etc.
SAMPLE DESIGN
Primary data mainly collected by conducting sample survey in perinthalmanna municipality. For this, a
questionnaire was developed with the help of review literature. Scheduling was done to collect data from the
respondents.

SAMPLE TECHNIQUE

The sampling technique chosen was random sampling based on convenience to a certain extent.

SAMPLE SIZE
The sample size consist of 60 working women which includes wages and salaried workers in both private
and government sectors.

STATISTICAL TOOL USED

Statistical Tools are used to analyse the collected data on the basis of result of data analysis, the conclusion
are drawn. The statistical tools used for this study are as follows:

• Table and graphs

• Chi-square test
HYPOTHESIS OF THE STUDY
Hypothesis are formulated for analysing the data, student chisquare test has been used as the test criterion
for analysis.

HYPOTHESIS:

1. H0: There is no association between monthly income of working women and their individual
decision making.

2. H0: There is no significant relationship between age of investor and investment objectives.

LIMITATIONS

• The data is collected from 60 respondents only.

• The data collected are based on the questionnaire and the result of the study would be varying according to
opinion of the individual.

• No all respondents are willing to share financial information.

• The statistical method used to analyse the data has their own limitations.

• All the limitations of primary data are applicable to this study

 CHAPTER 2

REVIEW OF LITERACTURE
 REVIEW OF LITREATURE

• Ajmijy. A. (2008), evaluated the determinants of risk tolerance of individual investors from 1500
respondents with the help of the questionnaire. The research concluded that the men are less risk averse than
women, less educated investors are less likely to take risk and age factors is also important in risk tolerance
and also investors are more risk tolerance than the less wealthy investors.

• Jagongo and Mutswenje (2014)analysed the factors influencing investment de- cision at the Nairobi
Stock Exchange. A sample of 42 respondents is selected for this study. The collected data are analysed using
Descriptive analysis, frierdman’s ranking test and Factor analysis. The most important factors that influence
individual investment decisions were: reputation of the firm, firms status in industry, expected corporate
profit and condition of statement, past performance firms stock, price per share, feeling on the economy and
expected di- vided by investors.

• SonaliPatil, Dr. KalpanaNandawar (2014), examined the different avenues of investment as well as the
factors while selecting the investment with the sample size of 40 salaried employees by conducting the
survey through questionnaire in Pune, India. Primary data needed for the study is collected through personal
interviews using a structured questionnaire. The collected data been analysed using percentage, chi-square
test, and person correlation coefficient. The study concludes that salaried employees consider the safety as
well as good return on investment on regular basis.

• ShantilalSarupria (1963)1 in the study captioned ‘‘Individual Saving in an under Develo.pment

Economy-India-A Case study’’ has made an attempt to disprove certain widely held views about the
individuals’ savings behaviour in an under developed economy like India and suggested the ways of
potential savings which could be mobilized for investment. It was regrettably contented that a large section
of our population held the savings in the form of gold, landed property and other unproductive assets.

• Bajtelmit and Van Derhei (1996) find that the different gender has different opinion regarding investment
decisions. Women are not invested in risky investment unless it has high return rate, Women always take
cautions and less risky decisions.

• MeenakshiChaturvedi and Shurtikhare (2012) suggests that there is growth in middle class family due
to increase of working women and in their income. So women should have knowledge and information
about investment options. Genuine effort should be made in this directions. So saving will be pooled and
channelized in productive investment.

• Rajarajan (1999) studied investors of Chennai. He found that life cycle stage of investor is important
factor in deciding investment portfolio. Sellappan R, Jamuna S., TRN Kavitha (Feb 2013), they concluded
that married women invest more than unmarried women. Younger women invest in shares, mutual funds,
insurance and fixed deposits. On the other middle age women prefer to invest in real estate.
• Dr.N.Ramya (2006)87 in her paper ‘‘Women Entrepreneurs – The Key Issues’’ analysed the constraints
of women entrepreneurs and provided the following suggestions Part time training programmers in the
afternoon will enable women to acquire skills, certain facilities like stipend, good hygienic crèches for their
children, transport facilities need to be given, service clubs such as Lions Club, Rotary Club, Inter-wheel
etc, should organize motivational campaigns for the development of women entrepreneurs and the National
Small Industries Corporation (NSIC) should come forward to make necessary marketing arrangements by
popularizing the products produced by Women Entrepreneurs.

• Stern. P. Walter (1969)3 in his study ‘‘The Investment scene – An overview’’ identifies the two broad
styles of investing that are emerging; firstly, the ‘‘Guns Lingers’’ – the aggressive investor, who feels that
he can identify changes before they invest and capitalize on it. He is identifiable, he is young, he is able, he
is arrogant, and he deals in concept, not in price Earnings ratio. He is ‘‘opportunity oriented’’ and he checks
out every idea you present to him before he acts. He wants freedom to act quickly, secondly the Serious long
term investor’’, basically interested in earnings trend, concepts relating to area of long term growth and
fundamental work. He is less concept oriented and more profit earnings ratio oriented.

• Santhiyavalli G and Usharani M (March,2014). They took sample of 75 respondents. They studied that
women investors took less risk and prefer safe investment. Role of women is very important in the economy
of world. They concluded that women have less interest in shares and debentures market. So step should be
taken to encourage it.

• MistryKritika (Sep 2015), She conducted research on 150 individual investor behaviour in stock market
in Bharuch district. Her objective is to identify the preferred source of Information influencing investment
decision and to access the psychology of investors in different market situations. She found that majority of
small investors do not consider various financial elements before investing in to stock market. Investor does
not take immediate decisions. They firstly understand the market then react.

• The National Council of Applied Economic Research (NCAER) conducted a survey of households
(1964)2, entitled ‘‘Attitude Towards and Motivations for Savings’’. The survey covered a sample of 4650
households spread over India. It provides an insight into the attitude towards and motivations for savings of
individuals. One of the important finding was that the investment in securities was preferred by the high
income households.

• Dr. V. Gomathi (2006)88 in her article titled ‘‘Development of Women Entrepreneurs – Recent Trends’’
stated the even though a country may possess abundant physical resources, it cannot make rapid economic
and social advancement unless there are people who are enterprising and have developed necessary skills
and attitudes. Problems of poverty and Unemployment can be solved by developing entrepreneurial skills
among the youth, the country which is rich in entrepreneurship, can attain economic augmentation. In the
era of globalization, the development of entrepreneurship is the key for ushering in economic prosperity.
• Individual investment choices are influenced by lifestyle and demographic attributes (Rajarajan, 2000).

• Though investors are in cognitive illusions, they consider multiple factors and try to create self-awareness
before taking an investment decision (Shinde C.M., et.al., 2014).

• Women are more comprehensive information processors than men and therefore can deal with more
complex financial products more accurately (Monica Sharma, et.al., 2013).

• confidence in investment decisions is strongly affected by gender. Women are less confident than men in
making investments (Powell and Ansic, 1997).

• As confidence level is low, women are more risk averse than men in making financial investments (Patti
J.Fisher, 2010).

• There are Differences between active and passive women investors based on demographic factors,
psychographic factors and investment characteristics. Irrespective of age, educational qualifications and
occupation, women think that saving for the future is desirable (J.Klaymanet, 1999).

• Women investors are more likely to enter into stock market trading, if their parents have been into stock
market trading during the past few years (P.Paramashivaiah, et.al, 2014)

• . Women investors are financially knowledgeable but need better financial planning skills
(C.GnanaDesigan, et.al, 2006).

• Working women are more aware of the various investment avenues and take better investment decisions
when compared to non-working women. Very few women investors have a good understanding of
investment risks. In unprecedented financial markets volatility, women become more cautious and
thoughtful with regard to financial investments (R.SuyamPraba, 2016).

• There is an impact of intuitive thinking of women investors on investment preference. Emotions act as a
barrier to rationality and logic thinking of women investors and affect their prospects of generating
additional income through investments (Manish Mittal, et.al, 2009).

• Gaur (2011) concluded that Female investors seems to be less confident in their investment decisions and
this is the reason they have lower satisfaction levels and they are more cautious than males with regards to
future investment in equity stocks especially if availability of funds are less.

• Bahl (2012) founded that younger women can develop the plan for investment. Women who worked
private sector have more belief in investing their money. Mostly Working women invest their money in
insurance plans as they are not interested to take risk to attain gain and want safe future.

• Bhushan&Medury (2013) founded that women takes less risk and majorly gender differences occur in
investment preferences for health insurance, fixed deposits and market investments among employees.
• Palanivelu&Chandrakumar (2013) highlighted that some factors of salaried employees like education
level, awareness about the current financial system, age of investors etc. have significant impact while
deciding the investment options.

• Sellappan et al. (2013) estimated that married women are more interested in making investment than the
unmarried. As well as the younger women invest in shares, mutual funds, insurance and fixed deposits than
the older women. The middle age women are interested to invest in real estate.

• Vasagadekar’s (2014) research on working women concluded that due to high level of education, today’s
women are getting the best job offers with high pay packages. It has become the today’s need for working
women in India to increase their wealth. As mostly women are low in financial literacy, it becomes more
possible for them to manage their portfolios on their own. Also, the risk- taking capacity of working women
in India is low. This is due to lack of financial knowledge

• Jain (2014) estimated that women preferred fixed deposit in bank as a safe investment avenue & for tax
saving purpose. Women also select gold as an investment.

• Mahalakshmi& Rajesh (2017) they conducted a study on level of awareness regarding investment
avenues among educated working women with special reference to Mumbai city. They found that working
women of Mumbai have a high level of awareness regarding various investment avenues due to education
and knowledge.

• Mutha&Dargad, (2016) on their study related to the investment awareness among Indian working women
with reference to Jalna District in 2016.Their findings were published in international journal of advanced
research.

• Uma &Sasikala, (2014) published their findings in International Journal of Management and Social
Science Research Review. They conducted a study on awareness about the investment pattern among the
working women in Virudhunagar district. They studied the demographic factors like income, gender, age,
occupation, education and the risk covering nature of working women. They found that the percentage of the
women investors investing in the Indian equity market is very less as compared to the bank deposits. They
revealed the following problems faced by women investors in Virudhunagar district: the difficult
commission and brokerage, cumbersome procedures; Lack of awareness, High risk, low liquidity, price
fluctuation, cheating by chit fund company. It indicated that the payment of commission and brokerage
while making investment is the major problem faced by the working women.

• Bansal, (2017) conducted a survey on Inclination of Working Women Towards Investment- Study of
Preference Over Various Investment Avenues in Ludhiana in 2017. This study revealed that majority of
working women who make financial investments lie in the age group of 20-40, they are conservative
investors, they prefer to spend their 10%-25% income, working women of banking sector invest more as
compared to women of education or insurance sector. Age and income were found to be directly correlated
with their investment pattern. Most prefereasons for investment. Women of Ludhiana relied mostly on either
their husbands or fathers for investment decisions. Working women of ludhiana preferred to invest their
income in bank deposits, followed by mutual funds and insurance and Gold. Equity, Bonds/Debentures, Real
Estate were the least preferred tools found among women respondents of Ludhianarred Reasons for
investment were found to be Capital Appreciation, Future needs, Tax saving and hedging were found as the
least preferred.

• Naranbhai (2018 ) published their findresearch IJRSML, they conducted a Study on Investment
Awareness among Working Women in Kachchh district, Gujarat, India. The findings of the study related
that 47% took investment decision independently whereas 39% took investment decision with their husband
help. They selected growth oriented as the major objective of investing activities and short-term profit
seeking as the least preferred objective for their investment purpose. Working women of Kanchch district
selected saving in post office as safest investment instruments and Commodity as lesser safe investment
option. Working women of Gujarat use newspaper and magazine as the main source of information for the
investment purposes.

• Tomar&Tomar, 2019) describes that males and females prefer to invest in equity more, but females are
more conventional investors than males as they also favor spending on Insurance. The male and female
societies support to invest least in Bonds and Debentures as contrasted to different investment
options. Males’ investment decisions and females’ investment decisions across various investment
alternatives are not correlated.

• (Kumari, 2018) recognized that there are many of consideration needed while financing, namely
tax planning, investment protection, retirement earnings, etc., consequently the elements of an
original investor, should reflect the variables which are mentioned. (Rao, 2017) points out that
women became independent to take the investment decision. Moreover, they are in a more favorable
situation to maintain their investment avenues. It has been changing in the understanding of women
and women understand investing and buying with money as a vanity issue and a self-esteem factor
which would demand reverence for them, improve their self confidence and eventually lead to an
alteration in the standard of living.

• (Sah, 2017) mentioned his study that the women investors favor short-range investments rather
than creating provisions for long-range benefits. Besides, there has been an increase in the number of
educated working women, and they are, however, mostly dependent on their family members, friends,
and relatives for investment-related information and for making investment decisions.

• (Lourrine et al..2017) established there study that certain circumstances influence the investment
choice of women. Among the various sources of knowledge, internet and social media have been
undoubtedly revealed as the ones who have a significant impact on the investment choice of women
with women having a presentation to and utilizing these sources giving a tendency to invest in
comparatively more precarious investment boulevards like Equity Market, Mutual Funds, Hedge
Funds, etc. The study also explicitly indicates that more risk-averse women seem to be conservative
and choose less hazardous investments like Bank term Deposits and Provident Funds.

• (Jisha, 2017) The employed women investors The International journal of analytical and
experimental modal analysis volume Have many anticipations from their savings as their
prerequisites, several namely savings, protection, and fair interest, and assets appreciation.
Depositors represent the security of funds as their preference for deciding an speculation.

• (Venkateshraj, 2015) found that many of the respondents are working in the private sector. They
favor inherently to invest in gold. It apparent from the women are investments their money for their
children’s edification, wedding, and to accomplish other objectives of their existence. There is a
chance to improve the savings and investment practices among monthly earning women, and their
venture depends upon the annual income among the respondents. The study concluded that higher
income groups are investing more in their investment.
 CHAPTER 3
THEORETICAL FRAMEWORK
THEORETICAL FRAMEWORK

The theoretical framework is the structure that can hold or support the theory of a research study. It includes
and describes theory that explains why the research problem under study exits.

BEHAVIOUR

Behavior means the way a person or thing acts or reacts.

INVESTMENT BEHAVIOUR

Investment behaviours are defined as how the Investors judge, predict, analyze and review the procedures
for. Decision making, which includes investment psychology, information gathering, defining and
understanding, research and analysis.

INVESTMENT

The income that a person receives may be used for purchasing goods and services. That he currently requires
or it may be saved for purchasing goods and services that he may require in the future. In other words,
income can be what is spent for current consumption. Savings are generated when a person or organization
abstain from present consumption for a future use. The person saving a part of his income tries to find a
temporary repository for his savings until they are required to finance his future expenditure. This result in
investment.

Meaning of Investment

Investment is an activity that is engaged in by people who have savings. i.e. investments are made from
savings, or in other words, people invest their savings. But all savers are not investor’s. investment is an
activity which is different from saving. Let us see what is meant by investments.

It may mean many things to many persons. If one person has advanced some money to another, he may
consider his loan as an investment. He expects to get back the money along with interest at a future date.
Another person may have purchased on kilogram of gold for the purpose of price appreciation and may
consider it as an investment.

In all these cases it can be seen that investment involves employment of funds with the main aim of
achieving additional income or growth in the values. The essential quality of an investment is that it involves
something for reward. Investment involves the commitment of resources which have been saved in the
people that some benefits will accrue in future.
Thus investment may be defined as ‘‘a commitment of funds made in the expectation of some positive rate
of return ‘‘since the return is expected to realize in future, there is a possibility that the return actually
realized is lower than the return expected to be realized. This possibility of variation in the actual return is
known as investment risk. Thus every investment involves return and risk. F .

Amling defines investment as ‘‘purchase of finical assets that produces a yield that is proportionate to the
risk assumed over some future investment period’’.

According to Sharpe, ‘‘investment is sacrifice of certain present value for some uncertain future values’’.

CHARACTERISTICS OF INVESTMENT

Return: All investments are characterized by the expectation of a return. In fact, investments are made with
the primary objective of deriving return. The expectation of a return may be from income (yield) as well as
through capital appreciation. Capital appreciation is the difference between the sale price and the purchase
price. The expectation of return from an in- vestment depends upon the nature of investment, maturity
period and market demand and so on.

Risk: Risk is inherent in any investment. Risk may relate to loss of capital, delay in repayment of capital,
non-payment of return or variability of returns. The risk of an investment is determined by the investments,
maturity period, repayment capacity, nature of return commitment and so on. Risk and expected return of an
investment are related. Theoretically, the higher the risk, higher is the expected returned. The higher return
is a compensation expected by investors for their willingness to bear the higher risk.

Safety: The safety of investments is identified with the certainty of return of capital without loss of time or
money. Safety is another feature that an investor desires from investments. Every investor expects to get
back the initial capital on maturity without loss and without delay.

Liquidity: An investment that is easily saleable without loss of money or time is said to be liquid. A well-
developed secondary market for security increases the liquidity of the investment. An investor tends to
prefer maximization of expected return, minimization of risk, safety of funds and liquidity of investment.
INVESTMENT AVENUES

Different avenues and alternatives of investment include share market, debenture or bonds, money market
instruments, mutual funds, life insurance, real estate, precious objects, derivatives, non-marketable
securities. All are differentiated based on their different features in term of risk, return, term etc. An
investor’s portfolio is simply his collection of investment assets. Once the portfolio is established, it is
updated or rebalanced by selling existing securities and using the proceeds to buy new securities, by
investing additional funds to increase the overall size of the portfolio or by selling securities to decrease the
size of the portfolio.

SAFE/LOW RISK INVESTMENT AVENUES

An investment can be termed as a safe investment when it gives you good returns with relatively little or no
risk at all. Though there are lots of investment options, but every investment cannot be regarded as a safe
investment. There are certain characteristics by which you can make out that a particular investment is a safe
investment or not. Firstly, a safe investment usually has a diversified portfolio. You make investments in
various market segments so that if one sector falls you can cover up by making gains in other segments.
Secondly, safe investment bears low risk. Though the rate of return is low and usually assured and thirdly,
safe investments are determined by the time span for which you make investments.

Various low risk investment avenues are:

Savings Account

Even though nothing in this world comes with any guarantee including our own lives, the Saving accounts in
banks are as safe as anything can be. Even otherwise, the deposit of money in saving account seem to be the
safest when compared to all other available avenues for savings or investments, which are subject to both
market risks and volatility.

Bank Fixed Deposit

Fixed deposit refers to a savings account or certificate of deposit that pays a fixed rate of interest until a
given maturity date. Funds placed in a Fixed deposit usually cannot be withdraw prior to maturity or they
can perhaps only be withdrawn with advanced notice and or by having a penalty assessed. Bank fixed
deposits are one of the most common savings scheme open to an average investor. Fixed deposits also give a
higher rate of interest than a savings bank account. The facilities vary from bank to bank. Some of the
facilities offered by banks are overdraft facility on the amount deposited, premature withdrawal before
maturity period. Bank deposits are fairly safe because banks are subject to the control of the Reserve bank of
India.

Public Provident Fund Accounts(PPF)

• Non – Resident Indians and Hindu Undivided Families (HUF) are not eligible to open an ac- count under
the Public Provident Fund Scheme.

• any individual may, on his own behalf or on behalf of a minor, of whom he is the guardian, subscribe to
the Public Provident Fund the amount prescribed from time to time.

• A subscriber may apply for transfer of his account from one ‘‘Accounts Office’’ to another ‘‘Account
Office’’.

• Interest at the rate notified by the Central Government in the official gazette from time to time, shall be
allowed for a calendar month on the lowest balance at credit of an account .

• Between the close of the fifth day and the end of the4 month and shall be credited to the account at the end
of each year.

• Withdrawal facility is available at any time after the completion of five years from the end of the year of
initial subscription.

• Loan facility is also available for which postmaster may be contacted.

• Subscription to PPF qualities for deduction under section 80C of Income tax.

Act. Government securities

Government bonds and securities are issued by the Government of India to raise funds (borrowings) and
these come in varying tenures right from 14 days (treasury bill) to 30 years (G-secs). Traditionally, retail
investors haven’t participated in buying and selling government securities directly despite efforts by the
Reserve Bank of India (RBI) over the past 20 years. This market has been the domain of large institutional
investors like insurance funds, pension funds and banks.

MODERATE RISK INVESTMENT AVENUES

Moderate risk investments are perfect for these that are interested in investing for the long term and would
like to earn moderate yields. Moderate risk investments are usually certain kinds of mutual funds, life
insurances, debentures and bonds that pay handsomely over the long term. While generally riskier than
savings money in bank, for those that are looking to invest for the long term, historically speaking you will
grow your money quite nicely. Modrate risk investments usually use the power of compound interest and
time to create a nest egg from 10 to 40 years with regular savings. For example, savings 1 K per year at an
interest rate of 10% for 30 years can return close to 200K. Moderate risk investments usually return yields of
5% to 12%.

Mutual Funds

A mutual fund is a pool of money from numerous investors who wish to save or make money just like you.
Investing in a mutual fund can be lot easier than buying and selling individual stocks and bonds on your
own. Investors can sell their shares when they want.

Life Insurance

Insurance is a form of risk management which is used primarily to hedge against therisk of a contingent and
uncertain loss. Insurance is defined as the equitable transfer of the risk of loss, from one entity to another, in
exchange for payment. Insurance is essentially an arrangement where the losses experienced by a few are
extended among many who are exposed to similar risks. It is a protection against finical loss that may occur
due to unexpected event. The transaction 65 involves the insured assuming a guaranteed and known,
relatively small, loss in the form of payment to the insurer in exchange for the insurer’s promise to
compensate or indemnify the insured in the case of a large, possibly devastating loss. The insured receives a
contract called an insurance policy which details the conditions and circumstances under which the insured
will be compensated.

Debenture

Debenture is a written instrument acknowledging a debt under the common seal of the company. It contains
a contract for repayment of principal after a specified period or at intervals or at the option of the company
and for payment of interest at a fixed rate payable usually either half-yearly or yearly on fixed dates.
According to section 2(2) of the Companies Act, 1956 ‘Debenture’ includes Debenture Inventory, Bonds
and any another securities of a company whether constituting a charge on the assets of the company or not.

Bonds

Bond is also an instrument of acknowledgement of debt. Traditionally, the Government issued bonds, but
these days, bonds are also being issued by semigovernment and non-governmental organizations. The terms
‘Debentures’ and ‘Bonds’ are now being used inter- changeably. Debentures and bonds are similar except
for one difference that bonds are more secure than debentures, but carry a lower interest rate. The company
provides collateral for the loan. Moreover, in case of liquidation, bond holders will be paid off before
debenture holders. In India, both public and private companies can issue corporate bonds. A company
incorporated in India, but part of a multinational group, can also issue corporate bonds.

HIGH RISK INVESTMENTS

High risk investments are those investments that if lucky can return huge yields, however the downturn is
that they can be extremely volatile and in many cases instead of getting rich off your investment, you find
yourself losing some or all of it. The sky is the limit for returns, but many high risk investments, if
considered a winner should return yields that range from 10% to 30%. ++. High risk investments include
Equity shares, Commodity market, FOREX market etc.

Equity Shares

Equity is the term commonly used to describe the ordinary share capital of a business. Ordinary shares in
equity capital of a business entitle the holders to 67 all distributed profits after the holders of debentures and
preference shares have been paid. Ordinary shares of Indian companies typically have a nominal or ‘face’
value between rupees 10 to 100. How- ever, it is important to understand that the market value of a
company’s shares has little relationship to their nominal or face value. The market value of a company’s
shares is determined by the price another investors prepared to pay for them. In case of publicly quoted
companies, this is reflected in the market value of the ordinary shares traded on the stock exchange. In case
of privately owned companies, where there is unlikely to be much trading in shares, market value is often
determined when the business is sold or when a minority shareholding is valued for taxation purposes.

Commodity Markets

A commodity futures market is a public market where commodities are contracted for purchase or sale at an
agreed price for delivery on a specified date. This process of purchase or sale of commodities must be made
through an organized exchange broker and the purchase should be made under the terms and conditions of a
standardized futures contract1. Commodity, besides being a unique hedging instrument, also provides for
efficient portfolio management arising from diversification benefits. These benefits result in improved
returns to domestic as well as international investors.

FOREX Market

The foreign exchange market also known as FOREX. FOREX or currency market is a global, worldwide
decentralized over the counter financial market for trading currencies. Financial centeresaround the world
function as anchors of trading between a wide range of different types of buyers and sellers round the clock,
with the exception of weekends. The foreign exchange market determines the relative values of different
currencies.

TRADITIONAL INVESTMENT AVENUES

Most Indians stick to the traditional investment avenues such as real/ property, Gold/ silver, Chit funds etc.,
which has been there for many generations.

Real Estate

In luxury estates, the Indian super rich have been investing globally. Real estate includes land and house
property. It is true to say that real estate offers a rate of returns which is superior to avenues such as
company deposits on a long term basis. Now –a-days more and more investments are made in the form of
real estates.

Gold/ Silver Gold

Gold has got lot of emotional value than monetary value in India. India is the largest consumer of gold in the
world. In western countries, majority of stock of gold is kept in central bank. But in India, people use gold
mainly as jewels. When look at gold in a business sense, anybody can understand that gold is one of the
alltime best investment tool in India.

Chit Funds

Chit funds have been a popular savings scheme in several parts of India. It has paved its way as a
convenient finance option amongst businessman, small 76 scale industrialists and other small time investors.
Though very often shrouded by news of fraudulences, they have still managed to retain their popularity. Chit
funds evolved years ago, when the present system of banking did not exist. Few families in a village would
get together to form a chit or a group, to save money and to avail of loans amongst the group formed. A
sensible person is chosen to manage the group. This informal system of saving prevailed only on trust.
Gradually, as groups became larger and the money involved became huge, many companies started chit
funds schemes with alternative offers. Thus to provide regulations for chit funds and for matters connected
therewith, the government introduced the Chit Funds Act in 1982.

EMERGING INVESTMENT AVENUES

According to a study undertaken jointly by Merrill Lynch, Cap Gemini, and Ernst & Young, high net worth
individuals (HNIs) or wealthy investors are proactive in port- folio management, risk management,
consolidation financial assets and use of diversification strategies as actively as large institutions. HNIs are
proactive in identifying new investment options and take inputs from professional advisors in volatile
market conditions.

Virtual Real Estate

In addition to earning passive income from physical real estate, you can also generate income from virtual
real estate.
 CHAPTER 4
DATA ANALYSIS, INTERPRETATIONS AND
HYPOTHESIS TESTING
DATA ANALYSIS AND INTERPRETATION
TABLE 4.1 CLASSIFICATION BASED ON AGE

AGE NO OF RESPONDENT PERCENTAGE

Below 25 22 37%
25-35 11 18%
35-45 12 20%
Above 45 15 25%
Total 60 100%
SOURCE: PRIMARY DATA

FIGURE 4.1 CLASSIFICATION BASED ON AGE

PERCENTAGE

BELOW 25
25-35
35-45
ABOVE 45

INTERPRETATION
The above table shows that, most of the respondents are aged below 25 ie 37%. 25% of respondents are
aged above 45 and remaining 38% of respondents are aged between 25 to 45.
TABLE 4.2 CLASSIFICATION BASED ON EDUCATION QUALIFICATION

Education qualification No of respondents Percentage

Up to HSC 12 20%
Graduate 15 25%
Post graduates 19 32%
Professional 14 23%
Total 60 100
SOURCE: PRIMARY DATA

35% 32%
30%
25%
25% 23%
20%
20%

15%

10%

5%

0%
Up to HSC Graduate Post graduate Professional

INTERPRETATION

The above table shows that, most of the respondents are post graduate ,ie 32%. Up to HSC are 20%,
graduated women are 25% and professional Degree are 23%. So we can understand most of the women are
well educated and qualified for better jobs.
TABLE 4.3 MARITAL STATUS OF WORKING WOMEN

Marital status No of respondent Percentage

Married 33 55%
Un married 27 45%
Total 60 100%
SOURCE: PRIMARY DATA

FIGURE 4.3 MARITAL STATUS OF WORKING WOMEN

45%
Married
Unmarried
55%

INTERPRETATION

The above table shows that 55% of respondents are married and 45% of respondents are unmarried. Women

are working after marriage, they can understand importance of income and investments after marriage.
TABLE 4.4CLASSIFICATION BASED ON WORKING PLACE

Working place No of respondents Percentage

Private 20 33%
Govt 16 27%
Self occupied 24 40%
Total 60 100%
SOURCE: PRIMARY DATA

FIGURE 4.4 CLASSIFICATION BASED ON OCCUPATION

40%
40%
33%
35%
27%
30%
25%
20%
15%
10%
5%
0%
Private Govt Self occupied

INTERPRETATION

In the above figure shows that 40% of respondents are working their own business, that means they are self
occupied. 33% of respondents are working in private sector and 27% of respondents are working in Govt
sector.
TABLE 4.5 CLASSIFICATION BASED ON MONTHLY INCOME

Monthly income No. of respondents Percentage

Below 10,000 9 15%
10,000 – 25,000 16 27%
25,000 – 50,000 9 15%
50,000 – 100,000 17 28%
Above 100,000 9 15%
Total 60 100
SOURCE: PRIMARY DATA

FIGURE 4.5 CLASSIFICATION BASED ON MONTHLY INCOME

30% 28%
27%

25%

20%
15% 15% 15%
15%

10%

5%

0%
Below 10,000 10,000 – 25,000 – 50,000 – Above
25,000 50,000 100,000 100,000

INTERPRETATION

In the above table shows 28% of respondents are earned monthly 50,000 to 100,000. 27% of respondents
are earned 10,000 to 25,000 .15% of respondents are earned below 10,000 and another 15% of respondents
are earned 25,000 to 50,000 and final 15% of respondents are earned above 100,000.
TABLE 4.6 CLASSIFICATION BASED ON WHETHER RESPONDENTS HAVE MADE ANY
INVESTMENT UNTIL NOW

Response No of respondent Percentage

YES 45 70
NO 15 30
Total 60 100
SOURCE: PRIMARY DATA

FIGURE 4.6 CLASSIFICATION BASED ON WHETHERVRESPONDENTS HAVE MADE ANY

INVESTMENT UNTIL NOW

120

100

80

60 Series2
Series1
40

20

0
No of respondents Percentage

INTERPRETATION

From the data collected we understand that, 70% respondents have made investment while 30% haven’t.
TABLE 4.7CLASSIFICATION BASED ON INVVESTMENT AVENUES
Particulars No. of respondents Percentage
Insurance 5 8%
Bank 17 28%
Post office 9 15%
Equities 4 7%
Real estate 5 8%
Mutual funds 6 10%
Govt. Securities 10 17%
Gold 4 7%
Others 0 0%
Total 60 100
SOURCE: PRIMARY DATA

FIGURE 4.7 CLASSIFICATION BASED ON INVVESTMENT AVENUES

INTERPRETATION
In the above table shows, 29% of respondents are opted bank for the investment avenue.17%
of respondents are selected Govt. securities, they are trust with Govt for their investment.8% of respondents
are selected insurance, they are aware with safety and return.15% of respondents are invested in post
office.7% of respondents are invested in equities, they can understand the movements of stock exchange. 8%
are real estate,10% are mutual funds and final 7% respondents are invested in gold.

TABLE 4.8 CLASSIICATION BASED ON PERCENTAGE OF SAVED INCOME

Particulars No. of respondents Percentage
 Below 10% 12 20%
10% - 20% 23 39%
20% - 40% 8 13%
40% - 50% 11 18%
Above 50% 6 10%
Total 60 100
SOURCE: PRIMARY DATA

FIGURE 4.8 CLASSIFICATION BASED ON PERCENTAGE OF SAVED INCOME

Above 50% 10%

40% - 50% 18%

20% - 40% 13%

10% - 20% 39%

Below 10% 20%

0% 5% 10% 15% 20% 25% 30% 35% 40%

INTERPRETATION
In the above figure shows 39% of respondents are saved 10% - 20% of this income for future
purposes. 20% of respondents are saved below 10% of their income . 28% of respondents are higher income
groups, they saved 40% -50% and above 50% of their income and remaining 13% of respondents are saved
20% - 40% of their income.
TABLE 4.9 CLASSIFICATION BASED ON HAVING BUDGET FOR FAMILY

Responses No. of respondents Percentage

YES 48 88%
NO 12 12%
Total 60 100
SOURCE: PRIMARY DATA

FIGURE 4.9 CLASSIFICATION BASED ON HAVING BUDGET FOR FAMILY

PERCENTAGE

YES
NO

INTERPRETATION
From the above we understand that about 88% respondents have budget for their familes and only
12% don’t have budget.
TABLE 4.10 CALSSIFICATION BASED ON SOURCES OF INFORMATION
ABOUT INVESTMENT

Particulars No. of respondents Percentage

Family 15 25%
Friends 12 20%
Internet 18 30%
Newspaper and journals 7 12%
Others 8 13%
Total 60 100
SOURCE: PRIMARY DATA

FIGURE 4.10 CLASSIFICATION BASED ON SOURCES OF INFORMATION

ABOUT INVESTMENT

30% 30%
25%
20% 20%

10%
12% 13%

0%
Family
Friends
Internet
Newspaper
Others
and journals

INTERPRETATION
Most of the respondents are take investment decision through internet. 25% of
respondents are take investment decision with the help of family support. 20% of respondents are depend
upon the friend’s opinion. 12% of respondents are take investment decision with the help of newspaper and
journals and remaining 13% are others.
TABLE 4.11 CLASSIFICATION BASED ON FACTORS INFLUENCING
INVESTMENT DECISION
Particulars No. of respondents Percentage
Liquidity 10 17%
Returns 21 35%
Safety 19 31%
Tax savings 10 17%
Total 60 100
SOURCE: PRIMARY DATA

FIGURE 4.11 CLASSIFICATION BASED ON FACTORS INFLUENCING

INVESTMENT DECISION

17% 17%

Liquidity
Returns
Safety

31% Tax savings

35%

INTERPRETATION
Most of the respondents are invested for expecting higher returns and safety. 66% of
respondents are invested for returns and safety. 17% of respondents are invested for liquidity and another
remaining 17% of respondents are invested for tax savings.
TABLE 4.12 CLASSIFICATION BASED ON PRESENT INESTMENT SCHEME
Particulars No. of respondents Percentage
Highly satisfied 18 30%
Satisfied 18 30%
Neutral 8 13%
Dissatisfied 7 12%
Highly Dissatisfied 9 15%
Total 60 100
SOURCE: PRIMARY DATA

FIGURE 4.12 CLASSIFICATION BASED ON PRESENT INESTMENT SCHEME

35%

30% 30% 30%

25%

20%

15% 15%
13% 12%
10%

5%

0%
Highly satisfied Satisfied Neutral Dissatisfied Highly
Dissatisfied

INTERPRETATION
In the above table shows 30% of respondents are highly satisfied with present investment schemes
and another 30% of respondents are satisfied with their present investment scheme. 13% of respondents are
neutral , they are ok with their present investment scheme but they are not satisfied. 12% of respondents are
dissatisfied and remaining 15% are highly dissatisfied with their present investment scheme.
TABLE 4.13 CLASSIFICATION ON THE BASIS OF TERMS OF PERIOD
Particulars No. of respondents Percentage
Short term 16 27%
Long term 21 35%
Both 23 38%
Total 60 100
SOURCE: PRIMARY DATA

FIGURE 4.13 CLASSIFICATION ON THE BASIS OF TERMS OF PERIOD

38%
40% 35%

35% 27%
30%
25%
20%
15%
10%
5%
0%
Short term Long term Both

INTERPRETATION
In the above diagram shows most of the respondents (38%) invested in both long term and short term. 35%
of investors are invested for long term purposes, they can earn return more than one year and remaining
27% of respondents are invested for short term purposes, they can earn returns with in a year.
TABLE 4.14 CLASSIFICATION BASED ON HOW THEY WOULD LIKE TO
MAKE INVESTMENTS
Options No of respondent Percentage
Pay a fixed amount on a regular 34 62%
basis
Invetst on a regular basis but not a 22 30%
fixed amount
Make a lumpsum payment 4 8%
Total 60 100
SOURCE: PRIMARY DATA

FIGURE 4.13 CLASSIFICATION BASED ON HOW THEY WOULD LIKE TO MAKE

INVESTMENT

PERCENTAGE
Make lumpsum payment
8%

Invest on a regular basis

but not a fixed amount
30% Fixed
amount on
regular
basis
62%

INTERPRETATION

From the above study it was concluded that 62% people preferred payimg a fixed amount on a regular basis,
whereas 30% preferred paying not a fixed amount on a regular basis while 8% preferred make lumpsum
payment.
TABLE 4.15 CLASSIFICATION BASED ON INVESTING IN AVENUEUS
BEARING HIGH RISK AND HIGH RETURN
Response No. of respondents Percentage
YES 17 13%
NO 43 87%
TOTAL 60 100%
FIGURE 4.14 CLASSIFICATION ON THE BASED ON INVESTING IN AVENUES
BEARING HIGH RISK AND HIGH RETURN

PERCENTAGE

YES
NO

INTERPRETATION
Most respondents(87%)preferred to be safe, investing in low risk investments than investing in high risk
investment .
TABLE 4.16 CLASSIFICATION BASED ON MONITOR OF INVESTMENT
Particulars No. of respondents Percentage
Daily 12 20%
Monthly 27 45%
Occasionally 21 35%
Total 60 100
SOURCE: PRIMARY DATA

FIGURE 4.16 CLASSIFICATION BASED ON MONITOR OF INVESTMENT

50%
45% 45%
40%
35% 35%
30%
25%
20% 20%
15%
10%
5%
0%
0 0.5 1 1.5 2 2.5 3 3.5

Percentage

INTERPRETATION
Majority of the respondents are monitor their investment monthly and 20% of respondents are
monitor their investments daily and remaining 35% of respondents are monitor their investment
occasionally.
TABLE 4.17 AWARENESS ABOUT VARIOUS INVESTMENT AVENUES
Particulars No. of respondents Percentage
Highly aware 7 11.5%
Aware 16 27%
Neutral 21 35%
Unaware 9 15%
Highly unaware 7 11.5%
Total 60 100
SOURCE: PRIMARY DATA

FIGURE 4.17 AWARENESS ABOUT VARIOUS INVESTMENT AVENUES

Highly unaware 11.50%

Unaware 15%

Neutral 35%

Aware 27%

Highly aware 11.50%

0.00%5.00 %10.00 %15.00%20.00%25.00%30.00%35.00%40.00%

INTERPRETATION

Majority of the respondents are known investment, but they are not perfect awareness about
investment. 11.50% of respondents are highly aware about investment, they can understand each and every
matters about investment. Another 11.50% of respondents are highly unaware about investment, they cannot
known anything about investment. 27% of respondents are aware about investment and remaining 15% of
women workers are not aware about investment.
TABLE 4.18 CLASSIFICATION ABOUT MANAGEMENT OF INVESTMEN
Particulars No. of respondents Percentage
Self manage 12 20%
Brokerage 21 35%
Through bank 20 33%
Others 7 12%
Total 60 100
SOURCE: PRIMARY DATA

FIGURE 4.18 CLASSIFICATION ABOUT MANAGEMENT OF INVESTMENT

Others 12%

Through bank
33%

Brokerage
35%
Self manage
20%

0%
10%
20%
30%
40%

INTERPRETATION

Investment management is the important thing of the investment. Here, majority of the
respondents are managed their investment through brokerage; brokerage maybe a person or institution.33%
of the respondents are managed their investment through bank, it is the easy way of manage investment.20%
of the respondents are self managed, it is the best way of investment management. And the remaining 12%
of respondents are managed their investment through other ways.
TABLE 4.19 CLASSIFICATION BASED ON INVESTMENT SECTOR

Particulars No. of respondents Percentage

Private 13 22%
Govt 31 51.5%
Semi Govt 16 26.5%
Total 60 100
SOURCE: PRIMARY DATA

FIGURE 4.19 CLASSIFICATION BASED ON INVESTMENT SECTOR

60%
51.50%
50%

40%

30% 26.50%
22%
20%

10%

0%
Private Govt Foreign

INTERPRETATION
Majority of the respondents are prefer Govt sector for investment, they trust with
government. They understand their earnings are safe in government sector.26.5% of respondents are prefer
semi Govt sector, foreign investment get more returns.22% of respondents are prefer private sector for
investment.
TABLE 4.20 CLASSIFICATION BASED ON OBJECTIVES OF THE
INVESTMENT
Particulars No. of respondents Percentage
Children’s education 13 21.7%
Children’s marriage 15 25%
Purchase of house 8 13.3%
Personal safety 24 40%
Total 60 100
SOURCE: PRIMARY DATA

FIGURE 4.20 CLASSIFICATION BASED ON OBJECTIVES OF THE

INVESTMENT

percentage
45.00%
40.00%
35.00%
30.00%
25.00%
20.00%
15.00% percentage
10.00%
5.00%
0.00%
n e e ty
atio r iag ous afe
uc ar fh ls
ed n
m eo ona
n re as rs
re ld ch pe
i ld i r
ch ch pu

INTERPRETATION
Every investor invest for specific objectives, objectives maybe long term objectives or short term
objectives. Most of the respondents are invested for personal safety, investing for secure and bright future.
25% of respondents are investing for children’s marriage and 21.7% of respondents are investing for
children’s education. Another 13.3% of respondents are investing for purchasing for their dream house .
Most of the women workers are investing for their family’s safety and secure.
FIGURE 4.21 CLASSIFICATION BASED ON FREQUENTLY INVESTED
Particulars No. of respondents Percentage
Safe or low investment 16 27%
High risk investment 18 30%
Moderate risk investment 7 12%
plan
Traditional investment plan 11 18%
Emerging investment plan 8 13%
Total 60 100
SOURCE: PRIMARY DATA

FIGURE 4.21 CLASSIFICATION BASED ON FREQUENTLY INVESTED

27% 30%
30%

20%
18%
12%
10% 13%

0%
Safe or low
High risk
investment Moderate
investment Traditional
risk Emerging
investment
investment investment
plan
plan plan

INTERPRETATION
30% of the respondents are frequently invested in high risk investment,

they are face to risk for more returns. 27% of respondents are invested frequently safe or low risk
investment, they are fear to risk. 12% of respondents are investing in moderate investment risk plan. 18% of
respondents are invested in traditional investment plans and remaining 13% of the respondents are opposite
to traditional method, they are invested in emerging investment plans.
FIGURE 4.22 CLASSIFICATION BASED ON EXPECTED RETURN ON THE
INVESTMENT
Particulars No. of respondents Percentage
Instant 8 13%
Periodical 28 47%
Occasional 18 30%
Others 6 10%
Total 60 100
SOURCE: PRIMARY DATA

FIGURE 4.22 CLASSIFICATION BASED ON EXPECTED RETURN ON THE

INVESTMENT

10% 13%

30% Instant
Periodical
47% Occasional
Others

INTERPRETATION
Every investors are investing their earnings in best investment plans for more returns. They are expecting
some returns from their investment, it may be instant, periodical, occasional, etc. Here 47% of
respondents are expecting periodical returns from their investment. 30% of respondents are expecting return
in occasionally. 13% respondents are expecting instant return and others are 10%.
TABLE 4.23 CLASSIFICATION BASED ON REASONS FOR NOT TAKING
INDIVIDUAL INVESTMENT DECISION
Reason Strongly Disagree Neutral Agree Strongly
disagree agree
Less knowledge 6 7 12 7 22
about
investment
Due to fear of 17 20 19 24 26
risk
Have 10 8 21 34 14
knowledge but
not allowed by
family
members
Others 5 13 11 16 8
SOURCE OF DATA: PRIMARY DATA

TABLE NO 4.23(B)

RANKED TABLE

REASON WEIGHT RANK

Less knowledge about investment 2.03 IV
Due to fear of risk 4.03 II
Have knowledge but not allowed 4.43 I
by family members
Others 3.78 III

INTERPRETATION

The above table shows the reason for not taking individual investment decision. Among such reason
respondent choose have knowledge but not allowed by family members has 1st rank.
TABLE 4.24 CLASSIFICATION BASED ON PROBLEMS FACED WHILE
TAKING INVESTMENT DECISION
Particulars No. of respondents Percentage
Low return 12 20%
Lack of proper knowledge 29 48.4%
Frequent variation in 14 23.3%
interest rate
Non-corporative 5 8.3%
Total 60 100
SOURCE: PRIMARY DATA

FIGURE 4.24 CLASSIFICATION BASED ON PROBLEMS FACED WHILE TAKIN

INVESTMENT DECISION

8.30%
Low return
20%
23.30% Lack of proper knowledge

48.40% Frequent variation in

interest rate
Non-corporative

INTERPRETATION
Every Investors are face some problems. Mainly they are not proper knowledge about their
investment,48.4% of respondents are not proper knowledge.23.3% are face frequent variation in interest
rate, this changes may be give higher return or lower return. 20% of respondents are facing low returns and
8.3% are facing non-corporative problems.
TABLE 4.25 CLASSIFICATION BASED ON DEPENDS UPON INVESTMENT
DECISION
Particulars No. of respondents Percentage
Past performance 12 20%
Economic scenario 14 23%
Industry analysis 6 10%
Company analysis 10 17%
Credit rating 18 30%
Total 60 100
SOURCE: PRIMARY DATA

TABLE 4.24 CLASSIFICATION BASED ON INVESTMENT DECISION

INTERPRETATION
Most of the respondents are depends upon the investment decision is changes in credit
rating.20% are past performance, 23% of respondents are economic scenario, 10% of industry analysis and
17% of respondents are depend upon the investment decision is company analysis.
HYPOTHESIS TESTING
 CHI-SQUARE TEST

Chi-square is a statistical test commonly used to compare observed data with data we would
expect to obtain according to a specific hypothesis.

X2=∑(O-E)2/E

TEST 1

1. H0: There is goodness of fit between monthly income of working women’s and their individual
decision making.
2. H1: There is no goodness of fit between monthly income of working women’s and their
individual decision making.
3. Test criteria: chi-square test for goodness of fit

4. Levels of significance:5%(0.05)

Test statistic value: X2 =∑(O –E)2/E

Observed Expected (O-E) (O-E)2 (O-E)2/E

frequencies(O) frequencies (E)

9 60*5/12= 25 -16 256 10.24

16 60*4/12 =20 -4 16 0.8
9 60*2/12= 10 -1 1 0.1
17 60*0/12=0 17 289 0
9 60*1/12= 5 4 16 3.2
X2=14.34

X2 =∑(O –E)2/E=14.34
6. Degree of freedom : n-r-1
5-0-1=4
7. Table value : 9.488

8. Comparison : test statistic value is greater than table value

14.34 greater than 9.488 So, H0

reject and H1 accept
9. Decision and conclusion : There is no goodness of fit between monthly income of working women
and their individual decision making

Test 2
H0: There is no significance relation between age of investor and investment objectives
H0: There is a significance relation between age of investor and investment objectives
Investment objectives
Age Children Children Purchase of Personal safety TOTAL
education marriage house
Below 25 4 6 4 8 22
25-35 2 4 1 4 11
35-45 2 2 0 8 12
Above 45 5 3 3 4 15
TOTAL 13 15 8 24 60

Observed frequency Expected frequency (O-E)2 (O-E)2/E

4 4.76 0.5776 0.1213
2 2.38 0.1444 0.0606
2 2.6 0.36 0.1384
5 3.25 3.0625 0.9423
6 5.5 0.25 0.04545
4 2.75 1.5625 0.5681
2 3 1 0.3333
3 3.75 0.5625 0.15
4 2.93 1.1449 0.3907
1 1.46 0.2116 0.1449
0 1.6 2.56 1.6
3 2 1 0.5
8 8.8 0.64 0.07272
4 4.4 0.16 0.03636
8 4.8 10.24 2.1333
4 6 4 0.6666
X2=7.9040
Degree of freedom=(Row-1)*(Column-1)

=(4-1)*(4-1)

=9

Table value=16.916

The calculated value is less than table value, so we accept the null Hypothesis(H0).
 FINDINGS
 Most of the working women are aged below 25
 Most of the women are highly qualified and educated.
➢ 55% of working women are married.
➢ 40% of women are self occupied and 27% of women are working Government sector.
➢ 58% of working women are earned above 25000 monthly.
 70% respondents have made investments while 30% haven’t.
➢ Most of the working women’s preferred to save their wealth in saving deposit with bank, followed by
gold and jewellary, life insurance, provident fund, mutual fund, chit fund, share market, real estate, post
office.
➢ 59% of working women are saved their income below 20% of their monthly income
➢ Majority of respondents have budget for their family.
➢ Investment decision taken by the internet.
➢ Return is the most important factor of investment.
 Majority of working women are satisfied with their present investment scheme.
 Most of the working women are investing both short term and long term.
 Majority of respondents preferred paying a fixed amount on a regular basis for their investment.
 Most respondents preferred to be safe, investing in low risk investments than investing in high risk
investments going for heigher return.
 Mjority of the respondents monitor the investment.
➢ Most of the workers are known about investment but not aware about investment.
➢ 68% of working women are manage their investment through brokerage and bank.
➢ Majority of investors are prefer Government sector for investment.
➢ Investment objectives includes children’s education, children’s marriage, purchase of house ,personal
safety, etc.
➢ Safe or low risk investment plans have invested frequently.
➢ Most of the working women are expect periodical return from their investment.
➢ Have a knowledge but not allowed by family members is the reason for not taking individual decision
regarding investment.
➢ Most of the working women are face problem about investment is lack of proper knowledge .
➢ Investment decisions are depend upon credit rating, past performance, industry analysis, company
analysis and economic scenario.

SUGGESTIONS
❖ Majority of respondents have not invested in share market. The reason being the
fear of loss which is general relief.

❖ The working women investors have different expectations from the investment
as they have different investment objectives.

❖ The Government should organize investment awareness compaigns often

especially designed for working women, A proper financial planning can help to
achieve various goals in life.

❖ All the investors should analyze available financial investments instruments as

well. Various workshops and seminars must be organized to create awareness for
financial decision-making.

❖ Women should increase their knowledge level of the portfolio diversification in

order to spread risk.

❖ Most of the working women are choose safe or low risk investment, they
probably choose less risk investment areas.But there is a positive correlation
between the amount of risk and the potential for returns. So, there is risk bearing
capacity should be uplifted.

❖ Broker and intermediaries should be more effective to attract investors.

❖ Government and other responsible authorities should start more innovative

projects like women Aura Savings Account and SukanyaSamrthiYojana(SSY) for
promoting diversified investment habit of investors.

❖ Government should make available more tax saving products in addiction to life
insurance and provident fund which will benefit customers directly or indirectly.

CONCLUSION

Since this research has been conducted on the working women’s and a study on their investment behavior, it
becomes more important to understand the different types of investors. Women investors have their own
investing styles: some are risk takers ;others are prefer the safety and security of cash in the bank and most
of the investors are investing for protecting their family such as safety, children’s marriage, children’s
education, dream house, etc.
BIBLIOGRAPHY
 BIBLIOGRAPHY

• https://www.abacademies.org/
• https://www.researchgate.net/
• https://shodhganga.inflibnet.ac.in/
• https://globaljournals.org/
• https://en.m.wikipedia.org/
APPENDIX
Topic:”A STUDY ON INVESTMENT BEHAVIOR OF WORKING WOMENS WITH SPECIAL
REFERENCE TO PERINTHALMANNA MUNCIPALITY.”

Sir/Madam,
I am Fathima nasrin OT, M. Com Student of SNDP YSS college kunnappally, want to conduct a study on
the above topic. Kindly request you to fill up the below questionnaire. All information collected through this
shall be used only for research work. No disclosure shall be made for any other purpose a part from the
research.

1. Age
Below 25 25 to 35

35 o 45 Above 45
2.Education Qualification
Up to HSC Graduate
Post Graduate Professional Degree
Marital status
Married Unmarried
3.Occupation
Private Govt
Self Occupied
3.Monthly income
Below 10000 10000 to 25000
25000 to 50000 50000 to 100000
Above 100000
6.Whether respondent have made any investment until now?

YES NO

7.Which o f the following avenues have you opted for investment?

Insurance Bank Post office

Govt securities Gold Others

8.What percentage of income do you save?

Below 10% 10%-20%
20%-40% 40%-50% Above 50%
9.Do you have budget for your family?
YES NO
10.What are the sources of information about investment?
Family Friends Internet
Newspaper and journals Others
11.What are the factors influences your investment decision?
Liquidity Returns Safety
Tax savings
12.Are you satisfied with your present investment scheme?
Highly satisfied Satisfied Neutral
Dissatisfied Highly dissatisfied
13.Are you a short term or long term investor?
Short term Long term Both
14.How you like to make investment?
A fixed amount on a regular basis
Invest on a regular basis but not a fixed amount
Make a lump sum payment
15.Would you invest in an avenues bearing high risk of losing money but also having scope of high return?
YES NO
16.How often do you monitor your investment?
Daily Monthly occasionally
17.Are you aware about various investment scheme?
Highly aware Aware Neutral
Unaware Highly unaware
18.How do you manage your investment?
Self managed Brokererage
Through bank Others
19.Which of the following sector do you prefer to investment?
Private Govt Semi Govt
20.What are the objectives of investment?
Children education children marriage
Purchase of house Personal safety Others
21.Whichinvested plan have invested frequently?
 Safe or low risk investment High risk investment
Moderate risk investment plan Traditional investment plan
Merging investment plan
22.What kind of return do you expect from your investment?
Instant Periodical
Occasional Others
23.What are the reason for not taking individual investment decision?

Responses Strongly Disagree Neutral Agree Strongly agree

disagree
Less knowledge
about
investment
Due to fear of
risk
Have
knowledge but
not allowed by
family
members
Others

24.What are the problem faced while taking investment decision?

Low return Lack of proper knowledge
Frequent variation in intrest rate Non corporation from family
25.Your decision to investment depends upon?
Past performance Economic scenario
Company analysis Credit rating Industry analysis
The success of every investment decision has been increasingly important in recent times, making sound
investment decisions require both knowledge and skill. The working women’s have different expectations
from the investment as their needs differ such as saving, safety and interest and value appereciation. The
research identified the level of preference, level of awareness, level of intensity problem and level of
satisfaction towards investment. Investors describes safety of funds as their priority for choosing in
investment. So, Government should provide more investors protection.