Appendices

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 Appendix A

SURVEY QUESTIONNAIRE

Hello. I am Biswajit Acharjya, Registration Number-16PHD0052, doing PhD in VIT

Business School, VIT, Vellore, Tamilnadu. I am doing a survey on investors’ attitude,
level of knowledge, level of risk tolerance and perception of investors towards Gold
ETF investment. This questionnaire contains simple questions in order to identify the
investor’s views regarding gold ETF investment. All your response will be used for
my academic purpose only. Your important response will give a proper platform for
the researcher to study about gold ETF investment. Kindly give your response without
bias in your own thought. I personally thank you for your valuable time to be spent to
complete this survey.
Any queries regarding the questions fill free to ask through my mail id- biswa-
jit.acharjya@vit.ac.in/acharjya.biswajit@gmail.com
I Mr. Biswajit Acharjya hereby declare that the responses collected via this ques-
tionnaire presented below will be kept confidential used for only academic purposes

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III. BEHAVIORAL CHARACTERISTICS
Please indicate ()to which degree you agree or disagree with the following statement.

Strongly disagree
Strongly agree

Disagree
Neutral
Sl. No.

Agree
Statements
1 I get confused by the technical jargon used by the financial 2 2 2 2 2
experts
2 I am anxious about financial and money affairs 2 2 2 2 2
3 I tend to postpone financial decisions 2 2 2 2 2
4 After making a decision, I am anxious whether I was right 2 2 2 2 2
or wrong
5 I read the business section of the newspaper attentively 2 2 2 2 2
6 I like to join conversations about financial matters 2 2 2 2 2
7 I find it hard not to have some money for my future needs 2 2 2 2 2
8 To care for the future financial affairs is essential for me 2 2 2 2 2
9 I never invest in something that I do not know about the 2 2 2 2 2
risk of making a mistake
10 I only invest in the financial products where I can predict 2 2 2 2 2
the return
11 I am cautious about investing different instrument 2 2 2 2 2
12 I feel that the procedures involved in investing in gold ETF 2 2 2 2 2
are very complex
13 I feel that investing in gold ETF involves a lot of expense 2 2 2 2 2
14 I feel that investing in gold ETF requires a lot of my time 2 2 2 2 2
15 My peers/Colleagues/friends thought I should invest in 2 2 2 2 2
gold ETF
16 People I know thought that investing in gold ETF is a good 2 2 2 2 2
idea
17 People I know influenced me to invest in gold ETF 2 2 2 2 2
18 I read/saw news articles regarding gold ETF investment is 2 2 2 2 2
a good investment

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19 The popular press depicted positive sentiment towards gold 2 2 2 2 2
ETF investment
20 Mass media report influenced me to try for gold ETF in- 2 2 2 2 2
vestment
21 I would feel comfortable investing in gold ETF on my own 2 2 2 2 2
22 I would be able to invest in gold ETF well on my own 2 2 2 2 2
23 Information required for gold ETF investment available to 2 2 2 2 2
me
24 I had access to internet, software and services needed to 2 2 2 2 2
invest in gold ETF
25 I was constrained by the lack of resources needed for gold 2 2 2 2 2
ETF investment
26 I am willing to risk financial losses 2 2 2 2 2
27 I prefer investments that have higher return even though 2 2 2 2 2
they are riskier
28 The overall growth potential of gold ETF investment is 2 2 2 2 2
more important than the level of risk of the investment
29 I am very willing to make the risky investment to ensure 2 2 2 2 2
financial stability in investment
30 As a rule, I would never choose the safest investment when 2 2 2 2 2
planning for my investment decision
31 I am satisfied with my todays financial stress 2 2 2 2 2
32 I am satisfied with my present financial situation 2 2 2 2 2
33 I am financially sound 2 2 2 2 2
34 I am quite happy with my current financial situation 2 2 2 2 2
35 I feel secure about my personal finance 2 2 2 2 2
36 I am not felling stressed for my personal finances 2 2 2 2 2
37 Gold ETF investment are trust worthy 2 2 2 2 2
38 Gold ETF investment are reliable 2 2 2 2 2
39 I trust on the transparency of gold ETF as it is being moni- 2 2 2 2 2
tored by established regulators
40 The rate return of gold ETF meets my expectation 2 2 2 2 2
41 I prefer gold ETF investment even though its rate of return 2 2 2 2 2
is slightly less than average rate of return of the market
42 I do not care about the affects of financial market on my 2 2 2 2 2
return, as long as I am able to beat the inflation
43 I am satisfied with my investment in gold ETF 2 2 2 2 2
44 I intend to invest in gold ETF in the next months 2 2 2 2 2
45 I predict I would invest in gold ETF in the next months 2 2 2 2 2
46 I plan to invest in gold ETF in the next months 2 2 2 2 2
47 I intend to consult the financial experts and people having 2 2 2 2 2
knowledge of yellow metal investment, regarding gold ETF
investment
48 I intend to transfer money to my dematerialised account for 2 2 2 2 2
investment into gold ETF
49 I invest in gold ETF 2 2 2 2 2
50 I check the performance of my invested gold ETF 2 2 2 2 2

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Financial Literacy
Part 1: Basic Financial Literacy

1. Suppose you had Rs.100 in a savings account and the interest rate was 2% per
year. After 5 years, how much do you think you would have in the account if you
left the money to grow?

(a) More than Rs.102

(b) Exactly Rs.102
(c) Less than Rs.102
(d) Do not know

2. Suppose you had Rs.100 in a savings account and the interest rate is 20% per year
and you never withdraw money or interest payments. After 5 years, how much
would you have on this account in total?

(a) More than Rs.200

(b) Exactly Rs.200
(c) Less than Rs.200
(d) Do not know

3. Imagine that the interest rate on your savings account was 1% per year and infla-
tion was 2% per year. After 1 year, how much would you be able to buy with the
money in this account?

(a) More than today

(b) Exactly the same
(c) Less than today
(d) Do not know

4. Assume a friend inherits Rs.10,000 today and his sibling inherits Rs.10,000 3
years from now. Who is richer because of the inheritance?

(a) My friend
(b) His sibling
(c) They are equally rich
(d) Do not know

5. Suppose that in the year 2018, your income has doubled and prices of all goods
have doubled too. In 2018, how much will you be able to buy with your income?

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 (a) More than today
(b) The same
(c) Less than today
(d) Do not know

Part 2: Market Knowledge

1. Which of the following statements describes the main function of the stock mar-
ket?

(a) The stock market helps to predict stock earnings.

(b) The stock market results in an increase in the price of stocks.
(c) The stock market brings people who want to buy stocks together with those
who want to sell stocks.
(d) None of the above
(e) Do not know

2. Which of the following statements is correct?

(a) Once one invests in a mutual fund, one cannot withdraw the money in the
first year.
(b) Mutual funds can invest in several assets, for example, invest in both stocks
and bonds.
(c) Mutual funds pay a guaranteed rate of return which depends on their past
performance.
(d) None of the above
(e) Do not know

3. If the interest rate falls, what should happen to bond prices?

(a) Rise
(b) Fall
(c) Stay the same
(d) None of the above
(e) Do not know

4. True or false? Buying a company stock usually provides a safer return than a
stock mutual fund.

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 (a) True
(b) False
(c) Do not know

5. True or false? Stocks are normally riskier than bonds.

(a) True
(b) False
(c) Do not know

6. Considering a long time period (for example 10 or 20 years), which asset nor-
mally gives the highest return?

(a) Savings accounts

(b) Bonds
(c) Stocks
(d) Do not know

7. Normally, which asset displays the highest fluctuations over time?

(a) Savings accounts

(b) Bonds
(c) Stocks
(d) Do not know

8. . When an investor spreads his money among different assets, does the risk of
losing money:

(a) Increase
(b) Decrease
(c) Stay the same
(d) Do not know

9. Which of the following statements is correct? If someone buys the stock of firm
B in the stock market:

(a) He owns a part of firm B;

(b) He has lent money to firm B;
(c) He is liable for firms B debt;

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 (d) None of the above.

10. Which of the following statements is correct? If someone buys a bond of Firm B:

(a) He owns part of Firm B;

(b) He has lent money to Firm B;
(c) He is liable for Firm Bs debt;
(d) None of the above.

Part 3 G-ETF Investment Knowledge (Mark Yes/No)

1. G-ETF investment is able to protect from economic slowdown- Inflation, Interest

rate downfall, currency downfall.

2. G-ETF price tracks the price of physical gold.

3. G-ETF maintains its value from time to time.

4. Compared to land, gold investment is non-taxable.

5. Keeping gold in jewellery adds additional costs- Storage cost and making charges.

6. G-ETF is higher liquidity than physical gold.

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