Investment pattern over the life cycle

of family

Institute for Technology and Management, Kharghar

August 2010
 Agenda
 Investment pattern over the life cycle of family
• Introduction,
• Management Problem
• Research Objective
• Research Variable
• Research Methodology,
• Assumptions and Hypothesis
• Test Applied and output
• Analysis & Interpretation,
• Findings, Conclusion and Suggestions,
• Learning.

•
 Introduction
• This research is conducted in order to identify and understand
saving and investment patterns as well as object based on age
group, income group and stages of life an Indian family goes
under.
• This research would fruitful in introducing a financial product
aimed at focused group

R e se a rch O b je ctive s

come invested’ and ‘period of investment’ by different age groups, income groups as
fference life stages.
 Research Variables
A g e G ro u p
In co m e g ro u p s
Life sta g e s
In ve stm e n t p re fe re n ce s
Pe rio d o f in ve stm e n t
Pe rce n ta g e o f d isp o sa b le in co m e fo r in ve stm e n t

R e se a rch M e th o d o lo g y
• Exploratory research
– Survey – Questionnaire
• Convenient Sampling
• Sample population is 204.
 Data Analysis
Reliability Statistics
Cronbach's No of Items
Alpha
.659 56
• R e lia b ility a n a lysis o f th e co lle cte d d a ta is 6 5 . 9 % , w h ich m e a n it is
m o d e ra te ly re lia b le d a ta .
 Where do Indian put there money?

Low risk Investments medium risk High risk Traditional Upcoming

• The chart represent the where people invest most into.

• Saving account, bank fixed deposit , insurance and Gold/silver attract most
investable income. Only 405 of respondent invest into equity market
directly. Others invest through other investment products such as mutual
funds, bonds, PPF, NSC, Post office savings.
 Age groups investment pattern

H 0 : There is no statisticalsignificantdifference b / w age groups a

H 1 :

Reliability Statistics
Cronbach's N of
.226
Alpha 3
Items
Chi-Square Tests
Value df Asymp. Sig.(2-sided)
Pearson Chi-Square 9.474a 10 .488
Likelihood Ratio 9.740 10 .464
 • as

Chi - Square Tests

  Value df Asymp . Sig . ( 2 -
sided )
Pearson Chi - 22 . 677 a 15 .091
Square
Likelihood 27 . 153 15 .028
Ratio
Paired Samples Test
Paired Differences t df Sig .
Mean Std . Std . 95 % Confidence
Lower Upper (2-
Deviati Error Interval of the Difference tailed )
Pair What % of -1.09314 on 1.34865 Mean
.09442 -1.27932 -.90696 -11.577 203 .000
1 savings do
you invest?
Age is
Pair -What Group
the -.36765 1.47128 .10301 -.57075 -.16454 -3.569 203 .000
2 time period
you prefer
to invest? -
Age Group

• as
 Investment pattern based on Income group
• H0: There is no statistical
significant difference b/w
income groups and period of
investment.
• H1: Period of investment
increases with increasing
income
• Null hypothesis rejected.
There is a significant
difference between the two
factors.
• High degree of association
is observed (Sig: 100%)
Reliability
Cronbach's Statistics
N of •
.441
Alpha 3
Items
Chi-Square Tests
Value df Asymp. Sig.
Pearson Chi-Square 26.412a 6 (2-sided)
.000
Likelihood Ratio 25.055 6 .000
 • As

Chi-Square Tests
Value df Asymp. Sig.
Pearson Chi-Square 18.442a 4 (2-sided)
.001
Likelihood Ratio 19.061 4 .001
 Findings, Conclusion and Suggestions
Paired Samples Test
Paired Differences 95 % Confidence
t df Sig .
(2-
MeanStd . Std . Lower
Interval ofUpper
the Difference tailed )
Pair What percentage -.49261 Deviati
.85810 Error
.06023 -.61136 -.37386 -8.179 202 .000
1 of savings do you on Mean
Pair What is the
invest? time .22660 1.05675 .07417
- Annual .08036 .37285 3.055 202 .003
2 period youincome
Household prefer
to invest? -
Annual Household
income

• as
 • As

Chi-Square Tests
Value df Asymp.
Pearson Chi-Square 14.448a 10 Sig.
.154 (2-sided) Reliability Statistics
Likelihood Ratio 11.805 10 .298 Cronbach's Alpha N of Items
.266 3
 • As

Chi-Square Tests
Value df Asymp. Sig.
Pearson Chi-Square 23.105a 15 (2-sided)
.082
Likelihood Ratio 26.278 15 .035
Paired Samples Test
Paired Differences t df Sig.
95% Confidence Interval of the Difference
Mean Std. Std. Lower Upper (2-tailed)
Pair 1 What %of savings do -.64706 1.47322
Deviatio .10315
Error -.85043 -.44368 -6.273 203 .000
you invest? - current n Mean
Pair 2 What is the
stage of life?time .07843 1.68263 .11781 -.15385 .31072 .666 203 .506
period you prefer to
invest? - current
stage of life?

• as
 Multiple Regression
Model Summary
R R Square Adjusted R Square Std. Error of the
a .070 Estimate
.265
a. Predictors: (Constant ), Gender, Age Group,.051 .97616
Annual Household income , current stage
of life.

Coefficients a
Unstandardized Coefficients
t Sig . 95 . 0 % Confidence
B Std . Error Lower
Interval Bound
forUpper
B Bound
(Constant) 1.552 .359 4.328 .000 .845 2.259
Annual Household .373 .104 3.575 .000 .167 .578
Age Group
income .082 .089 .924 .357 -.093 .257
current stage of life-.042 .074 -.566 .572 -.188 .104
Gender .018 .157 .114 .909 -.291 .327
a. Dependent Variable: What is the time period you prefer to invest?

• As
Model Summary
R R Square Adjusted R Std . Error of the
.283a .080 Square
.061 Estimate
.64645
a. Predictors: (Constant), Gender, Age Group, Annual Household income, current stage
of life.
Coefficients a
Unstandardized Coefft. Sig 95 . 0 % Confidence Interval
B Std . Error . Lower
for B Bound Upper Bound
(Constant) 1.621 .238 6.826 .000 1.153 2.089
Ann. Household income .164 .069 2.368 .019 .027 .300
Age Group -.154 .059 -2.620 .009 -.270 -.038
current stage of life .149 .049 3.037 .003 .052 .245
Gender -.040 .104 -.382 .703 -.244 .165
a. Dependent Variable: What percentage of savings do you invest?

• As
 Anova on Stages of life
ANOVA
    Sum of df Mean F Sig.
I am cautious in trying new/different Between 9Squares
.497 5 1Square
.899 1.361 .241
financial products Within
Groups Groups 276.439 198 1.396    
Total 285.936 203      
I try to find out as much as I can Between 11.159 5 2.232 2.391 .039
about a financial product before Within
Groups Groups 184.777 198 .933    
Total 195.936 203      
Ibuying
woulditrather
. stick with a product I Between 33.789 5 6.758 5.758 .000
usually buy than try something I am Within Groups
Total
Groups 232.383
266.172
198 1.174  
203    
 
 
unfamiliar
It is betterwithto. be safe and have a Between 11.684 5 2.337 1.695 .137
moderate income than to take Within
Groups Groups 273.002 198 1.379    
Total 284.686 203      
financial
I am more risks to makeinaputting
comfortable high my Between 48.046 5 9.609 5.925 .000
money in a bank account than in the Within
income . Groups
Total
Groups 321.131
369.176
198 1.622  
203    
 
 
stock
In market
terms of investing
. , safety is more Between 5.962 5 1.192 1.073 .376
important than returns. Within
Groups Groups 219.936 198 1.111    
Total 225.897 203      
I plan my investments after giving Between 4.566 5 .913 1.050 .389
considerable thought to the Within
Groups Groups 172.120 198 .869    
Total 176.686 203      
consequences
Mean Plot for risk factor and stages of life
Mean Plot for risk factor and stages of life
Learning's
Thank You Presented By: Group 4
Roll No Name
71 Ajay Garg
50 Arun Thakur
23 Ashish Shrivastava
137 Goldi
37 Gunjan Agarwal
175 Pooja Shugani
113 Ruchir Masand
22 Yash Ahuja
Assumptions and Hypothesis