Behavior of Investor’s towards Different

Investment Boulevard in the market:

Surat City, Gujarat, India

Presented By:
Mr. Krunal Soni (Assistant Professor, SDJIC, Surat)
Dr. Maulik Desai (Assistant Professor, KSBM, Ahmedabad)
 Organization of Presentation

Part 1: About Investment Boulevard

Part 2: Literature Review
Part 3: Research Problem
Part 4: Objectives & Hypothesis of the study
Part 5: Research Design
Part 6: Sampling Plan
Part 7: Data Analysis & Interpretation
Part 8: Findings & Objective wise Conclusion
Part 9: Suggestion
 Introduction

 Main Features of Investment boulevard.

 Options for Investment.
 Risk & Return tolerance level for the people.
 Different process of behavior of Investors.
 Two types of Investment boulevard.
 Literature Review
 Parihar et al, (2009), pointed out that return followed by liquidity,
flexibility, affordability and transparency are the influential factors
to make investment in mutual funds by the investor.
 Saravana Kumar (2010), in his study the factors influenced the
investor’s to invest in equity shares are liquidity, low investment and
capital appreciation.
 Lalita Mohan (2010), argued that the various investment channels
should be keeping updated to the investor through print and
electronic media. The bank employees believed that insurance is an
investment avenue rather than risk coverage instrument.
 Krishnamoorti (2009), pointed out that investor educational
backgrounds, job, reading habit of news relating to investment are
closely associated with the investment decision of investor.
RESEARCH METHODOLOGY
 4.1 Research Problem
 The earlier research was based on the national
level but no serious attempt was made to
understand the different factors of Investment
affecting investor’s behavior.
 Most of the study had proved negative
relationship with the title.
 Paper has tried to bridge the gap.
 4.2 Objectives of the Study
 Tocheck the significant association between Risk
and Return factor from different investment
boulevard in the Surat city.
 To study the perception of investor’s towards
safety, Return, Liquidity and many other feature
while taking investment decisions in the Surat
city.
 To identify the most prominent sources of
Investment for the investor’s in the Surat city.
 4.3 Hypothesis
 H01: There is no significant difference between the Risk
and Return factor from the different investment
boulevard.
 H02: There is no significant difference between the
perception of the investor’s towards safety, Return,
Liquidity and many other features.
 H03: There is no significant Impact of Sources of News
related to investment on the behavior of investor’s in
while taking decision for investment.
 4.4 Research Design
 Study is purely based on Primary data.
 Structured questionnaire had been prepared and
collected response from the well known market player.
 The first part of the questionnaire has focused on the
demographic factors.
 The latter part of the questionnaire has focused on the
Likert Scale question relating to Risk and Return.
 4.5 Sampling Plan
 Convenient Sampling Techniques used to collect the
data of Surat city.
 111 samples are collected across the Surat City from
the well known market player.
 Data Analysis & Interpretation
MS Excel and IBM SPSS 21 version of software’s were
used to analyze the data. Various statistical tools like Chi
Square Test, Frequency distribution, Percentage analysis,
has been applied to interpret the data.
 5.1 Frequency Distribution Table
Male Female  - -
Gender
73 38 - -

21-30 31-40 41-50 51 & Above

Age
81 24 5 1

Post Graduate Graduate Non Graduate Others

Education
61 35 10 5

Salaried Businessman Retired -

Occupation
95 16 0 -

Up to Rs.25,000 25,000-50,000 50,000-75,000 75,000 & Above

Monthly Income
45 46 12 8

Private Sectors Government Sectors Public Sectors Foreign Sectors

Sectorial Investment
51 38 16 6

Income & Capital

Long Term Growth Growth & Income Short Term Growth
Preservation
Investment Objectives
14 52 39 6
 Cont…
Up to 10% 10-20% 20-30% 30-40%
% of Income Saved
34 34 29 14

Wealth Creation Tax Saving Returns Future Aspects

Purpose of Investment
41 9 14 47

Yes No  - -
Risk Taking
31 80 - -

<1Year 1-5Year >5Years -

Timing of Investment
11 70 30 -

(Source: SPSS Output)

 5.2 Correlation of Risk and Return with different
Investment boulevard

Sources Contingent Coefficient Pearson 2

Shares 0.346 0.004
Debentures 0.379 0.029
Future & Option 0.412 0.000
Mutual Fund 0.401 0.002
NSC/PPF/PF 0.503 0.000
Fixed Deposit 0.512 0.000
Insurance 0.587 0.000
Real Estate 0.449 0.005
Gold/ Silver 0.502 0.000

(Source: SPSS Output) (Significance Level at 5%)

 5.3 Importance of Different Features of
Investment Boulevard
Variable Very Low Low Neutral High Very High Chi Square

Dividend 3 4 37 43 24 61.027 (0.000)

Capital 1 2 35 59 14 110.036 (0.000)

Appreciation

Quick Gain 1 4 44 46 16 83.820 (0.000)

Safety 1 1 24 33 52 85.892 (0.000)

Liquidity 0 2 31 46 32 36.928 (0.000)

Tax Benefit 1 6 23 52 29 74.180 (0.000)

Diversification 2 1 39 56 13 106.613 (0.000)

Bonus Issue 4 9 44 38 16 57.153 (0.000)

Hedge 4 8 35 53 11 79.766 (0.000)

(Source: SPSS Output) (Significance Level at 5%)

5.4 Important Sources for Investor’s in Surat
city for Investment.

Sources Frequency Percentage

News Paper 5 4.5%
News Channel 2 1.8%
Family 31 27.9%
Books 2 1.8%
Internet 25 22.5%
Magazines 10 9.0%
Advisors 36 32.4%
Total 111 100%

(Sources: SPSS Output)

 Findings

 Majority of the investor’s in Surat city are salaried person

those who are having the income up to Rs.50000.
 Out of all the investor’s, majority of the investors are
preferring Governmental and Private sector investment to
fulfill their objective of long term growth and income along
with capital preservation for meeting the goal of wealth
creation and uncertainty about the future.
 Cont.…

 Most of the people are not highly risk taker, and preferring
medium term investment with the main feature of safety and
liquidity.
 Conclusion
 In Surat City, majority of the investor’s are making
investment boulevard for the purpose of:
1. Long term growth &
2. Capital Appreciation
The above purpose has two main reasons:
i. Tax Saving &
ii. To serve future goals by doing investment in
Governmental & Private sector followed by foreign
sector.
The investors are more attracted with the feature of safety,
liquidity and Tax benefit, for which they do detail analysis.
 Future Scope of Study
 This study can extend to the major cities of the Gujarat
to have broad aspect of investor’s behavior.
 In addition to that, an attempt can be made for
studying behavioral science of investors through
different behavioral models and techniques.
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Questions ?
Comments ?
Compliments?
Suggestions ?
 Thank You

From,
Mr. Krunal Bharatkumar Soni (Assistant Professor,
SDJ International College, Surat)
&
Dr. Maulik Desai (KS School of Business Management,
Ahmedabad)