CHAPTER – I
INTRODUCTION AND DESIGN OF THE STUDY
1.1 INTRODUCTION
Women constitute above half of the world population. Their
contribution to the world’s work is about 55% including their
unpaid economic activities. Hence there is every reason that
women should plan an equal role in economic decision making.
The 1994 world survey on the role of women in development
reported that the ratio of women to men in economically active
population has almost doubled over the last 20 years. With the
increase in role of women in the economic activities and by
nature, women being indentified as a better saver than man, the
decision making process by woman for investment purpose gains
its importance.
The hand that rocks the cradle rules the world is popular
saying about women. Saving is a habit specially embodied to
women. Even in the past, when mainly depended on their
spouse’s income, they used to save to meet emergencies as well
as for future activities. In those days, women did not have any
awareness about various investment outlets. But as time passed,
the scenario had totally changed.
Now, the present women, who is equally employed, through
their education have knowledge about various aspects of
investment and as a result they invest in various investment
avenues such as shares, debentures, mutual funds and bank
deposits.
Indian savings market has been expanding over the period
and there is a steady increase of household savings. Moreover,
general profile of women investors is changing in tune with time.
But they lag in various spheres of investment such as awareness
and preference of investment. So, an attempt has been made by
the researcher to identify the factors influencing women
investor’s behavior to evaluate the level of awareness among
women investors and to analyze the preference of women
investor towards various investment outlets.
Employed women have a greater propensity to save and
invest because of their independent earning power. They are also
motivated by the investment behavior of their colleagues in their
work place. They are supposed to be risk adverse, safety oriented
and guided by certainty of returns. With increasing level of
knowledge and awareness, women are slowly participating in the
risky investment portfolios and they are becoming analytic in
their investment behavior.
Study has revealed that female powerlessness in much more
acute in north india than in south. Women in the north have
relatively little autonomy or freedom of movement, limited inherit
ants rights in practice, limited support from their natal family and
limited opportunities for control over economic resources. In
contrast women in south India have closer notal ties, greater
decision making authority and control over the resources.
In fact, in a small and middle class families it is the woman
who practically saves for the family. Women by nature are gold
loving. They save their money in the form of different gold
ornaments which is a highly liquid financial investment. The total
amount of gold that, has been with Indian family is much higher
than the amount of gold reserve with the government of U.S.A.
Excess of income over expenditure by any economic unit is
called saving. Saving is done by abstaining from the present
consumption for future use. In fact savings sometimes
automatically come from households as a matter of habit. Savings
is a part of life. Not only human being saves for the future but
also insects like ant, honey, bee, termite also save for the future.
The story of ant and the bird taught in childhood teaches us the
importance of savings. Future is uncertain. Hence saving is
required to manage the uncertainty in life.
These above mentioned studies relate to the stock markets
of developed countries like USA, Canada and Great Britain. Indian
capital market however is in the process of learning. The
corporate disclosers are not adequate and there is little scope for
individual investor to access in time first hand information. Hence
the behavior of individual investor in such a market is an
interesting topic to study. More specifically when the investor is
an Indian woman, there is every possibility that her decisions
regarding investment can be influenced by the decisions of her
family members. The parameters of investment, instruments,
degree of risk perceptions etc are likely to be different for woman
investor. The survey of literature points out to a glaring gap in the
research works related to women investors. Studies made also do
not find much reference to the behavior of women investors. The
present study is an attempt to fill this void.
Since, the money plays an important role in this competitive
world, we need money, so we have to save money in various
forms of investment.
1.2. STATEMENT OF THE PROBLEM:
The economic development of a nation depends on the
mobilization and effective utilization of domestic savings.
Domestic savings originate from three distinct sectors of the
economy. They are the household sector, the private corporate
sector and the public sector.
In India, the household sector alone contributes more than
two third portion of the domestic savings. It necessitates the
channelization of the saving of the household sector in the
desired direction.
Money is an inextricable part of our lives. Educated &
Uneducated also realize the importance of savings. Due to the
development in the massmedia and telecommunication people
are aware of different investment alternatives. Due to the
transparency the general public had gained expertise knowledge
about the companies, its management and its market shares in
the market and the company’s earning capacity over the period
of time.
In this competitive world, everyone is interested in
investment to improve their standard of living, to meet the
expectations of their children, for children further studies, for
family protection, for their retirement, for tax saving and so on.
Financial advisor or financial planner also helps the investors to
evaluate the portfolio strategies.
However, for Indian women there is every possibility that her
decision was always influenced by the family members.
As a women bank employee she earns steady lumpsum
salary, regularly, deal with money and exposed to different
investment avenues. Besides these, she is the preserver of home,
custodian of her children and a saver for hard days for her family.
Thus evaluation degree of risk perception, decision making
process will enable the Government and policy markets to frame
the suitable strategies & policies to suit working women needs.
1.3 REVIEW OF LITERATURE
Rethnasamy and Sebastian (1979) conducted a survey in 40
households of Thiruchirappalli city. The main objective of the
study was to find out the marginal propensity to save and the
saving behavior of the urban people. They found that the
marginal propersity to save in Thiruchirappali could be put at
0.41. they also found that “about 40 percent of the people save
for the purpose of educating their children and the remaining 30
per cent, to purchase property.
In another household saving and investment study,
Gothoskar and Venkatachalam (1979) pointed out that, first
official estimates of saving in the Indian economy were prepared
and published by the Reserve Bank of India in March 1960 that
covered the period 1950 to 1957. The household sector was
eventually given special consideration by several other studies
(and report) including the one by National Council of Applied
Economic research (NCAER). After carrying out review of existing
literature in the first few and the study analyzes saving behaviors
upto 1977.
Narayana (1979) states that, “Income savings and
Investment are the three key variables of any economy. The level
of income is an important determinant of savings and Investment,
while the past investment in capital goods influence the present
level of income. The process of the economic development
depends upon the community’s ability to save and invest, and the
progress of industrialization and economic modernization is
closely related to the rapidity with which savings and investment
are harnessed.”
Krishnamoorthy and Saibaba (1982) had found in their study,
the following things about savings “The propensity to save in
financial asset is significantly higher for the non agricultural
households compared with the agricultural households, whereas
no significant difference is found with regard to physical assets”.
They also state, “Growth of per capital real income has a positive
impact on the household saving rate. This lends support to the
hypothesis of lags in the response of consumption to the changes
in income with regard to the household sector.
Morais (1985) had published in article title, “Double
indemnity” stated that the article presents information related to
term Life Insurance. Term Insurance, which provides pure death
protection and no savings features, should be as easy to buy as
gasoline. The industry however has transformed this commodity
into a product with prices that vary all over lot. Some term
policies were great bargins, but they aren’t easy to find. A firm
that is a low bidder on non-smoking males may overcharge for
women or smokers or it may lowball younger buyers, hoping they
will stay as they climb up the age scale into expensive territory.
Panikar (1987) states that, the proportion of savings in the
household sector, taking the form of financial Assets, determines
the mobilization of savings for investment in other sectors. The
volume of savings in the form of physical assets and their
composition will influence. The productivity and generation of
income in the household sector.”
Sushil, K.Jain had explained the share selection process
which is considered an important aspect for successful
investment. He points out that before making an investment that
investor should review the market conditions for an appropriate
purchase or sale of shares. He concludes that the proper selection
of the timing of investment and the proper companies will help
the investors to get the best returns.
S.K.Ray had analysed that the various types of risks under
the title “Investment in uncertainty” According to the study the
combination of risk and return depends upon the investors utility
function. The study shows that for the selection of a portfolio
comparison between a combination of portfolios is essential. The
study indicated that the individual wants to hold that portfolio of
securities that would place him on the highest return, choosing
from the set of available portfolios. In the concluding remarks he
mentions that investment should be made in a growth oriented
company, which is capable of following a sustained demand
growth in the future.
Meeta Kathpal points out that traditional people were happy
investing in fixed deposits with the banks earning a small rate of
returns. Only in the late seventies and eighties the number of
investors investing in the equity shares showed an upward trend
due to the higher rate of return than in fixed deposits. The study
pointed out that in the year 1985 there was a virtual boom in the
stock market which attracted the traditional, fixed deposit
investors to invest in the stock market. At this stage the small
investors became so obsessed with a higher rate of return in the
stock market that they started selling their properties and
household items to invest in stocks.
The study indicated that there was a decline in the stock
market in the year 1993 due to the exposure of a stock scam,
followed by the Ayodhya incidence and the bomb blasts in
Bombay and Calcutta. Small investors lost their earned savings.
the study concluded that investors were not able to decide
whether, to have the equity purchased in the boom period or sell
them to avoid erosion in its value. Thus the days of fixed deposit
and debt instrument would return soon.
Joanne Stilley Hopper had published in the Journal of the
year 1985, Title “Family Financial Decision” making. Implications
for marketing strategy” stated that Investigates family financial
service choice behavior including insurance, investments, and
banking services. Indicates that, for the majority of the couples
surveyed, both spouses participate in financial decision making.
Results support the overwhelming need for financial services
institutions to target wives as well as there husbands in
promotional strategy an product / service development.
Yadav and Mishra (1996) in their article states that, “the role
of institutional investors in growing financial markets in the
allocation of household savings in developed countries with the
liberation process gaining momentum there has been significant
changes in the pattern, of investment of the household sector in
financial asset. The household sector’s savings in securities and
debentures and units of UTI have been increased significantly
during the post liberalization period in comparison with the late
eighties.
Jones Matthew, T.and Obstfeld, Maurice (1997) in the title
“saving, Investment, and Gold, A reassessment of Historical
current Account data”. This paper revises pre-world war II current
account data for thirteen countries by treating gold flows on
consistent basis. The standard historical data sources often fail to
distinguish between monetary gold exports, which are capital
account credits, and non-monetary gold experts, which are
current account credits. The paper also adjusts historical
investment data to the account for changes in inventories. The
revised data are used to construct estimates of saving and
investment over the period from 1850 to 1945. Our methodology
for removing monetary gold flows from the current account leads
naturally to the gold standard version of the Feldstein – Horioka
hypotheis on capital mobility. The regression results are in broad
agreement with those of Eichengreen, who found a significantly
positive cross sectional correlation between savings and
investments even during some periods when the gold standard
prevailed. Despite reaching broadly similar conclusions, we
estimate correlations between savings and investments that are
somewhat lower and less significant than those Eichengreen
found. In Particular, we find that in comparison to other interwar
subsamples, the saving investment correlation is markedly low
during the fleeting years of a revived world gold standard, 1925 –
1930.
Martin Rama and Donna Makgaac (1999) did a study on
“Earnings and welfare after Dawnsizing : central bank employees
in Ecuador”. This article measures the earnings and welfare losses
experienced by displaced employees of the Central Bank of
Ecuador. It links these losses to individual characteristics such as
gender, education seniority and salary in the public sector. Datas
are from a survey of displaced employees that public sector.
Datas are from a survey of displaced employees that included
subjective evaluations of well-being in addition to the information
on activities and earnings. The welfare losses of separated
employees are not highly correlated with their earning losses,
partly because some of them withdrew from the labor force after
separation. Earnings and the welfare losses also vary depending
on the nature of displacement, which was voluntary for roughly
half the employees and involuntary for the rest. Overall, the
losses were larger for employees with higher salaries. However,
compensation for displacement was based on the rule of thumb
that involved only salary and seniority and was applied across –
the – board. For those employees who left voluntarily, the
resulting compensation package was, on average, about 20 per
cent higher than the welfare loss. The article derives the
implications of these findings for the design of assistance
programs for displaced workers and more specifically for the
tailoring of compensation package to their individual
characteristics.
Kulkarni and Talele (1999) had put forth the importance of
savings in an interesting way. Household, public (govt) and
private corporate sectors are three pillars of Indian economy of
these three the last two are generally in deficit, the household
sector is a surplus sector which finances the deficit of the other
two sectors. The extent to which the household sector can
perform the job of financing is given by the ‘pattern’ or ‘portfolio’
of savings i.e., the distribution of saving in to claims on
government, private corporate or financial institutions.
Balsara Anita H.and Pestonjee DM (2000) anlysed,
Investment pattern and Decision Making. The role of working
women is an attempt made to study how far working women
enjoy freedom to take investment related decision on their own
and the pattern of investments in the male dominated investment
world in India. The questions related to investment pattern and
its decision maker with respect to working women was studied by
taking, 227 respondents from 3 cities : 108 in Ahmedabad, 60 in
Solapur, 59 in Gulbarga. Questionnaire method was administrated
and datas were collected on saving types of Investment,
influencers, expenditure and decision makers. In order to answer
the questions, conventional and non-conventional statistics were
used. There is no significant difference among the respondents
across the cities with respect to age, family size, type of family,
marital status, level of education, occupation and annual income.
No cultural and demographical patterns are associated with
decision making of working women.
Bhanoji Rao (2001) in his article “East Asian Economic Trust
in savings and Investment” has observed that savings rates were
exceptionally high in Singapore. No other economy had saved 40
to 500 per cent of GDP. Savings rates in all economics (except
Hongkong) were on an upward trend and were mostly in the
region of 30 to 35 per cent of GDP.
Reier, Sharon has published an article in the year 2001, title,
“Starting an Investment Advisory practice”. The article presents
some practical suggestions for certified public accountants who
want to establish their own investment advisory firms. Get
reactions from some of your current accounting clients about your
proposed investment advisory services. Make sure the local
investment community is not threatened by your expansion
plans. Evaluate the abilities of the partners and existing
professional staff to advise clients on their investments. A variety
of resources are available to help you start an advisory practice.
Review your proposed level of investment planning activities and
decide whether you will offer investment advice on your own or
affiliate with another registered investment advisor. Develop a
plan to help identify where you are going and how you will get
there. It should cove your target market, the specific services you
want to provide, your operating structures and an estimate of
start up costs.
Devan Ahotsey (2003) stated that Indian stock market could
sustain the FIIS investment on the three premises only. GDP
growth at 7 per cent should be sustained, corporate should
continue to show good profits and should remain stable or show a
gradual appreciation.
The study titled “Investment Patterns and performance of
investor groups in Japan”. Conducted by Akiko Kamesaka(2003).
The investment patterns and performances of foreign investors,
individual investors, and fives types of institutional investors.
Securities firms, banks, and foreign investors perform poorly. We
also find that foreign investor trading is associated with positive
feedback market timing and that this trading earns high returns.
Alternatively, individual investors use positive feedback trading in
their market timing but earn low returns. Consequently he
documented evidence consistent with information based trading
and behavioral based trading occurs in the same market.
Lewis A.Sandar said that is necessary for the investors to
learn about documents offered to them and the risk factors before
investing in mutual funds schemes. He also suggested that since
the mutual fund is a dynamic instrument, it necessary for the
investors to keep pace with all the changes in the regulations that
are getting updated by the SEBI.
Brian Ranson says that the various possibilities of separating
the interest rates and the credit risk in a bond portfolio. The study
showed that keeping a mix a bank loan, bonds and credit
derivatives would ensure diversification.
The study concluded that if investors wish to involve with
attractive risk and returns then they must accept some element
of interest rate risk.
Pietrangel has published an article in the year 2007 title
“Women and investing: finding the Extra money to save”. It
explains that women in the country have fewer opportunities to
accumulate pensions and retirement savings. But women must
give priority to savings for the future. They should create a plan of
attack with defined goals and the discipline to stick with it. Make
a conscious decision to break the spending habit and change your
mine set into saving. Find creative ways to save additional money
that you can invest for retirement.
1.4 OBJECTIVES OF THE STUDY:
The main objectives of the study are:
1. To study the various investment alternatives available to the
women bank employees.
2. To identify the critical factors which influence the investment
pattern among women bank employees.
3. To examine the extent the nature of family or group
influence or type of investors and the purpose of investment.
4. To study the awareness of various available investment
opportunities and their satisfaction with it.
5. To study out the investment preferred and reasons for the
preference by women bank employees.
1.5 SCOPE OF THE STUDY:
The study is pertaining to women bank employees in the
Madurai city. It makes an effort to analyses the investment
alternatives preferred by women Bank employees. The study also
analyse the reason for preferring the particular investment
patterns.
1.6 HYPOTHESIS:
There is no relationship between type of bank and type of
investors.
There is no relationship between total income and purpose
of investment.
There is no relationship between family group and
investment decision at home.
There is no relationship between age and awareness of
investment.
There is no relationship between education and awareness
of the investment.
There is no relationship between education and satisfaction
of investment.
There is no relationship between type of investor and
satisfaction of investment pattern.
There is no relationship between annual income and
investment in real estate.
There is no relationship between annual income and
investment in Gold.
1.7 OPERATIONAL DEFINITION OF CONCEPTS:
1.7.1 Investment:
An investment is a commitment of funds made in the
expectation of some positive create of returns. If the investment
is properly undertaken, the returns will commensurate with the
risk the investor assumes.
1.7.2 Real Estate:
The word real estate means land & building. Real estate is a
lucrative form of investment with high capital appreciation.
1.7.3 Mutual Funds:
Mutual funds are trusts which mobilize savings from the
people and use the funds to purchase securities.
1.7.4 Shares:
The Capital of the company divided into different units are
called shares.
1.8 COLLECTION OF DATA:
The study is based on both primary and secondary data. The
secondary data was collected from books, journals, website.
The primary data was collected from the women bank
employees.
The researcher carefully prepared on interview schedule.
After the pre-test, final draft was prepared and the data were
collected.
1.9 Research Design:
The study is descriptive and empirical in nature as the
researcher has no control over the variables, she can only report
what has happened and what is happening. The researcher has to
use the facts or information already available with her.
The present study covers a sample of 100 women Bank
employees. The convenience sampling method is used. The 100
women Bank employees were selected on the basis of
convenience of the researcher.
1.10 PERIOD OF THE STUDY:
The study period covered the Assessment Year 2007-2008.
1.11 FRAME WORK ANALYSIS OF DATA:
The primary data collected from the potential respondents
from different areas have been sorted, Classified, edited,
tabulated in a proper format and represented by using pie chart,
bar chart, histogram. It was analyzed by deploy by deploying
appropriate statistical tools. The researcher has used excel
spreadsheet for recording and calculation of the 100 samples. She
has also used statistical package of social sciences (SPSS) a
computer aided software package of statistical tools for deploying
different basic and advanced statistical tools in the research in
order to check the accuracy of procured data.
The researcher used the following statistical tools for
analyzing the data procured from the respondents from different
areas selected for the study.
Per centage analysis
Factor analysis
One way annova
Chi – square analysis
Yule’s Co-efficient
Garrett’s ranking
Weighted average method
1.11.1 PERCENTAGE ANALYSIS:
Percentage analysis is a simplest tool of all. It is used to give
the clear cut information about the analysis.
Formula :
individual respondentPercentage = x100
Total number of respondents
1.11.2 FACTOR ANALYSIS
Factor analysis is a multivariate statistical technique used for
analyzing complex multi-dimensional problems encountered by
business people. The technique condenses the information
contained in a number of original variables into a smaller set of
composite dimensions (factors) with the minimum loss of
information.
1.11.3 ONE WAY ANONA
Under the one way ANONA we consider only one factor and
then observe that the reason for said factor to be important is
that several possible type of samples can occur with in that
factor. We then determine if there are difference with in that
factor.
Analysis of variance table for one way ANOVA
[There are K samples having is all in items]
Sources of variation
Sum of squares (SS)
Degree of Freedom (d.F)
Mean Squares (MS) (This Is SS divided by d.F) and is a estimation of variance to be used in F – ratio
F - ratio
Between
Samples or
Categories
n(x1-x)2 +….nk+
(xk-x)2
(k – 1) SS between
k – 1
MS
betwee
n MS
within
With in
Samples or
Categories
∑(xji-x1)2+….
+∑(xki-xk
(n-k) SS within
n-k
Total ∑(xji-x1)2
i = 1,2…
j = 1,2..
(n - 1)
1.11.4 CHI-SQURE TEST:
Chi-square test is a non-parametric test is used for
comparing a sample variance to a theoretical population
varilance. The chi-square test is applied if the cell frequency is
more than 5.
Formula:
(O – E)2
x2 = ∑ E
O - observed frequency
E - Expected Frequency
Row total x Column totalE =
Grand Total
V = (C-1) (r-1)
As the calculated value is less than the table value then
accept the hypothesis.
1.11.5 Yate’s Correction:
It the cell frequency is less than 5 then yate’s correction is
applied.
Formula:
(O-E -0.5)2x2 = ∑
E
Since calculated value is compared with their corresponding
table values, for a given degrees of freedom at a specified level of
significance and it the calculated value is less than table value,
accept the hypothesis.
1.11.5 YULE’S CO – EFFICIENT OF ASSOCIATION:
Yule’s co-efficient of association is a tool used to find the
association between two attributes.
Formula
(AB) (αβ) – (Aβ) (αb)Q =
(AB) (αβ) – (Aβ) (αb)
1.11.6 GARRETT’S RANKING TECHNIQUE:
The following formula was used to find out the Garrett’s
ranking:
100 (Rij – 0.5)Percent Position =
Nij
Where, Rji-Rank given for the ith variables by the jth respondent.
Nij – number of variables ranked by the jth respondent.
By referring to the Garrett’s table, the percentage position
estimated was converted into scores. Thus for each factor, the
sores of various respondent were added and the mean score was
estimated. The means thus obtained for each of the attributes
were arranged in a descending order. The attribute with the
highest mean score was considered as the most important are
and the factors followed in order.
1.11.7 HISTOGRAM
It is one of the most popular and commonly used devices for
charting continuous frequency distributions, no matter whether
the variable under study is discrete or continuous. It consists in
erecting a series of adjacent vertical rectangles on the sections of
the horizontal axis (x-axis), with bases (sections) equal to the
width of the corresponding class intervals and heights
proportional to the corresponding class.
1.11.8 WEIGHTED AVERAGE METHOD:
The researcher has adopted weighted average method to
rank the performance according to respondents view. The
researcher used a six point rating scale for each feature. Each
scale was given a score according to its importance starting from
6 to 1.
Weighted Average (xw) = ∑wx
∑w
Where xw = Weighted arithmetic mean
w = The weightage attached to variables
x = The variable value
1.12 LIMITATION OF THE STUDY:
Respondents have been selected only from the city of
Madurai.
The study reflects the opinion of the respondents only
for the particular year.
The study was restricted only to female bank
employees in Madurai city.
1.13 CHAPTER SCHEME:
The first chapter deals with the introduction and design
of the study.
The second chapter focuses on saving and investment
alternatives.
The third chapter explains the profile and the factors
which influence the investment pattern among the
women bank employees. It also examines the extent
the nature of the family or group influence on the
investment pattern women bank employees and the
purpose of investment.
The fourth chapter highlights the investors preference
towards particular investment pattern and general
perception towards investment alternatives.
The fifth chapter deals with the summary of findings
and suggestions of the study.
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26. Brian Ranson, “Finding pure credit Risk”/ Global
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IP)
CHAPTER III
3.1 Introduction
3.2 Tools of Analysis
3.3 Profile of the Respondents
3.4 Factors Determining the Investment Pattern
3.5 Nature of Family Group and purpose of investment
CHAPTER-III
CRITICAL FACTORS INFLUENCE IN THE
INVESTMENT PATTERN
3.1 INTRODUCTION:
The analysis of data is the most skilled task in the research
process.This study is aimed to analyse the investment pattern
among the women bank employees.In this chapter an attempt is
made to study the profile of the respondent and the various
details regarding the extent the nature of family or group
influence on the investment pattern of women bank employees.
3.2 TOOLS OF ANALYSIS:
The following statistical tools were applied for the analysis
of the data.Percentage analysis,Bar diagram,Pie diagram,Factor
Analysis,Anova,Chi-square test.
3.3 PROFILE OF THE RESPONDENTS:
The respondents were women belonging to different age
groups,educational qualification,type of bank in which they are
employed and income of the family.
3.3.1 AGE-WISE CLASSIFICATION OF THE RESPONDENTS
Table 3.1 shows the age-wise classification of the
respondents.
TABLE : 3.1
AGE WISE CLASSIFICATION
S.N
o
Age No.of
Respondents
Percentage
1 Below 35 36 36
2 35-45 26 26
3 45-55 27 27
4 Above 55 11 11
Total 100 100
From the above table it is clear that 36 percent of the
respondents
fall in the age group of Below 35 years.To be specific ,27 percent
fall in the age group of 45-55 years and 26 percent fall in the
above
55 years age group.
It is concluded from the above table the most of the
respondents aree below 35 years.
3.3.2 NATURE OF EMPLOYENT OF THE RESPONDENTS
Table 3.2 depicts the type in which the respondent is
employed.
TABLE : 3.2
NATURE OF EMPLOYMENT
S.No Nature of
Employment
No.of
Respondents
Percentage
1 Private sector 33 33
2 Government
Services
67 67
Total 100 100
Table 3.2 reveals that 67 per cent of the respondents are in
government services and 33 per cent of the respondents are in
private
sectors.
According to the sample survey,most of the respondents are
in Government service.
3.3.3 EDUCATION WISE CLASSIFICATION OF THE
RESPONDENTS
Table 3.3 shows the educational qualification of the
respondents.
TABLE : 3.3
EDUCATION WISE CLASSIFICATION
S.No
Educational
Qualification
No.of
Respondents
Percentage
1 High School 9 9
2 Diploma 12 12
3 Graduate 47 47
4 Post Graduate 32 32
Total 100 100
Table 3.3 depicts the Education – Wise classification of the
respondents,47 per cent of the respondents fall under the
category
of Graduates,32 per cent fall under the category of post
graduate,
12 per cent of the respondent fall under the category of
diploma
and least 9 per cent fall under the category of High School.
It is clearly shown from the above table (3.3) that the
majority of the respondents are Graduate.
3.3.4 ANNUAL INCOME – WISE CLASSIFICATION OF
THE
RESPONDENTS
Table 3.4 shows the annual income wise classification of
the
respondents.
TABLE : 3.4
ANNUAL INCOME WISE CLASSIFICATION
S.No Annual Income No.of
Respondents
Percentag
e
1 Below Rs.75,000 17 17
2 Rs.75,000-1,50,000 25 25
3 Rs.1,50,000-2,25,000 35 35
4 Above Rs.2,25,000 23 23
Total
100 100
Details regarding the income of the respondents are given in
table 3.4. The table shows that the income of the respondents
have income between Rs.1,50,000-2,25,000, 25 per cent of the
respondents earn Rs. 75000-150000, 23 per cent of the
respondents earn above Rs.225000 and 17 per cent have income
between Below Rs.75000.
It is seen from the table 3.4 that majority of the respondent
are earning between Rs.15,0001-2,25,000.
3.3.5 TOTAL INCOME WISE CLASSIFICATION
Table 3.5 shows the total income of the respondents.
TABLE : 3.5
TOTAL INCOME WISE CLASSIFICATION
S.No Annual Income No.of
Respondents
Percentag
e
1 Below Rs.75000 10 10
2 Rs.75,000-150000 19 19
3 Rs.150000-225000 22 22
4 Above Rs.225000 49 49
Total 100 100
Table 3.5 shows that the 49per cent of the investors are
earning income from Above Rs.225000, 22per cent of the
investors are earning income Rs.150001 -225000, 19 per cent of
the investors are earning income between Rs.75000 – 150000
and 10per cent of the investors are earning income below
Rs.75000.
According to sample survey, most the respondents were
earning between above Rs.225000.
3.3.6 NUMBER OF MEMBERS OF THE RESPONDETS
Table 3.6 shows the number of members of the
respondents.
TABLE : 3.6
NUMBER OF MEMBERS OF THE RESPONDENTS
S.No Number of
Members
No.of
Respondents
Percentag
e
1 One - -
2 Two 3 3
3 Three 21 21
4 Above 3 76 76
Total 100 100
Table 3.6 indicates that 76 per cent of the respondents have
above 3, 21 per cent of the respondents have three, and least 3
per cent of the respondents have two of the number of members.
The above table proves, that more number of respondents
belong to above 3.
3.3.7 TYPE OF RETURN EXPECT FROM THE INVESTMENT :
Table 3.7 that the type of return expect from the
investment of the respondents.
TABLE : 3.7
TYPE OF RETURN EXPECRT FROM THE INVESTMENT
S.no Type of
return
No: of
respondents
Percentage
1 Periodical
Return
42 42
2 Return of
Maturity
58 58
Total 100 100
It is clear from the above table 3.7 that 58 per cent of the
respondents are expecting returns on maturity and 42 per cent of
the respondents are expecting returns on periodical returns.
Here it is identified from the table majority of the
respondents are expecting returns on maturity.
3.4 Second Objective of the study is to determine the
factors influencing the investment pattern among bank
employees.
Likert’s scale is employed to determine the factors, where
the respondents are asked to rate each attribute on a 5-point
scale ranging from ‘strongly agree’ to ‘strongly Disagree’. The
data so collected are subjected to ‘Factor Analysis’. Factor
analysis is a multivariate statistical technique used for analyzing
complex multi-dimensional problem encountered by the business
people.
From the scores assigned by the respondents, product
moment correlation matrix is obtained. These product moment
correlation co-efficient are than factored using the method of
principal component as the extraction technique and varimax as
the method of rotation. To test the sampling adequacy, Kaiser-
meyer-olkin measure of the sampling adequacy is computed,
which is found to be 0.64. It indicated that the sample is good
enough for sampling. Further, the overall significance of
correlation matrix is tested using Bartlett test of sphericity and it
is found that the results of Bartlett’s test (approx. Chi-square =
703.402 significant at 0.0000) also provided support for the
validity of the factor analysis of the data set. The Eigen valuves of
the resulting 22 factors (before rotation) are given in table 3.8.
TABLE . 3.8
EIGEN VALUES OF TWENTY TWO FACTORS
Factors Eigen Value Percentage Cumulative
of variance variance
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
4.760
2.304
1.791
1.542
1.445
1.216
1.091
1.007
.902
.817
.809
.718
.615
.504
.455
.429
.369
.348
.265
.219
21.638
10.471
8.143
7.009
6.570
5.529
4.960
4.575
4.099
3.716
3.679
3.262
2.795
2.290
2.067
1.949
1.675
1.584
1.207
.996
21.638
32.109
40.252
47.261
53.831
59.360
64.319
68.895
72.994
76.709
80.388
83.650
86.446
88.735
90.802
92.751
94.426
96.010
97.217
98.213
21
22
.214
.179
.972
.815
99.185
100.00
An examination of the Eigan values discloses that the only
eight meaningful orthogonal factors with Eigen values greater
than one. According eight factors emerged out of this analysis
and they account for a variation of 68.895 per cent. The
cumulative percentage of variance accounted for each factor in
the total variance is given in table 3.9.
TABLE : 3.9
FACTOR STRUCTURE
Factors Eigen
Values
Percentage of
variance
Accounted for by
each Factor
Cumulative
percentage of
Eigen value
1 4.760 21.638 21.638
2 2.304 10.471 32.109
3 1.791 8.143 40.252
4 1.542 7.009 47.261
5 1.445 6.570 53.831
6 1.216 5.529 59.360
7 1.091 4.960 64.319
8 1.007 4.575 68.895
After extracting the eight factors, Varimax rotation is used to
enhance the interpretability of the factors. The loadings produced
by the varimax rotation method are the best to use in the
absence of a specific reason to use another method.
The factor loadings indicate that the extent to which each
scale is associated with an underlying factor. In order to assign
some meanings to the factor solution a minimum acceptance
level of significance for factor loading is selected in this analysis.
The factor loading greater than + 0.50 are considered significant.
Table 3.10 shows the rotated factor matrix.
TABLE : 3.10
FACTOR LOADING
Statement
No. as Per
Facto
r
Facto
r
Facto
r
Facto
r
Facto
r
Facto
r
Facto
r
Facto
r
questionnai
re
1 2 3 4 5 6 7 8
22
21
20
14
15
16
4
5
1
11
10
12
13
19
8
9
17
2
7
.804
.803
.758
.758
.725
.643
.821
.691
.563
.862
.841
.515
.714
.701
.832
.658
.584.
.839
.664
6
18
3
.760
.673
.561
The factor analytic structure results are presented below in
table (3.11)
TABLE : 3.11
FACTOR ANALYTIC STRUCTURE
s.No. Factor Statement No. as Features (option) Factor
Loading
Per
questionnaire
1 Security
and Choice
22
21
20
Listed Security
Availability of
Avenues
Market stability
.804
.803
.758
2 Investment
Pattern
14
15
16
Initial Investment is
low
High Interest
Secured Investment
.821
.691
.563
3 Benefits 4
5
1
High market value
Additional Benefit
Regular Return
.821
.841
.515
4 Growth and
easy
procedure
11
10
12
Easy Transferability
Duration is
transferring the
procedure
Grow of capital
.862
.841
.515
5 Return and
Safety
13
19
High earnings /
return
Government
policies
.714
.701
6 Reliable 8
9
17
Easy Processing
Safety of the capital
Quick and return
with short period
.832
.658
.584
7 Prestige
and easy
loan
procedure
2
7
Loan facility
Prestige of the
Investment
.839
.664
8 Convenienc
e
6
18
3
Affordability
Reliability
Tax benefit /
advantage
.760
.673
.561
After grouping the twenty two variables into eight factors,
interpretative labels are suggested for each of the factor. The first
factor carries with it scales related to the availability of avenues.
Listed security and the market stability and is named as “Security
and Choice”.
The second factor contains scales related to the initial
investment is low, high interest, secured investment and is
therefore named as ‘Investment Pattern’.
The third factor ‘Benefits’ includes High Market value,
additional Benefit, regular return.
The fourth factor contains scales related to the easy
transferability, duration, growth of capital and is therefore named
as ‘Growth and easy Procedure’.
The fifth factor carries with it scales related to High earnings
return, Government policies and is named as ‘Return and Safety’.
The seventh factor contains scales related to the loan
facility, prestige of the investment and is therefore named as
‘prestige and easy loan procedure’.
The eighth factor carries with it scales related the
affordability, reliability, Tax benefit/advantage and is named as
‘Convenience’
After naming the factors, the factor which explains the
maximum percentage is identified. The analysis reveals that
21.638 per cent of the variation is explained by factor 1. (Security
and Choice)
Then 10.471 per cent of the variation is explained by factor 2
(Investment Pattern).
Then 8.143 per cent of the variation is explained by factor 3
(Benefits)
Then 7.009 per cent of the variation is explained by factor 4
(Growth and Easy Procedure)
Then 6.570 per cent of the variation is explained by factor 5
(Return and Safety)
Then 5.529 per cent of the variation is explained by factor 6
(Reliable)
Then 4.960 per cent of the variation is explained by factor 7
(Prestige and Easy Loan Procedure)
Then 4.575 per cent of the variation is explained by factor 8
(Convenience)
Thus the ‘Security and Choice (F-1) is found to be the most
dominant among the eight factors and determines the investment
pattern of women bank employees.
3.5 Third Objective of the study is to examine the nature
of the family or group influence or type of investors and
the purpose of investment.
3.5.1. TYPE OF FAMILY OF THE RESPONDENTS
Table 3.12 shows the type of family of the respondents.
TABLE : 3.12
TYPE OF FAMILY OF THE RESPONDENTS
S.No Family No.of
respondents
Percentage
1 Joint Family 31 31
2 Nuclear Family 69 69
Total 100 100
From the above table (3.11) it clearly shows that the 69 per
cent of the respondents have nuclear family and 31 per cent of
the respondents have joint family.
From the above analysis is concluded that the major of the
respondents were in nuclear family.
3.5.2 TYPE OF INVESTORS OF THE RESPONDENTS
Table 3.13 shows the type of investor of the respondent.
TABLE : 3.13
TYPE OF INVESTOR OF THE RESPONDENTS
S.No Type of
investors
No.of
respondents
Percentage
1 Regular 42 42
Investor
2 Occasional
Investor
58 58
Total 100 100
Table (3.12) depicts that out of the 100 respondents, 58 per
cent of the respondents were occasional investors and 42per cent
of the respondents were regular investors.
The study reveals that majority of the respondents were
occasional investors.
ONE – WAY ANNOVA :
3.5.3 RELATIONSHIP BETWEEN NATURE OF EMPLOYEMENT
AND TYPE OF INVESTOR
To find out whether there is any relationship between the
nature of employment and type of investor.
Hypothesis :
There is no relationship between the nature of employment
and type of investor.
TABLE : 3.14
RELATIONSHIP BETWEEN NATURE OF EMPLOYMENT AND
TYPE OF INVESTOR
Nature of
Employment
Type of Investor
Regular
Occasional
Investor Investor
Total
Private Sector 16 17 33
Government
Services
26 41 67
Total 42 58 100
NATURE OF EMPLOYMENT AND TYPE OF INVESTOR