UNIVERSITY OF CENTRAL PUNJAB

Presented To Sir Asghar Ali Presented By Zain Agha

Adnan Sheikh Ali Raza Salman Farsi Amina

Topic

Assessment of Investment Knowledge and Investment

Preferences of Commerce Students in Lahore.

Assessment of Investment Knowledge

The purpose of the research is to know, whether commerce students have sufficient investment knowledge or not.?

InvestmentPreferences of Commerce

Students

When students are going to invest, what factor they consider important which will be profitable for them.

Literature Review

Some related Articles which were reviewed by researcher are…

Understanding personal financial management may help people especially youth to avoid regretting mistakes (Duguay, 2001).

Mooney (2008)argued that lacking financial knowledge

may lead to a bad decision thus devastating individuals,

families and finally the whole economy.

Literature ReviewCude et. al. (2006) By looking into the financial management

habits of the students proved that some students do not bother to manage their finances well and thus, are financially at risk.

Sabri et. al. (2008) Also reported thatstudents have lower financial well being which

may affect their academic achievements as well.

MethodologyThis study has been conducted using survey

methodology and questionnaire for this study was adopted from Shirazi (2009).

Sample Size

For research purpose, two top universities of Lahore in commerce field were selected.

Punjab University Lahore.(Public)University of Central Punjab

Lahore.(Private)

Continued

300 Questionnaires were distributed out of which 140 students respond.

Questionnaire contained 10 Investment related questions adopted from Shirazi(2009).

Continued

8 sections selected randomly from each university.

4 Evening sections.4 Morning sections.

Hypothesis

The following hypotheses are tested in this study:

H01: Commerce students don’t have appropriate level of investment Knowledge.

H02: No significant difference exists in sub groups of students with regard to age, gender, job

experience, Degree, investment experience.

AnalysisDemographics Frequency Percentage

Gender

Male 98 70

Female 42 30

Age

16-20 36 25.71

21-25 103 73.57

Above 25 1 0.71

Degree

M. Com 50 35.71

M. Com (18 Years) 63 45.0

M. Phil 27 19.29

Demographics of Sample - continued

Work Experience Frequency Percentage

None 78 56.12

Less than 2 years 47 33.81

2-4 years 4 2.88

More than 4 years 10 7.19

Investment Experience

Yes 54 38.57

No 86 61.43

Students Test Score (Marks Wise)

Marks Frequency Percent Cumulative Percent

0 2 1.4 1.4

10 4 2.9 4.3

20 8 5.7 10

30 14 10 20

40 24 17.1 37.1

50 25 17.9 55

60 18 12.9 67.9

70 30 21.4 89.3

80 12 8.6 97.9

90 3 2.1 100

Total 140 100

Mean Average Score of student’s Test

N Minimum Maximum Mean Standard Deviation

140 00 90 51.7143 19.99794

Students Test Scores (Question wise)

Question type Numbers Percentage

Stock 82 58.57

Bond 74 52.87

COD 93 66.43

Mutual fund 44 31.43

No load 14 10

Annual interest 61 43.57

Blue chip 76 54.29

Liquid assets 119 85

Risk 93 66.43

Credit rating 68 48.57

Other Tests AppliedGender and investment knowledge T-test

ANOVA Test applied on work experience and investment knowledge.

Gender

N Mean Standard deviation

Standard error mean

Mean difference

T

Male 98 53.7755

19.50497

1.97030 6.87075 1.880*

Female

42 46.9048

20.54004

3.16940

Investment Preferences of the Students

Factors N Mean Standard deviation

Return 136 4.1103 1.15901

Price 138 3.7319 1.12399

Risk 137 3.7226 1.12282

Shariah Compliant

138 3.4855 1.43082

Professional Advice

134 3.2537 1.28430

Conclusion

with this study, we have found the inadequate knowledge of students in spite of the fact that all these students have studied finance as their major

subject. Moreover, differences with regard to gender, age, work experience and degree are also evident in this study.

ImplicationEducation is not playing its part

well so changes is inevitable in order to better align the curriculum and teaching style with the practical world outside for

which the education is provided to the young ones so that they may develop their skills and proficiencies to have a successful career afterwards.

ContinuedIn order to better educate the peoplemore practical approach should be

adopted that should require students to go and work in the organizations to understand the practical aspects of their learning.

Furthermore, workshops,conferences, seminars, financial

counseling centers on campuses and instituting formal need awareness program should be held.

THANK YOU