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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Dec 12003, Vol XVIII No.25 P.59.

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of investor groups in Japan”. Faculty of Economics, Ryakota

university, vol 11, Issue I, Jan 2003 pages 1-22.

25. Lewis sandar, A. “Regulating Mutual Funds” Capital

Investors in India, Vol. 04 No.3 Dec 2003. PP 6-7

26. Brian Ranson, “Finding pure credit Risk”/ Global

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extra money to save”.Jul/Aug 2007.Vol.59.Issue 4 p.33-33

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