investment behavior of women investors
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Investment behavior of Women Investors
M. P.Birla Institute of Management, Associate Bhartiya Vidya Bhavan 1
Investment Behaviour of Women Investors
A dissertation submitted in partial fulfillment of the requirement of Post Graduate Degree
in Master of Business Administration of Bangalore University
Submitted by: KIRTANA N KAULIGE
Register no. :
03XQCM6048
UNDER THE GUIDANCE OF
Dr Nagesh S Mallavalli
2004 2005
MP Birla Institute of ManagementAssociate Bharatiya Vidya Bhavan
BANGALORE 560 001.
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DECLARATION
I hereby declare that this research work embodied in this entitled dissertationInvestment Behavior of Women Investors has been carried out by me, under
the guidance of Dr.Nagesh .S. Mallavalli, Principal, MPBIM, Bangalore
I also declare that this dissertation has not been submitted to any University or
Institution for the award of any Degree or diploma.
PLACE: BangaloreDATE: (Kirtana N Kaulige)
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ACKNOWLEDGEMENT
I am grateful to many people whose timely help and guidance has helped me to
conduct this research successfully.
I hereby wish to express my heart felt gratitude to Dr. Nagesh S Mallavalli,
Principal for his guidance and supervision.
Finally I would like to extend my grateful thanks to all my friends and faculty
members of MPBIM, Bangalore whose assistance has a lot to me personally
for the completion of this research.
PLACE: Bangalore
DATE: (Kirtana N Kaulige)
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RESEARCH EXTRACT
Womens position in society has been changing over the last few decades. Today women are
better educated and earn more money than before, which has increased womens influence
on financial decision in families. The interest in investing has been increasing while the
households have become more prosperous. The results showed that the investors age,
financial situation, attitude towards risks and the phase of life affect investment behavior.
This research is carried out primarily to find out the attitude of women investors towards the
risk and return and the process of financial planning process undertaken by these investors.
This research also provides an insight into the needs and wants of women investors with
respect to the kind of portfolio of investment they are looking for and understand their
financial requirements in life.
As this research is also provides the information about the financial planning process of
women investors it becomes extremely essential to understand the process as a whole.
Financial planning is the process of meeting goals of life through proper management of
finances of an individual. Financial planning provides direction and meaning to financial
decisions. It helps in understanding how each financial decision one makes affects otherareas of finances. By viewing each financial decision as part of a whole, short and long-term
effects on the life goals can be evaluated.
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Topic
Investment Behavior and Financial Planning Process of Women Investors.
Statement of the Problem
This research is carried out primarily to find out the various options available to the women
investors whole doing their financial planning and to find their attitude towards risk and
return.
Objectives of the study
This study focuses on investment behavior of women investors and the factors that influence
their investment decisions. An in depth analysis is made in terms of their financial goals and
their investment patterns. It also focuses on the various investment options women invest in
and how aggressive they are in terms of investing.
Methodology and Data Collection
The Primary Data was collected by administering a detailed questionnaire and also by
conducting in-depth personal interviews.
Secondary data was collected through various sources such as magazines, internet,
business journals etc.
Findings
70% of the women have invested 10% to 20% of their income followed by women.
Most of the women consisting of 60% of them take their own investment decision.
90% of the women dont have a formal financial plan.
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38% of the women have ranked liquidity as the most important consideration while
taking investment decisions.
70% of the women had the basic understanding about investing and have made some
investments.
78% of the women prefer to invest in safer investments.
54% of the women would transfer their money into more secure sectors if their
investments decrease in value.
46% of the women base their decisions on the advice of their family members. 38% of
the women base their decisions on the advice of their friends.
58% of the women have a average tolerance level.
Conclusion
It can be concluded that generally, women are conservative investors and they feel that
safeguarding what they have is top priority. These investors want to avoid risk
particularly the risk of losing any principal that is their original investment even if that
means theyll have to sett le for very modest returns.
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INTRODUCTION
BACKGROUND
As a woman, and an investor, shaping of financial future is as important as the many other
roles they play in life. That' s why taking control today is essential i n realizing their dreams
for tomorrow. Whether women are just beginning to develop their investment strategy or are
refining a current one, it' s important to keep in mind that they should build a financial legacy
for long term. At various stages of your life, you are faced with important investment and
financial decisions. Your success in making these decisions with the help of a sound
investment strategy can have a major impact on your income, net worth and, ultimately,
quality of life in retirement.
Women today have more earning potential and more influence over financial decisions than
ever before. Women represent almost half of the workforce and many businesses are owned
or managed by women. Many women influence or control the majority of all consumer
purchase decisions and many of the investment decisions. As a result, it is important for
women to focus on finances now more than ever.
Throughout their lives, as a woman, they will be faced with different financial challenges
than their male counterparts. If women are going to take control of their financial future, its
important that they recognize those differences and empower themselves.
Earning money is only half the equation for achieving financial independence. Effectively
putting your money to work for you is equally important. Though the size of household
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income matters, how to manage the money women have to meet short-term obligations as
well as long-term goals determines how they live today and in the future. That' s why
taking control of their finances is so important. The challenges of investing are unique for
each individual. In addition, circumstances are frequently different for women and
whatever choices you make will be better as a result of greater knowledge of the underlying
issues and your options.
Women are more likely to live longer
As a woman; the life expectancy is at an all time high. In fact, 90% of women eventually
end up living on their own. To help ensure that women will be able to maintain their
lifestyle, they should stay involved in investment decisions and consider planning for the
unexpected early on.
Women are more likely to have dependents to care for
With a growing divorce rate, the number of single mothers is on the rise. Providing for and
raising a family, while also saving for college and retirement, can be a daunting task. One
way to help ensure that you have enough savings is to invest a small amount regularly
through a systematic investment plan.
Women are less likely to take investment risks
For whatever reason; many women are less willing than men to take risks. Yet, a certain
degree of risk is necessary to build a well-diversified portfolio. By learning all about
investing, women can become more comfortable making investment decisions that involve
different levels of risk.
Financial Planning Process
For this purpose a thorough understanding of financial planning is important for all
investors. Financial planning is the process of meeting ones life goals through the proper
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management of his/her finances. Life goals can include buying a home, saving for your
child' s education or planning for retirement. The financial planning process consists of six
steps that help people to take a "big picture" look at where they are financially. Using these
six steps, women can work out where they are now, what they may need in the future and
what they must do to reach their goals.
The process involves gathering relevant financial information, setting life goals, examining
current financial status by women and coming up with a strategy or plan for how they can
meet their goals given their current situation and future plans.
Financial and personal satisfaction is the result of an organized process that is commonly
referred to as personal money management or personal financial planning.
Personal financial planning is the process of managing investors money to achieve
personal economic satisfaction. This planning process allows him/her to control their
financial situation. Every person, family, or household has a unique financial position, and
any financial activity therefore must also be carefully planned to meet specific needs and
goals.
A comprehensive financial plan can enhance the quality of life and increase investors
satisfaction by reducing uncertainty about your future needs and resources. The specific
advantages of personal financial planning include
Increased effectiveness in obtaining, using, and protecting your financial resources
throughout the lifetime.
Increased control of the financial affairs by avoiding excessive debt, bankruptcy, and
dependence on others for economic security.
Improved personal relationships resulting from well-planned and effectively
communicated financial decisions.
A sense of freedom from financial worries obtained by looking to the future,
anticipating expenses, and achieving the personal economic goals.
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We all make hundreds of decisions each day. Most of these decisions are quite simple and
have few consequences. Some are complex and have long-term effects on our personal and
financial situations. The financial planning process is a logical, six-step procedure:
Determining of current financial situation Development of financial goals
Identifying alternative courses of action
Evaluating alternatives
Creating and implementing a financial action plan, and
Evaluating and revising the plan.
Step 1: Determination of Current Financial Situation
In this first step of the financial planning process, investors will determine their
current financial situation with regard to income, savings, living expenses, and debts.
Preparing a list of current asset and debt balances and amounts spent for various
items which give a foundation for financial planning activities.
Step 2: Development of Financial Goals
Investors should periodically analyze their financial values and goals. This involvesidentifying how they feel about money and why they feel that way. The purpose of
this analysis is to differentiate their needs from their wants.
Specific financial goals are vital to financial planning. Others can suggest financial
goals for investors; however, they must decide which goals to pursue. Their financial
goals can range from spending all of their current income to developing an extensive
savings and investment program for their future financial security.
Step 3: Identify Alternative Courses of Action
Developing alternatives is crucial for making good decisions. Although many factors
will influence the available alternatives, possible courses of action usually fall into
these categories:
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Continue the same course of action.
Expand the current situation.
Change the current situation.
Take a new course of action.
Not all of these categories will apply to every decision situation; however, they do
represent possible courses of action.
Creativity in decision making is vital to effective choices. Considering all of the
possible alternatives will help the investor make more effective and satisfying
decisions.
Step 4: Evaluate Alternatives
Investors need to evaluate possible courses of action, taking into consideration life
situation, personal values, and current economic conditions.
Consequences of Choices. Every decision closes off alternatives. For example, a
decision to invest in stock may mean an investor cannot take a vacation.
Opportunity cost is what investor gives up by making a choice. This cost,
commonly referred to as the trade-off of a decision, cannot always be measured.
Decision making will be an ongoing part of personal and financial situation. Thus,investor needs to consider the lost opportunities that will result from their decisions.
Evaluating Risk
Uncertainty is a part of every decision. Selecting a college major and choosing a
career field involve risk.
Other decisions involve a very low degree of risk, such as putting money in a savings
account or purchasing items that cost very less. The chances of losing something of
great value are low in these situations.
In many financial decisions, identifying and evaluating risk is difficult. The best way
to consider risk is to gather information based on investors experience and the
experiences of others and to use financial planning information sources.
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Financial Planning Information Sources
Relevant information is required at each stage of the decision-making process.
Changing personal, social, and economic conditions will require that investor
continually supplement and update your knowledge.
Step 5: Create and Implement a Financial Action Plan
In this step of the financial planning process, investor will develop an action plan.
This requires choosing ways to achieve your goals. As he/she achieves their
immediate or short-term goals, the goals next in priority will come into focus.
To implement the financial action plan, investors may need assistance from others.
For example, investor may use the services of an insurance agent to purchase
property insurance or the services of an investment broker to purchase stocks, bonds,
or mutual funds.
Step 6: Reevaluate and Revise the Plan
Financial planning is a dynamic process that does not end when investor takes a
particular action. They need to regularly assess their financial decisions. Changing
personal, social, and economic factors may require more frequent assessments. When life events affect investors financial needs, this financial planning process
will provide a vehicle for adapting to those changes. Regularly reviewing this
decision-making process will help them to make priority adjustments that will bring
their financial goals and activities in line with their current life situation.
To achieve the best results from financial planning engagement the following becomes
necessary for women investors:
Set measurable financial goals
Set specific targets of what women want to achieve and when they want to achieve results.
For example, instead of saying you want to be "comfortable" when you retire or that you
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want your children to attend "good" schools, you need to quantify what "comfortable" and
"good" mean so that you' ll know when you' ve reached your goals.
Understand the effect of each financial decision
Each financial decision women make can affect several other areas of their life. For example
a decision about a womans child' s education may affect when and how she meets her
retirement goals. All the financial decisions are interrelated.
Re-evaluation of financial situation periodically
Financial planning is a dynamic process. Financial goals may change over the years due to
changes in your lifestyle or circumstances, such as an inheritance, marriage, birth, house
purchase or change of job status. Revision of the financial plan to reflect these changes
becomes necessary to stay on track with the long-term goals.
Start planning as early as possible
People who save or invest small amounts of money early, and often, tend to do better than
those who wait until later in life. By developing good financial planning habits such as
saving, budgeting, investing and regularly reviewing finances by women early in their life
will help them to meet life changes and handle emergencies.
Be realistic in your expectations.
Financial planning is a common sense approach to managing finances to reach your life
goals. Events beyond a persons control such as inflation or changes in the stock market or
interest rates will affect your financial planning results.
The various factors which will influence a women investor are:
Start early
The most important step in any long-term investment plan is to start early. Even if women
are only able to set aside a small amount of money monthly, or even quarterly, that money
should still grow and generate earnings over time.
One highly effective way to make investing a habit is by paying yourself first. Setting aside
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a portion of income before paying other expenses can ensure that women have the money
they need to stick to an investment plan.
Stay Ahead of Inflation
Day-to-day inflationary price increases are often barely noticeable. Yet, over the long term,
a small increase in average yearly inflation can add up to a serious drain on investors
buying power. Women should focus on educated investment choices which may offset
inflation' s daily climb.
Invest Routinely
The widely heard mantra of "buy low, sell high" is something many investors strive for
but few achieve. Since no one can really predict the markets' ups and downs, even extensive
research and analysis can' t guarantee you a "low" price when you decide to invest.
Risk Tolerance
Risk is not something many people seek in their daily lives, but when it comes to investing,
some degree of risk can be potentially rewarding. The investments usually involve some
degree of risk. As a general rule of thumb, the higher the risk associated with an investment,
the higher the potential return.
What is the best saving and investing products should be ascertained. This depends on when
women will need the money, their goals
For instance, if women are saving for retirement, and they have 35 years before they retire,
they may want to consider riskier investment products, knowing that if you stick to only the
"savings" products or to less risky investment products, their money will grow too slowly
or given inflation or taxes, they may lose the purchasing power of their money. A frequentmistake people make is putting money they will not need for a very long time in investments
that pay a low amount of interest.
On the other hand, if women are saving for a short-term goal, five years or less, they don' t
want to choose risky investments, because when it' s time to sell, they may have to take a
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loss. Since investments often move up and down in value rapidly, they want to make sure
that they can wait and sell at the best possible time.
The primary risks in fund investing include the following:
Systematic Risk - A risk that influences a large number of assets. An example is
political events. It is virtually impossible to protect yourself against this type of
risk.
Unsystematic Risk - Sometimes referred to as "specific risk". It' s risk that affects
very small number of assets. An example is news that affects a specific stock such asa sudden strike by employees.
Credit or Default Risk - This is the risk that a company or individual will be unable
to pay the contractual interest or principal on its debt obligations. This type of risk is
of particular concern to investors who hold bond' s within their portfolio. Governme
bonds, especially those issued by the Federal government, have the least amount of
default risk and least amount of returns while corporate bonds tend to have the
highest amount of default risk but also the higher interest rates. Bonds with lower
chances of default are considered to be investment grade, and bonds with higher
chances are considered to be junk bonds. Bond rating services, such as Moody'
allows investors to determine which bonds are investment-grade, and which bonds
are junk.
Country Risk This refers to the risk that a country won' t be able to honor i
financial commitments. When a country defaults it can harm the performance of all
other financial instruments in that country as well as other countries it has relations
with. Country risk applies to stocks, bonds, mutual funds, options and futures that are
issued within a particular country. This type of risk is most often seen in emerging
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Diversification of the Assets
Limiting the investments to a single type or style can be a potentially dangerous situation.
The success of investment strategy depends more on the combination of asset classes
chosen, and less on the individual securities themselves.
Diversifying the assets, or spreading them across a variety of investment types and styles, is
a more effective way to manage portfolio' s risk level. Because different investments respond
differently to changing market conditions, diversification may provide protection in the
event that one or more investments experience a downturn.
Applying the concept of asset allocation helps ensure that you adequately diversify your
assets. Asset allocation means spreading your money across different asset classes, such as
stocks, bonds and cash. Asset classes usually do not move in tandem. Therefore, at any
given risk level, there is an allocation of stock; bond and cash investments that may help you
realize your return potential while minimizing your risk exposure.
Alleviate Tax Burdens
It sounds easy enough identify investments with strong fundamentals and good growth
prospects, purchase the most promising, and sit back and wait. This strategy, known as "buy
and hold" investing, is known to be a highly effective way of riding out the markets' short -
term fluctuations. In contrast, some investors try to time the market by anticipating themarkets' movements and investing accordingly. While this may seem like a proactive way of
investing, pinpointing the exact highs and lows is a difficult thing to do even for investment
professionals.
Investment Alternatives
Today' s investor is faced with an overwhelming number of choices when it comes to
implementing an investment strategy. Since the right combination of investments in the right
types of accounts can mean reaching your goals sooner rather than later, it is important to
know your alternatives. Below is a list of the major building blocks of any successful
strategy.
Stocks
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A share of stock represents partial ownership in a company. Initially sold by the company
itself to raise money, the shares are then bought and sold by investors in the secondary
market. Shareholders can vote on the company' s major decisions, and receive dividends as
their share of profits. As a company' s stock price rises or falls, so does the shareholder s'
investment.
Bonds
Like stocks, bonds are issued by companies and governments to raise money to fund a
variety of projects and operations. Unlike stocks, a bond is a loan that the issuer promises to
pay back, usually at a set interest rate. Bonds are then bought and sold by investors in the
secondary market.
Mutual Funds
One of the most convenient investment options available, mutual funds offer investors the
benefits of professional management and diversification. By pooling the assets of many
investors, and pursuing a set investment objective, mutual fund managers are able to provide
investors with buying power unavailable to individual investors.
Insurance and Annuities
Insurance and annuities can help you work towards life' s goals and plan for the une xpected.
Offering tax-deferred growth, the option of income for life and a guaranteed death benefit,
annuities can be a way to supplement your 401(k) or IRA retirement savings plan. An
annuity requires you to make one or a series of payments and, if you choose, the insurance
company will pay you a regular stream of income in the future in return. With life insurance,
you pay premiums to the insurance company which entitle your beneficiaries to a specified
benefit payment should something happen to you unexpectedly. This is all subject to the
paying ability of the issuing insurance company.
Cash and Cash Equivalents Treasury bills, money market mutual funds, certificates of deposit, even passbook savings
accounts are all considered cash. Returns on these types of savings and investments are
usually low because they often involve little or no loss of principal. But as a relatively safe
place to keep funds that you may need to access readily, they play an important role in any
investment plan.
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But women investors have to restrict their choice of investment assets. These restrictions
arise from their specific circumstances. Identifying these restrictions will affect their
investment policy. The investment decisions are mainly affected by:
Liquidity
Liquidity is the ease with which an asset can be sold and still fetch a fair price. Women
investors must consider how likely they are to dispose of the assets at short notice. From this
likelihood, they establish the minimum level of liquid assets they want in the investment
portfolio.
Investment Horizon
This is the planned liquidation date of the investment or part of it. It could be the time to
fund a childs education or marriage for women. Horizon needs to be considered as the
women investors have to choose between assets of various maturities.
Tax Considerations
Tax consequences are central to investment decisions. The performance of any investment
strategy is measured by how much it yields after taxes. For women investors who face
significant tax rates, tax sheltering and deferral of tax obligations may be pivotal in their
investment strategy.
Unique needs
Virtually every investor faces special circumstances. Primary investment of an individual
and the unique risk profile that results from employment can play a big role in determining a
suitable investment portfolio for women. These unique needs often center on a womans
stage in the life cycle. Retirement, housing and childrens education and many other factors
demand for funds and investment policy will depend in part on the proximity of this
expenditure.
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Since this research has been conducted on the women investors and a study of their
investment behavior, it becomes important to divide them into different types. Women
Investors have their own investing styles: some are risk takers by nature, willing to gamble
large amounts of money on highly speculative investments. Others prefer the safety and
security of cash in the bank even if it means that the actual buying power of their money is
slowly dwindling because of inflation. Most people fall somewhere in between these
extremes, and are willing to assume some risk, with the expectation that theyll be rewarded
with higher returns. The amount of risk youre willing to take is your investing style.
The investing style stems from a variety of things: age, personality, personal experience,
and financial circumstances to name a few. For instance, if women are approaching
retirement, have many financial responsibilities, or have lived through major recession,chances are they may be a more risk-averse, or conservative investor.
On the other hand, if youre young, earning a high income, have few financial
responsibilities, and have seen little in the way of economic hardship, you might be inclined
to take more risk.
Categories of Investors
While there are as many investing styles as there are investors, most people fall more or less
into one of three broad categories: conservative, moderate, aggressive.
Conservative investors
Generally, conservative investors feel that safeguarding what they have is their top priority.
These investors want to avoid risk particularly the risk of losing any principal (theiroriginal investment) even if that means theyll have to settle for very modest returns.
Conservative investors allocate most of their portfolios to bonds, such as Treasury notes or
high-rated municipal bonds, and cash equivalents, such as CDs and money market accounts.
Theyre generally reluctant to invest in stocks, which may lose value, especially over the
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short term. When conservative investors do venture into stocks theyre often inclined to
choose blue chips or other large-cap stocks with well-known brands because they tend to
change value more slowly than other types of stock and often pay dividend income.
Moderate investors
Moderate investors want to increase the value of their portfolios while protecting their assets
from the risk of major losses.
For example, a moderate investor might use an allocation model that has 60% in stock, 30%
in bonds, and 10% in cash equivalents . While they will tend to favor blue chip and other
large-cap stocks, they may be willing to invest a modest portion of their principal in higher
risk securities such as international stock, small-caps, and volatile sector funds in
order to increase their potential for higher returns.
Even if women are not risk takers by nature, a moderate investing style may be suitable in
any circumstance or financial situation.
Aggressive investors
Aggressive investors concentrate on investments that have the potential for significantgrowth. They are willing to take the risk of losing some of their principal, with the
expectation that they will realize greater returns.
Aggressive investors might allocate from 75 to 95% of their portfolios to individual stocks
and stock mutual funds. While large- and small-cap stocks and funds may make up the core
of their portfolios, many aggressive investors will have significant holdings in more
speculative stocks and funds, such as emerging market and sector mutual funds.
Since aggressive investors focus on growth, they are usually less inclined to hold income-
producing securities, such as bonds.
An aggressive investing style is definitely not for the faint of heart. Its best suited for
investors with a long-term investing horizon of 15 years or more, who are willing to make a
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long-term commitment to the stocks they buy. But history has shown that an aggressive
investing approach, combined with a well diversified portfolio, and the patience to stick to a
long-term buy-and-hold investing strategy through inevitable market downturns, can be the
most profitable in the long run.
Problem Statement
This research is carried out primarily to find out the various options available to the women
investors whole doing their financial planning and to find their attitude towards risk and
return .To find out the type of investment option which are desirable to different kinds of
women investors.
Purpose of the Study
This research is conducted with a focus on the investment behavior of the women investors
and factors they consider while taking investment decisions. It also highlights the various
purposes for which the funds from the investments done by the women will be used by
them.
Scope of the Study
The scope of the study is restricted to the market survey conducted on women investors with
respect to the preference of various investment options while doing their financial planning .
Research Question
What are the traits of womens investment behavior?
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Objectives of the Study
Primary Objectives
To find out risk appetite of women investors.
To find out whether the women investors are looking for long term growth or risk or
return or liquidity.
To know their long term financial goals.
Secondary ObjectivesTo understand the needs and wants of the respondents with respect to their financial
requirements in their life.
To have an understanding of the respondents saving pattern.
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5(9,(:2)
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REVIEW OF LITERATURE
Financial investment is the purchase of a financial security, such as a stock, bond, or
mortgage. Investment in human capital is spending on education, training, health services,
and other activities that increase the productivity of the workforce. It is the use of money for
the purpose of making more money, to gain income, increase capital, or both. The
purchasing of stocks, bonds, mutual funds, options, real estate, etc., made with the
expectation of future income or capital gains is investment.
An article entitled When It Comes to Investing, Is Gender a Strong Influence on
Behavior and a report given by Robert C. Doll was reviewed to know the purpose,objective and also the methodology used in their report and the conclusions that he has
drawn. This process has helped in devising a broad framework for the study and in
identifying those areas of study that the researcher has not touched upon.
When It Comes to Investing, Is Gender a Strong Influence on Behavior
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Background
In April 2004, Merrill Lynch Investment Managers undertook a study of investors and
examined their related attitudes, beliefs and knowledge levels. In gender terms, the survey
found that a little self-knowledge can go a long way.
Participants had to be solely or jointly responsible for financial and investment decisions for
their household, and have at least $75,000 in investable assets and an annual household
income of at least $75,000.
Objective of the Study
This survey brings a new perspective on the attitudes, knowledge and emotions that inform
investor mistakes. Male or female, the point is this: Understand the motivations and
emotions that inform their decision making and that can make better, more profitable
investment decisions."
Purpose of the Study
According to a groundbreaking survey of investors despite the fact that, on average, they
tend to know less about investing and enjoy investing less than men. The purpose was to
understand the investment styles of both men and women and the effect of money as an
emotional instrument which can get in the way of making the right investment decisions.
Methodology
The nationwide telephone poll examined the investment mistakes of 1,000 investors 500
men and 500 women and their related attitudes, beliefs and knowledge levels. Overall
findings were analyzed looking specifically at results by gender.
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The survey was done and random selection of sample was collected. The data was presented
and summarized to get the pattern of relationships between various characteristics such as
respondents attitude, emotions etc.
Findings
While all investors make mistakes, the survey found that women make fewer mistakes
than men. Women are far less likely than men to hold a losing investment too long or
wait too long to sell a winning investment.
A significantly greater percentage of women (47%) than men (30%) report not being
knowledgeable about investing.
Women take a very deliberate approach to their finances. They are eager to identify
goals and look to build a partnership with their financial advisor and want to be actively
involved in the process of building and executing a financial plan.
Both men and women cite the desire to have a comfortable retirement as their primary
motivator, however, more women than men cite this. More women also cite wanting to
be financially independent and having money to spend on the things they as "very
important" motivators.
Women are more likely than men to fall into the reluctant or unprepared categories
Investors in these categories tend to not enjoying investing and are generally lessknowledgeable about investing.
Conclusion
Women' s lesser knowledge and interest in investing may explain why this category skews
slightly female. Unprepared investors are not happy with their current financial situation.
They are the most likely to lack confidence and be fearful or anxious about investing. They
are the least likely to rebalance their portfolios.
It' s critical for investors to understand their psychological makeup . Money is an emotional
instrument, but emotions can get in the way of making the right investment decisions.
Behavioral scientists have tended to look at investors as a whole, but both men and
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women alike are influenced by different emotions. If we can fathom our individual
emotional tendencies, then we can take steps to anticipate and correct them."
Recommendations
Women should be encouraged to participate in the investment avenues.
They should try to invest in securities which have higher risks.
Women investors should achieve their success by starting early investment in life and
invest and rebalance regularly. These women investors should not over-allocate to a
single investment.
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RESEARCH METHODOLOGY
Type of research:
Descriptive Research
The type of research used in this study is descriptive. This has been used this research
centers around the typically structured investigative questions. In this case descriptions of
characteristics associated with population of women investors are formulated. Estimates of
the proportions of women who possess particular investment behavior is evaluated. Andafter this process association was made to different aspects of the investment habits of
women and their appetite of risk and investment styles of women is discovered.
Method of Data Collection
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a) Primary data
Primary data has been used in this study. Primary data was collected by administering a
detailed questionnaire and also by conducting in depth personal interviews.
b) Secondary Data
For this study secondary data was collected through various sources such as magazines,
internet and business journals.
Survey
The communication approach involved surveying women investors and recording their
responses for analysis. Questionnaires were given to various women who are working to
evaluate their investment patterns and to know their financial goals in life.
Sampling Design
Population
The population chosen for this study is women who stay in Bangalore as the research
revolves around the investment habits and the financial requirements of women investors.
Sample Size
For the purpose of this study, I have collected data from 50 women respondents. This is thetrue representative of the universe.
Sample Unit
In this research is conducted only for women.
Sampling Techniques
For the purpose of the study, judgment sampling has been used. In judgment sampling
technique, on the basis of the researchers judgment, sample is selected which is considered
as representative of the population. So in this case on the basis of my judgment sample has
been selected.
Instrumentation Technique
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Most of the questions are close ended questions in the questionnaire administered to the
respondents. The simple category scale and multiple response scale have been used.
Ranking scale has been used wherever appropriate.
Data Analysis
This involved reducing the accumulated data to a manageable size, developing summaries,
looking for patterns which will help the objectives of the study and applying of statistical
techniques. After the collection of data, coding sheet was prepared to classify the data. The
various tools which were used to for presentation and testing of hypothesis are:
Bar graphs.
Pie charts.
Column graphs.
Limitations of the Study
This is an academic effort and it is limited to cost, time and geographical area.
As the data is collected from 50 respondents only, generalization to other women
investors is inevitable.
An interpretation of this study is based on the assumption that the respondents have
given correct information.
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$1$/
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Govt sector Employee 10 20
Private Sector employee 25 50
Self Employed 5 10
House Wives 10 20
TOTAL 50 100
Findings:
Majority of the women are private sector employees. This accounts for 50% of the
respondents. Next 20% of the respondents were house wives and the percentages of
respondents were govt employees. Only 10% of the women were self employed.
CHART 1
Occupation of the Women Investors
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0
10
20
30
40
50
60
Govt em plo yee P r iva tee m p lo y e e
Self Em plo y ed Ho use W ives
Occupation
Respondents
Interpretation:
Most of the women respondents who were interviewed were working in private sector and
had the majority. Next equal percentage of respondents was govt employees and house
wives. The least number of women are self employed. There is a trend of the women
becoming independent financially which can be highlighted.
TABLE 2
Age of Women Investors
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Investment behavior of Women Investors
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PARTICULARS NUMBER PERCENTAGE
Between 20 and 30 10 20
Between 30 and 40 22 44
Between 40 and 50 13 26
Above 50 5 10
TOTAL 50 100
Findings:
Majority of the women respondents are in the age group which lies between 30tears to 40
years. This percentage is 44%. The next highest percentage of the women is in the age group
which is between 40 years and 50 years which has a percentage of 26%. The next highest
percentage of 20% of women respondents are in the age which lies between 20 years ans 30
years. The least percentage of women respondents in terms of age are in age group of 50
years and above.
CHART 2
Age of Women Investors
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0
10
20
30
40
50
Betw een 20 and
30
Betw een 30 and
40
Betw een 40 and
50
50 and above
Ag e
Percentage of R
espondents
Interpretation:
Most of the women are in the age group which is between 30 years and 40 years. And the
next highest percentage of women aged between 40 years and 50 years. This is closely
followed by women in the age group of 2o to 30 years. Least percentage of the respondents
is above 50 years. Most of the women are in the middle age and above.
TABLE 3
Marital status of Women Investors
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PARTICULARS NUMBER PERCENTAGE
Yes 30 60
No 20 40
TOTAL 50 100
Findings:
Most of the respondents are married with a percentage of 60%.The rest of the respondents
with a percentage of 40% are single.
CHART 3
Marital status of Women Investors
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MarriedSingle
Interpretation:
Most of the women respondents who were surveyed were married to understand the relation
between marital status and investing habits this consideration is taken. Most of the women
who are married have a tendency to invest in much secure investments and assets which give
benefit in the long term.the rest of the respondents who are single have mainly invested in
the avenues irrespective of their long term growth.
TABLE 4
Annual Income of Women Investors
PARTICULARS NUMBER PERCENTAGE
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Less than Rs100000 1 2.5
Between Rs100000 andRs250000
20 50
Between Rs250000 andRs500000
18 45
Above 500000 1 2.5
TOTAL 50 100
Findings:
50% of the respondents had an income level which was between Rs1 lakh and Rs2.5 lakh.
That is half the number of the respondents. 45% of the respondents consisted of women who
had a income between Rs2.5 lakh and Rs 5 lakh and the least of 2.5% each by women who
earn less than Rs 1 lakh and above Rs 5 lakh.
GRAPH 4
Annual Income of Women Investors
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0
1 0
2 0
3 0
4 0
5 0
6 0
Less than
Rs100000
Betw een 1 lakh
and 2.5 Lakh
Betw een 2.5
lakh and 5 Lakh
A bove 5 lakh
Annual Income
Percentage of Respondents
Interpretation:
Majority of the women are earning an income which lies between Rs 1 lakh and Rs2.5 lakh
and accordingly plan their investment. Very closely it is followed by women earning
between Rs2.5 lakh and Rs5 lakh and the least number by women who earn less than Rs1
lakh and above Rs5 lakh.
TABLE 5
Percentage of Income invested by Women
PARTICULARS NUMBER PERCENTAGE
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Less than 10% 4 8
10% to 20% 35 70
20% to 30% 10 20
More than 30% 1 2
TOTAL 50 100
Findings:
70% of the women have invested 10% to 20% of their income followed by women who
have invested 20% to 30% of their income constituting 20% of the respondents and 8% of
the women have invested less than 10% of their income and least percentage of 2% of
women have invested more than 30% of their income.
GRAPH 5
Percentage of Income invested by Women
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0
10
20
30
40
50
60
70
80
Less t han 10 10 t o 20 20 t o 30 Above 30Percen tage of Incom e Inves ted
Percentage of respondnts
Interpretation:
Most of the women have invested 10% to 20% of their income making them conservative
investors. Then few of them have invested 20% to 30% of their income which is not a big
percentage and few of them have invested less than 10% of their income as many women
dont have a thorough knowledge of all the investment avenues and the least percentage of
women have invested more than 30% as they dont want to take risks.
TABLE 6
Investment Decision taken by Women themselves
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PARTICULARS NUMBER PERCENTAGE
Yes 30 60
No 20 40
TOTAL 50 100
Findings:Most of the women consisting of 60% of them take their own investment decision and the
rest 40% of the women dont take their own investment decision independently.
GRAPH 6
Investment Decision taken by Women themselves
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Yes
No
Interpretation:
With financial independence most of the women have increased their knowledge andincreased their awareness levels about various investment avenues and have taken their own
investment decision. But still there are a big percentage of women who have not been able to
take independent decisions and rely on others for their own investment decisions.
TABLE 7
Formulation of a Financial Plan
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PARTICULARS NUMBER PERCENTAGE
Yes 5 10
No 45 90
TOTAL 50 100
Findings:
90% of the women dont have a formal financial plan and the rest 10% of the women have
formally formulated a financial plan.
GRAPH 7
Formulation of a Financial Plan
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Yes
No
Interpretation:
Most of the women have not made any formal plans regarding various financialrequirements and goals. So a majority of women have not planned for their finances and
other investment avenues and have invested as opportunities have come. With an absence of
financial plan they may lack focus on financial goals.
TABLE 8
Agreement on Financial Goals by Women and their Spouse
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PARTICULARS NUMBER PERCENTAGE
Yes 25 83.33
No 5 16.67
TOTAL 30 100
Findings:
83.33% of the women have agreement with their spouse on the financial goals they have in
their lives. Rest percentage of 16.67% of the women has disagreement with their spouse on
their financial goals.
GRAPH 8
Agreement on Financial Goals by Women and their Spouse
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yes
No
Interpretation:
Most of the women have a tendency to take guidance with their spouse if they are married.
So there will be a consensus on the financial goals and the various investment decisions they
take. A very less percentage of women dont have an agreement with their spouse over
various investment decisions as some of them may not have consensus with their spouse.
TABLE 9
Ranking of Factors considered while taking Investment Decisions
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NUMBER OF RESPONDENTS/PERCENTAGE TOTALOPTIONS/ RANKS 1 2 3 4 5
Long termgrowth 4 6 18 20 2 50
Percentage 8 12 36 40 4 100Risk 8 25 10 3 4 50Percentage 16 50 20 6 8 100
Return 5 6 17 19 3 50Percentage 10 12 34 38 6 100Retirement
income5 23 9 5 8 50
Percentage 10 46 18 10 16 100Liquidity 19 16 6 5 4 50
Percentage 38 32 12 10 8 100
Findings:
38% of the women have ranked liquidity as the most important consideration. The next
consideration according to them is risk with 50% of the respondents having that as a
consideration. 30% of the respondents have given long term growth as the next important
factor and the next important factor is return with 40% of the respondents choosing it. The
least important factor is retirement income with 16% ranking it as 5.
GRAPH 9
Ranking of Factors considered while taking Investment Decisions
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PARTICULARS NUMBER PERCENTAGE
No investment
experience
- 0
Basic understandingabout investing
35 70
Investing for long time 10 20
Experienced investor 5 10
TOTAL 50 100
Findings:
70% of the women had the basic understanding about investing and have made some
investments. 20% of the women have been investing for several years in different types of
assets and 10% of the women are experienced investors. Respondents having no investment
experience are none.
GRAPH 10
Knowledge about investing and various options available
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0
10
20
30
40
50
60
70
80
No expeience BasicUnderstanding
Some Expeience Experienced
Experience in Investing
Percentage of Respondents
Interpretation:
Most of the women have a basic understanding about investing which is a good trend to
encourage more participation in investments. A lesser percentage has been investing in
different types of assets for some years so there is a slow increase in participation of women
in investment portfolio. But a very low percentage of women who are experienced as many
women dont take active participation in investment avenues. But there are no respondentswho have no investment experience at all. Therefore all the women have invested one or the
other of the investment avenues.
TABLE 11
Description of Investment Objectives
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PARTICULARS NUMBER PERCENTAGE
Investing in safer
investments
39 78
Overall high returns 7 14
High returns withoutconcern for decrease in
investments
4 8
TOTAL 50 100
Findings:
78% of the women prefer to invest in safer investments. 14% of the women are willing to
tolerate some ups and downs in the value of investments to achieve higher returns in thelong run. The least percentage of 8% of the women has main interest in the high long term
returns.
GRAPH 11
Description of Investment Objectives
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Investment Objectives
02040
6080
100
safer Investments Moderate riskinvestments
High Returninvestments
Investment Objectives
Percentage of
Respo
ndents
Interpretation:As the majority of the women prefer investing in safer investments, they are conservative
investors. Next few of the women are willing to take some risk for long term return so they
are moderate investors. Very less percentage of women are aggressive investors who are not
concerned about short term decreases in their investment for high, long term returns. So it
can be inferred that most of the women are conservative investors
TABLE 12
Stand on the planning of various Financial Requirements
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OPTIONS PLANNED NOT PLANNEDNumber Percentage Number Percentage
Basic Savings 38 76 12 24Household
Expenses 28 56 22 44RetirementPlanning 19 38 31 62Buying of Assets 25 50 25 50Tax Planning 39 78 11 22Life Protection 40 80 10 20Medical Expenses 22 44 28 56ChildrensEducation 17 66 33 34Childrens Marriage 29 58 21 42Basic Savings 38 76 12 24
Findings:
76% of the women have planned for basic savings plan and 24% of women have not
planned for it. 56% of the women have planned foe household expenses and 44% of the
women have not planned for it. 38% of the women have planned for retirement and 62% of
them have not planned for their retirement. 50% of the women have planned for buying of
assets whereas 50% have not planned. 78% of women have done tax planning and 22% of
the women have not done tax planning. 80% of the women have undertaken life protection
policies and the remaining 20% of the women have not planned for life protection. 44% of
the women have planned for medical expenses and the rest 66% of the women have not
planned for it. 58% of the respondents have planned for their childrens marriage and 42%
have not planned for it. 76% of the women have planned for basic savings and 24% of the
women have not planned for it.
GRAPH 12
Stand on the planning of various Financial Requirements
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0102030405060708090
Basic
Savin
g s
Hous
ehold
Expe
nses
Retire
ment P
lannin
g
Buyin
g of A
ssets
Tax P
lannin
g
Life P
rotec
tion
Medic
al Exp
ense
s
Childr
ens E
duca
tion
Childr
ens Ma
rriag e
Various financial requirem ents
Percentage of Respondents planned
not planned
Interpretation:
Most of the women have planned for basic savings, household expenses, tax planning, life
protection, childrens education and childrens marriage. Many of them have not planned for
retirement and for medical expenses as they are secondary to them. For them most important
considerations will be basic savings, education and marriage of children etc.
TABLE 13
Reaction of Women Investors due to decrease in portfolio value
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PARTICULARS NUMBER PERCENTAGE
Transfer of moneyimmediately
27 54
Concerned but wait forimprovement
18 36
Leave the investmentswith expectation of
improvement
5 10
Invest more funds - -
TOTAL 50 100
Findings:
54% of the women would transfer their money into more secure sectors if their investments
decrease in value. Next 36% of the women will be concerned but will wait and only 10% of
the women would leave the investment and wait for improvement. None of them would
invest more funds to lower their average investment price.
GRAPH 13
Reaction of Women Investors due to decrease in portfolio value
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OPTIONS NUMBER PERCENTAGEYes No Total Yes No Total
Govtsecurities
15 35 50 30 70 100
Equity 10 40 50 20 80 100Bonds 5 45 50 10 90 100Mutualfunds
6 44 50 12 88 100
Companydeposits
- 50 50 - 100 100
Bank deposits
39 11 50 78 22 100
Post officedeposits
37 13 50 74 26 100
Insurance 32 18 50 64 36 100Provident
fund43 7 50 86 14 100
Real estate 9 41 50 18 82 100
Findings:
30% of the women have invested in govt securities and 70% have not invested. 20% of the
women have invested in shares and 80% have not invested in shares. 10% of the women
invested in bonds and 90% have not done so. 12% of the women have invested in mutual
funds and 88% have not. None of the respondents have invested in company deposits. 78%
of the women have invested in bank deposits and 22% of the women have not invested in
bank deposits. 74% of the women have invested in post office deposits and 26% of the
women have not invested. 64% of the women have invested in insurance and 36% of the
women have not done so. 86% of the women have invested in Provident fund and 14% have
not done so. 18% of the women have invested in real estate and 82% of the women have not.
GRAPH 14
Investment Avenues already invested in
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0
20
40
60
80
100
120
Govt
securit
iesEq u
ityBo
nds
Mutua
l funds
Company
Depos
its
Bank
Depos
its
Post Of
fice De
posits
Insura
nce
Provi
dent F
und
Real E
state
Investm ent Avenues
Percentage of Respondents
Yes
No
Interpretation:
Most of the women have invested in low risk investments as they are low risk takers. They
have invested in bank deposits, post office deposits, insurance, provident fund which havelow risk and low returns. But they have avoided investing in shares, bonds, company
deposits which could be due to their high risk involvement and less knowledge of women
regarding various instruments.
TABLE 15
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Basis of Investment Decision on the advice of
PARTICULARS NUMBER PERCENTAGE
Themselves 6 12
Friends 19 38
Family Members 23 46
Investment Advisor 2 4
TOTAL 50 100
Findings:
46% of the women base their decisions on the advice of their family members. 38% of the
women base their decisions on the advice of their friends. 14% of the women base their
decisions on their own. The least percentage of 45 of the women based their decision on the
advice of the investment advisor.
GRAPH 15
Basis of Investment Decision on the advice of
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0
10
20
30
40
50
Yourself Your Friend Familymembers
Investmentadvisor
Advice Of
Percentage of Respondents
Interpretation:
Most of the women take decisions by taking the advice of their family members. Many of
the women also take their friends advice. A very less percentage of women take their
decisions themselves without any advice. Very few of the women go to the investment
advisor. This could be due to the fact that they dont have a formal financial plan and which
in turn results in absence of a fixed financial goal.
TABLE 16
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Tolerance of Risk of Women Investors
PARTICULARS NUMBER PERCENTAGE
Very high 3 6
Moderately high 14 28
Average 29 58
Moderately low 2 4
Very low 2 4
TOTAL 50 100
Findings:
58% of the women have an average tolerance level and 28% of the women have moderately
high risk tolerance level. 6% of the women have very high risk tolerance level. 45% of the
women have moderately low and very low risk tolerance level.
GRAPH 16
Tolerance of Risk of Women Investors
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0102030
40506070
Very h
ig h
Moder
ately H
ig h
Avera
g e
Moder
ately L
ow Low
Risk tolerance
Percentage of Respondents
Interpretation:
It can be inferred that most of the women are moderate risk takers as can be seen above.
They dont take high levels of risk even if it gives high returns. Many of them are
moderately high risk takers. Very few of them take high risk and are aggressive investors.
Very less number of women has low risk tolerance. Most of the women dont want to takehigh levels of risks even if it yields high returns on the investments.
TABLE 17
Overall Investment Objective
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PARTICULARS NUMBER PERCENTAGE
Growing assets 9 18
Growing assets withcurrent income
30 60
Income and preservingcapital
11 22
TOTAL 50 100
Findings:
60% of the women have the investment objective which is growing assets while generating
current income. 22% of the respondents want to generate income and preserve capital. Leastpercentage of 18% of women wants growing assets without concern for current income.
GRAPH 17
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Overall Investment Objective
0
10
20
30
40
50
60
70
Growing assets Income andgenerating
income
Income andpreserving
capital
Investment objectives
Percentage of Respondents
Interpretation:
Most of the women have financial goals of generating assets which grow along with
generation of income. So they want financial security with long term growing assets with
income. A lesser percentage of women want growing assets even if doesnt generate curr ent
income as it involves risk. Women in this category have a very low percentage.
TABLE 18
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Use of funds in the portfolio in years
PARTICULARS NUMBER PERCENTAGE
Above 10 years 612
6 to 10 years 33 66
0 to 5 years 11 22
TOTAL 50 100
Findings:
66% of the women will use the funds in the portfolio in 6years to 10 years. 22% of the
women will use it in 0years to 5 years and 12% of the women will use the funds in timeperiod more than 10 years.
GRAPH 18
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Use of funds in the portfolio in years
0
10
20
30
40
50
60
70
Above 10 years 6 to 10 years 0 to 5 years
Use of Funds
Percentage of
Respondents
Interpretation:
Most of the women dont have a very long term use of funds as a goal. They want to use it
in 6 years to 10 years which is not a long period. Very few of the women use them in less
than 5 years. A lesser percentage uses the funds in their portfolio in more than 10 years. As
women generally invest in funds which generate incomes in long term but invest in avenues
which are medium and short term current income generation.
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&21&/86,216
CONCLUSIONS
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Women have invested a very less percentage of their income as many women dont
have a thorough knowledge of all the investment avenues they dont want to take
risks.
There are a big percentage of women who have not been able to take independent
decisions and rely on others for their own investment decisions.
A majority of women have not planned for their finances and other investment
avenues and have invested as opportunities have come.
Majority of the women are of the opinion that liquidity is the most important factor
to be considered while taking investment decisions.
Most of the women have a basic understanding about investing which is a good trend
to encourage more participation in investments. Most of the women prefer investing in safer investments, they are conservative
investors.
Most of the women have planned for basic savings, household expenses, tax
planning, life protection, childrens education and childrens marriage.
Most of the women cannot take risk and so they cannot wait for improvement as they
are not very high risk takers with decrease in portfolio value.
Most of the women have invested in low risk investments as they are low risk takers.
They have invested in bank deposits, post office deposits, insurance, provident fund
which have low risk and low returns.
Most of the women take decisions by taking the advice of their family members as
they need guidance by the experienced people.
Most of the women have financial goals of generating assets which grow along with
generation of income. So they want financial security with long term growing assets
with income.
As women generally invest in funds which generate incomes in long term but invest
in avenues which are medium and short term current income generation.
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It can be concluded that generally, women are conservative investors and they feel that
safeguarding what they have is top priority. These investors want to avoid risk
particularly the risk of losing any principal that is their original investment even if that
means theyll have to settle for very modest returns.
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6&+(0(2)5(&200(1'$7,216
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SCHEME OF RECOMMENDATIONS
Women should be encouraged to invest in more avenues and participate in the
investment avenues which involve high risks and also high returns.
Women should focus on making a formal financial plan to have a focus on the
financial goals.
Women should increase their awareness level of the portfolio diversification to
spread their risk.
Women should recognize their financial independence and plan for the future to
make it better.
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%,%/,2*5$3+
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BIBLIOGRAPHY
www.merilllynch.com
www.financialplanning.com
www.investorhome.com
India Today
Business Line
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$11(;85(6
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QUESIONNAIRE
1. OccupationGovt employee
Private sector employeeSelf employedOthers ( Please specify )
2. AgeBetween 20 and 30Between 30 and 40Between 40 and 5050 and above
3. Marital status
MarriedSingle
4. What is your annual income?Less than Rs. 100000Between Rs. 100000 and Rs. 250000Between Rs. 250000 and Rs. 500000Above Rs. 500000
5. What percentage of your income is invested?Less than 10%10% to 20%20% to 30%More than 30%
6. Do you take your own investment decisions?YesNo
7. Do you have a formal financial plan?YesNo
8. Do you and your spouse generally agree on your financial goals?YesNo
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9. What factors do you consider while taking an investment decision? Rank the following onthe scale of 1 to 5 (1 most important and 5 least important)
FACTORS RANKa) Long term growth
b) Risk c) Returnd) Retirement incomee) Liquidity
10. How knowledgeable are you about investing and the various options available?I have no investment experience.I have a basic understanding about investing and have made some investments.I have been investing for several years in different types of assets.I am an experienced investor.
11. Which of the following statements would you feel most correctly describes yourinvestment philosophy?I prefer to invest in safer investments.I am willing to tolerate some ups and downs in the value of my investments to achieve
overall higher returns in the long run.My main interest is high, long term returns and I am not concerned about short term
decreases in my investments.
12. Indicate your stand on the following:
PARTICULARS PLANNED NEEDS PLANNINGa) Basic savings plan ------ -----b) Household expenses ------ -----c) Retirement planning ------ -----d) Buying of assets ------ -----e) Tax planning ------ -----f) Life protection ------ -----g) Medical expenses ------ -----h) Childrens education ------ -----i) Childrens marriage ------ -----
13. What would your reaction be, if in 6 months after placing your investments, yourportfolio decreases in value?
Transfer your money into more secure investment sectors.You would be concerned, but would wait to see if the investments improve.You would leave the investments in place expecting the investments to improve.You would invest more funds to lower your average investment price.
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14. What are the various investment avenues you have already invested in?PARTICULARS YES NO
a) Govt securities ------ ------b) Equity ------ ------c) Bonds/debentures ------ ------
d) Mutual funds ------ ------e) Company Deposits ------ ------f) Bank Deposits ------ ------g) Post Office Deposits ------ ------h) Insurance ------ ------i) Provident Fund ------ ------j) Real Estate ----- ------
15. You base your investment decisions on the advice of :Yourself Your friend
Your family membersInvestment advisor
16. Risk tolerance is the relative ability to accept measurable losses in the short term inexchange for expected higher returns long term. Your tolerance for risk is:
Very highModerately highAverageModerately lowVery low
17. My overall investment objectives are:Growing assets without concern