Investment Habits of Working Women

Consumer Behavior Project

INVESTING HABITS OF WORKING WOMEN IN BHUBANESWAR:

ABSTRACT As the title of the project suggest, it is all about the study of the investment habits of working women in Bhubaneswar & the aim of the study is to find out the cause of such behavior. behavior. The The numb number er of work workin ing g wome women n

is cons consis iste tent ntly ly incr increa easi sing ng in

Bhubaneswar. It is seen that working women, as a growing segment of the population, is increasingly becoming more aware of financial services and the various investment options that are available in the market. The women now in the upcoming Tier-2 & Tier-3 cities are becoming more independent and responsible. They want to secure their future and want to make more returns on their investment. Their thinking and perception is changing and they are more likely to take take risk risk and adapt adapt to the featur features es of vario various us financ financia iall servi services ces products. Thus, Thus, parti particip cipati ation on of women women in capita capitall mark market et relat related ed investments has given an all together new segment to the financial sector, which is growing very steadily. With this project I get an opportunity to meet women, working in various sectors in the city of Bhubaneswar & analyze their investing behavior & patterns. 1

Abhisek Mitra, U408001


LITERATURE REVIEW

Financial services in India

http://www.mumbaispace.com http://www.mum baispace.com/financialpla /financialplanning/financialnning/financialservices-in-india.htm In last few years, India has emerged as the one of the most rapidly growin growing g econo economi mies es in the world. world. India India has been been catego categori rized zed with with nations like Brazil, Russia and China (BRIC Nations) who are going to be the prime drivers of world economy in next few decades. Since the time, India first opened its gates to foreign investment (FDI & FII), there has been a complete turnaround. Now the traditional Hindu rate of growth is a thing of past and clocking 8%-9% GDP growth rate is the common norm. India along with other Asian powerhouse China makes for the fastest growing nations in the entire world.

Even Even if we take ake the the case case of ongo ongoin ing g glob global al rece recess ssio ion, n, Indi India a has has managed to perform far better than other nations. Right from banking system to financial regularities, the country has thrived on discipline and outout-pe perf rfor orma manc nce. e. The The boom boomin ing g Indi Indian an econ econom omy y resu result lted ed in widespread growth and arrival of new industries. The most sparkling phenomenon is in form of financial market of India.

2


Consumer Behavior Project Financial services in India has taken a giant leap from the days of stan standi ding ng in bank banks s queu queue e for for seve severa rall hour hours s for for open openin ing g a savi saving ng account or trying to get some fixed deposits (FD) done. The financial services have increased manifold and now people have the choice to choose the

one

that

most

suitably

fits

the

bill.

There There are severa severall servic services es like like brokin broking g firms, firms, inve investmen stmentt serv services ices,, financ financial ial consul consultin ting, g, evergr evergreen een nation national al banks, banks, numero numerous us privat private e banks, mutual funds, car and home loans, equity market and other banking services. Services are many and offered by blue chip names of the industry. Most of the companies in financial segment offer taxation services, project consultancy services a nd

all

the

services

of

wide

financial

gamut.

Whether it’s taking a car loan or booking your favorite house, going for pensi pension on pla plan n or gett gettin ing g your your chil child d insu insure red, d, nume numero rous us attr attrac acti tive ve financial services are available at affordable COST.

Personal banking services have acquired an altogether new meaning. Now customers have multiple choices to choose from. One can find all the financial services on the internet that are just a call away.

What is investment? http://en.wikipedia.org/wiki/Investment

•

Investment is the commitment of money or capital to purchase financial instruments or other assets in order to gain profitable 3


Consumer Behavior Project returns in form of interest, income, or appreciation of the value of

the

instr strument.

It

is

related

to

sav saving

or

deferring

consumption. •

Investment is involved in many areas of the economy, such as business business manageme management nt and finance no matter matter for household households, s, firms, or governments.

•

An inve invest stme ment nt invo involv lves es the the choi choice ce by an indi indivi vidu dual al or an orga organiz nizati ation on such such as a pensio pension n fund, fund, after after some some analys analysis is or thought, to place or lend money in a vehicle, instrument or asset, such as property, commodity, stock, bond, financial derivatives (e.g. (e.g. future futures s or optio options) ns),, or the forei foreign gn asset asset denom denomina inated ted in foreign currency, that has certain level of risk and provides the possibility of generating returns over a period of time.

•

In an economy, people indulge in economic activity to support their their consumpti consumption on requirem requirements. ents. Savings Savings arise arise from deferred deferred consumpt consumption, ion, to be invested, invested, in anticipa anticipation tion of future future returns. returns. Invest Investme ments nts could could be made made into into financ financial ial asset assets, s, like like stocks stocks,, bonds, and similar instruments or into real assets, like houses, land, or commodities.

•

The three aspects of investment: the various options available to an investor in financial instruments, the tools used in modern finance to optimally manage the financial portfolio and lastly the profe professi ssiona onall asset asset manag managem ement ent indust industry ry as it exists exists today. today. Return Returns s more more often often than than not not diffe differr across across their their risk risk prof profile iles, s, generally rising with the expected risk, i.e., higher the returns, higher the risk.

Background of Bhubaneswar City & its demographics 4


Consumer Behavior Project http://en.wikipedia.org/wiki/Bhubaneswar

Bhubaneswar is the capital and the largest city of the Indian state of Odisha. The city has a long history of over 2000 years starting with Chedi dynasty (around 2nd century BC) who had Sisupalgarh near present-day Bhubaneswar as their capital. Historically Bhubaneswar has been known by different names such as Toshali, Kalinga Nagari, Nagar Kalinga, Ekamra Kanan, Ekamra Khetra and Mandira Malini Nagari. The largest city of Odisha, Bhubaneswar today is a center of economic and religious importance in the region. Its proud possession of magnificent sculptures and architectural heritage, coupled with the sanctity as Ekamrakshetra make this one of the great religious centres of Odisha since early medieval days. With its large number of Hindu temples (over 600 in number), which span the entire spectrum of Kalinga architecture, Bhubaneswar is often referred to as a Temple City of India. Together with Puri and Konark and, Bhubaneswar forms the 'Swarna Tribhuja' (the 'Golden Triangle'), one of the most visited destinations in East India. The modern city of Bhubaneswar was designed by the German architect Otto Königsberger in 1946. It is one of the cleanest and planned city of Modern India, after Chandigarh. The city is surrounded by

dense

canopy

of

forests,

picturesque

Chandaka

and

the Nandankanan; this along with an abundance of in-city greenery and an efficient civic body (the BMC) makes it one of the cleanest and greenest city of India today. Bhubaneswar replaced Cuttack as the political capital of the state of Odisha in 1948, a year after India gained its independence from Britain. Bhubaneswar and Cuttack are together known as the "twin cities" of Odisha.

5


Consumer Behavior Project The metropolitan area formed by the twin cities has a 2008 population of 1.9 million and The World gazetteer estimates the metro area population as 1,666,429 making it the 22nd largest urban centre in the country. Bhubaneswar comes under the category of tier 2 cities of India. It is an emerging IT hub and one of the fastest developing cities of India in recent years. It is also characterized by the emergence of various other service industries, complementing the growth in the mining sector & the steel & alluminium industries in the state of Odisha. As per the census, Males constitute 56% of the population and females 44%. In 2001, the city had an average literacy rate of 79%, higher than the national average of 65.4%. 10% of the population is under 6 years of age.

Saving Habits Of Women Need Empowerment http://gpbaroowah.blogspot.com/2010/01/saving-habits-of-women-needs.html

During Twenty-first century more women are working than twentieth century. Now a days women are heading organization like Coco cola, HSBC banks HDFC banks and also insurance companies. Many women have become successful lawyers, Doctors, advocates and teachers. With women occupying such senior position it is natural for them to save more and more. But it has not happened. In a survey recently conducted it was revealed that women are more of a spender than saver. Women spend more for the family than on her self. But this habits needs to be reversed. Because in a family children idolize the mother

rather

than

the

father.

They keep the father in high esteem no doubt but children are 6


Consumer Behavior Project generally scared of father and friendly with mother. Sons are closer to mother and daughters are closer to father is a myth really. Why women spend more money than the saving. This emanates from the feeling that she is natural guardian of the family. Any shortfall in the budget and life style is picked up by working mother than the father. Even in the office, it is found that female employees don’t hesitate to buy Tiffin for colleagues compared to male officers. Many studies have shown that women lag behind men in saving for retirement. In a 2008 survey of more than 1,300 workers or retirees over age 25 by nonpartisan Employee Benefit Research Institute (EBRI) and Matthew Greenwald & Associates, 68% of women and 76% of men said that they "had" saved for retirement; 59% of women and 70% of men said they were currently saving; and 58% of women and 64% of men said they were contributing to a workplace retirement account. Two recent studies of participants in large-company plans show similar results. This is not only the case in India. Even in America women save lower than men folks. The Vanguard, a mutual fund company that also manages retirement plans in USA, reported that in 2007 the average account balance of more than three million participants in their 401(k) plans was $56,723 for women, compared with $95,447 for men. More recently, Hewitt Associates consultants surveyed nearly 2 million participants in large-company 401(k) plans the company manages and found that women had an average of $56,320 in their accounts, compared with over $100,000 for men. This is the time our society need to empower women so that they can save better for the rainy days. Working single women need to think specifically about saving habits. The saving in banks or in Government plans are safest option but it would not support them fully due to inflationary pressure. Women who 7


Consumer Behavior Project could manage their monthly budget with Rs10000 per month a decade back are finding it most difficult to carry on unless they can earn more than

double

the

amount.

This

is

the

effect

of

inflation.

The potato which used to cost Rs 3 a kilogram then is now costing Rs 28 a kg. What is the way out? If she would have kept all the saving in Nationalized bank her money would have been safe alright but now she would have to depend on borrowed money or depend on the alms of others. Fortunately she kept a portion of her money in mutual fund that gave her a return of 25% of money saved. Every single women and single mother must keep it in mind that safe keeping of asset is not enough. The asset must be capable of providing inflation adjusted return for at least twenty years. What should women do? They need to invest and save early and judiciously. Where women need to invest? The investment in EPF is a must. Those who do not have EPF they should start saving PPF surely from the beginning of their career. PPF can be started with Rs 500 per annum. Investment in PPF would not be enough. To beat the inflation it would be mandatory for a person to invest first in Mutual fund. Investment in mutual fund is not as safe as the bank fixed deposit. But women must learn to take little risk in case they want to lead a satisfying life style through out their life. Which are the mutual fund they need to select and how long they need to keep investing? It would be prudent to study investment journals. Many may not be able to do so. In that even they need to approach a well-known bank. The banks have their own investment desk. SBI has their own persons. Similarly Standard Chartered has their own investment advisor. These advisors may be able to guide new investors. I would highly recommend that all investor should try to study the website of “Money control.com and value research .com. and invest in four star and five 8


Consumer Behavior Project star mutual funds. Any women above forty-five years of age should be able to reduce the risk buy avoiding full diversified equity funds. They need to subscribe at least sixty percent of their saving in debt fund. Alternatively they can opt for balanced fund so that risk can be divided. Single mother has greater responsibility towards their children. So it would be prudent to subscribe to insurance policies so that their children are not handicapped in case of emergent situation. The education and marriage are two important components of life. In order to sail smoothly single mother must plan for correct ULIP policies. In India great ULIP policies have started of late though they are costly compared to investment plans of mutual fund. ULIP policy should be subscribed after learning the details of the plan. Each policy tries to be different. Being different is not the solution. It should be cost effective for women folks.

9



Objective of the Study This project focuses on determining the various investment habits of working women in Bhubaneswar city, with regard to various age groups, income potential, savings, knowledge, purpose & objectives of investment.

Research Methodology Research methodology is the system of collecting data for research projects. The data may be either collected for theoretical or practical research. Some important factors in research methodology include validity of research data, ethics and the reliability of measures. Formulating

of

research

questions

along

with sampling, weather probable or non probable, is followed by measurement that includes surveys and scaling. This is followed by research design,

which

may be either experimental or quasi-

experimental. The last two stages are data analysis and finally writing the

research paper,

which

is

organized carefully

into

graphs

and tables so that only important relevant data is shown. This research study involves understanding of the investment pattern of working women in Bhubaneswar through interaction with them and 10


Consumer Behavior Project discussing their habits and thinking about investment in various investment options. Research Design

Research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. Research design is the conceptual structure within which research is conducted & constitutes blue print for collection, measurement and analysis of data. Process of the Study

I have done this study mainly by visiting various service sectors present

in

Bhubaneswar,

where

women

are

employed

(As

Bhubaneswar is predominantly a city where maximum population is engaged in services) & by discussing with them about their investment preferences. Also I have referred to some reading materials & articles on this subject & have collected some data from the internet. My entire project has been divided into three parts: 1.) Conducting market research in various parts of the city to get an

idea about the investment pattern. 2.) Determining the perception of working women & gathering their

views or satisfaction level regarding different investment options. 3.) Identification of the factors responsible for such investment

behavior as discussed. Type of study

My study is an Empirical Research. Empirical Research is practical and data based research. What ever I have done here relies on the

11


Consumer Behavior Project experience and observations mentioned. Lastly, the conclusions which I have come up with are capable of being verified. Sampling method

This research is based on the “Non Probability Quota Sampling Method” & the data is collected through random sample.

Data Sources

I have collected the data through both the primary and secondary sources. Primary data was collected through visiting various service sectors where women work and secondary data was collected through website and articles.

Data Collection Method

The data has been collected through a personal survey. The disadvantage of this method is that information may not be even

reliable. Research Tool

In this project I have used questionnaire as the research tool. Questionnaires usually offer respondents confidentiality and anonymity to dispel any reluctance about self-closer. Hence, after dividing the city into zones, the target audience was probed using Interviews and Questionnaires. These Questionnaires were later analyzed to draw the conclusion. Sample size

Sample size has been taken 100. Sample Unit 12


Consumer Behavior Project Bhubaneswar City.

Data Analysis OBSERVATIONS FROM THE FREQUENCY TABLE

In

my

survey

of

“Investment

habits

of

working

women

in

Bhubaneswar”, I have taken 100 data samples & have interviewed them with the help of my questionnaire. Then I have entered the data in SPSS & analyzed it through FREQUENCY TABLE. The findings are as follows:1.)OCCUPATION GROUP

Valid

Frequen cy 63 6

service business profession al 23 Others 8

Perce nt 63 6

Cumulative Percent 63 69

23 8

92 100 13


Consumer Behavior Project Total

100

100

occupation freque ncy chart 70 60 50 t n u o c

40

Frequen

30 20 10 0 service

business

professional

others

occupation

From the above table, I observed that out of the 100 samples of data that I have collected, the MAXIMUM sample (i.e. 63%) lies in the OPCCUPATION GROUP (SERVICE) . Rest (i.e. 37%) lie in the rest

occupation group i.e., (business, professional & others). 2.)Annual Income group

Valid

Below Rs 1lakh Rs 1-3lakh Rs 3-5lakh Rs 5-8lakh above Rs 8lakh Total

Frequen cy 2 28 46 16 8 100

Perce nt 2 28 46 16 8 100

Cumulative Percent 2 30 76 92 100

14


Consumer Behavior Project annual income chart 50 40 t n u o c

30 Series1 20 10 0 below rs 1 lakh

rs 1-3 lakh

rs 3-5 lakh

rs 5-8 lakh

above rs 8 lakh

From the above table, I observed that out of the 100 samples of data that I have collected, the MAXIMUM sample (i.e. 46%) lies in the INCOME GROUP (RS 3-5 LAKH). The next majority lies in the group

1-3lakh (i.e. 28%). Rest (about 26%) lie in the rest income groups.

3.)SAVING GROUP

Valid

Below Rs 25 thousand Rs 25 thousand-50 thousand Rs 50 thousand-1lakh Rs1-3lakh Above Rs 3lakh Total

Frequenc Perce y nt 13 13 46 33 6 2 100

46 33 6 2 100

Cumulati ve Percent 13 59 92 98 100

15


Consumer Behavior Project saving chart 50 40 t n u o c

30 F 20 10 0 below Rs Rs 25thous- Rs 50thous25 thousand 50 thous 1 lakh

Rs1-3 lakh

above Rs 3 lakh

From the above table, I observed that out of the 100 samples of data, the MAXIMUM sample (i.e. 46%) lies in the SAVING GROUP (RS 2550 thousand). Among rest next highest being the saving group of Rs 50 thousand-1lakh with 33% frequency & the balance spread

across other savings group.

4.)AGE GROUP

Valid

Frequen cy 60 28 11

20-30 yrs 31-40 yrs 41-50 yrs Above 51 yrs 1 Total 100

Percen Cumulativ t e Percent 60 60 28 88 11 99 1 100

100

16


Consumer Behavior Project age chart 70 60 50 n u o c

40

Fr

30 20 10 0 20-30 yrs

31-40 yrs

41-50 yrs

above 51 yrs

From the above table, I observed that out of the 100 samples of data, the MAXIMUM sample (i.e. 60%) lies in the AGE GROUP (RS 20-30 YEARS) and 28% lies in 31-40 yrs group and rest 12% lies in other

age groups. 5.)PERCENTAGE OF WOMEN DOES INVESTMENT

Valid

No Yes Total

Frequen cy 11 89 100

Perce nt 11 89 100


17


Consumer Behavior Project Investment chart 100 90 80 70 60 t n u 50 o c 40 30 20 10 0

From the above table, I observed that out of the 100 samples of data that I have collected, the MAXIMUM sample (i.e. 89%) are working women who invest, and 11% do not invest. 6.)PURPOSE OF INVESTMENT: REGULAR MONTHLY INCOME

Valid

No Yes Total


Perce nt 61 39 100


monthly income as a purpose chart 70 60 50 n u o c

40 30 20 10 0

18


Consumer Behavior Project From the above table, I observed that out of the 89% investing working women, the MINIMUM sample i.e. 39% of working women invest money with a purpose of regular monthly income and totally protect the value of savings and 61% don’t have this as their basic purpose. 7.)PURPOSE

OF

INVESTMENT:

STEADY

RETURNS

FROM

INVESTMENT

Valid

No Yes Total


Perce nt 65 35 100


steady return as a purpose chart 70 60 50 n u o c

40 30 20 10 0

From the above table, I observed that out of the out of the 89% investing working women, the MINIMUM sample i.e. 35% of working 19


Consumer Behavior Project women invest for the purpose of steady returns from the investment and 65% don’t invest with this objective.

8.)PURPOSE OF INVESTMENT: LONG TERM BENEFITS

Valid

No Yes Total


Perce nt 48 52 100


long term benefits as a purpose chart 53 52 51 t n u o c

50 49 48 47 46

From the above table, I observed that out of the 89% investing working women, the MAXIMUM sample i.e. 52%, does it with the purpose of long-term returns and 48% don’t want to do investment with a longterm objective. 9.)PURPOSE OF INVESTMENT: TAX BENEFITS 20



Valid


No Yes Total

Perce nt 71 29 100


tax benefit as a purpose chart 80 70 60 50 u o 40 c

Fr

30 20 10 0

From the above table, I observed that out of the 89% investing working women, only the MINIMUM sample i.e. 29% of working women invest for purpose of TAX BENEFIT. 10.)OBJECTIVE OF INVESTMENT: PURCHASE OF HOUSE

Valid

No Yes Total


Perce nt 75 25 100


21


Consumer Behavior Project purchase house as a objective chart 80 70 60 t n u o c

50 40

F

30 20 10 0

From the above table, I observed that out of the 89% investing working women, the MINIIMUM sample i.e. only 25% of working women invest with the objective of PURCHASING A HOUSE. 11.)OBJECTIVE OF INVESTMENT: EDUCATION

Valid

No Yes Total


Perce nt 80 20 100


22


Consumer Behavior Project education as a objective chart 90 80 70 60 t n u o c

50 40 30 20 10 0

From the above table, I observed that out of the 89% investing working women, the MINIIMUM sample i.e. only 20% of working women invest with the OBJECTIVE TO FUND EDUCATION.

12.)OBJECTIVE OF INVESTMENT: RETIREMENT BENEFIT

Valid

No Yes Total


Perce nt 74 26 100


23


Consumer Behavior Project retirement as a objective chart 80 70 60 t n u o c

50 40 30 20 10 0

From the above table, I observed that out of the 89% investing working women, the MINIMUM sample i.e. only 26% of working women invest with the OBJECTIVE TO GET RETIREMENT BENEFITS. 13.)OBJECTIVE OF INVESTMENT: GENRATE INCOME OUT OF SAVING

Valid

No Yes Total


Perce nt 42 58 100


genrate income as a o bjective c 70 60 50 t n u o c

40 30 20 10 0

24


Consumer Behavior Project From the above table, I observed that out of the 89% investing working women, the MAXIMUM sample i.e. 58% of working women invest with the OBJECTIVE TO GENERATE INCOME OUT OF SAVING TO MEET THEIR CURRENT NEED. 14.)OBJECTIVE OF INVESTMENT: OTHERS

Valid

No Yes Total


Perce nt 73 27 100


others as a objective chart 80 70 60 t n u o c

50 40 30 20 10 0

From the above table, I observed that out of the 89% investing working women, the MAXIMUM sample i.e. 73% of working women invest WITH OTHER OBJECTIVES (than as stated in the questionnaire). 15.)TIME PERIOD OF INVESTMENT TO ACHIEVE FINANCIAL GOAL

Frequen cy

Perce nt

Cumulative Percent 25


Consumer Behavior Project Valid

don’t invest Below 3 yrs 3-5 yrs 5-7 yrs Above 7 yrs Total

10 20 33 20 17 100

10 20 33 20 17 100

10 30 63 83 100

time period chart 35 30 25 t n u o c

20 15 10 5 0 don’t invest

below 3 yrs

3-5 yrs

5-7 yrs

above 7 yrs

From the above table, I observed that out of the 89% investing working women, the MAXIMUM sample i.e. 33% of working women want a time period of 3-5 YRS TO ACHIVE THEIR FINANCIAL GOAL, 20% of working women want a time period of BELOW 3 YRS AND another 20% want it in 5-7 YRS. Rest have a waiting time of above 7 yrs.

16.)INVESTMENT IN FIXED DEPOSIT

Valid

No Yes Total

Frequenc y 41 59 100

Percent 41 59 100


26


Consumer Behavior Project fixed deposit as a option chart 70 60 50 t n u o c

40 30 20 10 0

From the above table, I observed that out of the 89% investing working women, the MAXIMUM sample i.e. 59% of working women INVEST IN FIXED DEPOSITS .This shows that most women believe in safe way of investing with FD’S. 17.)INVESTMENT IN INSURANCE

Valid

No Yes Total


Perce nt 44 56 100


27


Consumer Behavior Project insurance as a option chart 60 50 t n u o c

40 30 20 10 0

From the above table, I observed that out of the 89% investing working women, the MAXIMUM sample i.e. 56% invest in INSURANCE. This shows the GROWING AWARENESS among working women about their existence and health. 18.)INVESTMENT IN MUTUAL FUND

Valid

No Yes Total

Frequenc y 32 68 100

Percen t 32 68 100


28


Consumer Behavior Project mutual fund as a option chart 80 70 60 t n u o c

50 40

F

30 20 10 0

From the above table, I observed that out of the 89% investing working women, the MAXIMUM sample i.e. 68% INVEST IN MUTUAL FUNDS. 19.)INVESTMENT IN STOCK MARKET

Valid

No Yes Total


Perce nt 57 43 100


stock market as aoption chart 60 50 t n u o c

40 30

F

20 10 0

29


Consumer Behavior Project From the above table, I observed that out of the 89% investing working women, the MINIMUM sample i.e. only 43% INVEST IN STOCK MARKET. The rest don’t. This shows their reluctance towards taking higher risks. 20.)INVESTMENT IN GOVERNMENT SECURITIES

Valid

No Yes Total


Perce nt 90 10 100


government securities as a option chart 100 90 80 70 60 n u 50 o c 40 30 20 10 0

F

From the above table, I observed that out of the 89% investing working women, the MINIIMUM sample i.e. only 10% of working women INVEST IN GOVERNMENT SECURITIES. 21.)INVESMENT IN POST OFFICE SAVING

Frequen cy

Perce nt

Cumulative Percent 30


Consumer Behavior Project Valid

No Yes Total

88 12 100

88 12 100

88 100

post offic 100 From the above table, I observed that out of the 89% investing working women, the MINIMUM sample i.e. only 12 % of working women INVEST IN POST OFFICE SAVINGS. 22.)INVESTMENT IN OTHER INSTRUMENTS

t n u o Valid c No

Yes Total

Frequen cy 92 8 100

Perce nt 92 8 100


others as a option chart 100 90 80 70 60 u 50 o c 40 30 20 10 0

c

Fr

31


Consumer Behavior Project From the above table, I observed that out of the 89% investing working women, the MINIMUM sample i.e. only 8% of working women INVEST IN OTHER INSTRUMENTS. This shows their lack of awareness about new investment products which are available in the market.

23.)WORKING WOMEN’S KNOWLEDGE ABOUT INVESTMENT

Valid

not familiar with the market very little understanding about the market good understanding of market very good understanding of market Total

Frequency 24

Percent 24

28 38 10 100

28 38 10 100

Cumulative Percent 24 52 90 100

k 40 35 t From the above table, I observed that out of the 89% investing working

women, n the MAXIMUM sample i.e. 38% OF WORKING WOMEN HAVE

u o c

Mitra, U408001

32

Abhisek

Consumer Behavior Project GOOD UNDERSTANDING OF INVESTMENT MARKET AND 1O% HAVE VERY GOOD UNDERSTANDING OF INVESTMENT MARKET. 24.)INVESTMENT PROVIDE INFLATION ADJUSTED RETURN

Valid

Frequenc y No 27 Yes 73 Tot al 100

Percen t 27 73


100

Inflation adjusted return chart 80 70 60 t n u o c

50 40

F

30 20 10 0

From the above table, I observed that out of the 89% investing working women, the MAXIMUM sample i.e. 73% claim to GET INFLATION ADJUSTED POSITIVE RETURNS on their investment.

33



Findings The following are the notable findings of this study:

1.)Most of working women from service sector invest.

According to this study, I found that unlike women running business or women working as professionals, women working in service sectors are more into investing. This speaks about the awareness of investment products to be better in case of service oriented women than in case of self-employed or business women. Also as a matter of fact, it can be seen that few of the service class women have gone for investment with the sole purpose of tax planning. So, it is a type of forced investment on their part. 2.)Most of working women under age group 20-30 invest.

34


Consumer Behavior Project It is seen in this study that most of the working women who are investing are falling under the age bracket of 20-30 years. This reflects the steadily increasing disposable incomes of the young masses are properly channelised towards investment. Also because most of the population belonging to this group is not married, so they do not have to take responsibility of supporting their family & hence they can afford to invest their surplus to gain more benefits in the future. 3.)

Most o f the working w omen invest for l ong term

benefits.

According to this study, it is seen that most of the working women who are investing, are doing it for the sake of deriving long-term benefit out of it. This has again to do with the age group, as the young people are ready to invest their surplus for future & are not much bothered about their current need & obligations. 4.) According to the study there is very less women invest for their retirement plans.

It is found that among the investing mass, only a few people (26%) are interested to invest for getting retirement benefits. 5.) Most of the working women wants to invest in Fixed Deposits , Mutual Funds or Insurance schemes.

According to this study, most of the working women who invest, invests in MFs (68%), FDs (59%) & Insurance schemes (56%). This reflects the risk averse behavior of the working women investors. Also because all these instruments are available for 35


Consumer Behavior Project tax savings, so the respondents may have chosen to invest in these particular investment types. This also highlights the lack of awareness among the working women about new avenues of investments that are available in the markets.

Limitations The limitations of this study are as follows:

1.)

The majority sample population as taken in this

research includes working women in service sector. So, certain findings tend to be biased accordingly.

36


Consumer Behavior Project 2.)

The method of conducting the research has been

conducting interviews & later on questionnaire has been filled-up to record the responses. As we know that it involves short close-ended questions with limited response options, so the findings may not reflect absolute true behavior of the respondents. 3.)

As we know that many people don’t feel comfortable

while discussing & divulging their true financial picture, so the responses as recorded in the questionnaires may not be absolutely correct. Hence it may lead to some wrong findings.

Conclusion

The study gives an insight to the opportunity as well as to the challenge of exploring the various investment products preferred by the working women mass in the city of Bhubaneswar, as more and 37


Consumer Behavior Project more new investment avenues are devised to suit the objectives of the target group. It can be concluded from the above study that most of the working women mass in Bhubaneswar feel the need & motivation to invest for their future & act accordingly. The main driving force behind their investment need & behavior is to derive long-term benefits from their investments, which is in sync with the basic investment fundamentals. It is also found from this study that most service class women invest & also start doing it earlier in their career, but are not very keen in taking much risk to ensure that their investment are growing faster. This can be substantiated from the findings in the study where most of the respondents are seen choosing relatively less riskier investment instruments like Fixed Deposits, Insurance & Mutual Funds

to invest their surplus. With the ever-

emerging role of education & the continuous rising living standards, the working women are increasingly feeling the need to invest to secure their present & future, but due to lack of proper awareness of the possible risk-reward trade-offs, many respondents are supseptible to wrong investment decisions as well. It is seen from the survey that most of the working women mass in Bhubaneswar who are investing are quite satisfied with their investment choices, however the cognitive dissonance isn’t completely removed. So, to take care of these problems & also to take the benefits of the opportunities lying ahead in this market, marketers should take note of the following recommendations:

⇒

They should take active steps to properly educate & spread

awareness

about

the

various

investment

instruments among the masses. 38


Consumer Behavior Project ⇒

They should do proper profiling of the client & suggest the right investment mix accordingly.

⇒ ⇒

They should supply sufficient dealer literature. Instruction manuals should seek to convince the buyer of the wisdom of the selection.

⇒

They should provide information about where and how to secure services and should also promote the availability and quality of their after-sale service.

⇒

They must make sure that their advertising and other forms of promotion do not create expectations their products cannot meet.

⇒

Companies need to ask customers what they want and how they want it.

All in all marketers should seek to sell investment products that satisfy the buyer’s needs.

39


Consumer Behavior Project Annexure:

Questionnaire 1. Personal details a)Name:___________________ b)Address:_________________ _________________ __________________ c)Contact No:__________________ ____________________ d)Mail ID____________________ 2. What is your occupation? a) Service

b) Business c) Profession d) Others 3. What is your annual income? a) Below Rs 100000 b) Rs 100001 – Rs 300000 c) Rs 300001 - RS 500000 d) Rs 500001 - Rs 800000 e) Above Rs 800001 4. What is your annual savings?

a) b) c) d) e)

Below Rs 25000 Rs 25000 to Rs 50000 Rs 50000 to Rs 1 lacs Rs 1 lacs to Rs 3 lacs Above 3 lacs

5. What is your present age? a) b) c) d)

20 yrs to 30 yrs Between 31- 40 yrs Between 41- 50 yrs Above 51 yrs 40



6. Do you invest? a) yes b) no 7. Which of the following statement describe the purpose of your investment? a) Regular monthly income and totally protect the value of saving. b) Steady returns from the investment c) Long term benefits d) tax benefit 8. What is your primary objective of your investment? a) b) c) d) e)

Purchase of house Funding to education Retirement benefit Generate income out of saving to meet with current need Others

9. What would be your time period of investment to achieve your financial goal? a) b) c) d) 10.

Below 3 yrs 3-5 yrs 5-7 yrs Above 7 yrs Where do you invest?

a) b) c) d) e) f) g)

Fixed deposit Insurance Mutual funds Stock market Govt. securities Post office saving Others 41



11. What is percentage (%) of saving you invest in different products? a) b) c) d) e) f) g) 12.

How familiar are you with the investment markets? a) b) c) d)

13.

Fixed deposit Insurance Mutual funds Stock market Govt. securities Post office saving Others

Not very familiar Very little understanding Understand that market fluctuates Have enough experience about the market Does your investment provide inflation adjusted return?

a) Yes b) No

42


Investment Habits of Working Women

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