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ent
behavio
r
of
Women
Investor
s
Submitted by:
KIRTANA
KAULIGE
Register no. :
03XQCM6048
2004 2005
MP Birla Institute of
Management
Associate
Bhavan
Bharatiya
Vidya
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DECLA
RATION
I hereby declare that this research work
embodied in this entitled dissertation
Investment Behavior of Women Investors
has been carried out by me, under
the guidance of Dr.Nagesh .S. Mallavalli,
PLACE: Bangalore
DATE:
(Kirtana N Kaulige)
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ACKNOWL
EDGEMENT
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,
PLACE: Bangalore
DATE:
(Kirtana N Kaulige)
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M. P.Birla Institute of Management, Associate
B hartiya Vidya Bhavan
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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
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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
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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.
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1752'8&7
,21
M. P.Birla Institute of Management, Associate
B hartiya Vidya Bhavan
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INTROD
UCTION
BACKGROUND
As a woman, and an investor, shaping of
financial future is as important as the many ot her
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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.
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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
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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
Evaluating alternatives
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Continue the same course of action.
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Financial Planning Information Sources
Relevant information is required at each
stage of the decision-making process.
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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 longterm 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 dev eloping
go od 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
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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 lon g 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 n o 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 mo ney, 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 frequent
mistake 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 inv estments, because when
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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
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markets or countries that have a sev ere
deficit.
Foreign Exchange Risk When investing
in foreign countries you must consider
the fact that currency exchange rates can
change the price of the asset as well.
Foreign exchange risk applies to all financial
instruments that are in a currency other
than your domestic currency. As an example,
if you are a resident of America and
invest in some Canadian stock in Canadian
dollars, even if the share value
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Diversif ication 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
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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
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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 a re to
dispose of the assets at short notice. From this
Unique needs
Virtually every i nvestor faces special
circumstances. Primary i nvestment 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 prox imity 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,
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
(their
original investment) even if that means theyll
have to settle for very modest returns.
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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 th eir assets
from the risk of major losses.
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long-term commitment to the stocks they bu y.
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.
Research Question
What are the traits of womens investment
behavior?
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Secondary Objectives
To understand the needs and wants of the resp
ondents with respect to their financial
requirements in their life.
To have an understanding of the respondents
saving pattern.
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M. P.Birla Institute of Management, Associate
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REVIEW OF
LITERATURE
Financial investment is the purchase of a
financial security, such as a stock, bond, or
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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 lon g
way.
Participants had to be solely or jointly
responsible for financial and investment
decisions for
their household, and have at least $75,000 in
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 f ar less likely than
men to hold a losing investment too long or
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women alike are influenced by di fferent
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 su ccess
by starting early investment in life and
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RESEARCH
METHODOLOG
Y
Type of research:
Descriptive Research
The type of research used in this study
i s 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. And
after 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.
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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
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 the
true 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 end ed 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 stud y and applying of statistical
techniques. After the collection of data, coding
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be
h
av
io
r
of
W
o
m
e
n
In
ve
st
or
s
$1$/<6,6
$1'
,
17(535(7$7
,21
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$
PRESENTATION AND
ANALYSIS OF DATA
AND
INTERPRET
ATION
TABL
E1
Occupation of the
Women Investors
PARTICULARS
PERCENTAGE
NUMBER
In
ve
st
m
e
nt
be
h
av
io
r
of
W
o
m
e
n
In
ve
st
or
s
10
25
Self Employed
10
House Wives
20
10
TOTAL
100 50
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.
CHA
RT 1
Occupation of the
Women Investors
In
ve
st
m
e
nt
be
h
av
io
r
of
W
o
m
e
n
In
ve
st
or
s
60
50
40
30
20
10
0
G ovt employee P riv at e
Self Employed H o use W ives
em pl oyee
Occ
up
atio
n
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.
TABL
E2
Age of Women
Investors
In
ve
st
m
e
nt
be
h
av
io
r
of
W
o
m
e
n
In
ve
st
or
s
PARTICULARS
NUMBER PERCENTAGE
Between 20 and 30
20
10
Between 30 and 40
44
22
Between 40 and 50
26
13
Above 50
10
TOTAL
100 50
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.
CHAR
T2
Age of Women
Investors
In
ve
st
m
e
nt
be
h
av
io
r
of
W
o
m
e
n
In
ve
st
or
s
50
40
30
20
10
0
Be tw ee n 20 and Be tw e e n 30
and B et w e e n 40 and 50 and
above
30
40
50
A
g
e
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.
TABL
E3
Marital status of
Women Investors
In
ve
st
m
e
nt
be
h
av
io
r
of
W
o
m
e
n
In
ve
st
or
s
PARTICULARS
NUMBER PERCENTAGE
Yes
60
30
No
40
20
TOTAL
100 50
Findings:
Most of the respondents are married with a
percentage of 60%.The rest of the respondents
with a percentage of 40% are single.
CHAR
T3
Marital status of
Women Investors
In
ve
st
m
e
nt
be
h
av
io
r
of
W
o
m
e
n
In
ve
st
or
s
Married
Single
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.
TABL
E4
Annual Income of
Women Investors
PARTICULARS
PERCENTAGE
NUMBER
44
In
ve
st
m
e
nt
be
h
av
io
r
of
W
o
m
e
n
In
ve
st
or
s
20
18
45
Rs500000
Above 500000
2.5
TOTAL
100 50
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.
GRAP
H4
Annual Income of
Women Investors
In
ve
st
m
e
nt
be
h
av
io
r
of
W
o
m
e
n
In
ve
st
or
s
60
50
40
30
20
10
0
Less than Be tw een 1 lakh Be tw een
2.5 A bove 5 lakh
Rs100000 and 2.5 Lakh la kh and 5
Lakh
Annual
Income
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.
TABL
E5
Percentage of Income
invested by Women
PARTICULARS
NUMBER PERCENTAGE
M. P.Birla Institute of Management, Associate
B hartiya Vidya Bhavan
46
In
ve
st
m
e
nt
be
h
av
io
r
of
W
o
m
e
n
In
ve
st
or
s
10% to 20%
70
35
20% to 30%
20
10
TOTAL
100 50
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.
GRAP
H5
Percentage of Income
invested by Women
In
ve
st
m
e
nt
be
h
av
io
r
of
W
o
m
e
n
In
ve
st
or
s
80
70
6 0
50
40
30
20
10
0
Less than 10 10 to 20 20 t o
30 Above 30
Pe r ce ntage of
Incom e Invested
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.
TABL
E6
Investment Decision taken
by Women themselves
48
In
ve
st
m
e
nt
be
h
av
io
r
of
W
o
m
e
n
In
ve
st
or
s
PARTICULARS
NUMBER PERCENTAGE
Yes
60
30
No
40
20
TOTAL
100 50
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.
GRAP
H6
Investment Decision taken
by Women themselves
In
ve
st
m
e
nt
be
h
av
io
r
of
W
o
m
e
n
In
ve
st
or
s
Yes
No
Interpretation:
TABL
E7
Formulation of a
Financial Plan
In
ve
st
m
e
nt
be
h
av
io
r
of
W
o
m
e
n
In
ve
st
or
s
PARTICULARS
NUMBER PERCENTAGE
Yes
10
No
90
45
TOTAL
100 50
Findings:
90% of the women dont have a formal financial
plan and the rest 10% of the women have
formally formulated a fin ancial plan.
GRA
PH 7
Formulation of a
Financial Plan
In
ve
st
m
e
nt
be
h
av
io
r
of
W
o
m
e
n
In
ve
st
or
s
Yes
No
Interpretation:
TABL
E8
Agreement on Financial Goals by
Women and their Spouse
In
ve
st
m
e
nt
be
h
av
io
r
of
W
o
m
e
n
In
ve
st
or
s
PARTICULARS
NUMBER PERCENTAGE
Yes
83.33
25
No
16.67
TOTAL
100 30
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.
GRAP
H8
Agreement on Financial Goals by
Women and their Spouse
In
ve
st
m
e
nt
be
h
av
io
r
of
W
o
m
e
n
In
ve
st
or
s
yes
No
Interpretation:
Most of the women have a tendency t o take guid
ance 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 le ss 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.
TABL
E9
Ranking of Factors considered while
taking Investment Decisions
54
In
ve
st
m
e
nt
be
h
av
io
r
of
W
o
m
e
n
In
ve
st
or
s
OPTIONS/
NUMBER
OF
RESPONDENTS/PERCENTAGE
TOTAL
RANKS 1 2 3 4 5
Long term
growth 4 6 18 20 2 50
Percentage 8 12 36 40 4 100
Risk 8 25 10 3 4 50
Percentage 16 50 20 6 8
100
Return 5 6 17 19 3 50
Percentage 10 12 34 38 6
100
Retirement 5 23 9 5 8 50
income
Percentage 10 46 18 10 16
100
Liquidity 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.
GRAP
H9
In
ve
st
m
e
nt
be
h
av
io
r
of
W
o
m
e
n
In
ve
st
or
s
60
50
L o n g term
40
gr o wt
h
R is k
30
R etu rn
20
R etirem en t
in co m e 10
L iquidity
0
Ran k 1 Rank 2 Rank 3 Rank 4
Rank 5
Rank s
Interpretation:
Majority of the women are of the opinion that
liquidity i s the most important factor to be
considered while taking investment decisions.
Risk is the next important factor to be
considered as women avoid taking high risk. As
women take the decision regarding the
education and marriage of children, long term
growth is the next important factor to be
considered. Their main concern is not return; it
has been ranked 4 as they are happy with
moderate returns and low risk. As most of the
respondents were in the age group of 30years
to 40 years, it is evident that retirement income is
at the end of the priority list
TABL
E 10
Knowledge about investing and
various options available
In
ve
st
m
e
nt
be
h
av
io
r
of
W
o
m
e
n
In
ve
st
or
s
PARTICULARS
NUMBER PERCENTAGE
No investment
0
experience
Basic understanding
70
about investing
35
10
Experienced investor
10
TOTAL
100 50
Findings:
70% of the women had the basic understanding
about investing and have made some
investments. 20% of the women have b een
investing for several years in different types of
assets and 10% of the women are experienced
investors. Respondents having no investment
experience are none.
GRAP
H 10
Knowledge about investing and
In
ve
st
m
e
nt
be
h
av
io
r
of
W
o
m
e
n
In
ve
st
or
s
80
70
60
50
40
30
20
10
0
No expeience Basic
Some
Expeience Experienced
Understanding
Experience
in
Investing
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
respondents
who have no investment experience at all.
Therefore all the women have invested one or the
other of the investment avenues.
TABL
E 11
Description
Investment
Objectives
of
In
ve
st
m
e
nt
be
h
av
io
r
of
W
o
m
e
n
In
ve
st
or
s
PARTICULARS
NUMBER PERCENTAGE
Investing in safer
78
investments
39
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 the
long run. The least percentage of 8% of the
women has main inter est in the high long term
returns.
GRAP
H 11
Description
Investment
Objectives
of
In
ve
st
m
e
nt
be
h
av
io
r
of
W
o
m
e
n
In
ve
st
or
s
Investment
Objectives
100
80
60
40
20
0
safer Investments Moderate
risk
High Return
in
ve
st
m
en
ts
in
ve
st
m
en
ts
Investm
ent
Objectiv
es
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
TABL
E 12
In
ve
st
m
e
nt
be
h
av
io
r
of
W
o
m
e
n
In
ve
st
or
s
OPTIONS PLANNED
PLANNED
NOT
Number
Percentage
Number
Percentage
Basic Savings 38 76 12 24
Household
Expenses
28 56
22
44
Retirement
Planning
19 38
31
62
Buying of Assets 25 50 25 50
Tax Planning 39 78 11 22
Life Protection 40 80 10 20
Medical Expenses 22 44 28 56
Childrens
Education
17 66
33
34
Childrens Marriage 29 58 21 42
Basic 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
GRAP
H 12
Stand on the planning of various
Financial Requirements
M. P.Birla Institute of Management, Associate
B hartiya Vidya Bhavan
61
In
ve
st
m
e
nt
be
h
av
io
r
of
W
o
m
e
n
In
ve
st
or
s
planned
90
not planned
70
60
50
40
30
20
10
0
80
Various
financial require
ments
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
secondar y to them. For them most important
considerations will be basic savings, education
and marriage of children etc.
TABL
E 13
Reaction of Women Investors due to
decrease in portfolio value
In
ve
st
m
e
nt
be
h
av
io
r
of
W
o
m
e
n
In
ve
st
or
s
PARTICULARS
NUMBER PERCENTAGE
Transfer of money
54
immediately
27
18
TOTAL
100
50
Findings:
54% of the women would transfer their money in
to 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.
GRAP
H 13
Reaction of Women Investors due to
decrease in portfolio value
M. P.Birla Institute of Management, Associate
B hartiya Vidya Bhavan
63
In
ve
st
m
e
nt
be
h
av
io
r
of
W
o
m
e
n
In
ve
st
or
s
60
50
40
30
20
10
0
Transfer
Concerned Wait for
Invest more
Money
improvement
funds
Reaction on decrease in
portfolio va lue
Interpretation:
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. Few of them will be concerned and
very few will wait for improvement by leaving
them. So it can be inferred that they cannot
afford to take risk. As they dont invest often,
they have less experience.
TABL
E 14
Investment
Avenues
already invested in
M. P.Birla Institute of Management, Associate
B hartiya Vidya Bhavan
64
In
ve
st
m
e
nt
be
h
av
io
r
of
W
o
m
e
n
In
ve
st
or
s
Bank
deposits
Post office
deposits
Insurance
Provident
fund
Real estate
39 11 50 78 22 100
37 13 50 74 26 100
32 18 50 64 36 100
43 7 50 86 14 100
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.
GRAP
H 14
Investment
Avenues
already invested in
M. P.Birla Institute of Management, Associate
B hartiya Vidya Bhavan
65
In
ve
st
m
e
nt
be
h
av
io
r
of
W
o
m
e
n
In
ve
st
or
s
120
100
80
Yes 60
40
No
20
0
Investment Ave nu
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 have
low 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.
TABL
E 15
M. P.Birla Institute of Management, Associate
B hartiya Vidya Bhavan
66
In
ve
st
m
e
nt
be
h
av
io
r
of
W
o
m
e
n
In
ve
st
or
s
Basis
of
Investment
Decision on the advice of
PARTICULARS
NUMBER PERCENTAGE
Themselves
12
Friends
38
19
Family Members
46
23
Investment Advisor
4
TOTAL
100
50
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 4
5 of the women based their decision on the
advice of the investment advisor.
GRAP
H 15
Basis
of
Investment
Decision on the advice of
M. P.Birla Institute of Management, Associate
B hartiya Vidya Bhavan
67
In
ve
st
m
e
nt
be
h
av
io
r
of
W
o
m
e
n
In
ve
st
or
s
50
40
30
20
10
0
Yourself Your Friend Family
Investment
m
e
m
b
er
s
a
d
vi
s
or
Advice
Of
Interpretation:
Most of the women take decisions by takin g the
advice of their family members. Many of
the women also take their friends advice. A very l
ess 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.
TABL
E 16
In
ve
st
m
e
nt
be
h
av
io
r
of
W
o
m
e
n
In
ve
st
or
s
Tolerance of Risk of
Women Investors
PARTICULARS
NUMBER PERCENTAGE
Very high
6
Moderately high
28
14
Average
58
29
Moderately low
4
Very low
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
ver y hi gh risk tolerance level. 45% of the
women have moderately low and ver y low risk
tolerance level.
GRAP
H 16
Tolerance of Risk of
Women Investors
M. P.Birla Institute of Management, Associate
B hartiya Vidya Bhavan
69
In
ve
st
m
e
nt
be
h
av
io
r
of
W
o
m
e
n
In
ve
st
or
s
70
60
50
40
30
20
10
0
Risk
tolerance
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 take
high levels of risks even if it yields high returns
on the investments.
TABL
E 17
Overall
Investment
Objective
In
ve
st
m
e
nt
be
h
av
io
r
of
W
o
m
e
n
In
ve
st
or
s
PARTICULARS
NUMBER PERCENTAGE
Growing assets
18
30
60
current income
Income and preserving
22
capital
TOTAL
11
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. Least
percentage of 18% of women wants growing
assets without concern for current income.
GRAP
H 17
In
ve
st
m
e
nt
be
h
av
io
r
of
W
o
m
e
n
In
ve
st
or
s
Overall
Investment
Objective
70
60
50
40
30
20
10
0
Growing assets Income and
Income and
generati
ng
preservi
ng
incom
e
capital
Investment
objectives
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 categor
y have a very low percentage.
TABL
E 18
In
ve
st
m
e
nt
be
h
av
io
r
of
W
o
m
e
n
In
ve
st
or
s
6 to 10 years
66
33
0 to 5 years
22
11
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 time
period more than 10 years.
GRAP
H 18
In
ve
st
m
e
nt
be
h
av
io
r
of
W
o
m
e
n
In
ve
st
or
s
70
60
50
40
30
20
10
0
Above 10 years 6 to 10
years 0 to 5 years
Us e of Funds
Interpretation:
Most of the women dont have a ver y lon g 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.
In
ve
st
m
e
nt
be
h
av
io
r
of
W
o
m
e
n
In
ve
st
or
s
&21&/8
6,216
CONCL
USIONS
M. P.Birla Institute of Management, Associate
B hartiya Vidya Bhavan
75
In
ve
st
m
e
nt
be
h
av
io
r
of
W
o
m
e
n
In
ve
st
or
s
Women have invested a very less
percentage of their income as many wo men
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 i s 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 portf olio 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 b y the ex perienced
people.
Most of the women have financial goals of
gen erating assets which grow along with
generation of income. So they want
financial security with long term growing
assets
with income.
In
ve
st
m
e
nt
be
h
av
io
r
of
W
o
m
e
n
In
ve
st
or
s
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 an y principal that
is their original investment even if that
means theyll have to settle for ver y modest
returns.
In
ve
st
m
e
nt
be
h
av
io
r
of
W
o
m
e
n
In
ve
st
or
s
6&+(0
(2)
5(&200(1'$7
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In
ve
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m
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nt
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h
av
io
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of
W
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In
ve
st
or
s
SCHEME
OF
RECOMMENDATI
ONS
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.
In
ve
st
m
e
nt
be
h
av
io
r
of
W
o
m
e
n
In
ve
st
or
s
%,
%/,2*5$3
+<
M. P.Birla Institute of Management, Associate
B hartiya Vidya Bhavan
80
In
ve
st
m
e
nt
be
h
av
io
r
of
W
o
m
e
n
In
ve
st
or
s
BIBLIOG
RAPHY
www.merilllynch.com
www.financialplanning.com
www.investorhome.com
India Today
Business Line
In
ve
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nt
be
h
av
io
r
of
W
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In
ve
st
or
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$11(;85
(6
In
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be
h
av
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of
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In
ve
st
or
s
QUESIO
NNAIRE
1. Occupation
Govt employee
Private sector emplo yee
Self employed
Others ( Please specify )
2. Age
Between 20 and 30
Between 30 and 40
Between 40 and 50
50 and above
3. Marital status
Married
Single
4. What is your annual income?
Less than Rs. 100000
Between Rs. 100000 and Rs. 250000
Between Rs. 250000 and Rs. 500000
Above 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?
Yes
No
83
In
ve
st
m
e
nt
be
h
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io
r
of
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o
m
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In
ve
st
or
s
9. What factors do you consider while taking an
investment decision? Rank the following on
the scale of 1 to 5 (1 most important and 5
least important)
FACTORS
RANK
a) Lon g term growth
b) Risk
c) Return
d) Retirement income
e) Liquidity
PLANNED
------------------------------------
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In
ve
st
m
e
nt
be
h
av
io
r
of
W
o
m
e
n
In
ve
st
or
s
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)
-----g)
-----h)
-----i)
-----j)
-----
-----Bank
Post
Deposits
-----Office
------
Deposits
Insurance
-----Provident
Fund
------
Real
Estate
------
6 to 10 years
0 to 5 years.
19. What in your opinion will help women in
building better portfolio