A STUDY ON INVESTORS AWARENESS PREFERENCE AND PATTERN

A STUDY ON INVESTOR’S AWARENESS, PREFERENCE AND PATTERN OF INVESTMENT IN VARIOUS FINANCIAL ASSETS BY APURVA CHANDRA PGDM Participant (Batch 2018 -20) Chandragupt Institute of Management Patna ANKIT SHARMA Assistant Professor Chandragupt Institute of Management Patna Bihar, India

OBJECTIVES § To know the awareness of investors to various financial instruments. § To know the investor’s preferred medium of investment. . § To understand the investment style or pattern of investment. § To analyse how two or more factors like gender, age, education, objective of investment, maturity of investment etc. affects the decision making by investors when taken together.

RESEARCH METHODOLOGY Infographic Style ØResearch design: Descriptive research ØSources of data: The data sources for this project were both primary and secondary sources. Primary data source – information collected from people across the country with the help of internet (Google forms) and physical forms. Secondary source –information collected from internet, books, journals etc. to know more about investments option, their features etc. ØSampling design: The sample was selected based upon convenience random sampling and consisted of 152 respondents. ØData collection: The collection of primary data was done through questionnaire method consisting of close ended questions.

DATA ANALYSIS The survey conducted for this project consists of 14 main questions and other related descriptive questions as well. A data of 152 respondents was collected during the survey.

Characteristics Demographic Profile of the Respondents Number Percentage Male Female 99 53 65 35 Others Lucknow Mumbai Bangalore Delhi Patna 59 6 9 10 16 52 39 4 6 7 10 34 GENDER LOCATION

Demographic Profile of the Respondents Characteristics Number Percentage 121 21 10 0 80 14 6 0 1 61 83 7 1 40 55 4 AGE GROUP 20 -35 35 -50 50 -65 >65 EDUCATION QUALIFICATION Ph. D. Post Graduate Under Graduate

Demographic Profile of the Respondents Characteristics Number Percentage Student Salaried Business Professional Retired 28 98 11 15 0 18 65 7 10 0 ANNUAL INCOME >15 Lakh 10 -15 Lakh 5 -10 Lakh < 5 Lakh 7 18 47 80 4 12 31 53 OCCUPATION

PERCENT OF INCOME INVESTED The graph shows the percent of income people prefer to invest. Maximum number of respondents (67 respondents) invest less than 10% of their income for investment followed by 36% of respondents investing 1020% of their income, 11% of respondents investing 20 -30% of their income and only 9% of respondents investing 30% of their income. 80 70 60 50 40 30 20 10 0 67 55 Series 1 Below 10% 10 -20% 16 14 20 -30% above 30% 20 -30%above 30% 9% 11% Below 10% 44% 10 -20% 36% Below 10% 10 -20% 20 -30% above 30%

57% 47% 50% <5 lakh% 11% 6% 6% 6% 10% 17% 10 - 15 lakh% 14% 20% 5 - 10 lakh% 29% 30% 29% 40% 22% Most respondents investing below 10% of their income belong to the income level of <5 lakh, 50% of respondents belonging to income level of 5 -10 lakh invest 10 -20% of their income, 20 -30% of income is invested by both respondents belonging to 5 -10 lakh and 10 -15 lakh and not surprisingly most of the respondents investing above 30% of their income belonged to >15 lakh income bracket. 60% 30% INCOME AND PERCENT OF INCOME INVESTED 59% 70% 0% Below 10% 10 - 20% 20 - 30% Above 30% >15 lakh%

GENDER AND PREFERRED MEDIUM OF INVESTMENT 26% 34% GOLD REAL ESTATE 30% 34% INSURANCE PRODUCTS § Most preferred financial product by both the genders: Mutual funds & Fixed Deposits. § Least preferred financial product by both the genders: Bonds/Debentures. § A sharp difference in preference of financial product between the two gender: Stock Market. § This also reflects the risk appetite of both the genders, females being less risk loving contrary to males. 45% MUTUAL FUNDS 68% 60% FIXED DEPOSITS 57% 66% Male% Female % 5% 8% BONDS/DEBENTURES STOCK MARKET 25% 0% 49% 50% 100%

INCOME LEVEL AND PREFERRED MEDIUM OF INVESTMENT 71% 57% 43% 29% 50% 39% MUTUAL FUNDS 5 -10 lakh % 10 -15 lakh % INSURANCE PRODUCTS REAL ESTATE GOLD 0% <5 lakh % BONDS/DEBENTURES FIXED DEPOSITS 11% 56% 67% 39% 17% 9% 14% 40% 36% 34% 29% 41% 60% 34% 40% 23% 51% 63% 64% 80% 72% 86% 100% 20% STOCK MARKET 100% 120% >15 lakh %

63% 69% STOCK MARKET 43% BONDS/DEBENTURES 20% 14% 4% Male, Graduate (%) Female, PG (%) INSURANCE PRODUCTS REAL ESTATE GOLD 0% Female, Graduate (%) FIXED DEPOSITS MUTUAL FUNDS 23% 31% 38% 33% 57% 62% 65% 51% 53% 10% 19% 20% 14% 30% 12% 40% 31% 50% 44% 60% 38% 31% 54% 70% 42% 80% 68% 73% GENDER, EDUCATION AND PREFERENCE OF MEDIUM OF INVESTMENT Male, PG (%)

GENDER, INCOME LEVEL AND PREFERENCE OF MEDIUM OF INVESTMENT 100% 120% FEMALE <5 L % 50% 38% 13% 19% 0% 10% 44% 50% 50% 69% 71% 42% 39% 42% 25% 38% 50% 69% 75% 53% 62% 71% 29% 40% 31% 25% 10% 0% 6% 20% 9% 40% 26% 60% 18% 80% 63% 54% 40% 26% 100% STOCK MARKET MALE <5 L FEMALE 5 -10 L FEMALE 10 -15 % 10 L % % -15 L % % BONDS/DEBENTU RES FIXED DEPOSITS MUTUAL FUNDS INSURANCE PRODUCTS REAL ESTATE GOLD

Characteristics of Investment by Investors Features of investment done by investors: 1) Objective of investment 2) Maturity of investment 3) Basis of investment Characteristics OBJECTIVE OF INVESTMENT Return/capital appreciation Regular Income Tax Saving Liquidity Park surplus funds Meet future goals Number Percentage 78 64 75 27 25 84 51 42 49 18 16 55 43 39 44 26 28 26 29 17 MATURITY OF INVESTMENT 1 -2 years 3 -4 years 5 -10 years >10 years

Characteristics of Investment by Investors Characteristics BASIS OF INVESTMENT Past performance Portfolio Fund manager Fundamental/technical analysis Market sentiments Number Percentage 89 60 48 72 55 59 39 32 47 36

Regular Income 61% 43% 50% 29% Liquidity 14% 28% 53% 57% 53% 0% <5 L % 5 -10 L % 10 -15 L% Park surplus funds Meet future goals 0% 10% Return/Capital appreciation Tax saving 11% 20% 21% 19% 30% 36% 34% 40% 18% 50% 39% 60% 58% 50% 70% 67% 80% 71% 90% 86% INCOME LEVEL AND OBJECTIVE OF INVESTMENT >15 L %

47% AWARENESS OF VARIOUS FINANCIAL INSTRUMENTS 50% STOCKS/IPO/EQUITY SHARES 45% 0% NOT AWARE(%) 38% 30% 28% 21% 18% DERIVATIVES (FUTURES & OPTIONS) 11% REAL ESTATE 5% 3% 6% 5% GOLD 1% 1% 5% INSURANCE MUTUAL FUNDS 3% 3% 10% FIXED DEPOSITS/PPF 7% 15% 24% 20% 22% 15% 11% 20% 17% 25% 22% 30% 27% 31% 26% 35% 33% 26% 34% 28% 31% 28% 35% 23% 24% 26% 40% 28% 38% BONDS/DEBENTURES HAVE HEARD OF IT(%) SOMEWHAT AWARE(%) GOOD KNOWLEDGE(%) EXPERT(%)

93% GENDER, AGE, INCOME LEVEL, AND RISK 100% 29% 5% 14% 20% 7% 10% 18% 20% 9% 30% 26% 40% 28% 50% 57% 60% 55% 70% 50% 66% 80% 75% 90% 0% F (20 -35, <5 L)% M (20 -35, <5 L)% F (20 -35, 5 -10 L)% M (20 -35, 510 L)% F (20 -35, 1015 L)% M (20 -35, 1015 L)% L M H

CONCLUSIONS ØGender, income level and education qualification have an impact over the preference of medium of investment. Predominantly, preference of investment medium is most affected by gender. ØInvestment options which are more risky & involve comparatively large amount of money are preferred more as income increases. ØPeople with low income level utilize less amount of income for investment purpose. 2 4 6 1 3 5 ØTalking about awareness, respondents were least aware (38%) about derivatives but majority had good knowledge about Fixed Deposits (47%) and Insurance (38%). ØIncome affects objective of investment. As income increases from <5 L to >15 L objective of tax saving increases from 58% to 71%. ØRespondents in age group 20 -35 of both the genders mostly prefer moderate risk even after knowing the fact that greater risk gives greater returns.

REFERENCES §https: //mail. google. com/mail/u/0? ui=2&ik=96913 e 8 b 5 e&attid=0. 11&permmsgid=ms gf: 1636617198603584328&th=16 b 66 eabc 40 fc 348&view=att&disp=inline&realattid= f_jx 0 rtojb 9 §“A STUDY ON THE INFLUENCE OF DEMOGRAPHICAL VARIABLES ON THE FACTORS OF INVESTMENT- A PERSPECTIVE ON THE GUWAHATI REGION” SAUGAT DAS & RITIKA JAIN Assistant Professor, Royal School of Business, Guwahati, Assam, India §https: //mail. google. com/mail/u/0? ui=2&ik=96913 e 8 b 5 e&attid=0. 10&permms gid=msgf: 1636617198603584328&th=16 b 66 eabc 40 fc 348&view=att&disp=inli ne&realattid=f_jx 0 rtoft 1