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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. The number of working women is consistently increasing 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 risk and adapt to the features of various financial services products. Thus, participation of women in capital market related 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/financialplanning/financialservices-in-india.htm In last few years, India has emerged as the one of the most rapidly growing economies in the world. India has been categorized 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 if we take the case of ongoing global recession, India has managed to perform far better than other nations. Right from banking system to financial regularities, the country has thrived on discipline and out-performance. The booming Indian economy resulted in widespread growth and arrival of new industries. The most sparkling phenomenon is in form of financial market of India.
There are several services like broking firms, investment services, financial consulting, evergreen national banks, numerous private 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 and all the services of wide financial gamut.
Whether its taking a car loan or booking your favorite house, going for pension plan or getting your child insured, numerous attractive 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 Abhisek Mitra, U408001
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 Abhisek Mitra, U408001
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 Abhisek Mitra, U408001
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 the design, which paper, may be either is organized experimental or carefully into quasigraphs experimental. The last two stages are data analysis and finally writing research which 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 Abhisek Mitra, U408001
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 Frequen cy 63 6 23 8 Perce nt 63 6 23 8 Cumulative Percent 63 69 92 100 13 Abhisek Mitra, U408001
Valid
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 Frequen cy 2 28 46 16 8 100 Perce nt 2 28 46 16 8 100 Cumulative Percent 2 30 76 92 100
Valid
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.
Valid
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.
Valid
20-30 yrs 31-40 yrs 41-50 yrs Above 51 yrs 1 Total 100
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 Frequen cy 11 89 100 Perce nt 11 89 100 Cumulative Percent 11 100
Valid
No Yes Total
count
Frequency
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 Frequen cy 61 39 100 Perce nt 61 39 100 Cumulative Percent 61 100
Valid
No Yes Total
Valid
No Yes Total
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 Abhisek Mitra, U408001
8.)PURPOSE OF INVESTMENT: LONG TERM BENEFITS Frequen cy 48 52 100 Perce nt 48 52 100 Cumulative Percent 48 100
Valid
No Yes Total
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% dont want to do investment with a longterm objective. 9.)PURPOSE OF INVESTMENT: TAX BENEFITS 20 Abhisek Mitra, U408001
Valid
No Yes Total
ta b n fit a ap rp s c a x e e s u o e h rt
8 0 7 0 6 0 count 5 0 4 0 3 0 2 0 1 0 0 n o ye s F q e cy re u n
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 Frequen cy 75 25 100 Perce nt 75 25 100 Cumulative Percent 75 100
Valid
No Yes Total
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 Frequen cy 80 20 100 Perce nt 80 20 100 Cumulative Percent 80 100
Valid
No Yes Total
count
Frequency
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 Frequen cy 74 26 100 Perce nt 74 26 100 Cumulative Percent 74 100
Valid
No Yes Total
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 Frequen cy 42 58 100 Perce nt 42 58 100 Cumulative Percent 42 100
Valid
No Yes Total
24 Abhisek
Mitra, U408001
Valid
No Yes Total
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 Abhisek Mitra, U408001
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.
Valid
No Yes Total
Percent 41 59 100
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 FDS. 17.)INVESTMENT IN INSURANCE Frequen cy 44 56 100 Perce nt 44 56 100 Cumulative Percent 44 100
Valid
No Yes Total
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 Frequenc y 32 68 100 Percen t 32 68 100 Cumulative Percent 32 100
Valid
No Yes Total
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 Frequen cy 57 43 100 Perce nt 57 43 100 Cumulative Percent 57 100
Valid
No Yes Total
Valid
No Yes Total
count
Frequency
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 Abhisek Mitra, U408001
post office
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
80 60 40 20
count
Valid
No Yes Total
Frequen cy 92 8 100
Perce nt 92 8 100
100 90 80 70 60 50 40 30 20 10 0
0
c
count
no
yes
Frequency
no
Valid
not familiar with the market very little understanding about the market good understanding of market very good understanding of market Total
Frequency 24 28 38 10 100
Percent 24 28 38 10 100
knowled
40 35 30 From the above table, I observed that out of the 89% investing working 25 women, the MAXIMUM sample i.e. 38% OF WORKING WOMEN HAVE 20 32 15 Abhisek 10 Mitra, U408001 count
Valid
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.
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.
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.
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 Abhisek Mitra, U408001
They should take active steps to properly educate & spread awareness about the various investment instruments among the masses. 38 Abhisek Mitra, U408001
Questionnaire
1. Personal details a)Name:___________________ b)Address:_________________ _________________ __________________ c)Contact No:__________________ ____________________ d)Mail ID____________________ 2. What is your occupation? a) b) c) d) Service Business Profession 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 Abhisek Mitra, U408001
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. a) b) c) d) e) f) g) Below 3 yrs 3-5 yrs 5-7 yrs Above 7 yrs Where do you invest? Fixed deposit Insurance Mutual funds Stock market Govt. securities Post office saving Others 41 Abhisek Mitra, U408001
11. What is percentage (%) of saving you invest in different products? a) b) c) d) e) f) g) 12. a) b) c) d) 13. Fixed deposit Insurance Mutual funds Stock market Govt. securities Post office saving Others How familiar are you with the investment markets? 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
Bibliography
Schiffman, G Leon., Kanuk, Lazar Leslie., Consumer Behavior, 9th edition., New Delhi: Pearson Education., 2009 Materials provided in the Consumer Behavior class Kothari, C.R., Research Methodology, 2nd ed., New Delhi: New Age International Publishers., 2004. Malhotra, K Naresh., Marketing Research, edition.,New Delhi: Pearson Education., 2009. Kotler, Philip management and Keller, K.L. (2007), 5th
Marketing
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