Investor Profile and Industries in Virudhunagar District

CHAPTER THREE
ANALYSIS ON PROFILE OF INVESTORS
3.1 INTRODUCTION
Investors’ perception and investment pattern depends on individuals, their

personal background, educational levels, income and other related factors. The
investment behaviour of the investors may also be influenced by the region. It is
usually felt that people in the developed districts are usually risk takers and
aggressive in investment, while individuals in the backward district are
conservative. Keeping this in mind, an attempt is made in this chapter to study
the demographic profile and investment profile of the Virudhunagar district,
from which the respondents are taken as sample for the present study.
This chapter is divided into two parts, the first part deals with the profile
of the study district which is situated in South Tamilnadu. The second part
examines the demographic and investment profile of the sample respondents in
the study area.
3.2 PROFILE OF VIRUDHUNAGAR DISTRICT
The study has been made with the sample respondents in Virudhunagar
district. According to the 2011 census, Virudhunagar district has a population of
1,943,309; Virudhunagar has a sex ratio of 1009 females for every 1000 males,
and a literacy rate of 80.75 %. 44.39% are urbanised. The Majority of the
population are involved in Industries and agriculture. Virudhungar district is
known for concentration of multiple enterprises in different part of the district.
Each block is unique in nature. Concentration of industries like Matches,
Fireworks, Printing, Oil Extraction, Readymade Garments, Brick Making,
Surgical cotton, Textile products, Cement, Lime-based products, Rice mill, Paper
products, Food industries, Tin containers, Gold Jewellary making in different
parts of the district and the district has offered multiple intervention for further
development. It attracts the attention of the policy makers and reaches to anchor
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the industrial development in a balanced matter across the district.Virudhunagar
district has Sivakasi and Aruppukottai as revenue divisions. The major industrial
groups in Virudhunagar District are as follows:
1. TVS Groups
2. RAMCO Groups
3. Jeyavilas Groups
4. Naatchiyar Groups
5. Arumuga Group of Industries
6. Subburaj Cotton Mills Group
7. Standard Group of Industries
8. Arasan Group of Industries
9. Alagulam Cement factory
3.2.1 Sivakasi Town
Sivakasi, a big industrial centre, is situated in Virudhunagar District of

Tamil Nadu. The Title Name 'KUTTY JAPAN' was given by Mr. Jawaharlal
Nehru to Sivakasi. 'Kutty' in Tamil means Mini. So Kutty Japan, means Mini
Japan. During early 1960's, India was under great famine and lots and lots of
people were unemployed and it was at that time, that the people of Sivakasi came
together to promote industries by themselves without expecting any aid from the
Government and stand on their own to achieve self reliant, high industrial growth
rate (especially Matches, Fireworks, Printing and sub industries related to those
industries.). The overall outcomes of this are, Sivakasi
Contributes 80% of India's Total Safety Matches Production
Contributes 90% of India's Total Fireworks Production
Contributes 60% of India's Total Offset Printing Solutions.
One of the high Sales / Excise / Customs Duty paying town.
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100% employment achieved town (which is among a few towns in India
rather world).
Sivakasi is much celebrated for the manufacture of handmade matches

and crackers. Moreover, Sivakasi is very famous for offset and litho printing.
More than 200 offset printing and litho press units are functioning in Sivakasi.
Thousands of North Indian traders visit Sivakasi town for printing labels of
different nature, because the cost of printing is cheaper in Sivakasi than in other
places. Thus, in printing industry, Sivakasi has rightly earned a reputation
nationwide. In safety matches production, Sivakasi leads the whole Asian
continent. 80% of the requirement of matches in India is produced by Sivakasi
match factories. Matches is also exported to foreign countries from Sivakasi,
most of the matches units function as cottage and small scale industrial units; and
over 3 lakh labourers are employed in match factories.
Another significant and renowned item produced in Sivakasi is a wide

variety of crackers by the fireworks factories numbering over 450. Supplying
crackers to the whole of India, every year they manufacture crackers worth
Rs.1600 millions1. The crackers are also exported to foreign countries and
revenue or profits generated by these people are high. This is a suitable place to
investigate the awareness of the investors regarding Securities Market in marine
inland transit Insurance.
3.2.2 Rajapalayam Town
Rajapalayam is well-known for cotton spinning and ginning mills. Since

Rajapalayam is surrounded by Western Ghats on two sides, the existing climate is
conducive for cotton spinning mills. The number of cotton spinning and ginning
mills exceeds hundreds that overpowers the number of cotton ginning and
spinning mills, in the other towns of Virudhunagar District. The salient feature in
the industrial map of Rajapalayam is the presence of surgical and bandage cotton
manufacturing industries. Chatrapatti, the nearest village of Rajapalayam is
swamped by 150 surgical cotton manufacturing units both in large scale and
1
www.sivakasi.com
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small scale sector. The total number of units in Rajapalayam and nearby areas is
2450 having involved 20,000 homes in manufacturing. Out of this, the plain,
semi automatic, automatic and shuttleless looms are 18,000, 1,350, 450 and 200
respectively2. The major varieties being produced in this area are bandage cloth,
saree, lungi and towel. It is observed that there are 120 processing units in
addition to 100 warping and sizing units. About 20-25 manufacturer/master-
weavers operate in Rajapalayam area. Two ISO certified units export surgical
cotton to Italy and to other countries. As cotton is transited to various parts of
state and nations, Rajapalayam and its environs offer a vast potentiality for
marine Insurance.
3.2.3 Virudhunagar Town
Though not enjoying much industrial significance as that of Sivakasi and

Rajapalayam in Virudhunagar district, for over a century, Virudhunagar is the
leading trading centre. It is considered as the main market for agricultural
commodities like cotton, groundnut, chilly, different kinds of dhal, cardamom,
areca nut, turmeric, coriander, pepper and a myriad of grocery items. The
vernacular newspapers quote daily prices for the said items ruling in
Virudhunagar market. A remarkable feature is that the merchants of
Virudhunagar control cardamom market in London. Edible and non-edible oil
crushing units and dhal factories are flourishing in Virudhunagar.
Three spinning mills, one metal printing industry and a paper cone (used
in textile mills) manufacturing unit function in the town. Chilly is exported to
eastern countries by a large local firm. The magic of the town is that it virtually
controls markets for all agricultural commodities without growing them on its
soil. So, there is no second thought in considering Virudhunagar as a vital area
for the development of marine business by all the four public sector General
Insurance companies.
2
www.textilescommittee.nic.in
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3.2.4 Sattur Town
Sattur town gets a prominent place in the industrial map of Virudhunagar

District. It races with Sivakasi town in matches industry. Here, tiny matches
units numbering over 3,000 have been organized as household industry. Sattur
chillies are famous in the market. Another notable feature of Sattur is the
phenomenal growth of nib industry. Marwaris, the renowned enterprising
business community of North India, are the pioneers of the nib industry with
more than 100 nib industrial units; they take pride by the supply of over 70% of
the requirements of the whole country. Availability of cheap child labour is the
chief reason for the localization of safety matches and nib industrial units at
Sattur.
3.2.5 Aruppukottai Town
In Aruppukottai town giant spinning mills and flour mills are located.
The town is reputed for weaving handloom and power loom products. Those
products are marketed throughout India and outside India.
3.2.6 Srivilliputtur Town
In Srivilliputhur, there are several safety match factories and handloom

and powerloom units and large steel manufacturing units. The important
handloom centres are situated in Srivilliputtur.
FIGURE 3.1
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3.3 DEMOGRAPHIC PROFILE OF THE RESPONDENTS
Income and expenditure pattern is influenced by severable variables like

perception of saving of those who save their assessment of its costs and
benefits, their age, family size and structure, Objectives or motivations for
saving, environment etc.3 The demographic characteristics of respondents in
Virudhunagar District such as age, gender, education, occupation, annual income,
marital status, type of family, number of family members are studied.
3.3.1 Age Group
Age, as an important demographic variable not only determines an

individual’s physical and mental maturity but also depicts one’s life experiences.
Investors in Virudhunagar district are classified based on their age in the
following table 3.1.
TABLE 3.1
Age Group of the respondents
Age group No of Respondents Percentage
20-30 66 22
31-40 99 33
41-50 66 22
51 & above 69 23
Total 300 100
Source: Primary Data
Investment avenues are perceived by the respondents in different ways.

Their perception and expectation may be induced by their age and from the table
3.1 it is found out that out of 300 respondents, 33 per cent of the respondents
belong to the age group of 31 - 40. 23 per cent of the respondents belong to the
age group of 51 years and above.
It is found that 33 per cent of the respondents belong to the age group of
31-40. It can be concluded that the middle aged respondents in the range of 31-
40 years are highly interested in Securities Market. In a nutshell, youthful
demography dominates the stock market.
3
Anoop Bhaskar, (2008), “Go for Investment, UTI Fund Watch, August, p: 4.
98
3.3.2 Gender
It is the widespread apprehension that women are sensitive towards

dealing in stock exchange securities, so the researcher has studied the gender of
the respondents which is depicted in table 3.2.
TABLE 3.2
Gender of the respondents
Gender No of Respondents Percentage
Male 174 58
Female 126 42
Total 300 100
It is found out that out of 300 respondents, 58 per cent of the respondents
are male and 42 per cent of the respondents are female. It is found that 58
percent of the respondents are male and it is not much greater than the female
respondents. Hence it can be concluded that the male respondents are
comparatively more than the female respondents.
3.3.3 Education
Formal education is considered as an effective tool to face the challenging

economical environment. Analysis of proposals may be done in a better way by
the educated respondents, hence education is considered for the study. The
following table 3.3 portrays the education of the respondents in Virudhunagar
district.
TABLE 3.3
Education of the respondents
Education No of respondents Percentage
High School 45 15.0
Graduate 114 38.0
Post Graduate 69 23.0
Professional 60 20.0
Others 12 4.0
Total 300 100
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The researcher has studied the educational qualification of the
respondents and found out that out of 300 respondents, 38 per cent of the
respondents are graduates and 23 per cent of the respondents are post graduates
and 20 per cent are professional degree holders. It can be concluded that well
educated persons are much interested in Securities Market.
3.3.4 Occupation
The occupational status of the respondents may be one of the essential

variables in perceiving the investment risks and returns. The salaried persons
may prefer regular income- oriented investments whereas business people may
prefer higher profit-oriented investments. So the researcher has studied the
occupation of the investors as demographic profile variable. The table 3.4
focuses on the respondents’ career.
TABLE 3.4
Occupation of the respondents
Occupation No of respondents Percentage
Entrepreneur 60 20.0
Professional 63 21.0
House wife 27 9.0
Employed in Government 36 12.0
Employed in Private 75 25.0
Retired 39 13.0
Total 300 100

It is found out that out of 300 respondents, 25 per cent of the respondents
are employers of private concern and 21 per cent are professionals. 13 per cent
of the respondents under study are retired people. It is noteworthy that 20 per
cent of the investors are entrepreneurs. It can be concluded that salaried /regular
income group is actively dealing in securities.
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3.3.5 Monthly Income
ncome
Income is an important factor enabling people to lead a happy life. The

income of the family determines the spending pattern and savings pattern. The
monthly income of the respondents is useful to find out their attitude towards
investment avenues, as there is a relation between the risk and the return in the
Securities Market.. So it has been attempted to investigate the income of the
respondents as a variable. For analysis, the income of the respondents has been
collected and presented in table 3.5.
3.5
TABLE 3.5
Monthly Income of the respondents
Monthly Income
ncome No of respondents Percentage
10000/- to 25000
25000/- 81 27.0
25001/to 50000//- 141 47.0
50001/- to 75000//- 33 11.0
Above 75,000/- 45 15.0
Total 300 100
ata
It is found that out of 300 respondents, 47 per cent of the respondents

belong to the monthly income range of 25001/- to 50000/- .27 per cent of the
respondents belong to the monthly income range of 10000/- to 25000/-.
15 per cent of the respondents belong to the monthly income range of above
75,000/- and 11 per cent of respondents alone are between the income range of
550001to 75000/-.. Hence it can be concluded that the respondents of all
income ranges are in investment market.
3.3.6 Marital Status
Marital status can be taken as an important social characteristic

characteristic of the
respondents. The responsibility of the individual increases after
after marriage hence
their attitude towards investment choice and investment avenues differ, so it is
also studied. The respondents in Virudhunagar district has been classified based
on their marital status which is represented in table 3.6.
3.6
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TABLE 3.6
Marital Status of the respondents
Marital Status No of Respondents Percentage
Married 204 68.0
Single 96 32.0
Total 300 100
It is found that out of 300 respondents, 68 per cent of the respondents are
married which is a vast majority and only 32 per cent of the respondents are
single. 204 married respondents are aware of Securities Market. This is because
the marital status makes an individual to be more accountable and risk cautious in
spending their earnings.
3.3.7 Type of Family
The type of family of the respondents is also one of the demographic

factors that influence the respondents to plan for their future financial needs.
Depending upon the type of the family, whether it is a joint family or nuclear
family the need for income and investments differ which is depicted in table 3.7.
TABLE 3.7
Type of Family of the respondents
Type of Family No of Respondents Percentage
Nuclear 147 49.0

Joint 153 51.0
Total 300 100
It is visibly clear that out of 300 respondents, 51 per cent of the investors
live in a joint family. 49 per cent of the respondent’s family is of nuclear family.
So it can be concluded that the traditional joint family is predominant in
Virudhunagar district but the need for investment for a better future for any type
of family is important.
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3.3.8 Dependents on the Income
Perception of the investors differs based on the dependents on their

income. Financial needs will be high if the dependents on the income are high.
So the numbers of dependents are classified and it is illustrated in table 3.8.
TABLE 3.8
Dependents on the income of the respondents
Members No of Respondents Percentage
Up to Three 108 36.0
Four 72 24.0
Five and above 120 40.0
Total 300 100
It is clear from the classification shown in the table that out of 300
respondents, 120 respondents forming 40 per cent, are having more than five
members depending on the income of the respondents. 108 respondents, forming
36 per cent are having three dependents in their family on their income. 72
respondents, forming 24 per cent are having four members in their family. It is
observed that majority of the respondents constituting 40 per cent are having
more than five number of members in the family depending on the income of the
respondents.
3.3.9 Monthly Financial Requirements
The monthly financial requirement of the respondents are classified as

widely fluctuate, fluctuate moderately and stable and fixed because the financial
needs drive them to seek for other avenues for income generation. Hence the
demographic variable monthly financial requirement of the respondents are
studied and shown in table 3.9.
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TABLE 3.9
Monthly Financial requirements of the respondents
Monthly Financial
No of Respondents Percentage
Requirements
Fluctuate widely 45 15.0
Fluctuate moderately 132 44.0
Stable and fixed 123 41.0
Total 300 100
It is crystal clear that out of 300 respondents, 44 per cent of the

respondents’ financial need fluctuate moderately, while 41 percent of the
respondents’ financial requirement is stable and fixed. On the other hand, 15
percent of the respondents’ monthly financial requirements fluctuate widely. So
it can be concluded that the investors are efficient in financial planning as 44 per
cent of the respondents’ financial requirement fluctuate moderately.
3.3.10 Percentage of Savings on Income
In the current scenario, people strive hard for income generation and it is
much harder to save. Hence it is an important variable to be dealt with and it is
represented in table 3.10
TABLE 3.10
Percentage of Savings on the income of the respondents
Percentage of savings
on the income
Below 10% 64 21.3
Between 10%-15% 78 26.0
Between 15%-20% 90 30.0
Between 20%-25% 68 22.7
Total 300 100
The above analysis brings to light the fact that about 90 respondents
forming 30 per cent are able to save up to 15-20 percentage of their annual
income as savings. 78 respondents forming 26 per cent are able to save between
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10-15 per cent. 68 respondents forming 22.7 per cent of the investors are able to
save up to 20-25 per cent and 64 respondents forming 21.3 per cent are able to
save below 10 per cent only. It is interesting to note that only 90 respondents are
able to save 15-20 per cent of their hard earned money.
3.4 INVESTMENT PROFILE OF THE RESPONDENTS
Savings is perceived as money reserved for future needs. It implies that a

deliberate decision on the part of the households to save for meeting the future
needs, depend on many factors namely the determinants of saving which includes
the factor that affect both the ability to save and will to save. The path of
development depends not only on the rate of saving but also on investments
that provides a cushion of security against future contingencies, Saving and
Investment habit of individual household paves path for one’s own economic
development which in turn plays a vital role in the development of economic
activities. This part of the study profiles the investment profile of the
respondents in the Securities Market in the study area. The profile variables are
Period of savings, year of entry into the stock market, number of demat accounts
held by them, style of operating the demat account, objectives for investment,
percentage of savings in equity, the mode of investment and the Investment
Mechanism adopted by the investor and so on. In order to give a clear picture of
the investment profile, it is tabulated and the percentage analysis is made.
3.4.1 Period of Savings of the respondents
Period of savings is an influencing factor for the study because it enables

to learn when the investor is aware of savings which plays a vital role in
investment decision making. More over it enables to find out whether the
respondents are expert financial planners as security in old age is dependent on
three pillars- an adequate retirement income, accessible quality health care and
affordable housing. The study is made to find out whether they have started
savings in their earlier period, mid career period or at their retirement stage. It is
depicted in table 3.11.
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TABLE 3.11
Period of Savings of the respondents
Period of savings No of Respondents Percentage
Early Career Period 102 34.0
Mid Career Period 126 42.0
Retirement Stage 72 24.0
Total 300 100
From the above table, it can be concluded that 126 respondents out of 300
which constitutes 42 per cent have started savings in their mid - career period.
102 respondents (i.e.) 34 per cent have started to save in their earlier stage itself.
It is pathetic to note that 72 respondents (24 per cent) are able to save their hard-
earned money at their retirement stage only.
3.4.2 Investment Objectives of the Respondents
Investment culture refers to the attitudes, perceptions, and willingness of

the individuals. In placing their savings in various financial assets more popularly
known as securities, investors will have certain Objectives such as earning
dividends or interest from the investments, returns from the investments, capital
appreciation, security or safety for their investments and to avail some tax
benefits. Details of the various Objectives of the respondents are studied and
given in table 3.12.
TABLE 3.12
Investment Objectives of the respondents
Investment Objectives No of Respondents Percentage

Dividends/Interest 42 14.0
Quick Returns 141 47.0
Capital Appreciation 72 24.0
Capital Security 27 9.0

Tax Benefits 18 6.0
Total 300 100
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The table 3.12 clearly gives a picture that 141 respondents are investing in
the Securities Market with the objective of quick returns, while 24 per cent
respondents have recorded their objective as capital appreciation. 14 per cent
respondents have preferred dividends/ interest where in they are assured of fixed
returns. 9 per cent respondents have stated that they invest with the objective of
capital security on the other hand only, 6 per cent respondents have preferred
Securities Market with the objective of tax exemption. Hence it is clear that the
majority of the people want to be rich within a short span of time.
3.4.3 Percentage of Savings Invested in Equity
Equity as a group class, offers better long - term and superior returns as
compared to the other instruments for investors. For a long- term, horizon equity
is an interesting area to remain invested. Investment in the equity shares of
growth companies can protect the investors' inflation. In general, the investor
should not have more than one-half in equities unless he has strong confidence in
the soundness of his stock position. 50-50 version of this approach makes good
sense for the defensive investor4, suggests “The Intelligent Investor” which is
considered as the stock market bible. Equities have the potential to build
enormous wealth-provided. The portfolio is based on research -backed
recommendations, with a long term perspective. Hence it is essential to study the
per cent of savings allotted towards equity by the respondents of Virudhunagar
district. The researcher has surveyed the percentage of savings invested in Equity
and tabulated in 3.13.
TABLE 3.13
Percentage of Savings Invested in Equity by the respondents
Percentage of savings
invested in Equity
Below 5% 85 28.3
5% to 10% 125 41.7
10% to 20% 36 12.0
Above 20% 54 18.0
Total 300 100
4
Benjamin Graham, (1973) “The Intelligent Investor” Fourth Revised edition, HarperCollins
Publishers Inc., New York, pp: 90-91.
107
From the above table it is found that 41.7 per cent of the respondents are
allotting 5 to 10 per cent of their savings towards investment in equity shares.
28.3 per cent of the respondents are allotting below 5 per cent of their savings
towards equity while 18 per cent of the respondents are investing above 20 per
cent in equity and 12 per cent of the respondents are allotting 10 to 20 per cent
towards equity. Hence it can be assumed that the investors who are allotting
above 10 per cent of their savings towards equity are investors do not prefer
trading. They may find it difficult to track and trade.
3.4.4 Time Horizon in Investments
The three time horizons are short term, medium term and long term based
on the goals. Long term investment should be around seven to 10 years.
Investors should monitor their portfolio at least once on a monthly basis and
profit should be booked as soon as the intended target performance is achieved.
Similarly non-performing investments also need corrective measures based on the
risk appetite. Generally a structured 20% saving over an average work life will
help in accumulating a decent corpus says Anutosh Bose, the Chief operating
officer of LIC Nomura Mutual Fund to Business Line news paper5. Based on his
words, the respondents’ investment period is studied and tabulated in table 3.14.
TABLE 3.14
Time Horizon in Investments
Time Horizon No of Respondents Percentage
Long term 60 20
Medium term 96 32
Short term 144 48
Total 300 100
From the above table it is found that 48 per cent of the respondents are
short term investors while 32 per cent of the respondents are medium term
investors and only 20 per cent of the respondents are long term investors. Hence
it can be assumed that the entry of the respondents may be after 2008 and most of
5
Anutosh Bose, (2014 ),“It’s best to keep your bird in hand”, Business Line, 28th April, p:3.
108
them are reluctant to stay in the market for long term and probably they might
have entered with the attitude of making quick money.
3.4.5 Year of Dealing in the Securities Market
Indian stock market, in terms of return has performed very well during the
post reform period. In most of the years it was able to produce positive returns to
its investors. Every alternate year from 2003-04, the market had delivered terrific
returns and its return profile during those years is abnormally higher than that of
just previous years. Highest market growth (85.11 per cent) was observed in
2003-04. Since then, the stock market of the country was able to produce return
for investors and the same trend continued until 2008-09. But the year 2008-09
brought in relentless distress to the investors by causing a loss of more than one-
third of the value of their wealth which they would have hold at the beginning of
the year. But the financial year 2009-10 again saw the market delivering
amazing returns (71.51 per cent) which enable the investors to earn twice of their
capital which they lost in the previous year.
Depending upon the stock cycle where in there is a boom for every 8
years, the year of dealing into the Securities Market is classified into three
periods Before 2000, 2004-2008 and After 2008. Year of entry into the Securities
Market is very important variable so as to analyze the risk and returns of the
respondents which is tabulated in table 3.15.
TABLE 3.15
Year of Dealing in the Securities Market by the respondents
Year of dealing in the
Securities Market
Before 2000 27 9.0
2000-2008 156 52.0
After 2008 117 39.0
Total 300 100
From the above table, it can be inferred that 156 respondents forming 52
per cent have stepped into the stock market in the year 2000-2008. 117
respondents forming 39 per cent have made their entry into the stock market after
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2008 and only 27 respondents forming 9 per cent have made their debut into the
stock market before the year 2000 itself. Hence it is crystal clear that the
awareness regarding Securities Market is increasing.
3.4.6 Investment Mechanism in the Securities Market
Financial affordability of an individual is the main driving force for the

investment process and their role in the market varies depending upon the
investor’s objectives and financial capacity. So the table 3.16, analyses the
Investment Mechanism, whether the respondents are investor or trader.
TABLE 3.16
Investment Mechanism in the Securities Market
Investment Mechanism in No of
Percentage
the Securities Market Respondents
Investor 96 32.0
Trader 60 20.0
Both 144 48.0
Total 300 100
From the table 3.16, it is inferred that 144 respondents forming 48 per
cent are both investor and trader. 96 respondents forming 32 per cent are
investors, while 60 respondents forming 20 per cent are traders. It can be
concluded that 48 per cent (144) respondents are willing to take risk as both
investor and trader.
3.4.7 Mode Preferred for Investments
Trading is defined as buying and selling shares in stock exchanges. The

two types of trading are online trading (via internet) and offline trading (via
broker or call). Gone are the days when the investor must have a stock broker to
deal in stocks and make investments. In this age of internet, when everything is
going online, stock trading has also gone online. Just like the offline stock
trading investor can now buy or sell stocks online with just a few clicks of the
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mouse. Online trading sounds like an instant way to mint money.6 There are
obviously some advantages and some disadvantages of both these form of
trading. Online trading requires the investors to pay lower brokerage. There is
no middle man involved. In case of online trading there is no paper work
involved. Investors can deal with different stock exchanges with single online
trading account. Even though there are many advantages, online trading too has
some disadvantages like investors can't set customized expert advice, whereas in
offline the broker gives suggestions according to investors strategy either Short
term or Long term. The paradigm change of Securities Market from offline to
online is commented by NSE’s Chief for Business Development Ravi Varanasi
to the Business line reporters that Trading on the NSE cash market by investors
through the use of internet has seen a 12 per cent rise over the last few years.
Citing the penetration of mobile phones including the smart phones, Varanasi has
added that the use of this medium for trading on NSE has seen a 100 per cent
jump in the past one year.7 As stock market is functioning in electronic platform
which is dynamic and complicated, the Mode preferred by the respondents is very
important to know whether they are adoptable to the changes and it is presented
in table 3.17.
TABLE 3.17
Mode Preferred for Investments
Mode No of Respondents Percentage
Dial and trade 156 52.0
Self Online Trading 108 36.0
Both 36 12.0
Total 300 100
6
Ibid5
7
Ravi Varanasi, (2014) “NSE sees rise in trading through internet,mobile phones” Business
Line, 22nd February, p:5.
111
From the table 3.17, it is clear that 156 respondents prefer to invest /
trade in stock market by Adoption of the dial and trade method, mainly through
intermediaries/ Sub brokers. Self online trading mode is adopted by 108
respondents. 36 respondents adopt both the method. Hence it is inferred that
though 36 per cent of the respondents are doing online trading they can be
considered as tech-savvy but 52 per cent of respondents goes under the umbrella
of the intermediaries. As said by Mr. Ravi Varanasi, it can be concluded that the
usage of mobile devices has increased considerably among Virudhunagar
respondents.
3.4.8 Number of Demat Accounts
The number of demat accounts held by the respondents gives an idea of

his/ her interest towards the financial markets. Hence it is depicted in table 3.18.
TABLE 3.18
Number of Demat Accounts
Number of Demat No of
Percentage
Accounts Respondents
One 159 53.0
Two 60 20.0
More than Two 81 27.0
Total 300 100
From the above table, it is clear that 159 respondents forming 53 per cent
are having only one demat account, while 81 respondent forming 27 per cent are
having more than two. Respondents having two demat account numbers to 60
forms 20 per cent. Respondents having one demat account may feel easy to track
the performance of his financial investments. Respondents having more than one
demat account may operate in the name of their spouse or children or for
sentimental reasons as sentiment plays a dominant role is stock market.
112
3.4.9 Adoption of SIP in investments (Systematic Investment Plan)
“Little drops of water make a mighty ocean” is a famous saying and this
is true if an investor adopts Systematic Investment Plan (SIP) for investment.
Under this plan investors invest a specific amount for a continuous period, at
regular intervals. By doing this, the investor has the advantage of rupee cost
averaging and it also helps him save a fixed amount each month, compulsorily.
When the investor opts for SIP, he /she automatically participates in the market
swings. The amount of investment remains the same but the number of shares
purchased varies or buy more number of units in a declining market and less
number of units in a rising market, so that the investor does not panic in turbulent
market conditions. SIP results in rupee cost averaging and it means investing
consistently. Periodic investment based on one's convenience by investing the
same amount at regular intervals, then the average cost per share always remains
lower than the average market price, irrespective of how the market is - rising,
falling or fluctuating. An SIP investor gets phenomenal rate of return compared
to a one-time investor. The following table 3.19 provides a picture of the
investors profile relating to the adoption of SIP.
TABLE 3.19
Adoption of SIP
Adopt SIP No of Respondents Percentage
Yes 144 48.0
No 156 52.0
Total 300 100
Investing in Securities Market is not a magic box, where one can put his
or her money which gets multiplied over a period. But one can take exposure to
equity by investing systematically via SIP’s route, which reduces the timing risk.
But from the above table, it is crystal clear that 52 per cent of the respondents are
not aware of the benefits of SIP. Only 48 per cent of the respondents are aware
of SIP method.
113
3.4.10 Portfolio Allocation
A grouping of financial assets such as stocks, bonds and cash equivalents

is called portfolio construction. Portfolios are held directly by investors and/or
managed by financial professionals.
Investors should construct an investment portfolio in accordance with risk

tolerance and investing Objectives. Assume Investment portfolio as a pie that is
divided into pieces of varying sizes representing a variety of asset classes and/or
types of investments to accomplish an appropriate risk-return portfolio allocation.
Spread the risk by diversifying the portfolio across a mixture of asset classes,
industry sectors and areas of the world are called portfolio allocations. If the
investor puts all his money into a single asset class, sector or company, the
portfolio is very exposed and performance is likely to be volatile – whereas, if the
investor mixes it up, when one asset is going down, chances are, another asset
could be going up and will help compensate. “Don’t put all your eggs in one
basket” is a famous quote in stock market.
For example, a conservative investor might favour a portfolio with large

cap value stocks, broad-based market index funds, investment-grade bonds and a
position in liquid, high-grade cash equivalents. In contrast, a risk loving investor
might add some small cap growth stocks to an aggressive large cap growth stock
position, assume some high-yield bond exposure, and look to Real estate,
international and alternative investment opportunities for his or her portfolio.
Building a portfolio involves understanding the way various types of investments
work, and combining them to address personal investment objectives and factors
such as attitude to risk the investment and the expected life of the investment.
TABLE 3.20
Portfolio Allocation
Portfolio allocation No of Respondents Percentage
Blue-chip stocks 51 17.0
Midcap stocks 102 34.0
Small cap stocks 33 11.0
Mixture of all 114 38.0
Total 300 100.0
114
Portfolio allocation is all about investing in a range of funds viz.,
Blue-chip Stocks, Midcap stocks, Small cap stocks or a combination of all range
of stocks that work together to create an investment solution for investors. While
building an investment portfolio investor must be aware of the fact that “Putting
all the eggs in a single basket may lead to loss” From the above table, it is clear
that 38 per cent of investors forming 114 respondents’ portfolio comprises of all
range of stocks. 34 per cent of investors invest in Midcap stocks. 17 per cent of
investors alone invest in Blue-chip stocks on the other hand only 11 per cent of
investors concentrate on small cap stocks. Hence it can be concluded that most
of the investors are aware of their investment objectives and invest in stocks
which they find suitable.
3.4.11 Portfolio Alteration
The act of investing is always enveloped within the realm of uncertainty.

So in order to make profit or avoid loss due to good or bad news or rumors in the
global economy, the portfolio of the investor needs to be altered. Becoming a
long term investor, by sticking on to a stock for 10 years and longer may realize
that the stock picked has not performed well hence the investor may limit the
trading or change over to a stock that is expected to perform well. Review of
portfolio regularly is essential. The portfolio has been set up to meet the
Objectives of the investors based on his or her needs today so reviewing the
portfolio regularly and altering it once in three years is essential to make sure to
stay on track as the needs and circumstances may change.
Individual investors prefer to buy attention grabbing stock that is in news

or that has experienced higher unexpected trading volume or stocks which have
provided some excessive one day returns. The portfolio is to be shifted towards
the stocks of good expectation relative to the past performance or publicity.
Diversifying the portfolio helps to smooth out market ups and downs. So returns
from better performing assets help to offset those that aren’t performing so well.
Hence the researcher has studied the investors’ perception regarding their
portfolio which is explained well through their Portfolio alteration and it is
tabulated in 3.21.
115
TABLE 3.21
Portfolio Alteration
Portfolio alteration No of Respondents Percentage
Never 57 19.0
Often 156 52.0
Rarely 87 29.0
Total 300 100
The game of stock market is that if a holding has performed particularly

badly relative to its peers, the investor does need to consider in cutting the losses
and selling it altogether. It might be better to sell out and reinvest the proceeds
into a quality alternative than to sit around hoping to recoup the loss. Portfolio
alteration or revision is essential. The above table reveals that 52 per cent of the
respondents are tracking their portfolio performance and they are altering it often,
while 29 per cent of the respondents are altering their portfolio rarely. Only 19
per cent of the respondents has never altered their portfolio and hence it is
assumed that they may be long term investors or they may be optimistic about
their portfolio construction.
3.4.12 Subscription of Market alerts
The stock market can be an excellent place to invest over the long term to
create wealth. But in order to reap the benefits of investing in the stock market,
the investors should learn as much as possible about the market before investing.
Stock market tips rolled out to the hands of the investors will help to succeed in
the market.
A retail investor is typically the last one to know of tips. Hence, he is

most likely to invest when the stock has already run up and hence, at a risk to
lose money. Getting research reports from reputed brokers and analyzing the
financial statements requires certain amount of skill and research competence.
But it is made easy if the investment tips reach the clients through their mobiles.
Now-a-days there are many investment market alerts which can be subscribed
and the tips are updated each and every moment. There are several applications
116
like Money control which can be installed in a smart phone to have a regular
track of the portfolio performance.
TABLE 3.22
Subscription of Market Alerts
Subscription of
market alerts
Yes 96 32.0
No 204 68.0
Total 300 100
From the table 3.22, it is understood that the majority of the respondents
forming 68 per cent are not aware of the latest technological applications which
enhances market track. Only 32 per cent of the respondents are aware of the
market alerts. Hence it can be concluded that the online traders are aware of the
latest technology and they are tech-savvy so they may have subscribed market
investment alerts.
3.4.13 Stock Sentiment
All investment choices are made at points of time in accordance with the
personal investment ends and in observation of a tentative future. One of the key
characteristics that govern investor behaviour is the optimism or pessimism of the
investors. The link between holding or sticking on to a particular stock and
investor sentiment has been the subject of survey as there is a famous saying
“Don’t marry a stock”. The reason for holding a particular stock or stock
sentiment is categorized as highly rewarding Reputed Company and Blue-chip
stock. Stock sentiment of the study respondents is studied and tabulated in 3.23.
TABLE 3.23
Stock Sentiment
Stock sentiment No of Respondents Percentage
Highly rewarding 54 18.0
Reputed company 75 25.0
Blue-chip stock 171 57.0
Total 300 100
117
From the table 3.23, it is noted that 57 per cent of the respondents are
holding a particular stock as it is a blue chip stock. 25 per cent of the respondents
stick on to a stock as it is a reputed company while 18 per cent of the investors
are highly optimistic as it has yielded huge returns in the previous years. It is
evident that most of the respondents are followers of index stocks.
3.4.14 Risk Taking Attitude
“No pain No gain” is the basic concept of Securities Market. Profit is the
reward for risk taking. The retail investors take into consideration their
investment needs, goals, Objectives and constraints before making investment
decisions. However, it is not possible to make a successful investment decision
at all times. They have to cautiously watch the market conditions and change
their investment options in accordance with their Risk Tolerance Level. The Risk
taking attitude of the respondents are categorized as high risk, moderate risk, low
risk and risk adverse. Hence Risk taking attitude of the respondents is also
studied and presented in table 3.24.
TABLE 3.24
Risk Taking Attitude
Risk taking attitude No of Respondents Percentage
High risk 80 26
Moderate risk 108 36
Low risk 56 19
Risk Averse 56 19
Total 300 100

From the above table 3.24, it is found that 36 per cent of the respondents
are moderate risk takers and only 26 per cent of the respondents constitute high
risk taking attitude. 19 per cent of the respondents are of low risk takers and
another 19 per cent of the investors are having risk averse attitude.
118
3.5 RELATIONSHIP BETWEEN DEMOGRAPHIC PROFILE AND
INVESTMENT PROFILE OF THE INVESTORS
In the following analysis, the relationship between the demographic

variables and some of the important investment profile variables of the study
respondents in the study area has been studied with the help of correlation
analysis.
Correlation is a term that refers to the strength of a relationship between

two variables. A strong or high correlation means that two or more variables have
a strong relationship with each other while a weak or low correlation means
that the variables are hardly related. Correlation coefficients can range from
-1.00 to +1.00. The value of -1.00 represents a perfect negative correlation while
a value of +1.00 represents a positive correlation.
3.5.1 Age Group and Investment Profile of the respondents
Age is identified as one of the variables that determine the decision

regarding percentage of income to be allotted for savings or for future
investments. In order to test the perception between age and the investment
profile variables of the respondents, based on their age group classified and
assigned scores and the following hypothesis is formulated.
Ho1: There is no significant relationship between the age group of the

respondents and their investment profile.
TABLE 3.25
Age group and Investment Profile of the respondents
Investment profile variables r value p value Result
Period of savings 0.391 0.000 Significant
Investment Mechanism -0.046 0.425 Not significant
Mode preferred for investments -0.170 0.003 Significant
Objectives for investments 0.008 0.896 Not significant
Time Horizon -0.165 0.004 Significant
Adoption of SIP in investments -0.036 0.536 Not significant
Portfolio Allocation 0.072 0.215 Not significant
Portfolio alteration -0.076 0.188 Not significant
Risk Taking Attitude -0.146 0.011 Significant
Source: Computed Data
119
From the table 3.25, it is revealed that ‘p’ value is less than 0.05 in respect
of the investment variables namely Period of savings (p = 0.000), Mode preferred
(p = 0.003), Time horizon (p = 0.004) and Risk taking attitude (p = 0.011), hence
the null hypothesis is rejected. It can be concluded that there is significant
relationship between the investment factors namely Period of savings, Mode
preferred, Time horizon and Risk taking attitude.
It also reveals that ‘p’ value is more than 0.05 in respect of variable
namely Investment Mechanism (p = 0.425), Objectives (p = 0.896), Adoption of
SIP (p = 0.536), Portfolio allocation (p = 0.215) and Portfolio alteration
(p=0.188), hence the null hypothesis is accepted. Age does not have any
significant relationship with the investment factors namely Investment
Mechanism, Objectives Adoption of SIP, Portfolio allocation and Portfolio
alteration.
3.5.2 Gender and Investment Profile of the respondents
Vidya Shah, CEO, Edel Give Foundation in an interview to Business line

interviewed by Meera Siva advises to start saving early. Women usually shy
away from investing in the markets as they believe that it is not their cup of tea.
But women can make great long term investors as they are emotionally balanced,
partnership oriented and can take a long term view of things. So gender is
considered as an important factor that influences the investment pattern of the
respondents. The gender is treated as a dummy varable for the correlation
analysis. Hence it is analysed using Independent sample t test and is depicted in
table 3.26.
Ho2: There is no significant relationship between the gender and the investment
profile of the respondents.
120
TABLE 3.26
Gender and Investment Profile of the respondents
Investment Profile Variables r value p value Result
Period of savings -0.048 0.404 Not significant
Investment Mechanism 0.360 0.000 Significant
Mode preferred for investments 0.140 0.015 Significant
Objectives for investments 0.131 0.023 Significant
Time Horizon 0.052 0.387 Not significant
Adoption of SIP in investments 0.047 0.487 Not significant
Portfolio Allocation -0.078 0.178 Not significant
Portfolio alteration 0.349 0.000 Significant
Risk Taking Attitude -0.167 0.004 Significant
From the above table, it is inferred that there is a significant relationship

between gender and the investment profile variables namely Investment
Mechanism (p = 0.000), Mode preferred by the respondent’s (p = 0.000)
Objectives (p = 0.037), Portfolio alteration (p= 0.000) and Risk taking attitude
(p = 0.000) as the ‘p’ value is less than 0.05 and hence the null hypothesis is
rejected.
The ‘p’ value is greater than 0.05 in case of the investment profile
variables such as Period of savings (p = 0.000), Time horizon (p = 0.000),
Adoption of SIP (p = 0.003) and Portfolio allocation (p= 0.000). Hence the null
hypothesis framed is accepted in the above cases and it can be concluded that
there is no significant relationship between gender with regard to investment
profile variables such as Period of savings, time horizon, adoption of SIP and
Portfolio allocation.
3.5.3 Education and Investment Profile of the respondents
Social and economic developments of a country depend on education.

Education is important to measure a nation’s progress in quality of population
rather than quality. Education is identified as one of the variables which
determine the investment profile of the investors. The level of education is rated
and assigned scores as per the possession of education by the respondents. The
relationship between the educational qualification of the respondents and
investment profile is tested and depicted in table 3.27.
121
Ho3: There is no significant relationship between the education of the
TABLE 3.27
Education and Investment Profile of the respondents
Investment Mechanism -0.027 0.639 Not significant
Mode preferred for investments -0.106 0.066 Not significant
Time Horizon -0.030 0.609 Not significant
Adoption of SIP in investments -0.151 0.009 Significant
Portfolio Allocation 0.169 0.003 Significant
Portfolio alteration 0.040 0.487 Not significant
Risk Taking Attitude 0.172 0.003 Significant

From the above table 3.27, it is inferred that there is a significant

relationship between educational qualification and the investment profile
variables namely Period of savings (p = 0.000), Adoption of SIP (p = 0.009),
portfolio allocation (p = 0.003) and risk taking attitude (p = 0.003) as the ‘p’
value is less than 0.05 and hence the null hypothesis is rejected.
The ‘p’ value is greater than 0.05 in case of the investment profile
variables such as Investment Mechanism of the respondents (p = 0.639), Mode
preferred (p = 0.066), Objectives (p = 0.951), Time horizon (p = 0.609) and
Portfolio alteration (p = 0.487). As the ‘p’ value is greater than 0.05, the null
hypothesis framed is accepted in the above cases and it can be concluded that
there is no significant correlation between educational qualification and
investment profile variables such as Investment Mechanism, Mode preferred,
Objectives, Time horizon and Portfolio alteration as these are the basic
knowledge required before stepping into the Securities Market.
122
3.5.4 Occupation and Investment Profile of the respondents
The possibility to have finance is considerably more with professional and

occupational people rather than others. Occupation is identified as one of the
variables that determine the investment pattern of the investors as the nature of
the job alone enables them to track the market and the available time enables
them to follow every ups and downs of the market. Occupation is trated as the
dummy variable for the present analysis. Hence the correlation between the
occupation and the investment profile variables are analysed.
Ho4: There is no significant relationship between the occupation of the

TABLE 3.28
Occupation and Investment Profile of the respondents
Investment Mechanism 0.042 0.465 Not Significant
Mode preferred for investments -0.228 0.000 Significant
Objectives for investments 0.036 0.534 Not Significant
Time Horizon 0.211 0.000 Significant
Adoption of SIP in investments 0.115 0.046 Significant
From the above table 3.28, it is inferred that there is no significant

correlation between occupation of the respondents and the investment profile
variables namely Investment Mechanism (p = 0.465) and Objectives (p = 0.534)
as the ‘p’ value is greater than 0.05 and hence the null hypothesis is accepted.
The ‘p’ value is less than 0.05 in case of the investment profile variables
such as Period of savings of the respondents (p = 0.003), Mode preferred by the
respondents (p = 0.000), Time horizon (p = 0.000), Adoption of SIP (p = 0.046),
Portfolio allocation(p = 0.008), Portfolio alteration (p = 0.015) and Risk taking
123
attitude (p = 0.049). Hence the null hypothesis framed is rejected in the above
cases and it can be concluded that there is significant correlation between
occupation and investment profile variables such as Period of savings of the
respondents, Mode preferred by the respondents, Time horizon, Adoption of SIP,
Portfolio allocation, Portfolio alteration and Risk taking attitude. It can be
inferred that occupation and the timings available to them determine the
investment time horizon. Occupation nature decides whether to do investment or
trading and that too through online or through intermediaries.
3.5.5 Monthly Income and Investment Profile of the respondents
Monthly income of the respondents determines the spending pattern and

savings pattern. The monthly income of the respondents is useful to find out their
attitude towards investment avenues, as there is a relation between the risk and
the return in the Securities Market. So it has been attempted to investigate the
relationship between the income of the respondents and the investment profile
variables and the following hypothesis is framed.
Ho5: There is no significant relationship between the monthly income of the

TABLE 3.29
Monthly income and Investment Profile of the respondents
Period of savings -0.035 0.544 Not significant
Investment Mechanism 0.055 0.341 Not significant
Mode preferred for investments 0.006 0.919 Not significant
Portfolio Allocation 0.096 0.096 Not significant
Portfolio alteration 0.051 0.382 Not significant
Risk Taking Attitude 0.076 0.187 Not significant
Source: Computed data
124
The table 3.29 unfolds that there is a significant correlation between
Monthly income of the respondents and the investment profile variable named
Adoption of SIP (p = 0.001) and Time horizon (p = 0.000) as the ‘p’ values is
less than 0.05 and hence the null hypothesis is rejected.
The ‘p’value is greater than 0.05 in all other cases of the investment
profile variables such as Period of savings (p = 0.544), Objectives (p = 0.940),
Investment Mechanism of the respondents (p = 0.341), Portfolio allocation
(p= 0.096), Portfolio alteration (p = 0.382) and Risk taking attitude (p = 0.187) as
the ‘p’ value is greater than 0.05. Hence the null hypothesis framed is accepted
in the above cases and it can be concluded that there is no significant correlation
between monthly income and investment profile variables such as Period of
savings, Objectives, Mode preferred, and Investment Mechanism, Portfolio
allocation, Portfolio alteration and Risk taking attitude of the respondents. Based
on the monthly income the respondents decide how long they can stay invested in
the market, buy stocks and construct a portfolio that does not burn their hands.
3.5.6 Marital Status and Investment Profile of the respondents
Marital status of the respondents over the investment profile is analysed

as the married persons financial requirement may be high compared to a
bachelor. Moreover the marital status drives them to decide the investment
profile variables. The marital status is assumed as the dummy variable for the
correlation analysis and the hypothesis framed is
Ho6: There is no significant relationship between the marital status of the

125
TABLE 3.30
Marital Status and Investment Profile of the respondents
Period of savings 0.062 0.281 Not Significant
Mode preferred for investments -0.006 0.915 Not Significant
Time Horizon 0.306 0.000 Significant
Adoption of SIP in investments -0.027 0.636 Not significant
Portfolio Allocation -0.026 0.651 Not Significant
Risk Taking Attitude 0.026 0.654 Not significant
From the above table it is evident there is a significant correlation

between marital status of the respondents and the investment profile variable
namely Investment Mechanism (p = 0.001), Objectives (p= 0.001), Time horizon
(p = 0.000) and Portfolio alteration (p = 0.000) as the ‘p’ value is less than 0.05
and hence the null hypothesis is rejected. The ‘p’ value is greater than 0.05 in all
other cases of the investment profile variables such as Period of savings
(p = 0.281), Mode preferred (p = 0.915), Adoption of SIP (p = 0.636), Portfolio
allocation (p = 0.651) and Risk taking attitude (p = 0.654) as the ‘p’ value is
greater than 0.05, hence the null hypothesis framed is accepted. It can be
concluded that there is significant correlation between marital status and
investment profile variables such as Investment Mechanism of the respondents,
Objectives, Time horizon and Portfolio alteration and it is understood that the
marital status of the respondents drive them for more financial commitment.
3.5.7 Type of Family
The type of family is an influencing variable in deciding the investment

profile of the respondents. Family lifestyle has changed in the past two decades
and the financial commitment drives them to search for additional source of
money hence it is a must to analyse whether investment profile is determined by
the type of family. The type of family is assumed as the dummy variable for the
correlation analysis and the hypothesis framed is
126
Ho7: There is no significant relationship between the type of family of the
TABLE 3.31
Type of Family and Investment Profile of the respondents
Period of savings -0.156 0.007 Significant

Mode preferred for investments 0.098 0.090 Not Significant
Time Horizon -0.063 0.278 Not significant
Portfolio Allocation -0.012 0.833 Not Significant
Risk Taking Attitude -0.037 0.522 Not significant
The above table clearly depicts that the hypothesis framed is rejected in
case of investment profile variables such as Period of savings (p = 0.007),
Investment Mechanism (p = 0.000), Adoption of SIP (p = 0.000) and Portfolio
alteration (p = 0.013) as the ‘p’ value is less than 0.05. It is evident that the
family of the respondents whether it is a joint family or nuclear family decides
the Percentage to be saved, Investment Mechanism, Objectives of investment and
Portfolio alteration. This is due to the reason that the joint family financial
commitment is quite high and the respondents of nuclear family have low
financial commitment and there are rare chances of consulting with the family
members as far as investment is considered.
Null hypothesis is accepted as the ‘p’ value is greater than 0.05 in case of
Objectives (p = 0.396), Time horizon (p = 0.278), Mode preferred (p = 0.090),
Portfolio allocation (p = 0.833) and Risk taking attitude (p = 0.522) and it can be
concluded that the type of family does not decides the mode preferred, time
horizon, portfolio allocation and risk taking attitude.
127
3.5.8 Number of Dependents on the Income
The type of family is an influencing variable in deciding the investment

profile of the respondents likewise the number of dependents also determines the
investment, hence there arise a need to analyse whether investment profile is
correlated to number of dependents on the income of the respondents.
Ho8: There is no significant relationship between the number of the dependents

on the income of the respondents and their investment profile.
TABLE 3.32
Number of dependents on the Income and Investment Profile
of the respondents
Period of savings 0.006 0.916 Not significant
Risk Taking Attitude -0.049 0.397 Not significant
From the above table it is evident there is a significant correlation

between the number of dependents on the income of the respondents and the
investment profile variable namely Investment Mechanism (p = 0.034), Time
horizon (p = 0.036) Adoption of SIP (p = 0.000), Portfolio allocation (p= 0.008)
and Portfolio alteration (p = 0.013) as the ‘p’ value is less than 0.05 and hence the
null hypothesis is rejected. The ‘p’ value is greater than 0.05 for the investment
profile variables such as Period of savings (p = 0.916), Objectives (p = 0.237)
Mode preferred (p = 0.208) and Risk taking attitude (p = 0.397) as the ‘p’ value is
concluded that there is significant correlation between the number of dependents
on the income of the respondents and the investment profile variables such as
128
Investment Mechanism of the respondents, Objectives, Time horizon, Adoption
of SIP, Portfolio allocation and Portfolio alteration and it is understood that an
increase in the number of dependents on the income drive them for more
financial commitment.
3.5.9 Monthly Financial Requirement
Monthly financial requirement plays a dominant role in deciding the

investment profile of the respondents; hence it is apt to study the relation between
them.
Ho9: There is no significant relationship between the monthly financial

requirement of the respondents and their investment profile.
TABLE 3.33
Monthly Financial Requirement and Investment Profile of the respondents
Time Horizon 0.070 0.226 Not Significant
Adoption of SIP in investments -0.043 0.454 Not Significant
Portfolio Allocation 0.072 0.212 Not Significant
Portfolio alteration -0.116 0.044 Significant
From the above table 3.33, it is evident there is a significant correlation

between the monthly financial requirement of the respondents and the investment
profile variable namely Period of savings (p = 0.000), Portfolio alteration
(p = 0.044) and Risk taking attitude (p = 0.012) as the ‘p’ value is less than 0.05
and hence the null hypothesis is rejected. The ‘p’ value is greater than 0.05 for
the investment profile variables such as Investment Mechanism (p = 0.607)
Objectives (p = 0.628), Mode preferred (p = 0.356), Time horizon (p = 0.226),
Adoption of SIP (p = 0.454), portfolio allocation (p = 0.212) as the ‘p’ value is
concluded that there is significant correlation between the monthly financial
requirement of the respondents and the investment profile variables such as
129
Objectives, Mode preferred, Investment Mechanism, Time horizon, Adoption of
SIP, Portfolio allocation and it is the monthly financial requirement that plays a
predominant role in deciding the investment profile of the respondents.
3.5.9 Percentage of Savings
Percentage of savings plays a dominant role in deciding the investment

profile of the respondents; hence it is apt to study the relation between them.
Ho8: There is no significant relationship between the percentage of savings of

the respondents and their investment profile.
TABLE 3.34
Percentage of Savings and Investment Profile of the respondents
Time Horizon -0.042 0.464 Not Significant
Adoption of SIP in investments 0.171 0.003 Significant
Portfolio Allocation 0.051 0.379 Not Significant
Portfolio alteration 0.104 0.071 Not Significant
Risk Taking Attitude -0.049 0.397 Not Significant
From the above table 3.34, it is evident there is a significant correlation

between the percentage of savings of the respondents and the investment profile
variable namely Period of savings (p = 0.000), Objectives (p = 0.026) and
Adoption of SIP (p = 0.003) as the ‘p’ value is less than 0.05 and hence the null
hypothesis is rejected. The ‘p’ value is greater than 0.05 for the investment
profile variables such as Mode preferred (p = 0.425), Investment Mechanism
(p = 0.421), Time horizon (p = 0.464), Portfolio allocation (p = 0.379), Portfolio
alteration (p = 0.071) and Risk taking attitude (p = 0.397) and as the ‘p’ value is
greater than 0.05, the null hypothesis framed is accepted. It can be concluded
that there is significant correlation between the monthly financial requirement of
130
the respondents and the investment profile variables such as Objectives mode
preferred Investment Mechanism, Time horizon Adoption of SIP, Portfolio
allocation and it is the percentage of savings that plays a predominant role in
deciding the investment profile of the respondents.
3.6 PREFERENCE TOWARDS INVESTMENT AVENUES
Investment, in the broadest sense, means the sacrifice of current money

for the future income. Investment is the flow of capital which is used for
productive purposes. There are large numbers of investment avenues available.
The investors choose avenues, depending upon their specific need, risk appetite
and expected return. Investment avenues can broadly be categorized into two
spheres, namely Real Investment and Financial Investment. Real investments
involve a tangible (physical) asset, such as land, machinery, Gold etc. Financial
investments, on the other hand, involve investment in financial instruments like
shares, debentures, Insurance policies, mutual fund units etc. The preference of
the respondents towards various investment avenues is presented in table 3.35.
TABLE 3.35
Preference towards Investment Avenues
Strongly Strongly Mean
Investment Avenues Agree Neutral Disagree
Agree disagree score
Count 105 156 30 6 3

Securities Market 4.18
% 35 52 10 2 1
Count 105 165 21 3 6
Gold 4.20
% 35 55 7 1 2
Count 117 87 72 21 3
Real estate 3.97
% 39 29 24 7 1
Count 111 126 24 33 6
Bank deposits 4.01
% 37 42 8 11 2
Count 60 150 27 33 30
Insurance 3.59
% 20 50 9 11 10
Count 21 78 75 57 69
Chit funds 2.75
% 7 26 26 19 23
131
In order to identify the most preferred investment avenue by the investors,
weighted average technique is used. The results are revealed based on the
weighted average score, Gold (4.20) is the most preferred investment avenue. It
is followed by the Securities Market (4.18), bank deposits (4.01), Real estate
(3.97), and Insurance (3.59), and Chit funds (2.75). It can be concluded that the
respondents prefer Gold as the best investment avenue. Respondents prefer the
Securities Market next to Gold, as the best investment avenue and at the same
time they are aware of fly by night Chit funds hence they have ranked it as last.
3.5.1 Demographic Profile and the Choice of Investment Avenues of

the respondents
The investment pattern differs from investor to investor. The risk bearing
capacity, their perception towards the return from each investment pattern may
differ according to the demographic profile variables of the investors. The choice
towards various investment avenues namely Securities, Gold, Real estate, Bank
deposits, Insurance and Chit funds are collected and marked in a five point scale.
5 points were allotted for strongly agree and 4 points for agree, 3 points for no
idea, 3 points for disagree and 1 point for strongly disagree. The association
between various demographic profile variables and the choice of investment
avenues are analyzed using Oneway analysis of variance.
3.5.1.1 Age Group
The choice of investment avenues may vary with the different age groups.
For example people above the age of 50 may be reluctant to take risk hence they
may prefer a safer avenue. So it is essential to study whether age determines the
choice towards investment avenues.
Ho10: Choice of investment avenues do not vary with age group of the
respondents.
132
TABLE 3.36
Age Group and Choice of Investment Avenues
Age Group in years
Investment F p
Result
Avenues 51 & value value
20-30 31-40 41-50
above
Securities 3.91 a 4.39 c 4.27 b,c 4.04 a,b

6.712 0.000 Significant
Market (0.956) (0.603) (0.542) (0.865)
4.09 a,b 4.36 c 4.32 b,c 3.96 a

Gold 4.859 0.003 Significant
(0.601) (0.483) (0.931) (1.006)
3.55 a 3.88 b 4.36 c 4.12 b,c

Real estate 8.504 0.000 Significant
(1.084) (1.013) (0.888) (0.900)
Bank 4.05 a 3.94 a 3.95 a 4.13 a Not

0.550 0.648
deposits (0. 935 (1.048) (1.156) (0.999) significant
c a,b a
3.68 3.58 3.23 3.87 b
Insurance 3.410 0.018 Significant
(1.192) (1.213) (1.322) (1.042)
2.18 a 2.97 b 2.82 b 2.91 b

Chit funds 6.216 0.000 Significant
(0.943) (1.273) (1.380) (1.257)
Note: The value in the table refers to Mean score

The value within bracket refers to SD
The above table 3.36 clearly exhibits that the ‘p’ value is greater than 0.05
for the Bank deposit (p = 0.648) alone. But for all other investment avenues like
Securities Market (p = 0.000), Gold (p = 0.003), Real estate (p = 0.000),
Insurance (p = 0.018) and Chit funds (p = 0.000), the null hypothesis is rejected
as the ‘p’ value is less than 0.05. Hence it can be concluded that the choice of the
respondents towards investment avenues returns vary with age of the
respondents. Duncan Multiple Range Test (DMRT) reveals that the opinion of
the respondents of all age group do not vary in case of bank deposits.
Respondents aged from 20-30 years, 31-41 years, 41-50 years, 51 and above
differ significantly with each other age groups in case of their preference towards
investment avenues such as Securities Market, Gold, Real estate, Insurance and
Chit funds.
133
3.5.1.2 Education
Education plays a predominant role in choosing the investment avenues;

hence the association of education in determining the investment avenues is
studied.
Ho 11: Choice of investment avenues do not vary with education.
TABLE 3.37
Education and Choice of Investment Avenues
Education
Investment
High Post Professio F value p value Result
Avenues Graduate Others
School Graduate nal
Securities 4.00 4.29 4.35 4.00 3.75
Market (.522) (0.725) (0.703) (1.008) (0.452)
4.00 4.21 4.30 4.15 2.75 Not

Gold 1.588 0.177
(1.108) (0.697) (0.626) (0.732) (0.905) significant
3.87 4.05 3.96 3.93 3.75 Not

Real estate 0.465 0.761
(1.217) (0.920) (1.006) (0.972) (1.357) significant
Bank 3.80 4.03 4.00 4.05 4.50 Not

1.167 0.326
deposits (1.057) (0.991) (1.111) (1.032) (0.905) significant
3.20 3.63 3.61 3.75 3.75 Not

Insurance 1.529 0.194
(1.236) (1.207) (1.251) (1.099) (1.357) significant
2.13 2.82 2.74 3.05 3.00

(1.272) (1.341) (1.196) (1.032) (1.279)

Note: i) The value in the table refers to Mean score
ii) The value within bracket refers to SD
iii) Different alphabets between age denotes significance at 5% level using
Duncan Multiple Range Test (DMRT)
The ‘p’ value is less than 0.05 in case of investment avenues such as bank
deposits (p = 0.326), Gold (p = 0.177), Real estate (p = 0.761) and Insurance
(p = 0.194). Hence the null hypothesis is rejected and concluded that the choice
of investment avenues does not vary with the educational qualification of the
respondents and moreover everyone is aware of savings in bank. For Securities
Market (p = 0.004) and Chit funds (p = 0.004) the null hypothesis framed is
accepted as the ‘p’ value is greater than the significant level of 0.05.
134
3.5.1.3 Occupation
Occupation of the respondents determines most of the investment profile

variables. Hence it is essential to study the association of occupation in
determining their choice of investment avenues thrown open to them.
Ho 12: Choice of investment avenues do not vary with Occupation
TABLE 3.38
Occupation and Choice of Investment Avenues
Occupation
Investment F
pValue Result
Avenues Entrepre- Profes- House Employed Employed Value
Retired
neur sional wife in Govt in Pvt
Securities 4.25 4.10 4.22 4.67 4.16 3.77

Market (0.437) (0.979) (0.641) (0.478) (0.679) (0.986)
4.20 4.05 4.44 4.42 4.20 4.08 Not

Gold 1.804 0.112
(0.935) (1.007) (0.506) (0.500) (0.493) (0.839) significant
4.10 4.05 3.67 3.83 3.92 4.05 Not

Real estate 0.970 0.436
(1.272) (0.958) (1.271) (0.910) (0.801) (0.916) significant
Bank 3.90 3.95 4.11 4.08 3.88 4.38 Not

1.531 0.180
deposits (0.775) (1.337) (1.219) (1.052) (0.999) (0.633) significant
3.30 3.67 3.56 3.42 3.52 4.23

1.239) (1.368) (1.281) (1.273) (1.143) (0.583)
2.75 2.57 2.89 3.33 2.60 2.69 Not

Chit funds 2.123 0.063
(1.188) (1.304) (1.013) (1.454) (1.273) (1.151) significant

The ‘p’ value is less than 0.05, hence the null hypothesis is rejected in
case of respondent’s choice towards investment in Securities Market (p = 0.000)
and Insurance (p = 0.007) and it is concluded that occupation decides their choice
towards investment in the above avenues. The hypothesis framed is accepted in
case of respondents choice towards investment in Gold (p = 0.112), Real estate
(p = 0.436), bank deposits (p = 0.180) and Chit funds (p = 0.063) as the ‘p’ value
is greater than the significant value of 0.05. The occupation of the respondents
does not play a dominant role in deciding their choice of investment in Gold,
Real estate and Bank deposits as it forms the basic ambition of a man.
135
3.5.1.4 Monthly Income
Based on the monthly income of the respondents, the choice towards the
investment avenues may vary, hence it is essential to study the association of
monthly income with that of various investment avenues.
Ho 13: Choice of investment avenues do not vary with monthly income.
TABLE 3.39
Monthly Income and Choice of Investment Avenues
Monthly Income
Investment F p
Above Result
Avenues 10000- 25001- 50001- Value value
50000 75000 75,000
25000
Securities 4.11 4.23 4.18 4.13 Not
0.503 0.680
Market (0.791) (0.723) (0.584) (0.968) significant
4.11. 4.04 4.45 4.67

(0.837) (0.801) (0.506) (0.477)
3.81 3.91 4.18 4.27

(0.989) (1.088) (0.584) (1.009)
Bank 4.04 4.02 4.18 3.80 Not

0.942 0.421
deposits (1.145) (1.003) (0.846) (1.057) significant
3.78 3.53 3.73 3.33 Not

Insurance 1.581 0.194
(1.107) (1.290) (.876) (1.314) significant
2.44 2.79 3.09 2.93

(1.107) (1.292) (1.400) (1.250)

The ‘p’ value is less than 0.05 and hence the null hypothesis is rejected in
case of Gold (0.000), Real estate (0.052) and Chit funds (0.041) as the
respondents choice towards these investment avenues are not determined by their
monthly income. The hypothesis framed is accepted in case of respondents
choice’ towards investment in Securities Market (0.680), Insurance (0.194) and
Bank deposits (0.421) as the ‘p’ value is greater than 0.05.The monthly income of
the respondents does not determine their choice towards Securities Market as the
investments to be made in Securities Market are advisable only from the excess
money available.
136
3.5.1.5 Financial Requirement
Based on the financial requirement of the respondents, the choice towards

the investment avenues may vary. Financial requirement of the respondents drive
to them to choose a suitable investment avenue, hence it is essential to study the
association of financial requirement with that of various investment avenues.
Ho14: Choice of investment avenues do not vary with financial requirement.
TABLE 3.40
Financial Requirement and Choice of Investment Avenues
Financial requirement
Investment F p
Fluctuate Fluctuate Stable Result
Avenues Value value
widely moderately & fixed
Securities 4.20 4.09 4.27 Not

1.725 0.180
Market (0.757) (0.736) (0.800) significant
4.07 4.09 4.37
(0.447) (0.878) (0.727)
3.73 4.16 3.85
(1.074) (0.881) (1.094)
4.07 3.95 4.05 Not
Bank deposits 0.341 0.711
(0.688) (1.090) (1.085) significant
3.47 3.49 Not
Insurance 3.73 (1.236) 1.524 0.219
(1.272) (1.155) significant
2.80 2.80 Not
Chit funds 2.68 (1.280) 0.343 0.710
(1.236) (1.259) significant

Note: The value in the table refers to Mean sco,re
The ‘p’ values are less than 0.05, hence the null hypothesis is rejected for
the respondents choice towards the investment avenues namely Securities Market
(p= 0.180), Bank deposits (p = 0.711), Insurance (p = 0.219) and Chit funds
(p = 0.710). The ‘p’ value is greater than 0.05 in case of Gold (p = 0.008) and
Real estate (p = 0.011) and the hypothesis framed is accepted and hence the
financial requirement of the respondents does not determine their choice of
investment towards Gold and Real estate.
137
3.5.1.6 Percentage of Savings on the Income
Percentage of savings on the income of the respondents, the choice

towards the investment avenues may vary. Depending upon the percentage of
savings respondents choose a suitable investment avenue, hence it is essential to
study whether there is any association.
Ho15: Choice of investment avenues do not vary with the percentage of savings
on the income
TABLE 3.41
Percentage of Savings on the Income and Choice of Investment Avenues
Percentage of savings on the income
Investme p
Betwee Betwee Between F
nt Below valu Result
n 10% n 15% 20% to- Value
Avenues 10% e
to15% to 20% 25%
Securities 3.91 4.04 4.50 4.18

Market (0.921) (0.591) (0. 566) (0. 880)
4.02 4.00 4.33 4.43
(0.630) (1.006) (0.653) (0.654)
Real 3.50 4.04 4.23 3.97
estate (1.024) (1.025) (0.887) (1.022)
Bank 4.14 4.12 3.77 4.09 Not
2.426 0.066
deposits (0.833) (1.057) (1.028) (1.156) significant
3.77 3.73 3.27 3.69

(0.921) (1.266) (1.270) (1.249)
3.08 2.12 2.83 3.06
(0.981) (1.057) (1.376) (1.314)
The ‘p’ value is less than the significant level of 0.05 for the investment
avenues such as Securities Market (p = 0.000), Gold (p =0.001), Insurance
(p = 0.025), Real estate (p = 0.000) and Chit funds (p = 0.000) hence the null
hypothesis is rejected for the respondents choice towards the above investment
avenues. The ‘p’ value is greater than 0.05 in case of Bank deposits (p = 0.066)
alone and the hypothesis framed is accepted. It is concluded that percentage of
savings does not determine the choice of investment in bank as they are popular
among common man.
138
3.5.1.7 Social Status
Gender, marital status and type of family of the respondents are

considered as social status. The choice towards various investment avenues may
vary with the social status. Hence it is analysed by framing a hypothesis and
t-test is applied to test the hypothesis.
Ho 16: Choice of investment avenues do not vary with Social status.
TABLE 3.42
t test – Social Status and the Choice of Investment Avenues
Investment Gender
t value p value Result
Avenues Male Female
Securities Market 4.21 (0.762) 4.14 (0.777) 0.002 0.961 Not significant
Gold 4.12 (0.895) 4.31 (0.558) 3.374 0.067 Not significant
Real estate 4.06 (1.081) 3.83 (0.901) 5.483 0.020 Significant
Bank deposits 3.91 (1.058) 4.14 (0.994) 0.068 0.795 Not significant
Insurance 3.59 (1.193) 3.60 (1.241) 0.009 0.923 Not significant
Chit funds 2.48 (1.307) 1.78 (1.100) 18.237 0.000 Significant
Marital Status
Married Single
Gold 4.21 (0.852) 4.19 (0.586) 5.184 0.024 Significant

Real estate 4.05 (1.056) 3.78 (0.897) 1.723 0.190 Not significant
Bank deposits 4.16 (0.951) 3.69 (1.136) 7.535 0.006 Significant
Insurance 3.71 (1.074) 3.34 (1.435) 22.179 0.000 Significant
Chit funds 2.62 (1.264) 3.03 (1.218) 2.949 0.087 Not significant
Type of Family
Nuclear Joint
Gold 4.10 (0.912) 4.29 (0.606) 0.968 0.326 Not significant
Real estate 3.83 (0.996) 4.10 (1.018) 0.236 0.627 Not significant
Bank deposits 3.98 (1.023) 4.04 (1.051) 1.578 0.210 Not significant
Insurance 3.45 (1.251) 3.73 (1.160) 4.037 0.045 Significant

Chit funds 2.67 (1.223) 2.82 (1.298) 2.848 0.093 Not significant
139
For Gender, the above table 3.42 clearly exhibits that the ‘p’ value is less
than 0.05 in case of Real estate (p = 0.020)and Chit funds (p = 0.000) and it
signifies that the gender variation plays a dominant role in deciding the
investment in Real estate and Chit funds. The null hypothesis is rejected
at significant level of 0.05 for the choice of investment in Securities Market
(p = 0.961), Gold (p = 0.067), Bank deposits (p = 0.795) and Insurance
(p = 0.923), hence it can be concluded that men and women do not vary in
choosing the investment avenues namely Securities Market, Gold, bank deposits
and Insurance.
The association of marital status with that of choice towards investment

avenues reveals that the ‘p’ value is less than 0.05 in case of investment avenues
namely Gold (p = 0.024) Bank deposits (p = 0.006) and Insurance (p = 0.000).
Hence the null hypothesis is rejected and the choice of investment towards the
above avenues varies between the married and unmarried. It signifies that the
married financial commitment is high and their preference towards Gold, Bank
deposits and Insurance is quite high. The ‘p’ value is greater than 0.05 for the
investment avenues namely Securities Market (p = 0.173), Real estate (p = 0.190)
and Chit fund (p = 0.087) which implies that the choice towards the investment in
Securities Market do not vary with the marital status.
The association of type of family with that of choice towards investment

avenues reveals that the ‘p’ value is less than 0.05 in case of Insurance alone
which implies that there is no significant variance between nuclear family and
joint family in deciding the investment in Insurance (p = 0.045). The ‘p’ value is
greater than 5 percent level for the investment avenues namely Securities Market
(p = 0.291), Gold (p = 0.326), Real estate (p = 0.627), Bank deposits
(p = 0.210) and Chit funds (p= 0.093) which implies that the choice towards the
investment in Securities Market do not vary depending upon the social status
whether it is a joint family or nuclear family.
140
It can be concluded that the demographic variables age, academic
background, occupation of the respondents have significant influence on their
investment in Securities Market as their significant values are 0.001, 0.004 ,0.001
which is less than 0.005. But in the case of all the other investment avenues, the
variables may or may not have significant relationship with the demographic
profile of the investors.
3.6 OVERALL ATTITUDE TOWARDS SECURITIES MARKET
Attitude towards Securities Market refers to the perceived risk which

affects investor behavior. For instance, in decision making situations like stock
market investment, the way an investor behaves on the movement of financial
(stock) market depicts his perceived risk attitudes resulting in affecting the
trading of stocks and the investor portfolio selection. The overall attitude on
Securities Market of Virudhunagar district investors is measured with the help of
20 statements formulated in Likert’s five point scale. The scores allotted for
strongly agree, agree, no opinion, disagree and strongly disagree are 5,4,3,2 and 1
respectively. Based on the scores of all the statements, mean scores are
calculated for each aspect and the results are shown in Table-3.43.
TABLE 3.43
Descriptive Variables - Overall Attitude towards Securities Market
p value
Overall Attitude towards t
S.No. Mean S.D Significant
Securities Market value
(2-tailed)
Appreciable means to mobilize

1. 2.25 1.025 38.014 0.000
people’s savings
Availability of investment avenues
2. 4.18 0.768 94.291 0.000
is adequate
3. Regulations of SEBI is remarkable 4.36 0.795 94.954 0.000
Existence of fairness and

4. 4.32 0.761 98.289 0.000
transparency of securities trading
Indian standards are equivalent to
5. international Securities Market 3.45 1.419 42.104 0.000
standards
Equal access to investors across
6. 4.15 1.154 62.283 0.000
the country prevails
141
p value
Overall Attitude towards t
S.No. Mean S.D Significant
Securities Market value
(2-tailed)
Availability of adequate
7. information for evaluating the 4.31 0.761 98.289 0.000
securities
Screen based trading and rolling
8. settlement makes the trading 2.52 1.279 34.088 0.000
process easy
Services of intermediaries in
9. 2.16 1.130 33.064 0.000
Securities Market is remarkable
Securities Market analysis needs
10. experience and expertise 2.25 0.985 39.554 0.000
knowledge
Securities Market paves path for
11. 2.45 1.309 32.421 0.000
wealth creation.
Maximum profit at a minimum
12. 3.19 1.327 41.651 0.000
risk.
Participating in Securities Market
13. 4.06 1.049 67.047 0.000
is a pride
Opportunity to make money
14. 3.87 0.914 73.316 0.000
within the four walls.
Securities promotes
15. 3.44 1.354 44.015 0.000
entrepreneurship
Supports economical growth of
16. 4.11 1.114 63.876 0.000
the country
Trading in Securities ensures
17 2.07 .805 44.565 0.000
profit booking
Trading in Securities is a hedge
18 2.82 1.341 36.468 0.000
against inflation
19 Suitable for home makers 4.04 1.130 61.947 0.000
Capital appreciation with a limited

20 3.57 .970 63.800 0.000
amount of money
Table 3.43, shows that the mean score for the 20 variables formulated for
finding the attitude towards the Securities Market by the respondents clearly
indicates that all the investors are having positive attitude towards the Securities
Market as the mean scores are not less than 3 for majority statements. It is
inferred from the table that the variable, “Regulations of SEBI is remarkable”
gained the highest mean score of 4.36 followed by “Existence of fairness and
transparency of securities trading” with a mean score of 4.32. “Availability of
142
adequate information for evaluating the securities” follows next with a mean
score of 4.31. The variables that scored least mean scores are “Trading in
Securities ensures profit booking” (2.07), Services of intermediaries in Securities
Market is remarkable (2.16), Securities Market analysis needs experience and
expertise knowledge (2.25). Moreover from the above table it is found that 13
statements out of 20 statements are having a mean score greater than 3.Hence it
can be concluded that the investors are having positive attitude towards their
Securities Market as majority of the statements are positive. It denotes that they
are interested in dealing in securities for satisfactory yields.
3.6.1 Score on Overall Attitude towards Securities Market
In order to understand the level of attitude of the investors towards

securities market 16 statements, three levels of attitude are developed. viz high,
medium and low. The percentages of investors falling under these three levels
are given in Table-3.44.
TABLE 3.44
Score on Overall Attitude towards Securities Market
Attitude level No of Investors Percent
High 81 27
Medium 144 48
Low 75 25
Total 300 100
It is inferred from the table 3.44 that 48 per cent of the investors attitude
about the securities market is at medium level while 27 percent of the investors
are having high attitude about the securities market. 25 percent of investors are
having low attitude towards securities market. Hence it can be concluded that
investors are having medium level of positive attitude towards securities market.
143
3.6.2 DEMOGRAPHIC PROFILE OF THE INVESTORS AND OVERALL
ATTITUDE TOWARDS SECURITIES MARKET
The relationship between the demographic profile and the overall attitude
of the respondents needs to be analysed using correlation. To analyze the attitude
of the investors in the study area towards Securities Market, the null hypothesis
framed for the purpose is.
Ho17: There is no significant relationship between the demographic profile of

the respondents and their overall attitude towards Securities Market.
TABLE 3.45
Demographic Profile Variables and Overall Attitude towards
Securities Market
Demographic Profile Variables r value p value Result
Age group 0.028 0.625 Not Significant
Gender 0.150 0.009 Significant
Education 0.014 0.809 Not Significant
Occupation -0.142 0.013 Significant
Monthly income 0.247 0.000 Significant
Marital status 0.065 0.258 Not Significant
Type of family 0.255 0.000 Significant
Dependents on the income 0.209 0.000 Significant
Monthly Financial Requirements -0.247 0.000 Significant
Percentage of savings on income 0.092 0.111 Not Significant
Age group: The ‘p’ value 0 .625 is greater than the 0.05. If it is less than or
equal to 0.05, the null hypothesis is rejected. In this present analysis ‘p’ value is
greater than 0.05 hence the null hypothesis is accepted. It can be concluded that
age does not have significant relation towards the overall attitude towards the
Securities Market
Gender: The ‘p’ value 0 .009 is less than the 0.05. Hence the null hypothesis is
rejected. Male and female varies in the overall attitude towards the Securities
Market.
144
Education: The ‘p’ value is 0.089, which is greater than the significant level of
0.05 and hence the null hypothesis is accepted. There is no significant
relationship between educational qualification of the respondents and their
overall attitude towards Securities Market.
Occupation: The computed ‘p’ value 0. 013 is less than 0.05. Hence the null
hypothesis is rejected and there is difference of opinion among different
occupation of the investors about the Securities Market. All the investors
irrespective of their designation are not having same attitude towards the
Securities Market.
Monthly Income: The ‘p’ value 0.000 is less than 0.05. Hence the null
hypothesis is rejected and there is significant relationship between the monthly
income of the respondents and their overall attitude towards the Securities
Market.
Marital Status: The ‘p’ value 0.258 is greater than 0.05 hence the null
hypothesis is accepted. There is no significant relation between the marital status
of the investors and their overall attitude towards the Securities Market.
Type of family: The ‘p’ value is 0.000, which is less than the significant level of
0.05 and hence the null hypothesis is rejected. There is significant relationship
between the family size of the respondents and their overall attitude towards
Securities Market.
Dependents on the income: The ‘p’ value is 0.000, which is less than the
significant level of 0.05 and hence the null hypothesis is rejected. There is
significant relationship between the number of dependents on the income of the
respondents and their overall attitude towards Securities Market.
Monthly financial requirement - The ‘p ‘value 0.000 is less than the significant
value 0.05, hence the null hypothesis is rejected and there is significant relation in
the level of attitude towards Securities Market among the respondents of different
financial requirement. Hence it can be concluded that the financial requirement of
the respondents decides their level of attitude towards Securities Market.
145
Percentage of savings: The p value 0.111 is greater than the significant value
0.05, hence the null hypothesis is accepted. The respondents whose percentage
of savings differ do not differ in their level of attitude towards Securities Market.
In a nut shell it can be concluded that majority of the demographic profile

variables have significant relations with regard to the overall attitude towards the
Securities Market. Age group, Education, Marital status and Percentage of
savings on the income of the respondents highly correlate with their overall
attitude towards Securities Market.
3.7 SUMMARY
Though the respondents are from the rural background, constituting

youthful demography, they are aware of the investment avenues and they have
allotted certain percentage of savings towards the money market by stepping into
the market by opening the Demat accounts. Most of the investors prefer dial and
trade. The respondents of the Virudhunagar district ranked Securities Market in
the second place. Investment in Securities Market or opting Securities Market as
an investment avenue is influenced by occupation and financial requirement and
most of them opined that there are adequate instruments available for investment
and trading, SEBI’s regulations are remarkable and there is transparency and
clarity in every transaction. The demographic profile and the investment profile
are surveyed and found that the investors are changing to the current trend. Age
group, Education, Marital status and Percentage of savings on the income of the
respondents highly correlate with their overall attitude towards securities.
146

Investor Profile and Industries in Virudhunagar District

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CHAPTER THREE

ANALYSIS ON PROFILE OF INVESTORS

Investors’ perception and investment pattern depends on individuals, their

3.2 PROFILE OF VIRUDHUNAGAR DISTRICT

5. Arumuga Group of Industries

6. Subburaj Cotton Mills Group

7. Standard Group of Industries

8. Arasan Group of Industries

9. Alagulam Cement factory

3.2.1 Sivakasi Town

Sivakasi, a big industrial centre, is situated in Virudhunagar District of

Contributes 80% of India's Total Safety Matches Production

Contributes 90% of India's Total Fireworks Production

Contributes 60% of India's Total Offset Printing Solutions.

One of the high Sales / Excise / Customs Duty paying town.

Sivakasi is much celebrated for the manufacture of handmade matches

Another significant and renowned item produced in Sivakasi is a wide

3.2.2 Rajapalayam Town

Rajapalayam is well-known for cotton spinning and ginning mills. Since

3.2.3 Virudhunagar Town

Though not enjoying much industrial significance as that of Sivakasi and

Sattur town gets a prominent place in the industrial map of Virudhunagar

3.2.5 Aruppukottai Town

3.2.6 Srivilliputtur Town

In Srivilliputhur, there are several safety match factories and handloom

Income and expenditure pattern is influenced by severable variables like

3.3.1 Age Group

Age, as an important demographic variable not only determines an

Investment avenues are perceived by the respondents in different ways.

It is the widespread apprehension that women are sensitive towards

Formal education is considered as an effective tool to face the challenging

The occupational status of the respondents may be one of the essential

House wife 27 9.0

Employed in Government 36 12.0

Employed in Private 75 25.0

Total 300 100

Income is an important factor enabling people to lead a happy life. The

It is found that out of 300 respondents, 47 per cent of the respondents

3.3.6 Marital Status

Marital status can be taken as an important social characteristic

3.3.7 Type of Family

The type of family of the respondents is also one of the demographic

Nuclear 147 49.0

Perception of the investors differs based on the dependents on their

3.3.9 Monthly Financial Requirements

The monthly financial requirement of the respondents are classified as

It is crystal clear that out of 300 respondents, 44 per cent of the

3.3.10 Percentage of Savings on Income

3.4 INVESTMENT PROFILE OF THE RESPONDENTS

Savings is perceived as money reserved for future needs. It implies that a

3.4.1 Period of Savings of the respondents

Period of savings is an influencing factor for the study because it enables

3.4.2 Investment Objectives of the Respondents

Investment culture refers to the attitudes, perceptions, and willingness of

Investment Objectives No of Respondents Percentage

Capital Security 27 9.0

3.4.3 Percentage of Savings Invested in Equity

3.4.4 Time Horizon in Investments

3.4.5 Year of Dealing in the Securities Market

3.4.6 Investment Mechanism in the Securities Market

Financial affordability of an individual is the main driving force for the

Both 144 48.0

Total 300 100