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Ccasbbar 12 - Project notes

Bachelor of commerce (bcom) (University of Calicut)

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“A STUDY ON THE SAVINGS AND INVESTMENT BEHAVIOR OF

WORKING WOMEN”
Project Report submitted to

UNIVERSITY OF CALICUT

In partial fulfilment of the requirement for the award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION

Submitted by

AKASH V RAJESH
(CCASBBAR12)

Under the supervision of

Ms SANDHYA V

DEPARTMENT OF MANAGEMENT STUDIES

CHRIST COLLEGE (AUTONOMOUS), IRINJALAKUDA
MARCH 2021

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CHRIST COLLEGE (AUTONOMOUS), IRINJALAKUDA

CALICUT UNIVERSITY

DEPARTMENT OF MANAGEMENT STUDIES

CERTIFICATE

This is to certify that the project report entitled “A STUDY ON THE SSAVINGS AND
INVESTMENT BEHAVIOR OF WORKING WOMEN” is a bonafide record of
project done by AKASH V RAJESH, Reg. No. CCASBBAR12, under my guidance and
supervision in partial fulfilment of the requirement for the award of the degree of
BACHELOR OF BUSINESS ADMINISTRATION and it has not previously formed
the basis for any Degree, Diploma and Associate ship or Fellowship.

Prof. C.L.BABY JOHN Ms SANDHYA V

Co-ordinator Project Guide

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DECLARATION

I, AKASH V RAJESH, hereby declare that the project work entitled “A STUDY
ON THE SAVINGS AND INVESTMENT BEHAVIOR OF WORKING WOMEN” is a
record of independent and bonafide project work carried out by me under the supervision
and guidance of Ms SANDHYAV, Assistant Professor, Department of Commerce, Christ
College, Irinjalakuda.

The information and data given in the report is authentic to the best of my
knowledge. The report has not been previously submitted for the award of any Degree,
Diploma, Associateship or other similar title of any other university or institute.

Place: Irinjalakuda Akash V Rajesh

Date: CCASBBAR12

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ACKNOWLEDGEMENT

I would like to take the opportunity to express my sincere gratitude to all people who
have helped me with sound advice and able guidance.

Above all, I express my eternal gratitude to the Lord Almighty under whose divine
guidance; I have been able to complete this work successfully.

I would like to express my sincere obligation to Rev.Dr. Jolly Andrews, Principal-in-

Charge, Christ College Irinjalakuda for providing various facilities.

I am thankful to Prof. C.L.Baby John, Coordinator of Management Studies, for providing

proper help and encouragement in the preparation of this report.

I am thankful to Mr. Aslam P Saleem, Class teacher for her cordial support, valuable
information and guidance, which helped me in completing this task through various
stages.

I express my sincere gratitude to Ms. Sandhya Jayakumar, Assistant Professor, whose

guidance and support throughout the training period helped me to complete this work
successfully.

I would like to express my gratitude to all the faculties of the Department for their
interest and cooperation in this regard.

I extend my hearty gratitude to the librarian and other library staffs of my college for
their wholehearted cooperation.

I express my sincere thanks to my friends and family for their support in completing this
report successfully.

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TABLES OF CONTENTS

CHAPTER NO. CONTENTS PAGE NO:

LIST OF TABLES

LIST OF FIGURES

CHAPTER 1 INTRODUCTION 1-4

CHAPTER 2 REVIEW OF LITERATURE 5-7

CHAPTER 3 THEORETICAL FRAMEWORK 8-11

DATA COLLECTION AND

CHAPTER 4 12-32
INTERPRETATION

CHAPTER 5 FINDINGS, SUGGESTIONS & CONCLUSION 33-36

BIBLIOGRAPHY

ANNEXURE

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LIST OF TABLES

TABLE PAGE
TITLE
NO: NO:

4.1 Table showing the ages of the respondents 12

Table showing classification of respondents based on

4.2 13
education qualification

4.3 Table showing marital status of the respondents 14

Table showing classification of respondents based on their

4.4 15
nature of employment.

4.5 Table showing the monthly income of the respondents 16

Table showing for what purposes the monthly income of the

4.6 17
respondents is being spent.

4.7 Table showing the preferred savings avenues of respondents. 18

4.8 Table showing the saving objectives of the respondents 19

Table showing whether respondents prepare a monthly

4.9 20
expenditure or not.

Table showing whether respondents have made any

4.10 21
investments until now

Table showing the investment avenues the respondents are

4.11 22
aware of.

Table showing the percentage of income, the respondents are

4.12 23
willing to invest.

Table showing sources from where, the respondents gain

4.13 24
knowledge about the various investment avenues

4.14 Table showing the factors considered before the money is 25

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invested

4.15 Table showing the sector in which they would like to invest 26

4.16 Table showing the investment objectives of respondents 27

4.17 Table showing how they would like to make their investments. 28

Table showing whether they consult with others before making

4.18 29
an investment decision

Table showing the preferred period of investment of

4.19 30
respondents

4.20 Table showing how investments would be managed 31

Table showing how often they would manage their

4.21 32
investments

LIST OF CHARTS

FIGURE PAGE
TITLE
NO: NO:

4.1 Chart showing the ages of the respondents 12

Chart showing classification of respondents based on

4.2 13
education qualification

4.3 Chart showing marital status of the respondents 14

Chart showing classification of respondents based on

4.4 15
their nature of employment.

4.5 Chart showing the monthly income of the respondents 16

Chart showing how the monthly income of the

4.6 17
respondents is being spent

4.7 Chart showing the preferred savings avenues of 18

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respondents

4.8 Chart showing the saving objectives of the respondents 19

Chart showing whether respondents prepare a monthly

4.9 20
expenditure or not

Chart showing whether respondents have made any

4.10 21
investments until now

Chart showing the investment avenues the respondents

4.11 22
are aware of

Chart showing the percentage of income, the

4.12 23
respondents are willing to invest

Chart showing sources from where, the respondents

4.13 24
gain knowledge about the various investment avenues

Chart showing the factors considered before the money

4.14 25
is invested

Chart showing the sector in which they would like to

4.15 26
invest

Chart showing the investment objectives of

4.16 27
respondents

Chart showing how they would like to make their

4.17 28
investments

Chart showing whether they consult with others before

4.18 29
making an investment decision

Chart showing the preferred period of investment of

4.19 30
respondents

4.20 Chart showing how investments would be managed 31

4.21 Chart showing how often they would manage their 32

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investments

CHAPTER 1
INTRODUCTION

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1.1 INTRODUCTION
Investment refers to putting money to start or expand a project or to purchase an asset or
interest, where these funds are put to work, with goal to income or increase in value over
a period of time. It occurs in various areas of the economy such as business management
and finance. It may be referred to as any mechanism used for generating future income .It
can also referred to as an asset that is created with the intention of allowing money to
grow. An investment may involve choice of an individual or an organization after some
analysis or thought to place or lend money in a asset such as property, commodity, stock,
bond or any financial derivatives that has certain level of risk and provides possibilities of
generating returns over a period of time.
Investment always comes it a certain amount of risk. If not analyzed properly, investment
may be subject to loss of money which cannot be controlled by the investor. The returns
on investment in form of income or price appreciation it statistical significance is the aim
of investing. Risk and return go hand in hand in investing. Lower risk means lower
returns while higher returns are accompanied by higher risk.
The spectrum of investment is vast consisting of financial and non-financial products.
Under financial we have bank deposits, share market, commodity market, insurance post
office schemes and other bonds. Non-financial product comprises of real estate, gold etc.
The type of investment we choose depends on specific need, rate of return and risk
preference of the investors. Degrees of risk and returns vary for each investment type.
The main aim is to multiply invested money depending on the investment term. A

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thorough understanding of concepts and available options will help the investor to plan
for maximum return without any risk. The study helps in analyzing the saving pattern and
investment preference of working women towards various products based on
demographic factors.
The economic cycles of boom, recession, depression and recovery not only effect the
level of GDP but also the income of the people, and hence saving ratio and investment
behavior. So, it is important the savings and investment both of which contributes to
economic development. Savings is the backbone of investment, which means higher the
savings, higher will be the investment.
1.2 STATEMENT OF STUDY
The study aims at understanding the current savings and investment pattern of employed
woman based on the type of product held by them currently. There are a lot of investment
opportunities available in the market because there is high and continuous flow of money.
This study here analyses the savings and investment pattern of working women.

1.3 SCOPE OF STUDY

The study is focusing on preference of savings and investment by working women in
Irinjalakuda and it will be helpful to identify the different and better investment options
available in the market.
1.4 SIGNIFICANCE OF STUDY
The aim of investment is to multiply the money at various rates depending upon the term
of investment. Investment usually follows savings. Higher savings usually help finance
higher levels of investment. Most part of the study is concentrated on investment
behavior. As we know, most working women earn considerable amount of money and
with more savings, they will be able to invest funds in both long term and short term
investments. Nowadays, so many modern financial products are available for investment
which provides high growth. Saving money helps to become financially secure and acts
as a safety net in times of emergency. This empirical study on savings and investment
pattern of working women in IRINJALAKUDA town is to know the benefits of savings
and investment according to individual priority. The study also aims at unraveling the
influence of demographic factors such as gender, age, income and the educational
background of the respondents.
1.5 OBJECTIVE OF STUDY
1) To study the sources of motivation for investment.
2) To study the relation between income, savings and investment.

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3) To analyze saving habit and investment pattern of working women.

4) To find out the association between demographic factors of respondent and the
basis of savings and investment made by respondent.

1.6 RESEARCH METHODOLOGY

It is a known established fact that, any research has to be validated based on the
systematic collection and analyzing the data. For this, study survey method was
adopted to collect primary information from the respondents using a well-
structured pre tested questionnaire. The primary data was collected from 50
working women in the town of Irinjalakuda... The secondary data was collected
from websites in the internet.

1.6.1 Nature of study: this is an analytical study

1.6.2 Nature of data: both primary and secondary data is used.

1.6.3 Sources of data: Primary data is collected through structured questionnaire

and secondary data is collected through internet websites.

1.7 SAMPLE DESIGN.

Considering the time factor and the cost involved in going for random sampling,
convenience sampling was used for selecting the respondents for selecting
respondents. In order to have a wider group of respondents suitable for study, the
respondents were chosen from those working in different sectors and those
belonging to different age groups and educational background. Sample design
includes the following

1.7.1 Nature of population: Population of finite working women.

1.7.2 Sample unit: working women in Irinjalakuda.

1.7.3 Method of sampling: convenience sampling.

1.7.4 Size of sample: Sampling size is 50 for convenience.

1.8 TOOLS FOR ANALYSIS

 Percentage
 Charts

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1.9 LIMITATIONS OF STUDY

 In personal survey, chances of respondents’ bias are there. Chances of

researchers bias might have crept up during collection of data and while
handling questionnaires.

 The study is restricted to employed women only from the town of

Irinjalakuda. The findings of the study cannot be generalized to the entire
population of working women.

 The study is limited to 50 respondents.

1.10 CHAPTERIZATION

CHAPTE`R I Introduction

CHAPTER II Review of literature

CHAPTER III Conceptual framework

CHAPTER IV Data analysis and interpretation

CHAPTER V Findings, suggestions and conclusion

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CHAPTER 2
REVIEW OF LITERATURE

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CHAPTER 2: Review of literature

Bajtelmit and Van Derhei (1996) find that the different gender has different opinion
regarding investment decisions. Women are not interested in risky investment and are
more conservative than men. Women don’t prefer risky investment unless it has high
return rate. Women always take cautious and less risky decisions.

Meenakshi Chaturvedi and Shruti khare (2000) suggests that there is growth in middle
class family due to increase of working women and in their income. So women should
have knowledge and information about investment options. Genuine effort should be
made in this direction. So savings will be pooled and channelized in productive
investment.

Santhiyavalli G and Usharani M (March, 2001). They took sample of 75 respondents.

They studied that women investors took less risk and prefer safe investment. Role of
women is very important in the economy of world. They concluded that women have less
interest in shares and debentures market. So steps should be taken to encourage it.

Mistry Kritika (Sep 2005) She conducted research on 150 individual investor behavior
in stock market in Bharuch district. Her objective is to identify the preferred source of
information influencing investment decision and to access the psychology of investors in
different market situations. She found that majority of small investors do not consider
various financial elements before investing in to stock market. Investor does not take
immediate decision. They firstly understand the market then react

According to Prof. Priya Vasagadekar’s research (2008) on working women she

conclude that because of high level education, today’s women are getting the best job
offers with high take home pay packages. It has become the present day need for working
women in India to increase their wealth. As most of the women are low in financial
literacy, it becomes hardly possible for them to manage their portfolios on their own.
Also the risk bearing capacity of working women in India is low. This is due to lack of
sound financial knowledge.

According to Gaur Arti (2011) Female investors tend to display less confidence in their
investment decisions and hence have lower satisfaction levels and female investors are
more cautious vis-à-vis males with regards to prospective investment in equity shares
especially if availability of funds is low.

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Puneet Bhushan & Yajulu Medury (2013) concluded that women are more
conservative and takes less risk and significant gender differences occur in investment
preferences for health insurance, fixed deposits and market investments among
employees.

Rethnasamy and Sebastian(2014) conducted a survey in Thiruchirappalli city with an

objective of finding out the marginal propensity to save and the saving behavior of urban
people. They concluded that the marginal propensity to save in the city was at 0.41 as
“about 40 percent of the people save for the purpose of education of their children and the
other 30 percent, to purchase property

Pestonjee D. M. and Balsara Anita H(2015) studied the topic “Investment Pattern and
Decision Making: The Role of working Women.” They tried to find out how far working
women enjoy freedom to take investment related decisions on their own and the pattern
of investments in the male dominated investment world in India. They collected required
data with the help of a questionnaire, which included questions relating to saving, type of
investment, influencing factors, expenditure and decision makers. The questions relating
to investment pattern and its decision maker with respect to working women were studied
by taking a sample of 227 respondents from three cities: 108 in Ahmadabad, 60 in
Sholapur and 59 in Gulbarga. After analyzing and interpreting the data they concluded
that there was no significant difference among the respondents across the cities with
respect to age, family size and type of family, marital status, level of education,
occupation and annual income. No cultural and demographical patterns were associated
with decision making of working women.

Ranjit Singh and Bhowal Amalesh(2017) conducted the study on Risk Perception and
Equity investment decisions of employees. The objective of the study was to establish the
association between the level of risk perception in respect of equity shares and volume of
investment in equity shares by the employees. The study was related to the employees of
Oil India Limited. The data was collected through a structured questionnaire. A sample of
378 employees out of 8480 employees of OIL at Duliajan Head Office was selected by
simple random sampling and after analyzing data the authors concluded that “there is an
influence of risk perception in respect of equity shares on the volume of investment in
equity shares. Although the relationship is weak, it is statistically significant.” Thus risk
perception has an influence on the equity investment decisions of the people as it was
established in an earlier research. 55 It was also concluded that, although the level of risk
perception is the determining factor in the volume of investment, time knowledge and
skill to handle and manage risk are also determining factors.

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Karthikeyan B(2018) in his study on “small Investor’s perception on Past Office small
saving schemes” has noticed significant difference among four age groups, in the level of
awareness for KVP, NSS, DSRE and the overall score confirmed that, the level of
awareness among the old age group investors was higher than the young age group
investor. No difference was observed between male and female investors except for the
scheme NSS in the semi urban area and KVP in the urban area. There was no clear
pattern to claim 40 that higher education implies greater awareness among investors
however, differential awareness was observed among educational categories.

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CHAPTER 3
THEORETICAL FRAMEWORK

CHAPTERR 3: Theoretical framework

3.1 Characteristics of Investment
1. Risk Factor
Every investment contains certain portion of risk. It is a key feature of investment which
refers to loss of principal, delay in payment of interest and capital etc. Most investors
prefer to invest in less riskier securities.

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2. Expectation of Return
Return expectation is the main objective of investment. Investors expect regularity of
high and consistent income for their capital.

3. Safety
Investors expect safety for their capital. They desire certainty of return and protection of
their investment or principal amount.

4. Liquidity
Liquidity means easily sale or convert the capital or investment into cash without any
loss. So, most investors prefer liquid investments.

5. Marketability
It is another feature of investment that they are marketable. It means buying and selling
or transferability of securities in the market.

6. Stability of Income
Investors invest their capital with high expectation of income. So, return on their
investment should be adequate and stable.

3.2 Objectives of Investment

1. Safety of Capital: While there is no such thing as an absolutely safe and secure
investment or one that is completely risk free. If your primary objective is safety, you
will look for investments that have a minimal risk level. But then, the safest investments
tend to have the lowest rates of return and may not even keep up with inflation. Safe
investments include government issued securities, money market instruments and
securities guaranteed by banks.

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2. Income: If your primary objective is income, you will have to sacrifice a degree of
safety in order to increase your returns. Even the most conservative investors like to have
some level of income in their portfolios just to keep up with the rate of inflation. E.g.:
investing in stock markets earns a higher return but with higher risk.

3. Growth: If you are growth oriented, you would normally be less concerned with
safety, and do not totally depend on income from investment funds. These types of
investments in growth instruments are more likely to fluctuate in value and might have a
greater risk of loss.

4. Tax Savings: Income generated by common shareholders is considered capital gains

and is taxed differently. Taxes on capital gains are significantly lower than taxes on
interest income or ordinary income like salary. If your primary objective is tax-saving,
registered plans such as national pension schemes and tax free savings accounts are the
best bet. However, there are also effective ways to earn good returns along with saving
taxes like investing in tax saving mutual funds or life insurance policy.

3.3 Types of investment

Stocks
Companies sell shares of stock to raise money for start-up or growth. When you invest in
stocks, you’re buying a share of ownership in a corporation. You’re a shareholder. There
are two types of stock, common stock and preferred stock. Investment returns and risks
for both types of stocks vary, depending on factors such as the economy, political scene,
the company's performance and other stock market factors.

Bonds
When you buy a bond, you’re lending money to a company or governmental entity, such
as a city, state or nation. Bonds are issued for a set period of time during which interest
payments are made to the bondholder. The amount of these payments depends on the
interest rate established by the issuer of the bond when the bond is issued. This is called a
coupon rate, which can be fixed or variable. At the end of the set period of time (maturity
date), the bond issuer is required to repay the par, or face value, of the bond (the original
loan amount).Bonds are considered a more stable investment compared to stocks because
they usually provide a steady flow of income. But because they’re more stable, their
long-term return probably will be less when compared to stocks. Bonds, however, can
sometimes outperform a particular stock’s rate of return. Keep in mind that bonds are
subject to a number of investment risks including credit risk, repayment risk and interest
rate risk.

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Cash equivalent
Cash equivalent investments protect your original investment and let you have access to
your money. Examples include savings account, certificate of deposit etc. These different
types of investments generally deliver a more stable rate of return. But cash equivalent
investments aren’t designed for long-term investment goals such as retirement. After
taxes are paid, the rate of return is often so low that it doesn’t keep pace with inflation.

3.4 Advantages of investing

 Investing is the least “active” approach to participating in the markets. It can be good for
those who have an interest in the markets but don’t have enough interest in it to make it a
part of their daily or weekly schedule.
 Some people have extreme difficulty doing short-term trading. Some, in fact, believe it’s
impossible to determine short-term moves with consistent accuracy. For such people,
investing may be a good choice.
 Holding a position for more than a year potentially allows you to tap into the long-term
capital gains tax, which is generally a lower tax rate than short-term capital gains tax.
 This is not meant to be tax advice. Please consult a competent and qualified tax
professional for details about taxes as they apply to the time you’re reading this and to
your individual situation.

3.5 Disadvantages of investing

 Of the three time horizons, investing can be the slowest way to make money, assuming
that you could be an excellent swing trader or day trader.
 Because investing reuses the same capital very infrequently, the annual returns are
generally not as good as a successful professional trader.

Earning an average 10 per cent return annually may be considered acceptable for an
investor. However, some day traders have made 10 per cent returns in a week! That’s
certainly not meant to be an income claim, nor is that normal, but, yes, it does happen.

 Investors notoriously have a very difficult time outperforming the market — making
investing decisions that result in a better return than if you simply invested that same
money into an equity index fund, such as the S&P 500, and didn’t touch it. Even many
professional fund managers aren’t able to do that for their clients after costs

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CHAPTER 4
DATA ANALYSIS AND INTERPRETATION

In this chapter, an attempt has been made to study the savings and investment behavior of
working women with special reference to Irinjalakuda town. For this purpose, 50 working
women were taken as sample to obtain information through a questionnaire. This chapter
is a detailed analysis of the information which has been collected.

Table 4.1 showing the ages of the respondents

Ages Number of respondents Percentage%

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20 - 30 26 52
30 -40 11 22
40 - 50 10 20
50 - 60 3 6
Total 50 100
Source: primary data
From the data collected, it was observed that, that from the group of fifty respondents,
most number of respondents belonged to the ages of 20-30 (26). The least number of
respondents belonged to the age group of 50 – 60 (3).
Chart 4.1 showing the ages of the respondents
Fig 4.1

Age of respondents
20 - 30 30 - 40 40 -50 50 - 60
Table
6% 4.2
Table
20%

52%

22%

showing classification of respondents based on education qualification

Education Number of respondents Percentage
qualification
High school 5 10
Bachelors 30 60
Masters 11 22
others 4 8
Total 50 100
Source: primary data

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From the data collected above, the education qualification of most of the respondents is
bachelor’s degree. 30 of the 50 respondents are bachelor degree holders. 5 of them are
having studied up to high school, 11 of them hold masters in various specializations and 4
have other qualifications.

Chart 4.2 classification of respondents based on education qualification

Education qualification of respondents

High school
Others 10%
8%

Masters
22%

Bachelors
60%

Table 4.3 showing marital status of the respondents.

Marital status of Number of respondents Percentage
respondents
Single or never married 23 46
Married 20 40
Divorced 1 2
Widowed 3 6
Prefer not to say 3 6
Total 50 100
Source: primary data

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From the data collected it was observed that, among the respondents, 23 (46%) of single
or unmarried, while 20 (40%) were married, 1 (2%) was divorced, 3 (6%) were widowed
and 3 (6%) preferred not to reveal their marital status.
Chart 4.3 showing marital status of the respondents.

marital status of respondents

Single or never married Married Divorced
Widowed Prefer not to say

6%
6%
2%

46%

40%

Table 4.4 Table showing classification of respondents based on their nature

of employment.
Sector number of percentage
respondents
Self employed 17 34
Government employee 9 18
Private sector employee 24 48
Total 50 100
Source: primary data

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From the data collected, it is learnt that from among the respondents, 17(34%) were self-
employed women, 9(18%) were government employees and 24(48%) were private sector
employees.

Chart 4.4

nature of employment
60

50

40

30

20 self employed
percentage
10

0
ed

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ee
oy

oy

oy
pl

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pl
em

em

em
lf

r
se

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ec
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ve

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iv
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Table 4.5 showing the monthly income of the respondents.

Income of respondents Number of respondents Percentage
Less than 1 lakh 20 40
1 lakh to 5 lakh 18 36
5 lakh to 10 lakh 5 10
More than 10 lakh 7 14
total 50 100
Source: primary data

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From the above collected data, it was observed that 20 respondents (40%) have annual
income less than 1 lakh, while 18 (36%) have annual income between 1lakh and 5 lakh,
5(10%) have annual income between 5 lakh and 10 lakh and 7 (14%) have an annual
income more than 10 lakh.

Chart 4.5 showing the monthly income of the respondents

Annual income of respondents

40
35
30
25
20
15
10
5
0
less than 1 lakh 1 lakh to 5 lakh 5 lakh to 10 lakh more than 10 lakh
number of person percentage Column2
more than 10 lakh

Table 4.6 showing for what purposes the monthly income of the respondents is
being spent.
Expenses Number of respondents Percentage
Household expenses 15 30
Healthcare 10 20
Children education 12 24
Savings 8 16
Investment 5 10
Total 50 100

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Source: primary income

From the data collected it was observed that the most part of income was being spent on
household expenses (30%), whereas children education cost 24%, 20% was being spent
on healthcare, 16% on savings and 10% was being invested.

Chart 4.6 showing for what purposes the monthly income of the respondents
is being spent

how monthly income is being spent

investment
10%

savings
16%
household expenses
30%

children education
24%
healthcare
20%

Table 4.7 showing the preferred savings avenues of respondents.

Saving avenues Number of Percentage
respondents
Bank deposits 26 52
Fixed deposits 12 24
Chit funds 7 14
Post office deposits 5 10

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Total 50 100
Source: primary income
From the data collected, it was understood that the most preferred saving avenue for them
was savings bank deposits (52%), while 24% preferred fixed deposit schemes, 14%
preferred chit funds and 10% preferred post office deposits.

Chart 4.7 showing the preferred savings avenues of respondents.

60
52
50

40

30
26
24

20
14
12
10
10 7
5

0
bank deposits fixed deposits chit funds post office deposits
saving avenue percentage Column3
Column4

Table 4.8 showing the saving objectives of the respondents.

Objectives Number of Percentage
respondents
Children education 17 34
Health care 12 24
House construction/ 19 38
buying house
Others 2 4

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Total 50 100
Source: primary income
From the data collected it was concluded that construction or buying of a house in the
future was the most preferred saving objective (38%), followed by children education
(34%), health care (24%) and for other purposes (4%).

Chart 4.8 table showing the saving objectives of the respondents

saving objectives
children education health care
house construction/buying house others

4%

34%

38%

24%

Table 4.9 showing whether respondents prepare a monthly expenditure or

not.
Options Number of Percentage
respondents
Yes 41 82
No 9 18

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Total 50 100
Source: primary data
From the above study, it was concluded that 82% prepare monthly expenditure and 18%
do not.

Chart 4.9 showing whether respondents prepare a monthly expenditure or

not.

prepration of monthly expenditure

90

80

70

60 yes
50 no
Series3
Axis Title
40

30

20

10

0
number of respondents percentage

Table 4.10 showing whether respondents have made any investments until
now
Response Number of Percentage

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respondents
Yes 35 70
No 15 30
Total 50 100
Source: primary data
From the data collected we understand that, 70% respondents have made investments
while 30% haven’t.

Chart 4.10 showing whether respondents have made any investments until
now
80

70

60

50

Yes
40
No
Series3
30

20

10

0
number of respondents percentage

Table 4.11 showing the investment avenues the respondents are aware of.
Investment avenues Number of Percentage

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respondents
Insurance 23 46
Shares 15 30
Debentures 7 14
Real estate 5 10
total 50 100
Source: primary data
From the data collected it was observed that, 45% of respondents knew about insurance,
27% knew about shares, 15% knew about debentures and 13% knew about real estate as
an investing option.

Chart 4.11 showing the investment avenues the respondents are aware of.

investment avenues
real estate
10%

debentures
14%
insurance
46%

shares
30%

Table 4.12 showing the percentage of income, the respondents are willing to
invest.
Percentage of income Number of Percentage
respondents
0-19% 28 56

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20-39% 20 40
40-49% 2 4
More than 50% 0 0
Total 50 100
Source: primary data
From the collected data it was observed that 56% of respondents were willing to invest
parts of their income in ranges between 0-19 %, 40% were willing to invest ranging
between 20-39% of their income, and 4% were willing to invest between 40-50% of their
income. None of the respondents were willing to invest more than 50% of their income.

Chart 4.12 showing the percentage of income, the respondents are willing to
invest.

Chart Title
60

50

40 number of person
percentage
30

20

10

0
0-19% 20-39% 40-49% more than 50%

Table 4.13 showing sources from where, the respondents gain knowledge
about the various investment avenues.
Sources Number of Percentage
respondents
Parents 15 30

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Friends and relatives 19 38

Spouses 4 8
Television and social 12 24
media
total 50 100
Source: Primary data
From the above collected data, it is observed they collect data mostly from their friends
and relatives (35%), while 28% collect information from their parents, 27% gather
information through television and social media and a 10% gather information from their
spouses.

Chart 4.13 showing sources from where, the respondents gain knowledge
about the various investment avenues.

soure of information
parents friends and relatives
spouses telivision and social media

24%
30%

8%

38%

Table 4.14 showing the factors considered before the money is invested.
Factors Number of responses Percentage
Safety of capital 15 30
Risk 6 12

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Rate of return 20 40
Period of investment 6 12
Others 3 6
Total 50 100
Source: primary data
From the above study, it was concluded that, factor considered the most was rate of
return on investment (33%). It was followed by safety of capital (32%), risk and period of
investment had 17% each while 1% considered other factors.

Chart 4.14 showing the factors considered before the money is invested.

factors
others
6%
period of investment
12%

safety of capital
30%

rate of return
40% risk
12%

Table 4.15 showing the sector in which they would like to invest.
Sector Number of responses percentage
Public 32 64
Private 12 24
Semi government 6 12

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Others 0 0
Total 50 100
Source: Primary data
From the above collected data it was found that public sector was the most preferred
sector to invest in (54%). 26% respondents preferred investing in semi government
sectors while 20% preferred investing in the private sector.

Chart 4.15 showing the sector in which they would like to invest.

sector
public private semi government others

12%

24%

64%

Table 4.16 showing the investment objectives of respondents

Investment objectives Number of responses Percentage
Source of income 22 44
Capital appreciation 10 20

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Security 17 34
Others 1 2
Total 50 100
Source: primary data
From the collected data it was learnt that source of income was the objective of 54% of
the respondents. 28% hold investments as security, while 16% invest with capital
appreciation in mind and 1% invests for other purposes.

Chart 4.16 showing the investment objectives of respondents

50

45

40

35

30
responses
25
percentage
20 Column1

15

10

0
source of income capital appreciation security others

Table 4.17 showing how they would like to make their investments.
Options Number of responses Percentage
Pay a fixed amount on a 31 62

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regular basis
Invest on a regular basis 15 30
but not a fixed amount
Make a lump sum 4 8
payment
Total 50 100
Source: primary data
From the above study, it was concluded that 59% people preferred paying a fixed amount
on a regular basis, whereas 28% preferred paying not a fixed amount on a regular basis
while 8% preferred making a lump sum payment.

Chart 4.17 showing how they would like to make their investments.

Chart Title
make a lump sum payment
13%

invest on a regular basis but not a fixed amount

28% a fixed amount on a regular basis
58%

Table 4.18 showing whether they consult with others before making an
investment decision.

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Responses Number of responses Percentage

Yes 48 96
No 2 4
total 50 100
Source: primary data
From the above study that it was concluded that 96% respondents consulted with others
before making an investment decision.

Chart 4.18 showing whether they consult with others before making an
investment decision.

responses

yes
no

Table 4.19 showing the preferred period of investment of respondents.

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Period of investment Number of responses percentage

Short term 10 20
Medium term 25 50
Long term 15 30
Total 50 100
Source: primary data
From the data collected it was observed that most people prefer medium term
investments (46%) while 30% preferred long term investments and 24% preferred short
term investments.

Chart 4.19 showing the preferred period of investment of respondents.

60

50

40

number of responses
30
percentage
Column1
20

10

0
short term medium term long term

Table 4.20 showing how investments would be managed.

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Options Number of responses Percentage

Self 30 60
Broker 3 6
Bank 17 34
Others o 0
total 50 100
Source: primary data
From the collected data it was observed that 63% of respondents preferred to self-manage
their investments, 31% preferred to manage investments through bank and 6 % preferred
to manage investments through brokers.

Chart 4.20 showing how investments would be managed

60

50

40 number of responses
percentage

30

20

10

0
self broker bank others

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Table 4.21 table on how often they would manage their investments
Period Number of responses Percentage
Daily 4 8
Monthly 31 62
Annually 15 30
total 50 100
Source: primary data
From the study conducted above, it was observed that 62% preferred monitoring their
investments on a monthly basis, 30% preferred to monitor it on an annual basis and 8%
prefer to monitor it on a daily basis.

Chart 4.21 table on how often they would manage their investments

Chart Title
daily
8%

annually
30%

monthly
62%

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CHAPTER 5
FINDINGS, SUGGESTIONS AND
CONCLUSIONS

5.1 Findings

 Majority of the respondents belong to the age group 20-30.

 When annual income is concerned, majority of the respondents earn in the

range of less than 1 lakh.

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 A majority of the respondents were found to be unmarried.

 The majority of the respondents are employees in the private sector.

 The majority of the monthly is being spent for household expenses.

 Bank deposits have been found to be the most preferred saving avenue
followed by fixed deposits and chit funds.

 The main objective of savings was to buy or construct a house in the future.

 More than 68% of the population was found to have made at least some
kind of an investment.

 Friends and relatives was the most common source of information

regarding available investment avenues.

 82% of working women were found to maintain a formal family

expenditure.

 Majority of the women were ready to invest in the range of 0- 19% of

their monthly income.

 Insurance was an investment avenue majority of the working women knew

about.

 Safety of capital and rate of return are major factors which are considered
before making an investment.

 Majority of the respondents preferred to invest in the public sector.

 Investment as a source of income was the objective of the majority of the

population.

 Majority of the population preferred paying a fixed amount on a regular

basis for their investments.

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 More than 98% of the population consults with others before making an
investment decision.

 More than 47% of the population preferred medium term investments.

 Self-managed investments are more preferred among working women.

 Respondents prefer mostly to monitor their investments on a monthly basis.

 Most respondents preferred to be safe, investing in low risk investments

than investing in high risk investments going for higher returns.

 Majority of the respondents preferred to withdraw their initial investments

in case of a crisis in the economy rather than waiting for market conditions
to improve.

5.2 Suggestions

 Most preferred saving avenues were found to be saving bank deposits, fixed
deposits, chit funds etc. There are plenty other avenues, women are unaware of.
They must be taught about the potential and benefits of other avenues.

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 The most preferred investment tools were found to be insurance and shares. There
are several other avenues like real estate, debentures, bullions etc. women should
be educated about these and their potential.

 It was observed that there was preference towards low risk investments keeping in
mind, the safety of capital. They must be encouraged to invest in high risk avenues
where there is potential for higher returns.

 A majority of women prefer self-managed investments. It would be a better choice

to manage investments through institutions like banks, stock markets etc. who
provide a wide range of services and also gives us advice on where and how to
invest.

5.3 Conclusions
This study was conducted in order to understand the savings and investment
behavior of working women, and also how aware they are of the different savings
and investment avenues that are available, and also the potential and benefits of
each of these avenues. Income, investment and savings are all related and
connected terms. Savings are being done for future needs especially for buying/

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constructing houses and children’s education. It was observed that investments

with higher returns were being preferred, but, along with it, the risk factor severely
affected their decisions. This research provides valuable information to companies
about the preferences of women and what they are looking for while making
investments, and also advises them on which individuals to target and plan their
policies and strategies accordingly.

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BIBLIOGRAPHY

Journals
1) Why do women invest differently than men?, by Bajtelmit and Van Derhei (1996)
2) Study of saving pattern and investment preferences of individual household in
India, by Meenakshi Chaturvedi and Shruti khare (2000)
3) A study on investment pattern of women investors, by Santhiyavalli G and
Usharani M (March, 2001).

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4) Investment behavior of Working Women---A Study of Ludhiana district in Punjab,

by Mistry Kritika(Sep 2005)
5) A research paper on investment awareness among Indian working women with
reference to pune region, by Prof. Priya Vasagadekar(2008)

6) Difference in gender attitude in investment decision making in india, by Gaur

Arti (2011)
7) Investment preferences of salaried individuals towards financial
products, by Puneet Bhushan & Yajulu Medury (2013)
8) Investment pattern and decision making: the role of working
women
9) Difference in gender attitude in investment decision making in India, by
Pestonjee D. M. and Balsara Anita H(2015)
10) Risk perception of employees with respect to equity shares, by
Ranjit Singh and Bhowal Amalesh (2017)
11) Investor’s preference towards post office saving scheme, by Karthikeyan B(2018)
Books:
1) Investment management, Dr Abdul Assis Koroth
2) Fundamentals of investment, Calicut university
Websites:
www.marketwatch.com
www.oecd.org
www.jgbm.com
www.investopedia.com

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ANNEXURE

A study on the savings and investment behavior of working women

1) Full name

_____________________

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2) Your age

20- 30
30-40
40-50
50-60

3) Education qualification

High school
Bachelors
Masters

Others

4) Marital status

Single or never married

Married
Divorced
Widowed

5) What is your nature of employment?

Self employed
Government employee
Private sector employee

6) What is your annual income?

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Less than 1 lakh

1 lakh to 5 lakh

5 lakh to 10 lakh

More than 10 lakh

7) How is your monthly income being spent?

Household expenses

Health care

Children education

All of the above

8) Which is your most preferred saving avenue?

Bank deposit
` Fixed deposit
Chit funds
Post office deposits

9) What is your saving objective?

Children education
Health care
House construction or buying house
Others

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10) Do you maintain a budget or your expenditure?

Yes
No

11) Have you made any investments up till now?

Yes
No

12) Among the following, which are the investment avenues that
You are aware of?
Insurance
Shares
Debentures
Real estate

13) What percentage of income are you willing to invest?

0-19%
20-39%
40-49%
More than 50%

14) From which sources do you gather information about various

Investment avenues?

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Parents
Friends and relatives
Spouses
Television and social media

15) What factors do you consider before investing money ?

Safety of capital
Risk
Rate of return
Period of investment

16) In which sector would you like to invest?

Public
Private
Semi government

17) What is your investment objective?

Source of income
Capital appreciation
Security

18) How would you like to make your investments?

A fixed amount on a regular basis
Invest on a regular basis but not a fixed amount
Make a lump sum payment

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19) Do you consult with others before making an investment?

Yes
No

20) What is your preferred period of investment?

Short term
Medium term
Long term

21) How would you manage your investments?

Self
Broker
Bank

22) How often would you monitor your investments?

Daily
Monthly

Annually

23) Would you invest in avenues bearing high risk of losing money
but also having scope of high returns?
Yes
No

24) Imagine, there is a sudden crisis in the economy. Markets fail

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and huge losses are predicted. What would you do?

Take back money you invested
Wait for market conditions to improve

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