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A study on investment behavior of women investors at asit c mehta, ltd, hassan
 

A study on investment behavior of women investors at asit c mehta, ltd, hassan

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A study on investment behavior of women investors at asit c mehta, ltd, hassan

A study on investment behavior of women investors at asit c mehta, ltd, hassan

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    A study on investment behavior of women investors at asit c mehta, ltd, hassan A study on investment behavior of women investors at asit c mehta, ltd, hassan Document Transcript

    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” 1.1 STATEMENT OF THE PROBLEM This research is carried out primarily to find out the various options available to the women investors whole doing their financial planning and to find their attitude towards risk and return. To find out the type of investment option which are desirable to different kinds of women investors. 1.2 OBJECTIVES OF THE STUDY This study focuses on investment behavior of women investors and the factors that influence their investment decisions. An in depth analysis is made in terms of their financial goals and their investment patterns. It also focuses on the various investment options women invest in and how aggressive they are in terms of investing. Primary Objectives • To find out risk appetite of women investors. • To find out whether the women investors are looking for long term growth or risk or return or liquidity. • To know their long term financial goals. Secondary Objectives • To understand the needs and wants of the respondents with respect to their financial requirements in their life. • To have an understanding of the respondents’ saving pattern. 1.3 SCOPE OF THE STUDY The scope of the study is restricted to the market survey conducted on women investors with respect to the preference of various investment options while doing their financial planning. HRIHE, Hassan Page 1
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” 1.4 METHODOLOGY The nationwide telephone poll examined the investment mistakes of 1,000 investors — 500 men and 500 women — and their related attitudes, beliefs and knowledge levels. Overall findings were analyzed looking specifically at results by gender. The survey was done and random selection of sample was collected. The data was presented and summarized to get the pattern of relationships between various characteristics such as respondent’s attitude, emotions etc. RESEARCH METHODOLOGY Type of research: Descriptive Research The type of research used in this study is descriptive. This has been used this research centers around the typically structured investigative questions. In this case descriptions of characteristics associated with population of women investors are formulated. Estimates of the proportions of women who possess particular investment behavior is evaluated. And after this process association was made to different aspects of the investment habits of women and their appetite of risk and investment styles of women is discovered. Method of Data Collection a) Primary data Primary data has been used in this study. Primary data was collected by administering a detailed questionnaire and also by conducting in depth personal interviews. b) Secondary Data For this study secondary data was collected through various sources such as magazines, internet, company report and business journals. Survey The communication approach involved surveying women investors and recording their responses for analysis. Questionnaires were given to various women who are working to evaluate their investment patterns and to know their financial goals in life. HRIHE, Hassan Page 2
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” Sampling Design Population The population chosen for this study is women who stay in Hassan as the research revolves around the investment habits and the financial requirements of women investors. Sample Size For the purpose of this study, I have collected data from 50 women respondents. This is the true representative of the universe. Sample Unit In this research is conducted only for women. Sampling Techniques For the purpose of the study, judgment sampling has been used. In judgment sampling technique, on the basis of the researcher’s judgment, sample is selected which is considered as representative of the population. So in this case on the basis of my judgment sample has been selected. Instrumentation Technique Most of the questions are close ended questions in the questionnaire administered to the respondents. The simple category scale and multiple response scale have been used. Ranking scale has been used wherever appropriate. Data Analysis This involved reducing the accumulated data to a manageable size, developing summaries, looking for patterns which will help the objectives of the study and applying of statistical techniques. After the collection of data, coding sheet was prepared to classify the data. The various tools which were used to for presentation and testing of hypothesis are: • Bar graphs. • Pie charts. • Column graphs. HRIHE, Hassan Page 3
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” 1.5 LIMITATIONS OF THE STUDY • This is an academic effort and it is limited to cost, time and geographical area. • As the data is collected from 50 respondents only, generalization to other women investors is inevitable. • An interpretation of this study is based on the assumption that the respondents have given correct information. • It is conducted in Hassan city. • It is only Asit C. Mehta clients and potential customers. HRIHE, Hassan Page 4
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” Financial investment is the purchase of a financial security, such as a stock, bond, or mortgage. Investment in human capital is spending on education, training, health services, and other activities that increase the productivity of the workforce. It is the use of money for the purpose of making more money, to gain income, increase capital, or both. The purchasing of stocks, bonds, mutual funds, options, real estate, etc., made with the expectation of future income or capital gains is investment. As a woman, and an investor, shaping of financial future is as important as the many other roles they play in life. That's why taking control today is essential for realizing their dreams for tomorrow. Whether women are just beginning to develop their investment strategy or are refining a current one, it's important to keep in mind that they should build a financial legacy for long term. At various stages of your life, you are faced with important investment and financial decisions. Your success in making these decisions with the help of a sound investment strategy can have a major impact on your income, net worth and, ultimately, quality of life in retirement. Women today have more earning potential and more influence over financial decisions than ever before. Women represent almost half of the workforce and many businesses are owned or managed by women. Many women influence or control the majority of all consumer purchase decisions and many of the investment decisions. As a result, it is important for women to focus on finances now more than ever. Throughout their lives, as a woman, they will be faced with different financial challenges than their male counterparts. If women are going to take control of their financial future, it’s important that they recognize those differences and empower themselves. Earning money is only half the equation for achieving financial independence. Effectively putting your money to work for you is equally important. Though the size of household income matters, how to manage the money women have — to meet short-term obligations as well as long-term goals — determines how they live today and in the future. That's why taking control of their finances is so important. The challenges of investing are unique for each individual. In addition, circumstances are frequently different for women — and whatever choices you make will be better as a result of greater knowledge of the underlying issues and your options. HRIHE, Hassan Page 5
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” Women are more likely to live longer As a woman; the life expectancy is at an all time high. In fact, 90% of women eventually end up living on their own. To help ensure that women will be able to maintain their lifestyle, they should stay involved in investment decisions and consider planning for the unexpected early on. Women are more likely to have dependents to care for With a growing divorce rate, the number of single mothers is on the rise. Providing for and raising a family, while also saving for college and retirement, can be a daunting task. One way to help ensure that you have enough savings is to invest a small amount regularly through a systematic investment plan. Women are less likely to take investment risks For whatever reason; many women are less willing than men to take risks. Yet, a certain degree of risk is necessary to build a well-diversified portfolio. By learning all about investing, women can become more comfortable making investment decisions that involve different levels of risk. Financial Planning Process For this purpose a thorough understanding of financial planning is important for all investors. Financial planning is the process of meeting one’s life goals through the proper management of his/her finances. Life goals can include buying a home, saving for your child's education or planning for retirement. The financial planning process consists of six steps that help people to take a "big picture" look at where they are financially. Using these six steps, women can work out where they are now, what they may need in the future and what they must do to reach their goals. The process involves gathering relevant financial information, setting life goals, examining current financial status by women and coming up with a strategy or plan for how they can meet their goals given their current situation and future plans. Financial and personal satisfaction is the result of an organized process that is commonly referred to as personal money management or personal financial planning. Personal financial planning is the process of managing investor’s money to achieve personal economic satisfaction. This planning process allows him/her to control their financial situation. Every person, family, or household has a unique financial HRIHE, Hassan Page 6
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” position, and any financial activity therefore must also be carefully planned to meet specific needs and goals. A comprehensive financial plan can enhance the quality of life and increase investor’s satisfaction by reducing uncertainty about your future needs and resources. The specific advantages of personal financial planning include- • Increased effectiveness in obtaining, using, and protecting your financial resources throughout the lifetime. • Increased control of the financial affairs by avoiding excessive debt, bankruptcy, and dependence on others for economic security. • Improved personal relationships resulting from well-planned and effectively • Communicated financial decisions. • A sense of freedom from financial worries obtained by looking to the future, • Anticipating expenses, and achieving the personal economic goals. We all make hundreds of decisions each day. Most of these decisions are quite simple and have few consequences. Some are complex and have long-term effects on our personal and financial situations. The financial planning process is a logical, six-step procedure: • Determining of current financial situation • Development of financial goals • Identifying alternative courses of action • Evaluating alternatives • Creating and implementing a financial action plan, and • Evaluating and revising the plan. Step 1: Determination of Current Financial Situation • In this first step of the financial planning process, investors will determine their current financial situation with regard to income, savings, living expenses, and debts. Preparing a list of current asset and debt balances and amounts spent for various items which give a foundation for financial planning activities. HRIHE, Hassan Page 7
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” Step 2: Development of Financial Goals • Investors should periodically analyze their financial values and goals. This involves identifying how they feel about money and why they feel that way. The purpose of this analysis is to differentiate their needs from their wants. • Specific financial goals are vital to financial planning. Others can suggest financial goals for investors; however, they must decide which goals to pursue. Their financial goals can range from spending all of their current income to developing an extensive savings and investment program for their future financial security. Step 3: Identify Alternative Courses of Action • Developing alternatives is crucial for making good decisions. Although many factors will influence the available alternatives, possible courses of action usually fall into these categories: Continue the same course of action. • Expand the current situation. • Change the current situation. • Take a new course of action. • Not all of these categories will apply to every decision situation; however, they do represent possible courses of action. • Creativity in decision making is vital to effective choices. Considering all of the possible alternatives will help the investor make more effective and satisfying decisions. Step 4: Evaluate Alternatives • Investors need to evaluate possible courses of action, taking into consideration life situation, personal values, and current economic conditions. • Consequences of Choices. Every decision closes off alternatives. For example, a decision to invest in stock may mean an investor cannot take a vacation. Opportunity cost is what investor gives up by making a choice. This cost, • Commonly referred to as the trade-off of a decision, cannot always be measured. Decision making will be an ongoing part of personal and financial situation. Thus, HRIHE, Hassan Page 8
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” investor needs to consider the lost opportunities that will result from their decisions. Evaluating Risk • Uncertainty is a part of every decision. Selecting a college major and choosing a career field involve risk. • Other decisions involve a very low degree of risk, such as putting money in a savings account or purchasing items that cost very less. The chances of losing something of great value are low in these situations. • In many financial decisions, identifying and evaluating risk is difficult. The best way to consider risk is to gather information based on investor’s experience and the experiences of others and to use financial planning information sources. Financial Planning Information Sources Relevant information is required at each stage of the decision-making process. Changing personal, social, and economic conditions will require that investor continually supplement and update your knowledge. Step 5: Create and Implement a Financial Action Plan • In this step of the financial planning process, investor will develop an action plan. This requires choosing ways to achieve your goals. As he/she achieves their immediate or short-term goals, the goals next in priority will come into focus. • To implement the financial action plan, investors may need assistance from others. For example, investor may use the services of an insurance agent to purchase property insurance or the services of an investment broker to purchase stocks, bonds, or mutual funds. Step 6: Reevaluate and Revise the Plan • Financial planning is a dynamic process that does not end when investor takes a particular action. They need to regularly assess their financial decisions. Changing personal, social, and economic factors may require more frequent assessments. • When life events affect investor’s financial needs, this financial planning process will provide a vehicle for adapting to those changes. Regularly reviewing this HRIHE, Hassan Page 9
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” decision-making process will help them to make priority adjustments that will bring their financial goals and activities in line with their current life situation. • To achieve the best results from financial planning engagement the following becomes necessary for women investors: Set measurable financial goals Set specific targets of what women want to achieve and when they want to achieve results. For example, instead of saying you want to be "comfortable" when you retire or that you want your children to attend "good" schools, you need to quantify what "comfortable" and "good" mean so that you'll know when you've reached your goals. Understand the effect of each financial decision Each financial decision women make can affect several other areas of their life. For example a decision about a woman’s child's education may affect when and how’s he meets her retirement goals. All the financial decisions are interrelated. Re-evaluation of financial situation periodically Financial planning is a dynamic process. Financial goals may change over the years due to changes in your lifestyle or circumstances, such as an inheritance, marriage, birth, house purchase or change of job status. Revision of the financial plan to reflect these changes becomes necessary to stay on track with the long-term goals. Start planning as early as possible People who save or invest small amounts of money early, and often, tend to do better than those who wait until later in life. By developing good financial planning habits such as saving, budgeting, investing and regularly reviewing finances by women early in their life will help them to meet life changes and handle emergencies. Be realistic in your expectations. Financial planning is a common sense approach to managing finances to reach your life goals. Events beyond a person’s control such as inflation or changes in the stock market or interest rates will affect your financial planning results. HRIHE, Hassan Page 10
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” The various factors which will influence a women investor are: Start early The most important step in any long-term investment plan is to start early. Even if women are only able to set aside a small amount of money monthly, or even quarterly, that money should still grow and generate earnings over time. One highly effective way to make investing a habit is by paying yourself first. Setting aside a portion of income before paying other expenses can ensure that women have the money they need to stick to an investment plan. Stay Ahead of Inflation Day-to-day inflationary price increases are often barely noticeable. Yet, over the long term, a small increase in average yearly inflation can add up to a serious drain on investor’s buying power. Women should focus on educated investment choices which may offset inflation's daily climb . Invest Routinely The widely heard mantra of "buy low, sell high" is something many investors strive for —but few achieve. Since no one can really predict the markets' ups and downs, even extensive research and analysis can't guarantee you a "low" price when you decide to invest. Risk Tolerance Risk is not something many people seek in their daily lives, but when it comes to investing, some degree of risk can be potentially rewarding. The investments usually involve some degree of risk. As a general rule of thumb, the higher the risk associated with an investment, the higher the potential return. What is the best saving and investing products should be ascertained. This depends on when women will need the money, their goals For instance, if women are saving for retirement, and they have 35 years before they retire, they may want to consider riskier investment products, knowing that if you stick to only the "savings" products or to less risky investment products, their money will grow too slowly— or given inflation or taxes, they may lose the purchasing power of their money. A frequent mistake people make is putting money they will not need for a very long time in investments that pay a low amount of interest. HRIHE, Hassan Page 11
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” On the other hand, if women are saving for a short-term goal, five years or less, they don't want to choose risky investments, because when it's time to sell, they may have to take a loss. Since investments often move up and down in value rapidly, they want to make sure that they can wait and sell at the best possible time. The primary risks in fund investing include the following: • Systematic Risk - A risk that influences a large number of assets. An example is political events. It is virtually impossible to protect yourself against this type of risk. • Unsystematic Risk - Sometimes referred to as "specific risk". It's risk that affects a very small number of assets. An example is news that affects a specific stock such as a sudden strike by employees. • Credit or Default Risk – Default risk refers to the risk accruing from the fact that borrower may not pay interest and/or principal on time. This is the risk that a company or individual will be unable to pay the contractual interest or principal on its debt obligations. This type of risk is of particular concern to investors who hold bond's within their portfolio. Government bonds, especially those issued by the Federal government, have the least amount of default risk and least amount of returns while corporate bonds tend to have the highest amount of default risk but also the higher interest rates. Bonds with lower chances of default are considered to be “investment grade,” and bonds with higher chances are considered to be junk bonds. • Country Risk – This refers to the risk that a country won't be able to honor its financial commitments. When a country defaults it can harm the performance of all other financial instruments in that country as well as other countries it has relations with. Country risk applies to stocks, bonds, mutual funds, options and futures that are issued within a particular country. This type of risk is most often seen in emerging markets or countries that have a severe deficit. • Foreign Exchange Risk – When investing in foreign countries you must consider the fact that currency exchange rates can change the price of the asset as well. Foreign exchange risk applies to all financial instruments that are in a currency other than your domestic currency. As an example, if you are a resident of America and invest in some Canadian stock in Canadian dollars, even if the share value appreciates, you may lose money if the Canadian dollar depreciates in relation to the American dollar. HRIHE, Hassan Page 12
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” • Interest Rate Risk - A rise in interest rates during the term of your debt securities hurts the performance of stocks and bonds. • Political Risk - This represents the financial risk that a country's government will suddenly change its policies. This is a major reason that second and third world countries lack foreign investment. • Market Risk - This is the most familiar of all risks. It's the day to day fluctuations in a stocks price. Also referred to as volatility. Market risk applies mainly to stocks and options. As a whole, stocks tend to perform well during a bull market and poorly during a bear market— volatility is not so much a cause but an effect of certain market forces. Volatility is a measure of risk because it refers to the behavior, or “temperament,” of your investment rather than the reason for this behavior. Because market movement is the reason why people can make money from stocks, volatility is essential for returns, and the more unstable the investment the more chance it can go dramatically either way. The risk/return tradeoff is the balance an investor must decide on between the desires for the lowest possible risk for the highest possible returns. Remember to keep in mind that low levels of uncertainty (low risk) are associated with low potential returns and high levels of uncertainty (high risk) are associated with high potential returns. Diversification of the Assets Limiting the investments to a single type or style can be a potentially dangerous situation. The success of investment strategy depends more on the combination of asset classes chosen, and less on the individual securities themselves. Diversifying the assets, or spreading them across a variety of investment types and styles, is a more effective way to manage portfolio's risk level. Because different investments respond differently to changing market conditions, diversification may provide protection in the event that one or more investments experience a downturn. Applying the concept of asset allocation helps ensure that you adequately diversify your assets. Asset allocation means spreading your money across different asset classes, such as stocks, bonds and cash. Asset classes usually do not move in tandem. Therefore, at any given risk level, there is an allocation of stock; bond and cash investments that may help you realize your return potential while minimizing your risk exposure. HRIHE, Hassan Page 13
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” Alleviate Tax Burdens It sounds easy enough identify investments with strong fundamentals and good growth prospects, purchase the most promising, and sit back and wait. This strategy, known as "buy and hold" investing, is known to be a highly effective way of riding out the markets' short-term fluctuations. In contrast, some investors try to time the market by anticipating the markets' movements and investing accordingly. While this may seem like a proactive way of investing, pinpointing the exact highs and lows is a difficult thing to do even for investment professionals. Investment Alternatives Today's investor is faced with an overwhelming number of choices when it comes to implementing an investment strategy. Since the right combination of investments in the right types of accounts can mean reaching your goals sooner rather than later, it is important to know your alternatives. Below is a list of the major building blocks of any successful strategy. Stocks A share of stock represents partial ownership in a company. Initially sold by the company itself to raise money, the shares are then bought and sold by investors in the secondary market. Shareholders can vote on the company's major decisions, and receive dividends as their share of profits. As a company's stock price rises or falls, so does the shareholder's investment. Bonds Like stocks, bonds are issued by companies and governments to raise money to fund a variety of projects and operations. Unlike stocks, a bond is a loan that the issuer promises to pay back, usually at a set interest rate. Bonds are then bought and sold by investors in the secondary market. HRIHE, Hassan Page 14
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” Mutual Funds One of the most convenient investment options available, mutual funds offer investors the benefits of professional management and diversification. By pooling the assets of many investors, and pursuing a set investment objective, mutual fund managers are able to provide investors with buying power unavailable to individual investors. Insurance and Annuities Insurance and annuities can help you work towards life's goals and plan for the unexpected. Offering tax-deferred growth, the option of income for life and a guaranteed death benefit, annuities can be a way to supplement your 401(k) or IRA retirement savings plan. An annuity requires you to make one or a series of payments and, if you choose, the insurance company will pay you a regular stream of income in the future in return. With life insurance, you pay premiums to the insurance company which entitle your beneficiaries to a specified benefit payment should something happen to you unexpectedly. This is all subject to the paying ability of the issuing insurance company. Cash and Cash Equivalents Treasury bills, money market mutual funds, certificates of deposit, even passbook savings accounts are all considered cash. Returns on these types of savings and investments are usually low because they often involve little or no loss of principal. But as a relatively safe place to keep funds that you may need to access readily, they play an important role in any investment plan. But women investors have to restrict their choice of investment assets. These restrictions arise from their specific circumstances. Identifying these restrictions will affect their investment policy. The investment decisions are mainly affected by: Liquidity Liquidity is the ease with which an asset can be sold and still fetch a fair price. Women investors must consider how likely they are to dispose of the assets at short notice. From this likelihood, they establish the minimum level of liquid assets they want in the investment portfolio. HRIHE, Hassan Page 15
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” Investment Horizon This is the planned liquidation date of the investment or part of it. It could be the time to fund a child’s education or marriage for women. Horizon needs to be considered as the women investors have to choose between assets of various maturities. Tax Considerations Tax consequences are central to investment decisions. The performance of any investment strategy is measured by how much it yields after taxes. For women investors who face significant tax rates, tax sheltering and deferral of tax obligations may be pivotal in their investment strategy. Unique needs Virtually every investor faces special circumstances. Primary investment of an individual and the unique risk profile that results from employment can play a big role in determining a suitable investment portfolio for women. These unique needs often center on a woman’s stage in the life cycle. Retirement, housing and children’s education and many other factors demand for funds and investment policy will depend in part on the proximity of this expenditure. Since this research has been conducted on the women investors and a study of their investment behavior, it becomes important to divide them into different types. Women Investors have their own investing styles: some are risk takers by nature, willing to gamble large amounts of money on highly speculative investments. Others prefer the safety and security of cash in the bank even if it means that the actual buying power of their money is slowly dwindling because of inflation. Most people fall somewhere in between these extremes, and are willing to assume some risk, with the expectation that they’ll be rewarded with higher returns. The amount of risk you’re willing to take is your investing style. The investing style stems from a variety of things: age, personality, personal experience, and financial circumstances to name a few. For instance, if women are approaching retirement, have many financial responsibilities, or have lived through major recession, chances are they may be a more risk-averse, or conservative investor. HRIHE, Hassan Page 16
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” On the other hand, if you’re young, earning a high income, have few financial responsibilities, and have seen little in the way of economic hardship, you might be inclined to take more risk. Categories of Investors While there are as many investing styles as there are investors, most people fall more or less into one of three broad categories: conservative, moderate, aggressive  Conservative investors Generally, conservative investors feel that safeguarding what they have is their top priority. These investors want to avoid risk — particularly the risk of losing any principal (their original investment) — even if that means they’ll have to settle for very modest returns. Conservative investors allocate most of their portfolios to bonds, such as Treasury notes or high-rated municipal bonds, and cash equivalents, such as CDs and money market accounts. They’re generally reluctant to invest in stocks, which may lose value, especially over the short term. When conservative investors do venture into stocks they‘re often inclined to choose blue chips or other large-cap stocks with well-known brands because they tend to change value more slowly than other types of stock and often pay dividend income.  Moderate investors Moderate investors want to increase the value of their portfolios while protecting their assets from the risk of major losses. For example, a moderate investor might use an allocation model that has 60% in stock, 30% in bonds, and 10% in cash equivalents. While they will tend to favor blue chip and other large-cap stocks, they may be willing to invest a modest portion of their principal in higher risk securities — such as international stock, small-caps, and volatile sector funds — in order to increase their potential for higher returns. Even if women are not risk takers by nature, a moderate investing style may be suitable in any circumstance or financial situation. HRIHE, Hassan Page 17
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS”  Aggressive investors Aggressive investors concentrate on investments that have the potential for significant growth. They are willing to take the risk of losing some of their principal, with the expectation that they will realize greater returns. Aggressive investors might allocate from 75 to 95% of their portfolios to individual stocks and stock mutual funds. While large- and small-cap stocks and funds may make up the core of their portfolios, many aggressive investors will have significant holdings in more speculative stocks and funds, such as emerging market and sector mutual funds. Since aggressive investors focus on growth, they are usually less inclined to hold income producing securities, such as bonds. An aggressive investing style is definitely not for the faint of heart. It’s best suited for investors with a long-term investing horizon of 15 years or more, who are willing to make along-term commitment to the stocks they buy. But history has shown that an aggressive investing approach, combined with a well diversified portfolio, and the patience to stick to a long-term buy-and-hold investing strategy through inevitable market downturns, can be the most profitable in the long run. HRIHE, Hassan Page 18
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” 3.1 INDUSTRY PROFILE: A. INTRODUCTION: Basically, Securities markets provide a channel for allocation of savings by an individual or an organization to those who have a productive need for them. So, a security market can be said a location where the savers meet the real investors who need the fund. The savers and investors are constrained by the economy’s abilities to invest and save respectively which thus helps market in enhancing savings and investment in the economy. Stock Market is therefore affected by the dynamics of the economic, political, cultural and environmental activities within the country and rest of the world. A stock market is a public market for the trading of company stock and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded privately. The size of the world stock market was estimated at about $36.6 trillion US at the beginning of October 2008. The total world derivatives market has been estimated at about $791 trillion face or nominal value. 11 times the size of the entire world economy. The value of the derivatives market, because it is stated in terms of notional values, cannot be directly compared to a stock or a fixed income security, which traditionally refers to an actual value. Moreover, the vast majority of derivatives 'cancel' each other out (i.e., a derivative 'bet' on an event occurring is offset by a comparable derivative 'bet' on the event not occurring.). Many such relatively illiquid securities are valued as marked to model, rather than an actual market price. B. BRIEF HISTORY: Indian Share Market is the oldest Asian stock market incorporated in 1875. The name of the first share trading association in India was Native Share and Stock Broker's Association which later came to be known as Bombay Stock Exchange. This association started with 318 members. The Bombay Stock Exchange is known as the oldest exchange in Asia. It traces its history to the 1850s, when stockbrokers would gather under banyan trees in front of Mumbai's Town Hall. The location of these meetings changed many times, as the number HRIHE, Hassan Page 19
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” of brokers constantly increased. The group eventually moved to Dalal Street in 1874 and in 1875 became an official organization known as 'The Native Share & Stock Brokers Association'. In 1956, the BSE became the first stock exchange to be recognized by the Indian Government under the Securities Contracts Regulation Act. The Bombay Stock Exchange developed the BSE Sensex in 1986, giving the BSE a means to measure overall performance of the exchange. In 2000 the BSE used this index to open its derivatives market, trading Sensex futures contracts. The development of Sensex options along with equity derivatives followed in 2001 and 2002, expanding the BSE's trading platform. Today, BSE is the world's number 1 exchange in terms of the number of listed companies and the world's 5th in transaction numbers. The market capitalization as on December 31, 2007 stood at USD 1.79 trillion . An investor can choose from more than 4,700 listed companies, which for easy reference, are classified into A, B, S, T and Z groups. The BSE Index, SENSEX, is India's first stock market index that enjoys an iconic stature, and is tracked worldwide. It is an index of 30 stocks representing 12 major sectors. The SENSEX is constructed on a 'free-float' methodology, and is sensitive to market sentiments and market realities. Apart from the SENSEX, BSE offers 21 indices, including 12 sectoral indices. Three segments of the NSE trading platform were established one after another. The Wholesale Debt Market (WDM) commenced operations in June 1994 and the Capital Market (CM) segment was opened at the end of 1994. Finally, the Futures and Options segment began operating in 2000. Today the NSE takes the 14th position in the top 40 futures exchanges in the world. In 1996, the National Stock Exchange of India launched S&P CNX Nifty and CNX Junior Indices that make up 100 most liquid stocks in India. CNX Nifty is a diversified index of 50 stocks from 25 different economy sectors. The Indices are owned and managed by India Index Services and Products Ltd (IISL) that has a consulting and licensing agreement with Standard & Poor's. HRIHE, Hassan Page 20
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” In 1998, the National Stock Exchange of India launched its web-site and was the first exchange in India that started trading stock on the Internet in 2000. The NSE has also proved its leadership in the Indian financial market by gaining many awards such as 'Best IT Usage Award' by Computer Society in India (in 1996 and 1997) and CHIP Web Award by CHIP magazine (1999). The past decade has been quite remarkable for the Securities market in India with the boom in the economy fuelled by better banking system. It has grown exponentially and the market has also witnessed fundamental institutional changes. There have also been significant improvements in efficiency, transparency and safety. However global economic activity decelerated towards the end of the calendar year resulting in investment concerns on account of the sub-prime crisis in the US and other developed nations. Naturally the effects of this slowdown spilled over into developing economies also and we are looking ahead with some degree of concern over the prospects in the near future. In recent days economic collapsed in variation of the foreign investors fund main effect of the Indian economy in 2008-2009 the Bombay Stock Exchange (BSE) the sensex was 13,400 in the month of 8th July 2009. In other side National Stock Exchange (NSE) 3,974 is in the same month of 2009. Since the markets has taken up word moment from 9th July 2009 from the low of 3,974 to 4,578 on 24th July 2009 due to the Sharpe recovery in global economy as well as the 1st quarter Results of all major company which has been announced better than expectations, Hence Indian markets are one of the fastest emerging markets in world and attracted by many Foreign intuitional investors, C. THE REGULATORY AUTHORITY: SEBI The rise in number of investors was also leading to an increase in malpractices on part of the companies, brokers, merchant bankers, investment consultants and various other agencies involved in new issues. This led to erosion of investor confidence. The Government and the stock exchanges Realizing this, Securities Exchange Board of India HRIHE, Hassan Page 21
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” (SEBI) was constituted were helpless as the existing legal framework was just not enough by the Government of India in 1992. The major functions of SEBI:  To promote fair dealings by the issuers of securities and ensure a market place where funds can be raised at relatively low costs.  To provide protection to the investors and safeguard their rights and interests such that there is steady flow of savings into the market.  Registration and regulation of stock brokers, sub-brokers, registrar to all issue, merchant bankers, underwriters, portfolio managers and such other intermediaries who are associated with securities market  Prohibit insider trading in securities.  To regulate and develop a code of conduct and fair practices by the intermediaries involved in the stock market etc. Outlook 2009-2010 The Indian markets traded in a very narrow range during April amidst mixed cues coming from global and domestic markets. While the markets were hurt by the sovereign debt default concerns of Greece and SECs allegations against Goldman Sachs, it found some comfort from good set of FY 2009-2010earnings numbers declared by India Inc... India’s industrial output, as measured by the Index of Industrial Production (IIP), grew by 15.1% as against an annual gain of 16.7% in January 2010, and17.6% in December 2009. Industrial production grew by a mere 0.2% in the same month last year. Manufacturing output rose by 16% as against a mere 0.2% in February 2009, while Mining production was at 12.2% versus (-) 0.2% in the year-ago period. Electricity sector output expanded by 6.7%compared to just 0.7% in the same month a year Consumer Durables production expanded by 29.9%in February 2010 as against 6% in the same period in 2009. Output in Capital Goods grew by 44.4% in February 2010 as against 11.8% for the same month of 2009. The growth rate in Basic Goods category stood at HRIHE, Hassan Page 22
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” 8.4% versus a contraction of 0.1% in the year-ago period. Intermediate Goods' output rose by15.6% in the month under review versus (-) 3% in the year-ago period. As many as 14 out of the 17 industry groups showed a positive growth during February 2010 compared to the corresponding month of the previous year. 3.2 COMPANY PROFILE: Company History & Background Asit C. Mehta Investment Intermediates Ltd. (ACMIIL) was established in the year 1986 with a view to offer a one stop solution to Indian entities for their needs in financial services. Over the last two decades it has achieved the distinction of being amongst the most trusted and reputed brokerage houses in India. It provides a complete bouquet of products in equity, debt, commodities, forex, depository, derivatives and allied services in India. The company is jointly promoted by noted stock market professionals, Mr. Asit C. Mehta and Mrs. Deena A. Mehta, and is a part of the Mumbai-based Nucleus Group of Companies. The other group companies are engaged in IT and IT related services such as development of databases, back-office applications for banks, corporate document management solutions and geographical information systems (GIS). Asit C. Mehta Investment Intermediates Ltd provides equity broking and research based advisory service to institutional investors like Banks, Insurance, Mutual Funds, Investment Entities of Institutional Investors, Foreign Financial Institutions, etc. Vision, Mission & Quality: Envisioned to be the “Trusted Financial Intermediary”, the group has etched out a very specific corporate purpose – “To reach appropriate financial products, services and solutions to every Indian entity.” PURPOSE To reach appropriate financial products, services and solutions to every Indian entity. Our Belief HRIHE, Hassan Page 23
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS”  That every household can, should, and will need to participate in the financial markets directly or indirectly to protect their financial interests  That regulatory/legal compliance ensures economic sustainability.  That transparency and fairness are the cornerstones of all dealings.  That knowledge rather than capital is the key driver of this business.  That product, process, and technology led innovations are necessary preconditions for continuously adding value for all our constituents. The FIRSTS to our credit: • First limited liability Company to acquire membership on Bombay Stock Exchange. • First multiple seat holder and multiple exchange members. • First to achieve the ISO quality certification for business processes. • First to receive a CRISIL grading for quality of operations and services. • Company Managing Director Mrs. Deena Mehta was the first lady to be elected to the governing board of the Stock Exchange Mumbai and first and only lady to be the President of Stock Exchange, Mumbai. Values, Relationship…..core to our business We are currently expanding our business in the retail and institutional segments on the domestic and overseas (NRI/FII) fronts. We have select positions open for marketing, sales, research, back office operations, and business development activities. At Asit C. Mehta, we aim to select a candidate whose goals are aligned with ours. Knowledge about the product, a conceptual understanding of the financial markets, a thirst to innovate, desire to grow within the company, meticulousness towards the task on hand, an ability to design and follow process are all qualities valued in the company. We foster a culture that rewards talent, initiative, hard work, and accountability and nurtures teamwork. Shareholders Asit C Mehta Investment Intermediates Ltd.(ACMIIL) is incorporated as a publicly held limited liability company in India under the Indian Companies Act, 1956. HRIHE, Hassan Page 24
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” The company was incorporated in the year 1993 under the new enabling provisions for limited liability stock broking companies framed by the Government to encourage limited liability company in this area. ACMIIL was first such company on the Bombay Stock Exchange. HRIHE, Hassan Page 25
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” Currently, the company is mostly held by its founder shareholders as follows:  Mr. Asit C Mehta  Mrs. Deena Asit Mehta  Mr. Kirit H Vora  Nucleus Netsoft & GIS (India) Ltd. Company background Asit C Mehta Financial Services ltd Computers Software - Medium / Small ISIN Demat INE041B01014 Book Value 22.75 NSE Symbol NA Div & Yield % 1.487 Market Cap (Rs. Cr) 23.53725 P/E 108.06818 EPS 0.44 Face Value 10 Incorporation Year 1984 Registered Office Nucleus House Saki Vihar Road, Opp L&T Gate No 7,Andheri (E), Mumbai, Maharashtra-40007 Telephone 91-22-28570781 Fax 91-22-28578352 Chairman and Managing Director Asit C Mehta Company Secretary Tushar Kapadia Auditor Manek & Associates Face Value 10 Market Lot Listing Mumbai 1 Registrar Link Intime India Pvt Ltd, C-13 Pineal Silk, Mills Cmpd LBS Road, Bhandup West, Mumbai – 400 078 HRIHE, Hassan Page 26
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” SERVICE STANDARDS & COMPLIANCE: In order to institutionalize business processes, our company has moved to a documented customer-centric quality management system. This has ensured that the entire organization is driven by the common objective of delivering quality brokerage services that would create a unique brand and top-of-the-mind recall. We are the first brokerage house to be certified under ISO 9001:2000 for the Equity and Debt segments. We are also first stock brokerage house to be graded under the Broker Grading service by Credit Rating & Information Services of India Ltd. (CRISIL) for our quality of operations and services provided to clients. MEMBERSHIP:  Cash Market: BSE, NSE  Derivatives: BSE, NSE  Debt: NSE  Foreign Exchange: Accredited by FEDAI  PMS under SEBI License  Merchant Banking: Approved by SEBI under Category I  Commodities: NCDEX MCX, DGCX, EAST INDIA Clearing Bank: State Bank of India Reach and Access (as on July 01, 2009) Investment Centers : 665 (branches, franchisee, etc.) States & UT covered : 26 Employees : 1002 HRIHE, Hassan Page 27
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” PRODUCTS AND SERVICES: • Equity – Initial Public Offering (IPO) • Equity – Secondary trading (cash and derivative) • Equity – PMS • Equity – Online Trading • Equity – Depository Services • Equity – Investment Advisory (fundamental and technical) • Equity – Mutual Fund • Equity - Arbitrage • Commodity - Derivatives • Debt – Government Securities • Debt – Primary Placements • Debt – Advisory • Debt – Mutual Funds • Debt – Relief bonds, etc. • Forex – Inter bank broking • Merchant Banking – Amalgamation & Mergers • Merchant Banking – Private Equity Merchant Banking – Public Offering. OUR SERVICES  Equity and Derivatives Trading: Equity trading is offered to retail clients through different channels in the Bombay Stock Exchange (BSE) & the National Stock Exchange of India (NSE), for the cash and the derivatives segments. Investors are serviced through a PAN India network of over 650 associates / locations comprising of 585 franchisee and 65 company branches. (as on July 2009)  Online Trading: Investmentz.com is our trading portal that offers online trading to retail investors in the BSE and NSE cash and derivatives segments. The investors can do their own trading through a browser-based interface as well as a streamer-based solution called live exchange. This service is also available through an Interactive Voice Response (IVR) HRIHE, Hassan Page 28
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” facility for those clients who are unable to access the Internet service at any time. The company has tied up with leading nationalized, private and co-operative banks to offer share trading services to the banks' customers. A seamless gateway has been established between the banking and depository software of the bank. Institutional Desk: Equity trade execution services are provided to institutional investors both domestic and FII by our institutional desk. Research and market.  Investment Banking: ACMIIL has been granted a Category I Merchant Banking license by SEBI. It offers services in mergers, amalgamations, private equity, public offerings and a full gamut of investment banking services.  Commodity trading service are provided through our associate: Asit C. Mehta Commodity Services Pvt. Ltd. The company is member of India’s premier commodity exchanges, namely, the Multi Commodity Exchange of India Ltd. (MCX), the National Commodity & Derivatives Exchange, India (NCDEX) and the East India Cotton Exchange Association (EICA). The online trading portal also provides facility to trade on NCDEX. One of the group company is a member of Dubai Gold & Commodity Exchange (DGCX).  Inter-bank Forex Desk: Our associate company, Asit C Mehta Forex Pvt. Ltd., undertakes inter-bank forex order execution. Accredited by the Foreign Exchange Dealers’ Association of India (FEDAI), the company is empanelled with approximately 60 banks and has a reasonable presence in the market. SUPPORT SERVICES  Research: Investors are provided with extensive information on markets and companies through hourly market reviews, periodic market commentary and recommendations, which enable them to make informed decisions. The company HRIHE, Hassan Page 29
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” firmly believes that providing continuous and accurate decision making tools can add substantial value to its investors.  Advisory services: Advisory services are provided as a value-added service to all retail and institutional clients. This service is delivered through the hourly, daily, weekly, fortnightly and monthly publication of fundamental and technical research. Calls are made through broadcast services on our private VSAT network, SMS and e- mail.  Accounts Information: Accounts information to the retail clients is provided through access on our website. This assists clients in knowing details about their trading accounts and their resultant obligations through various reports like Bill, Contract, Financial Ledger, Transaction Register, Stock Register, Portfolio Tracker, Stock holding position, etc. E-contracts are generated for investors giving trade details.  Price Ticker ACMIIL, in association with Capital Market Publications, presents the equity/derivative/commodity price ticker for easy desktop access to capital market information. The prices reflected are generally delayed by five minutes, and any additional delay (if any) depends on the user’s connectivity and computer system configuration. You can customize the ticker as per your individual needs.  Alertz As our registered client, Investmentz.com provides you with ‘Alertz’ facility on your email SMS and assists you in your investment decision, thus enriching your capital market investment experience through us. Investmentz.com’s Alertz service keeps you informed about stock prices through email and SMS. You may activate the Email Alertz service and track your selected stocks/indices without monitoring the trading terminal during market hours. It is now very easy to track the prices of your selected stocks without deviating from normal activities .The SMS Alertz service is available for trade confirmation, fund pay-in and pay-out, market views/calls, etc, to clients who actively use our trade execution services. HRIHE, Hassan Page 30
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” As general information, Investmentz.com does not guarantee any accuracy of generation, databases, and delivery timings, and does not make any claims of any nature in this matter The critical components to avail the Alertz service are: a) Internet connectivity / bandwidth speed at your end, b) Information feed available from the exchange, c) Computing speed of the Alertz, and d) Speed of your Internet Service provider (ISP) and/or domain provider and/or Telecom service provider (TSP).  Advice Me To service general retail investor and assistance them in systematic creation of wealth, we could try to provide you with some basic / brief investment idea on stock of your interest. You could ask us an investment question related to a particular stock or sector and we would see that brief research (fundamental / technical) input could be provided on that stock or sector. Whatever may be our research input on your inquiry, still the final investment decision would need to be taken by you as you know your investment profile & habits, risk appetite, income – cash flow, person / family / social obligation, etc. Potential Growth Areas: India is amongst the least affected countries in the 2008 global meltdown. May 2009 general election in the country provided a fairly stable government. We see great potential for the country in general and financial market in particular in the years to come. Investor participation, product innovations, volume growth is likely to be in exponential proportion. Our company is well poised to build a great institution in India to service the Indian and global investors for their financial services needs The company has created a strong organization driven by processes to handle multifold volume growth. Do not disturb: To service our clients and aide them in wealth creation process, we at Asit C Mehta Investment Intermediates Ltd. keep on sending information about our products and services, information related to capital market investment, etc. This information might be sent / conveyed to you via letter, newsletter, email, phone; SMS, etc. based on our HRIHE, Hassan Page 31
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” assumption that you would need this information and benefit you in your wealth creation process. But, at times, you might need privacy and wish us not to contact you for such information. We would take the precaution and see not to disturb you by excluding your contact details from our marketing list. Kindly provide your details so as to not disturb you. Message Board: Welcome to our new website! We are pleased to announce some exciting new features, an improved user-friendly design and services to benefit our esteemed customers. We have also taken steps to ensure faster loading of pages.  User-friendly design: No part of the website is more than three clicks away. This ensures speedy access to whatever information you may need.  Easy Trading: We have two options for trading: Quick Trade and Regular Trade. Quick Trade enables you to transact in any share quickly by presenting only the most relevant information. Regular Trade gives you full information about the share, enabling you to take an informed decision.  New features: We've added some exciting new features like Advise Me and Online Purchase of Mutual Funds and IPO’s. Knowledge Center: Investor Education and Empowerment is essential for inculcating correct investment habits. We undertake various initiatives to educate investors and enable them to make informed investment decisions based on their investment profiles, risk appetites, and return expectations. Three important parts of our Investor Education and Awareness Program are: Market Wisdom series, Video broadcasts of Investment Education Topics, and the Nucleus Investments newsletter. We also conduct activities such as seminars, exhibitions, etc.  Market Wisdom HRIHE, Hassan Page 32
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” This is an Investor Empowerment series comprising material prepared to assist investors as they just step into the capital market or when they are in the middle of various curves in the wealth creation process. The various market wisdom series for general investor education and awareness some of them are as follows:  Why do we need financial planning?  Investors guide to share markets  Safety, liquidity and returns  What is Stock market?  Equity or Mutual funds?  The first step  How to select your broker?  Why is the stock market not a gambling den?  Do operators run the stock market?  Why do prices go up and down in the stock market?  A Lesson in Options and Futures  Sensex 12000...12800...13000...What to do?  Dividend: What does it mean to investor?  Margins and investors  Hedge funds  Dabba trading  Exchange-traded funds  Basics of commodities futures market  Settlement of trades  Investor grievance redressal mechanism  Risk associated with equity investments etc.  Investor Education Topics We have been conducting the Investor Education and Awareness program via video broadcasts through our own network (branches and business associates), which is spread over 600 locations across 25 states and union territories in India. Speakers with industry expertise participate in video broadcasts from our head office in Mumbai, which is accessible from any of our branches across the country. HRIHE, Hassan Page 33
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” The last session was on February 21, 2009; our expert in-house fundamental and technical research team conducted an investor education program on crude oil market outlook.  Nucleus Investmentz. For the past seven years, we have been publishing a fortnightly newsletter, Nucleus Investmentz. It includes analyses of current financial topics, insights on investment-relevant topics, and performance score cards of various mutual funds. This is available in English, Hindi & Gujarati. Benefits of Trading With Us:  Focus on wealth creation for the investors.  Client Level Risk Management.  Auto Pay-in / Pay-out of securities.  Transfer of payout directly to the designated customer bank account.  Account & Portfolio information through Internet 24x7, 365 days.  Strong foundation of Technology, Compliance and Transparency First corporate member of the Bombay Stock Exchange Proven track record for the last 25 years in the stock broking industry First broking house to gain the ISO 9001:2000 certification Presence in 23 states and 650 locations. MANAGEMENT: Chief Executive Officer : Mrs. Deena Asit Mehta Whole-time Director : Mr. Kirit H Vora Membership: • Cash Market: BSE, NSE • Derivatives: BSE, NSE • Debt: NSE • Foreign Exchange: Accredited by FEDAI • PMS under SEBI License • Merchant Banking: Approved by SEBI under Category I • Commodities: NCDEX MCX, DGCX, EAST INDIA HRIHE, Hassan Page 34
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” 3.3 ORGANISATION STRUCTURE: BRANCH DESIGNATION NAME Chairman and Managing Director Mr. Asit C. Mehta Chief Executive Officer Mrs. Deena Asit Mehta Whole-Time Director Mr. Kirit H Vohra Chief Operating Officer Mr. Kirit H Vohra Chief Technological Officer Mr. Kamal Goel Chief Officer Wealth centre Mr. T .S Netrajan Chief Manager Co-operative commodities Mr. Vidia Chief Financial Manager Mr. Veerendra Thakur Chief Officer Human Resources Mr. V. Vishvanath Senior Vp Operation Mr. T .S Netrajan Unit Manager Mr. B.P Shanthish HRIHE, Hassan Page 35
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” 3.4 ACHIEVEMENTS:  Having secured brokerage grading of BQ1 from CRISIL of India.(Top Most Grading given to any Good Broking House)It has been marked as a very good broking house as regards to all the criteria given by CRISIL of India. In previous year it was in the BQ2 grade, but looking at the workings and very good Risk management system of the company, it has been upgraded to BQ1  It is an ISO 2000-9001 company.  Making a very good turnover and giving directly and indirectly appointment for more than 2500 people in India. It has got more than 600 branches network all over India covering all most all states in India.  To become the very old brokerage house in India and getting incorporated in the year 1984 got the BSE membership card at the early stages.  Having its leadership position in equity broking, equity research, forex and commodity markets & mutual funds.  Holding an equity brand of investments.  Now serving around 2lakhs clients all over India and abroad. (NRIs). HRIHE, Hassan Page 36
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” 3.5 SWOT ANALYSIS: SWOT analysis refers to, analyzing the strength, weakness, opportunity and threat of the organization SWOT is a compound of two factors namely external factors and Internal factors. Strengths and weaknesses are the internal factors controlled by the technical and personnel departments. Opportunities and threats are the external factors which cannot be controlled by the company. External factors may include political factors, Socio –Cultural factors, Technical factors, demography and Environmental factors. WEAKNESS SWOT STRENGHT ANALYSIS OPPORTUNITIES THREATS HRIHE, Hassan Page 37
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” STRENGTHS:  One of the fastest growing brokerage firms in India.  Rich experience of wealth creation.  Robust technology with online trading facility.  Swift response to market dynamics.  Customer first support team.  Handheld/mobile feeds and SMS updates.  It has well experienced staff and good infrastructure. WEAKNESS:  Less number of branches in south India.  Unable to compete with the brokerage rates of their competitors.  Lack of efficient and effective strategies in attracting customers.  Unable to market their products & services more efficiently. OPPORTUNITIES:  Growing India economy opens up huge market for stock broking companies.  Increase the resource mobilization by mutual funds.  Introduction of new technologies leads to trapping new markets.  Company is committed to achieve profitable progress consistently.  Targeting rural and sub urban areas. THREAT:  Facing Increased level of competition.  Uncertainty in the market.  Changes in government polices and regulation.  Falling brokerage rates & the entry of several big players. HRIHE, Hassan Page 38
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” HRIHE, Hassan Page 39
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” TABLE 1 OCCUPATION OF THE WOMEN INVESTORS PARTICULARS NUMBER PERCENTAGE Govt sector Employee 10 20 Private Sector employee 25 50 Self Employed 5 10 House Wives 10 20 TOTAL 50 100 HRIHE, Hassan Page 40
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” CHART 1 OCCUPATION OF THE WOMEN INVESTORS . 60 50 Respondents 40 30 20 10 0 Govt sector Private sector Self employed House wives employee employee Occupation Interpretation: Most of the women respondents who were interviewed were working in private sector and had the majority. Next equal percentage of respondents was govt employees and house wives. The least number of women are self employed. There is a trend of the women becoming independent financially which can be highlighted. HRIHE, Hassan Page 41
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” TABLE 2 AGE OF WOMEN INVESTORS PARTICULARS NUMBER PERCENTAGE Between 20 and 30 10 20 Between 30 and 40 22 44 Between 40 and 50 13 26 Above 50 5 10 TOTAL 50 100 HRIHE, Hassan Page 42
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” CHART 2 AGE OF WOMEN INVESTORS 50 45 Percentage of respondents 40 35 30 25 20 15 10 5 0 Between 20 and Between 30 and Between 40 and Above 50 30 40 50 Age Interpretation: Most of the women are in the age group which is between 30 years and 40 years. And the next highest percentage of women aged between 40 years and 50 years. This is closely followed by women in the age group of 2o to 30 years. Least percentage of the respondents is above 50 years. Most of the women are in the middle age and above. HRIHE, Hassan Page 43
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” TABLE 3 MARITAL STATUS OF WOMEN INVESTORS PARTICULARS NUMBER PERCENTAGE YES 30 60 NO 20 40 TOTAL 50 100 HRIHE, Hassan Page 44
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” CHART 3 MARITAL STATUS OF WOMEN INVESTORS Married Single Interpretation: Most of the women respondents who were surveyed were married to understand the relation between marital statuses and investing habits this consideration is taken. Most of the women who are married have a tendency to invest in much secure investments and assets which give benefit in the long term. The rest of the respondents who are single have mainly invested in the avenues irrespective of their long term growth. HRIHE, Hassan Page 45
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” TABLE 4 ANNUAL INCOME OF WOMEN INVESTORS PARTICULARS NUMBER PERCENTAGE Less than Rs100000 1 2.5 Between Rs100000 and Rs250000 0 50 Between Rs250000 and Rs500000 18 45 Above 500000 1 2.5 40 100 TOTAL HRIHE, Hassan Page 46
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” GRAPH 4 ANNUAL INCOME OF WOMEN INVESTORS 60 Percentage of Respondents 50 40 30 20 10 0 Less than Between Between Above 500000 Rs100000 Rs100000 and Rs250000 and Rs250000 Rs500000 Annula Income Interpretation: Majority of the women are earning an income which lies between Rs 1 lakh and Rs2.5 lakh and accordingly plan their investment. Very closely it is followed by women earning between Rs2.5 lakh and Rs5 lakh and the least number by women who earn less than Rs1 lakh and above Rs5 lakh. HRIHE, Hassan Page 47
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” TABLE 5 PERCENTAGE OF INCOME INVESTED BY WOMEN PARTICULARS NUMBER PERCENTAGE Less than 10% 4 8 10% to 20% 35 70 20% to 30% 10 20 More than 30% 1 2 TOTAL 50 100 HRIHE, Hassan Page 48
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” GRAPH 5 PERCENTAGE OF INCOME INVESTED BY WOMEN 80 Percentage of Respondents 70 60 50 40 30 20 10 0 Less than 10 10 to 20 20 t0 30 Above 30 Percentage of Income Invested Interpretation: Most of the women have invested 10% to 20% of their income making them conservative investors. Then few of them have invested 20% to 30% of their income which is not a big percentage and few of them have invested less than 10% of their income as many women don’t have a thorough knowledge of all the investment avenues and the least percentage of women have invested more than 30% as they don’t want to take risks. HRIHE, Hassan Page 49
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” TABLE 6 INVESTMENT DECISION TAKEN BY WOMEN THEMSELVES PARTICULARS NUMBER PERCENTAGE Yes 30 60 No 20 40 TOTAL 50 100 HRIHE, Hassan Page 50
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” GRAPH 6 INVESTMENT DECISION TAKEN BY WOMEN THEMSELVES YES NO Interpretation: With financial independence most of the women have increased their knowledge and increased their awareness levels about various investment avenues and have taken their own investment decision. But still there are a big percentage of women who have not been able to take independent decisions and rely on others for their own investment decisions. HRIHE, Hassan Page 51
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” TABLE 7 FORMULATION OF A FINANCIAL PLAN PARTICULARS NUMBER PERCENTAGE YES 5 10 NO 45 90 TOTAL 50 100 HRIHE, Hassan Page 52
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” GRAPH 7 FORMULATION OF A FINANCIAL PLAN YES NO Interpretation: Most of the women have not made any formal plans regarding various financial requirements and goals. So a majority of women have not planned for their finances and other investment avenues and have invested as opportunities have come. With an absence of financial plan they may lack focus on financial goals HRIHE, Hassan Page 53
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” TABLE 8 AGREEMENT ON FINANCIAL GOALS BY WOMEN AND THEIR SPOUSE PARTICULARS NUMBER PERCENTAGE YES 25 83.33 NO 5 16.67 TOTAL 30 100 HRIHE, Hassan Page 54
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” GRAPH 8 AGREEMENT ON FINANCIAL GOALS BY WOMEN AND THEIR SPOUSE YES NO Interpretation: Most of the women have a tendency to take guidance with their spouse if they are married. So there will be a consensus on the financial goals and the various investment decisions they take. A very less percentage of women don’t have an agreement with their spouse over various investment decisions as some of them may not have consensus with their spouse. HRIHE, Hassan Page 55
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” TABLE 9 RANKING OF FACTORS CONSIDERED WHILE TAKING INVESTMENT DECISIONS OPTIONS/RANKS NUMBER OF RESPONDENTS/ TOTAL PERCENTAGE 1 2 3 4 5 Long term 4 6 18 20 2 50 Growth Percentage 8 12 36 40 4 100 Risk 8 25 10 3 4 50 Percentage 16 50 20 6 8 100 Return 5 6 17 19 3 50 Percentage 10 12 34 38 6 100 Retirement 5 23 9 5 8 50 income Percentage 10 46 18 10 16 100 Liquidity 19 16 6 5 4 50 Percentage 38 32 12 10 8 100 HRIHE, Hassan Page 56
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” GRAPH 9 RANKING OF FACTORS CONSIDERED WHILE TAKING INVESTMENT DECISIONS 60 Percentage of Respondents 50 Long term growth 40 Risk 30 Return Retirement income 20 Liquidity 10 0 Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 Ranks Interpretation: Majority of the women are of the opinion that liquidity is the most important factor to be considered while taking investment decisions. Risk is the next important factor to be considered as women avoid taking high risk. As women take the decision regarding the education and marriage of children, long term growth is the next important factor to be considered. Their main concern is not return; it has been ranked 4 as they are happy with moderate returns and low risk. As most of the respondents were in the age group of 30yearsto 40 years, it is evident that retirement income is at the end of the priority list. HRIHE, Hassan Page 57
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” TABLE 10 KNOWLEDGE ABOUT INVESTING AND VARIOUS OPTIONS AVAILABLE PARTICULARS NUMBER PERCENTAGE No investment experience - 0 Basic understanding about 35 70 investing Investing for long time 10 20 Experienced investor 5 10 TOTAL 50 100 HRIHE, Hassan Page 58
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” TABLE 10 DESCRIPTION OF INVESTMENT OBJECTIVES 80 70 Percentage of Investment 60 50 40 30 20 10 0 No expeience Basic Some Expeience Experienced Understanding Experience in Investing Interpretation: Most of the women have a basic understanding about investing which is a good trend to encourage more participation in investments. A lesser percentage has been investing in different types of assets for some years so there is a slow increase in participation of women in investment portfolio. But a very low percentage of women who are experienced as many women don’t take active participation in investment avenues. But there are no respondents who have no investment experience at all. Therefore all the women have invested one or the other of the investment avenues. HRIHE, Hassan Page 59
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” TABLE 11 DESCRIPTION OF INVESTMENT OBJECTIVES PARTICULARS NUMBER PERCENTAGE Investing in safer 39 78 investments Overall high returns 7 14 High returns without 4 8 concern for decrease in investments TOTAL 50 100 HRIHE, Hassan Page 60
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” GRAPH 11 DESCRIPTION OF INVESTMENT OBJECTIVES 90 Percentage of respondents 80 70 60 50 40 30 20 10 0 Investing in safer Overall high returns High returns w ithout investment concern for decrease in investments Investm ent objectives Interpretation: As the majority of the women prefer investing in safer investments, they are conservative. Next few of the women are willing to take some risk for long term return so they are moderate investors. Very less percentage of women are aggressive investors who are not concerned about short term decreases in their investment for high, long term returns. So it can be inferred that most of the women are conservative investors. HRIHE, Hassan Page 61
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” TABLE 12 REACTION OF WOMEN INVESTORS DUE TO DECREASE IN PORTFOLIO VALUE PARTICULARS NUMBER PERCENTAGE Transfer of money 27 54 Immediately Concerned but wait for 18 36 Improvement Leave the investments 5 10 with expectation of improvement Invest more funds - - TOTAL 50 100 HRIHE, Hassan Page 62
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” GRAPH 12 REACTION OF WOMEN INVESTORS DUE TO DECREASE IN PORTFOLIO VALUE Interpretation: Most of the women cannot take risk and so they cannot wait for improvement as they are not very high risk takers with decrease in portfolio value. Few of them will be concerned and very few will wait for improvement by leaving them. So it can be inferred that they cannot afford to take risk. As they don’t invest often, they have less experience. TABLE 13 HRIHE, Hassan Page 63
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” INVESTMENT AVENUES ALREADY INVESTED IN OPTIONS NUMBER PERCENTAGE Yes No Total Yes No Total Govt Securities 15 35 50 30 70 100 Equity 10 40 50 20 80 100 Bonds 5 45 50 10 90 100 Mutual funds 6 44 50 12 88 100 Company deposits - 50 50 - 100 100 Bank deposits 39 11 50 78 22 100 Post office deposits 37 13 50 74 26 100 Insurance 32 18 50 64 36 100 Real estate 43 7 50 86 14 100 Gold 9 41 50 18 82 100 HRIHE, Hassan Page 64
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” GRAPH 13 INVESTMENT AVENUES ALREADY INVESTED IN 120 100 80 60 40 20 0 P d p o g n s a c e r f t Investment avenues Interpretation: Most of the women have invested in low risk investments as they are low risk takers. They have invested in bank deposits, post office deposits, insurance, provident fund which have low risk and low returns. But they have avoided investing in shares, bonds, company deposits which could be due to their high risk involvement and less knowledge of women regarding various instruments. HRIHE, Hassan Page 65
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” TABLE 14 OVERALL INVESTMENT OBJECTIVE PARTICULARS NUMBER PERCENTAGE Growing assets 9 18 Growing assets with current income 30 60 Income and preserving 11 22 Capital TOTAL 50 100 HRIHE, Hassan Page 66
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” GRAPH 14 OVERALL INVESTMENT OBJECTIVE 70 Percentage of respondents 60 50 Overall Investment Objective 40 30 20 10 0 Growing assets Growing assets with Income and preserving current income capital Investment objectives Interpretation: Most of the women have financial goals of generating assets which grow along with generation of income. So they want financial security with long term growing assets with income. A lesser percentage of women want growing assets even if doesn’t generate current income as it involves risk. Women in this category have a very low percentage. HRIHE, Hassan Page 67
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” TABLE 15 USE OF FUNDS IN THE PORTFOLIO IN YEARS PARTICULARS NUMBER PERCENTAGE Above 10 years 6 12 6 to 10 years 33 66 0 to 5 years 11 22 TOTAL 50 100 HRIHE, Hassan Page 68
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” GRAPH 15 USE OF FUNDS IN THE PORTFOLIO IN YEARS 70 Percentage of respondents 60 50 40 30 20 10 0 Above 10 years 6 to 10 years 0 to 5 years Uses of funds Interpretation: Most of the women don’t have a very long term use of funds as a goal. They want to use it in 6 years to 10 years which is not a long period. Very few of the women use them in less than 5 years. A lesser percentage uses the funds in their portfolio in more than 10 years. As women generally invest in funds which generate incomes in long term but invest in avenues which are medium and short term current income generation. HRIHE, Hassan Page 69
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” TABLE 16 DURATION OF INVESTMENT PARTICULARS NUMBER PERCENTAGE SHORT TERM 22 44 LONG TERM 18 36 BOTH 10 20 TOTAL 50 100 HRIHE, Hassan Page 70
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” GRAPH 16 DURATION OF INVESTMENT 50 45 Percentage of respondents 40 35 30 25 20 15 10 5 0 SHORT TERM LONG TERM BOTH Duration of investm ent Interpretation: As the majority of the women prefer investing in short term investments. Very few of the women use them both. As women generally invest in funds which generate incomes in short term. HRIHE, Hassan Page 71
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” TABLE17 REASON BEHIND CHOICE OF INVESTMENT OPTION PARTICULARS NUMBER PERCENTAGE SELF-AWARENESS 10 20 FINANCIAL 10 20 ADVISORS 16 32 BROKER’S ADVICE 8 16 FRIEND’S 6 12 MEDIA TOTAL 50 100 HRIHE, Hassan Page 72
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” GRAPH 17 BASIS OF INVESTMENT DECISION ON THE ADVICE OF 35 Percentage of respondents 30 25 20 15 10 5 0 Self -aw areness Financial Broker's advice Friend's Media advisors advice of Interpretation: Most of the women take decisions by taking the advice of their broker’s members. Many of the women also take their self-awareness and financial advisors. A very less percentage of women take decisions from friends. Very few of the women go to the media advisor. This could be due to the fact that they don’t have a formal financial plan and which in turn results in absence of a fixed financial goal. HRIHE, Hassan Page 73
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” TABLE 18 FREQUENCY OF INVESTMENT PARTICULARS NUMBERS PERCENTAGE WEEKLY 4 8 MONTHLY 14 28 QUARTERLY 20 40 HALF YEARLY 6 12 YEARLY 6 12 TOTAL 50 100 HRIHE, Hassan Page 74
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” CHART 18 FREQUENCY OF INVESTMENT 45 40 Percentage of respondents 35 30 25 20 15 10 5 0 Weekly Monthly Quarterly Half- yearly Yearly Freequency of investment Interpretation: As the majority of the women prefer investing their funds quarterly investments. Very few of the women invest funds weekly, half- yearly and yearly. As women generally invest in funds which generate incomes in short time. HRIHE, Hassan Page 75
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” TABLE 19 INVESTED THROUGH ASIT C. MEHTA’S PRODUCTS PARTICULARS NUMBER PERCENTAGE YES 42 84 NO 8 16 TOTAL 50 100 HRIHE, Hassan Page 76
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” CHART 19 INVESTED THROUGH ASIT C. MEHTA’S PRODUCTS YES NO Interpretation: Most of the women prefer to invest through Asit C Mehta products. HRIHE, Hassan Page 77
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” FINDINGS: • 84% of the women interested to invest through Asit C Mehta products. 16% of the women are not satisfied to invest in their products. • Majority of the women are private sector employees. • Majority of the women respondents are in the age group which lies between 30tears to 40 years. • Most of the respondents are married with a percentage of 60%.The rest of the respondents with a percentage of 40% are single. • 50% of the respondents had an income level which was between Rs1 lakh and Rs2.5 lakh. That is half the number of the respondents. 45% of the respondents consisted of women who had a income between Rs2.5 lakh and Rs 5 lakh and the least of 2.5% each by women who earn less than Rs 1 lakh and above Rs 5 lakh. • 83.33% of the women have agreement with their spouse on the financial goals they have in their lives. Rest percentage of 16.67% of the women has disagreement with their spouse on their financial goals. • Most of the women consisting of 60% of them take their own investment decision. • 90% of the women don’t have a formal financial plan. • 38% of the women have ranked liquidity as the most important consideration while taking investment decisions. • 70% of the women had the basic understanding about investing and have made some investments. • 78% of the women prefer to invest in safer investments. • 30% of the women have invested in govt securities and 70% have not invested. 20% of the women have invested in shares and 80% have not invested in shares. 10% of the women invested in bonds and 90% have not done so. 12% of the women have invested in mutual funds and 88% have not and so on. • 60% of the women have the investment objective which is growing assets while generating current income. 22% of the respondents want to generate income and preserve capital. Least percentage of 18% of women wants growing assets without concern for current income. • 54% of the women would transfer their money into more secure sectors if their investments decrease in value. HRIHE, Hassan Page 78
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” • 44% of the women invested their funds as short term investment. 36% of the women invested their funds as long term investment. • 32% of the women base their decisions on the advice of their broker’s members. 20% of the women base their decisions on the advice of their self-awareness and financial advisors. 16% of the women base their decisions on their friend’s. The least percentage of the women based their decision on the advice of the media. • Most of the women invest their funds quarterly. 40% of the women invest their funds quarterly. 28% of the women had made some investments monthly according to their savings. 12% of the women prefer to invest their funds half yearly and yearly • 84% of the women interested to invest through Asit C Mehta products. 16% of the women are not satisfied to invest in their products. HRIHE, Hassan Page 79
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” CONCLUSION: • Women have invested a very less percentage of their income as many women don’t have a thorough knowledge of all the investment avenues they don’t want to take risks. • There are a big percentage of women who have not been able to take independent decisions and rely on others for their own investment decisions. • A majority of women have not planned for their finances and other investment avenues and have invested as opportunities have come. • Majority of the women are of the opinion that liquidity is the most important factor to be considered while taking investment decisions. • Most of the women have a basic understanding about investing which is a good trend to encourage more participation in investments. • Most of the women prefer investing in safer investments, they are conservative investors. • Most of the women have planned for basic savings, household expenses, tax planning, life protection, children’s education and children’s marriage. • Most of the women cannot take risk and so they cannot wait for improvement as they are not very high risk takers with decrease in portfolio value. • Most of the women have invested in low risk investments as they are low risk takers. • They have invested in bank deposits, post office deposits, insurance, provident fund which have low risk and low returns. • Most of the women take decisions by taking the advice of their family members as they need guidance by the experienced people. • Most of the women have financial goals of generating assets which grow along with generation of income. So they want financial security with long term growing assets with income. • As women generally invest in funds which generate incomes in long term but invest in avenues which are medium and short term current income generation. HRIHE, Hassan Page 80
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” It can be concluded that generally, women are conservative investors and they feel that safeguarding what they have is top priority. These investors want to avoid risk particularly the risk of losing any principal that is their original investment even if that- means they’ll have to settle for very modest returns. HRIHE, Hassan Page 81
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” SUGGESTIONS: • Women should be encouraged to invest in more avenues and participate in the investment avenues which involve high risks and also high returns. • Women should focus on making a formal financial plan to have a focus on the financial goals. • Women should increase their awareness level of the portfolio diversification to spread their risk. • Women should recognize their financial independence and plan for the future to make it better. HRIHE, Hassan Page 82
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” BIBLIOGRAPHY BOOKS • I M Pandey, Financial Management, Vikas Publishing House Private Limited, New Delhi, 7th Revised Edition, pp 900. • V K Bhalla, Security analysis and portfolio management. • Prasanna Chandra, “Financial Management-Theory and Practice”, Tata McGraw Hill Publishing Company Limited, New Delhi, Fourth Edition, Third Reprint, pp 37. • Security Analysis and Portfolio Management, Peter Kevin • Research Methodology Rajendra Nargundakar • Investment Management, Preeti Singh • Fundamentals Of Investment Management, V.K Bhalla WEBSITES: • www.investorhome.com • www.financialplanning.com • www.nseindia.com • www.bseindia.com • www.sebi.com • www.investmentz.com • www.google.com HRIHE, Hassan Page 83
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” QUESTIONNAIRE Respected sir, I am Firdose Khanum F, student of MBA studying in Haranahalli Ramaswamy Institute Of Higher Education, As a part of my curriculum, I am doing project in Asit C. Mehta Investment Intermediates Ltd (Sugam Share Services, Sahyadri circle, Hassan). The project is on “Investment Behavior of Women Investors” of Asit C. Mehta”. So please take some time out of your schedule to fill this questionnaire. I would be thankful for your precious time. Kindly fill up the following questionnaire. Name of the Person: Phone No: 1. Occupation  Govt employee.  Private sector employee  Self employed  Others ( Please specify ) 2. Age  Between 20 and 30  Between 30 and 40  Between 40 and 50  50 and above HRIHE, Hassan Page 84
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS” 3. Marital status  Married  Single 4. What is your annual income? Annual income ( in rupees)  Less than Rs. 100000  Between Rs. 100000 and Rs. 250000  Between Rs. 250000 and Rs. 500000  Above Rs. 500000 5. What percentage of your income is invested?  Less than 10%  10% to 20%  20% to 30%  More than 30% 6. Do you take your own investment decisions?  Yes  No 7. Do you have a formal financial plan?  Yes  No 8. Do you and your spouse generally agree on your financial goals?  Yes  No 9. Rank the following on the scale of 1 to 5 (1 – most important and 5 – least important) HRIHE, Hassan Page 85
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS”  Long term growth  Risk  Return  Retirement income  Liquidity 10. How knowledgeable are you about investing and the various options available?  I have no investment experience.  I have a basic understanding about investing and have made some investments.  I have been investing for several years in different types of assets.  I am an experienced investor. 11. Which of the following statements would you feel most correctly describes your investment philosophy?  I prefer to invest in safer investments.  I am willing to tolerate some ups and downs in the value of my investments to achieve overall higher returns in the long run.  My main interest is high, long term returns and I am not concerned about short term decreases in my investments. 12. What would your reaction be, if in 6 months after placing your investments, your portfolio decreases in value?  Transfer your money into more secure investment sectors.  You would be concerned, but would wait to see if the investments improve.  You would leave the investments in place expecting the investments to improve.  You would invest more funds to lower your average investment price. 13. Rank the Investment avenues that you like to choose.  Post-office Savings.  Bank Deposits.  Life Insurance.  Mutual Funds.  Gold  Equity  Corporate Debenture  Company Fixed Deposits  Real Estate Government securities  Others (Please Specify)………………. 14. My overall investment objectives are: HRIHE, Hassan Page 86
    • “ INVESTMENT BEHAVIOR OF WOMEN INVESTORS”  Growing assets without concern for current income.  Growing assets while generating current income.  Generating income and preserving capital. 15. I plan to use the funds in this portfolio in  Above 10 years  6 to 10 years  0 to 5 years 16. Are you a short term or long term investor?  Short term  Long term  Both. 17. State reason behind choice of your investment options  Self – Awareness  Financial Advisors Broker’s Advice  Friends’ or Relatives’ Advice  Media 18.What is your frequency of investments?  Weekly  Monthly  Quarterly  Half-yearly  Yearly 19. Have you invested through Asit C. Mehta’s products?  Yes  No 20. Which type of new product/service would you want from Asit C. Mehta? a. …………….. b. ………………. c. ………………….. Do you have any suggestion to make Asit C Mehta product/service better? ……………………………………………………………………………………………… ……………………………………………………………………………………………… ……………………………………………………………………………………………… ………………………………………... HRIHE, Hassan Page 87