project ppt

1. A STUDY ON RURAL INVESTORS AWARENESS AND
PATTERN OF INVESTMENT BY RURAL BANGALORE
R.Esther Vilji(M.Com)
Kristu Jayanti College,
Bangalore

2. Introduction
 The word “Awareness” refers to a consciousness of the
existence of a particular truth, event or thing.
 The sense of awareness of an investor towards savings and
investment is created modified and shaped up by various
external sources.
 The print and electronic media such as the dailies, weeklies,
television, radio etc., and personal contact with friends,
relatives, investment consultants etc., contribute a lot in
creating awareness among investors.
 As the awareness of investors is considered to be indispensable
while studying one’s savings and investment pattern, an
attempt was made to measure the awareness level of investors.

3. RESEARCH DESIGN
STATEMENT OF THE PROBLEM
Rural literacy rates have increased, but financial literacy levels are very poor.
Rural people are very much familiar with saving, but still, a large section of the
rural population of our country has no access to banking and postal network. In
this context, the study intends to investigate the awareness levels and the
investment pattern of the rural investors.
OBJECTIVES OF THE STUDY
 To study the investments awareness level of the rural investors.
 To study the investors preference towards various types of investment avenues.
 To study the investment pattern of the rural investors

4. RESEARCH METHODOLOGY
Scope and period of the study
The study is confined to rural investors residing in a village that is in Kannur. The study
covers the period from January to Feb 2016.
Data Sources
The present study is basically based on primary and secondary data. The primary data is
collected with the help of well-constructed questionnaire and interviews. Secondary data
tapped from books, research journals, newspapers, and study reports related to the topic.
Tools for Analysis
The data analysis tools are simple percentage, chi square, and factor analysis.
Sample size
80 sample respondents are selected on the basis of convenience sampling.

5. Chi-square
Hypothesis 1
 H0: There is no relationship between annual investment and annual income
 H1: There is a relationship between annual investment and annual income
Table value= 7.8. Since the calculated value is more than the table value null hypothesis is
rejected. Therefore there is a relation between annual income and annual investment.
ANNUAL INCOME *ANNUAL INVESTMENT ANNUAL INCOME ANNUAL INVESTMENT
Chi-Square 19.600a 36.400a
Df 3 3
Asymp. Sig. .000 .000
Monte Carlo Sig.
Sig. .000b .000b
99%Confidence
Interval
Lower Bound .000 .000
Upper Bound .001 .000
a. 0 cells (0.0%) have expected frequencies less than 5. The minimum expected cell frequency is 20.0.
b. Based on 10000 sampled tables with starting seed 2000000.

6. Hypothesis 2
 H0: There is no relationship between annual investment and purpose of investment
 H1: There is a relationship between annual investment and purpose of investment
Table value= 7.8. Since the calculated value is more than the table value null hypothesis is
rejected. Therefore there is a relation between annual investment and purpose of investment
investment.
ANNUAL INVEATMENT*PURPOSE OF INVESTMENT ANNUAL INVESTMENT PURPOSE OF INVESTMENT
Chi-Square 36.400a 20.800a
Df 3 3
Asymp. Sig. .000 .000
Monte Carlo Sig.
Sig. .000b .000b
99%
Confidence
Interval
Lower Bound .000 .000
Upper Bound
.056 .056

7. FACTOR ANALYSIS
Opinion about different investment avenues
Interpretation: The table shows investors different opinion about various avenues with reference
to rural Bangalore city. The result shows that most of the rural investors have a good opinion
about insurance. Secondly, the investors have a favorable opinion towards real estate, post office
saving, and bank deposits and finally the investors having negative opinion about mutual fund and
gold.
Component Matrixa
Component
1 2 3
SHARES .374 .533 .321
MUTUAL FUND -.695 .102 .136
BANK DEPOSITS .261 .140 -.862
POST OFFICE SAVINGS .407 .685 -.208
INSURANCE .662 -.182 .101
GOLD -.235 .716 .303
REAL ESTATE .610 -.254 .474
Extraction Method: Principal Component Analysis.
a. 3 components extracted.

8. FINDINGS FROM THE STUDY
 The majority of the respondents fall under the age of 31-40 years and the maximum
number of respondents are male.
 The majority 52% of investors are educated PUC and the majority investors are
self-employed.
 Majority 43% of the respondents earn an annual income of Rs100000-200000.
 From the above study it is very clear that all the 100% of the respondents are aware
of investment among them 46% of the rural people are aware about bank deposits.
 From the survey it was found that 100% of the respondents invest their money in
different investment avenues among them majority 40% of rural investors are
investing in bank deposits.
 53% of the investors invest monthly in different types of alternatives.
 30% of investment decision is influenced by their opinion of the investment tool.
 50% of the investors want their investment to grow at an average rate.

9. Cont…
 It was founded that majority 37% of investors consider return on investment as an
important factor while investing
 Majority 40% of rural investor’s investment purpose is to meet their future needs.
 From the study it is very clear that none of the rural investors invest in securities.
 50% of investor’s investment decision is based on future growth of the investment.
 Majority of the respondents have good opinion about investing in bank deposits.
 It has been found that there is a relation between education level and occupation
 There is a relation between education level and annual income.
 There is a relation between annual income and annual investment.
 There is a relation between annual investment and purpose of investment.

10. SUGGESTIONS
 The various investment tools which are mostly preferred by the investors are bank
deposits, insurance. So there should be various other means to create awareness
regarding the potential of other instruments and the tools which can be more
beneficial to the investors.
 The investors consider various factors while making investment like return, safety
of principal etc. there should be rational thinking of that the investor should able to
know that at what point of time they need capital appreciation instead the return and
when the need return instead of maturity period.
 There is a need for initiating awareness programs disseminating information about
shares, debentures, bonds and mutual fund.
 Investors should have the complete knowledge of all the alternatives.
 There is a need of awareness program have to be conducted about investing in
securities because none of the rural investors are aware about securities market.

11. CONCLUSION
The study disclosed that the majority of the rural investors given first preference to the
bank deposits and second preference for gold .The third preference were given to real
estate (land), which signals towards the traditional attitude of the rural investors. the
study conclude that majority of the rural investors are aware about investment but there
is a need for initiating awareness programs disseminating information about shares,
debentures, bonds, mutual funds and about securities market .

12. BIBLIOGRAPHY
 Murlidhar A. Lokhande, (2015), A study of investment awareness and pattern of
savings and investments by rural investors (Indian journal of finance).
 http://finance.mapsofworld.com/investment/types/ investment type
 http://www.scribd.com/doc/54705439/Investment-Pattern-of-Investors-2#
 http://www.slideshare.net/hemanthcrpatna/a-study-on-nvestment-pattern-of-
investors-on-different-products-conducted-at-asit-c-mehta-investment-
intermediates-ltd
 Sarangapani,A. and Mamatha,T.2011. Investment pattern of Indian investors An
analytical study of Hyderabad city investors. The journal of Venture Capital &
Financial Services.