INVESTORS’ AWARENESS ABOUT CAPITAL MARKET INVESTMENTS: A STUDY WITH SPECIAL REFERENCE TO KARNATAKA STATE

International Journal of Advanced Research in OF Management (IJARM), ISSN 0976 – 6324 INTERNATIONAL JOURNAL ADVANCED RESEARCH (Print), ISSN 0976 – 6332 (Online), Volume 4, Issue 3, September - December 2013 © IAEME IN MANAGEMENT (IJARM) ISSN 0976 - 6324 (Print) ISSN 0976 - 6332 (Online) Volume 4, Issue 3, September - December 2013, pp. 01-17 © IAEME: www.iaeme.com/ijarm.asp Journal Impact Factor (2013): 4.7271 (Calculated by GISI) www.jifactor.com IJARM ©IAEME INVESTORS’ AWARENESS ABOUT CAPITAL MARKET INVESTMENTS: A STUDY WITH SPECIAL REFERENCE TO KARNATAKA STATE Dr. SHIVAKUMAR DEENE, Prof. SATYANARAYAN PATHI Assistant Professor, Dept. of Commerce, School of Business Studies, Central University of Karnataka-Gulbarga (Karnataka-India) Dept. of Business Management, Brahampur University, Brahampur, Odhisa. ABSTRACT The present study is an attempt on studying investors’ awareness about capital market investments and the level of satisfaction on the information published by the different stakeholders in Karnataka state. A total of 425 sample respondents were selected from 4 divisions of Karnataka. viz.viz Gulburga (107), Bangalore (106), Belgaum (106) and Mysore (106) divisions. The respondents were administered a structured questionnaire developed specifically for the purpose. The data collected thus were analysed both by descriptive and inferential statistics like chi-square test. Results revealed that majority of the sample selected had moderate to extensive level of knowledge on investment. They had maximum awareness regarding shares and real estate and very less knowledge on Stock/Index Futures, Stock/Index Options, ETF, and ULIP. It is argued that though the Indian Financial System has been modernised 2 plus decades ago , still the market has not grown up to the desired level , as far as attracting the small individual investors are concerned and winning the confidence of the investors are concerned in the wake of continuous financial turmoil. There is a clear-cut dearth of investors’ awareness programmes in India in general and Karnataka state in particular. As the educational level of the respondents increased, their knowledge and awareness increased linearly and significantly. This is clearly documented in the form of above dialogue. The investors who are having more technical knowledge about the market were more passionate about the securities market and invest in on ongoing basis. Strategies for improving investment options have been discussed. 1 International Journal of Advanced Research in Management (IJARM), ISSN 0976 – 6324 (Print), ISSN 0976 – 6332 (Online), Volume 4, Issue 3, September - December 2013 © IAEME INTRODUCTION The economic growth of any country, in other words, majorly depends upon its ability to mobilise the capital at a right time and make it available to the right investment for its effective utilisation. The capital mobilisation task in India is rightly shouldered upon the Indian Financial System, which comprises within its fold the financial markets and their supporting institutions. The important financial markets, which exist in India, are the Treasury Bills market, Call Money market, Commercial Bills market, Mortgages market, Foreign Exchange market, Government Securities market and the Industrial Securities market which go hand in hand to inject the funds from saver to the investor in a more appropriate and economical manner without any discrimination. India with its more than 100 cr. of population could have enjoyed the pulling-up of vast capital mobilisation, but it still failed to do so and is being ranked after USA and Japan, as far as attracting the small individual investors are concerned. The importance of giving priority to these individual investors is that, they are having more than what they spend and this is quite opposite, if we consider the corporate entities. In this precious juncture documented above, the concerned stakeholders, be it whether the government agencies or private agencies have to do a lot to convince, attract and moreover making aware about the investments nuts and bolts, so that the small individual investors can park their excess fund in the economy, which in turns, generates the value on what they spend and also economy too can grow. The present paper is an attempt in this direction, which tries to identify the awareness of the small individual investors with regard to their knowledge about the industrial securities market and the level of satisfaction on the same and also tried to establish the association between the important factors affecting the investment decisions. OBJECTIVES OF THE STUDY • • • To examine various sources of investment information and adequacy of the disclosure made therein. To study the awareness of the sample respondents with regard to the various investment avenues. To assess the factors affecting their investment knowledge. HYPOTHESIS OF THE STUDY Following hypothesis have been developed for the purpose of this study: H1: There is an association between the education of the respondents and the level of knowledge of the respondents’. H2: There is an association between the experience of the respondents and the awareness of about different investment avenues. THE SOURCES OF DATA The data required for the study was collected from primary and secondary sources. The research work being an empirical study based on the primary data. The information on the investors’ sources of information and the awareness about the same has been collected 2 International Journal of Advanced Research in Management (IJARM), ISSN 0976 – 6324 (Print), ISSN 0976 – 6332 (Online), Volume 4, Issue 3, September - December 2013 © IAEME through a structured questionnaire. The secondary data has also included the information obtained from the records and files of the Bangalore Stock Exchange Limited. Secondary data was also used to support the theoretical and statistical background required to build up the tempo of the research and the major secondary data has been sourced from the Journals, Business Magazines, the Internet, Published Doctoral Theses, Dissertations and Business News Papers etc. this was being used for literature support in accomplishing the data mining towards completion of the study. ANALYSIS OF DATA For the present study chi-square tests were applied to verify the significance of difference of response frequencies and in addition to test the association of variables under study contingency of coefficient was used using SPSS for windows (version 21.0). TIME SPAN The study was conducted to understand the different strategies and perception of individual investors in the State of Karnataka and covers a period from January 2012 through December 2013. SAMPLE RESPONDENTS To make the study more appropriate, effective and useful it goes without saying that, the size of the sample selected for executing the study should be ideal and should contain all the attributes of the population. In a study of this kind involving large population with diverse features made the selection of sample bit difficult, but still to make the study more relevant, an appropriate method of sampling namely stratified random sampling was used, since this is an appropriate method providing the appropriate sample size for the study representing all the districts in Karnataka State and to make the study acceptable a sample of around 425 units were used{As per the theory of Krejcie, Robert V. and Daryle W Morgan) which stipulates that any sample size selected beyond 384 is having all probability of repeating the same behavior/attitude with similar features from across the population. But whilst selecting the sample population, instead of 384, 425 samples were being chosen, giving 10 per cent as a margin of lapses.} While selecting sample small investors proper representation was given to factors like age, income, education, and occupation etc. to make the sample representative of the population more apposite. PROPOSED RESEARCH SAMPLE AREA Area sampling method was employed to select the sample respondents from the state of Karnataka and the entire state of Karnataka was being classified into four divisions, keeping in mind the proper representations of the entire geography viz, The Gulbarga Division, Bangalore Division, Belgaum Division and finally as Mysore Division. And thereafter the convenience sampling method was being used to locate the small individual investors in these four divisions, so as to fulfil the pre determined quota in respective division mentioned below. 3 International Journal of Advanced Research in Management (IJARM), ISSN 0976 – 6324 (Print), ISSN 0976 – 6332 (Online), Volume 4, Issue 3, September - December 2013 © IAEME SAMPLE UNITS Divisions Gulbarga Division Bangalore Division Belgaum Division Mysore Division No. Respondents 107 106 106 106 DATA ANALYSIS AND INTERPRETATION The analysis has been presented in three sections viz Section one deals with demographic information, section two deals association between respondents’ education and awareness about various investment avenues and the final section-III deals with the respondents’ experience and awareness about various investment avenues followed by the summary of findings and suggestions Section - I DEMOGRAPHIC PROFILE OF THE RESPONDENTS The discussion given below under the title of “Demographic Profile of the Respondents”, deals with the basic information related to the sample respondents to familiarise with the ground realities of the respondents. Table 1 Distribution of the sample by gender and age, occupation, experience and income Demographic variable Age groups (in years) Sub variable 20-25 26-30 31-35 36-40 41-45 above 45 Occupation Business Govt. service Pvt. service Others Experience ( in years) <2 2-5 Frequency Percent Frequency Percent Frequency Percent Frequency Percent Frequency Percent Frequency Percent Frequency Percent Frequency Percent Frequency Percent Frequency Percent Frequency Percent Frequency 4 GENDER Male Female 72 77 23.5% 65.3% 101 23 32.9% 19.5% 52 8 16.9% 6.8% 38 6 12.4% 5.1% 12 2 3.9% 1.7% 32 2 10.4% 1.7% 81 7 26.4% 5.9% 38 19 12.4% 16.1% 175 66 57.0% 55.9% 13 26 4.2% 22.0% 72 68 23.5% 57.6% 103 30 Total 149 35.1% 124 29.2% 60 14.1% 44 10.4% 14 3.3% 34 8.0% 88 20.7% 57 13.4% 241 56.7% 39 9.2% 140 32.9% 133 International Journal of Advanced Research in Management (IJARM), ISSN 0976 – 6324 (Print), ISSN 0976 – 6332 (Online), Volume 4, Issue 3, September - December 2013 © IAEME 5-10 10+ Income (in lakhs) <1 1-2 2-5 5 lakhs and above Percent Frequency Percent Frequency Percent Frequency Percent Frequency Percent Frequency Percent Frequency Percent 33.6% 86 28.0% 46 15.0% 27 8.8% 145 47.2% 134 43.6% 1 .3% 25.4% 14 11.9% 6 5.1% 19 16.1% 49 41.5% 50 42.4% 0 .0% 31.3% 100 23.5% 52 12.2% 46 10.8% 194 45.6% 184 43.3% 1 .2% (Source: Filed Survey) From the above table it is strongly clear that, young India i,e the age group falling between 20-25 is dominating the market with 35.1% (that too with 72 male and 77 female investors out of 425 respondents), followed by the age group of 26-30 with 29.2 % and it keeps on decreasing with the higher age. The last phase is being tapped by the age group of above 45 with the least percentage of 8. This is a clear-cut message to the market leaders to focus upon the young India with innovative ideas. It is undoubtedly clear from the table no.1 placed above that, the Pvt. Service individual investors are drumming the market under study with a share of 56.7% (57.0 male investors and 55.9% female investors) , followed by business people, who stood second in the list by securing 20.7% of share in the survey of 425 small investors in the Karnataka State. The table above clearly says that, the respondents under study with less than two years of experience have shown more interest in the capital market and stood first in the survey by securing 32.9 % share out of 425 respondents, and the respondents with two to five years of experience have also shown moderate response by standing second in the list under study with 31.3 % percent. The above table pinpoints that, the respondents middle in the race has dominated the capital market and enjoyed the position of first rank among the surveyed respondents by occupying 45.6 % of share in the survey of 425 respondents and they were falling in the income group of between 1-2 lakhs a year. This is very genuinely followed by the income group of 2-5 lakhs a year by sharing a 43.3.% of share in the total survey. Sl.No. 1. 2. 3. 4. 5. 6. Level of Knowledge Little Some Moderate Good Extensive Total Table2 Level of Investment Knowledge Frequency 80 84 214 30 17 425 Test statistics: X2= 286.07; P=.000 (Source: Filed Survey) 5 Percent 18.8 19.8 50.4 7.1 4.0 100.0 International Journal of Advanced Research in Management (IJARM), ISSN 0976 – 6324 (Print), ISSN 0976 – 6332 (Online), Volume 4, Issue 3, September - December 2013 © IAEME The respondents are being enquired about their knowledge about the capital market by giving different options before them and most of them clearly said that, they are having moderate knowledge about the capital market and stand first in the list with 50.4% in the list. This is followed by the other groups by saying some (19.8 %) and little (18.8 %). One of the interesting fact revealed from the study is, there are very few respondents, who quoted by saying, they have good and extensive knowledge about the market. The chi-square test is applied to these groups of frequencies and it is divulged that, there is a significant difference between variables under study (X2= 286.07; P=.000) and the market leaders have to do a lot to feed the knowledge by taking various training session to the investors and by conducting various investors awareness programmes. Sl.No. 1. 2. 3. 4. 5. 6. 7. Table 3 Awareness about various investment instruments Investment Instruments Frequency Percent Shares Stock/Index Futures Stock/Index Options ETF SIP/ULIP Real Estate Commodities 425 64 70 43 85 425 108 100 15.1 16.5 10.1 20.0 100 25.4 ChiSquare 207.551 191.118 270.402 153.000 102.779 (Source: Filed Survey) The above table under study document the fact that, all the investors are very much aware about the share market as well as of real estate investment and these two options have placed first rank in the awareness list, followed by the commodities market, wherein out of 425 chosen respondents, 108 respondents have said that, the are aware with the commodities market and landed in the second rank in the list. The chi-square is being measured at X2=102.779 for commodities market. The list is followed by other investment instruments namely SIP/ULIP , Stock/Index Options, Stock/Index Futures and ETF and the chi-square of all these are rightly placed against its percentage in the table above. Sl.No. 1. 2. 3. 4. 5. 6. Table 4 Mode of information about investment Type Frequency In person 192 By mail 86 By e-mail 109 Posted on a website, with a 27 notification that is available Others 11 Total 425 Test statistics: X2245.482;P=.000 (Source: Filed Survey) 6 Percent 45.2 20.2 25.6 6.4 2.6 100.00 International Journal of Advanced Research in Management (IJARM), ISSN 0976 – 6324 (Print), ISSN 0976 – 6332 (Online), Volume 4, Issue 3, September - December 2013 © IAEME Reliability presents things in a different angle and the same holds true in the table presented above. When we encountered with all the respondents by enquiring what mode of information about the investment is being preferred them. Most of them clearly agreed that, they prefer in person with 45.2 % out of the 425 respondents. This is followed by their next preference of by email, which stands second place having 25.6 % of share in the survey. The third is dominated by mail (20.2 %), followed by Posted on a website information (6.4 %) and others (2.6 %) respectively. The above analysis definitely fuel to the thinking that, most of the investors are preferred to depend upon the primary source than that of the secondary sources, so that the qualms could be cleared instantly. The Chi-Square test is applied to know the differences among these variables and it was revealed by the test that, there is a significant difference among the variables and judged statistically as X2=245.482; P=.000. Sl.No. Table 5 Sources of Investment Information Sources of Information Frequency Percent 1. Annual Reports 128 30.1 2. Advertisement of Public Issues 65 15.3 3. Prospectus 44 10.4 4. Interim Financial Results 23 5.4 5. New Issues Analysis 44 10.4 6. Share Price Quotations 44 10.4 7. Brochures, Pamphlets and Newsletters 77 18.1 8. Total 425 100.0 Test statistics: X2116.471;P=.000 (Source: Filed Survey) The table mentioned above come-up with the sources of information that the investors are needed to take-up the investment decisions. Out of the 425, 128 respondents with 30.1 % clearly agreed that, they are in need of annual reports as a source of information and ranked first in the list under survey. The second rank is landed in the form of Brouchers, Pamphlets and Newsletters published by the company in particulars and other stakeholders in general by scoring 18 % in the survey out of 425 respondents. And the stories continued for different stakes with different percentage and finally end-up with and ranked as last preferred source of information was Interim Financial Results with only 5.4 %. This is a clear-cut indication that, the investors does not believe the interim reports in the form of a proper forecaster of future. The zeal to know more in detail specifically the relationship among the given variables, the chi-square test is applied and its is proved by the results that, there is a significant difference among the variables under study by way of valuing the X2 =116.471;P=.000 . 7 International Journal of Advanced Research in Management (IJARM), ISSN 0976 – 6324 (Print), ISSN 0976 – 6332 (Online), Volume 4, Issue 3, September - December 2013 © IAEME Table 6 Compatibility of Information to understand Sl.No. 1. 2. 3. 4. 5. 6. 7. Kind Frequency Very easy 51 Easy 61 Somewhat easy 65 Not too easy 123 Not at all easy 78 Complex to understand 47 Total 425 Test statistics: X254.562;P=.000 Percent 12.0 14.4 15.3 28.9 18.4 11.1 100.0 (Source: Filed Survey) Proper understandings of the things make a different in life and this holds good here also. The above table titled as ‘Compatibility of Information to understand’ clearly deals with the level of understanding about the fed investment information and its affect on the investment decisions. It is lucid from the table presented above that, most of investors opined the information given to them is not too easy to understand and scored 28.9 % in the survey, followed by the not at all easy to understand which stands second in the survey by scoring 18.4% . And only 11.1 % investors opined that the information given to them is complex to understand. When we applied chi-square test to know the association between the variables, it is clearly present by the fact of chi-square value that, there is a significant difference between the frequencies under study. Table 7 Level of satisfaction on financial periodicals Sl.NO. a) Particulars Coverage of latest developments HS 17 (4.0) S 44 (10.4) CS 65 (15.3) NS 129 (30.4) HD 170 (40.0) Chi-Square X2186.659; P=.000 b) c) Analysis of new issues Investment advice d) Market whispers e) Analysis of share prices Report on companies 30 (7.1) Nil (.00) 21 (4.9) 48 (11.3) Nil (.00) 16 (3.8) 37 (8.7) 101 (23.8) 57 (13.4) 44 (10.4) 62 (14.6) 44 (10.4) 35 (8.2 ) 39 (9.2) 150 (35.3) 109 (25.6) 86 (20.2) 109 (25.6) 52 (12.2) 86 (20.2) 146 (34.4) 86 (20.2) 86 (20.2) 109 (25.6) 86 (20.2) 109 (25.6) 65 (15.3) 171 (40.2) 129 (30.4) 129 (30.4) 192 (45.2) 109 (25.6) 65 (15.3) 150 (35.3) 95 (22.4) 109 (25.6) 128 (30.1) 148 (34.8) 85 (20.0) 64 (15.1) 191 (44.9) 85 (20.0) 43 (10.1) 34 (8.0) 85 (20.0) X2176.941; P=.000 X243.565; P=.000 2 X ;134.51; P=.000 X2185.412; P=.000 X2114.096; P=.000 X2117.200; P=.000 X2104.353; P=.000 X241.576; P=.000 X227.482; P=.000 f) g) h) i) j) Highlighting investor grievances Review of annual reports Planning personal investment portfolio Report on industries (Source: Filed Survey) Note: HS-Highly satisfied, S-satisfied, CS-Can’t say, NS-Not satisfied, HD-Highly dissatisfied 8 International Journal of Advanced Research in Management (IJARM), ISSN 0976 – 6324 (Print), ISSN 0976 – 6332 (Online), Volume 4, Issue 3, September - December 2013 © IAEME When we enquired, to know about the level of satisfaction the information published by the different financial periodicals on the various aspects covered by it. 40.0 per cent respondents out of 425, clearly said that, they are highly dissatisfied with the Coverage of latest developments and it measured in terms of chi-square as X2=186.659;P=.000. This highly dissatisfaction is continued for different aspects as well namely, Analysis of new issues, Investment advice, Report on companies by having a score of 30.1 per cent , 34.8 per cent and 44.9 per cent respectively and chi-square for these variables measured as X2=176.941;P=.000, X2=43.565;P=.000 and X2=43.565;P=.000 respectively. Out of the 425 respondents 146 (34.4 %) said, the level of satisfaction in terms of Market whispers is cannot say. As far as the level of satisfaction on the analysis of share price is concerned, it is said that, most of the respondents i.e., 192 (45.2 %) are not satisfied with the coverage. Highlighting investor grievances by the periodicals is secured 35.3 per cent and said they are satisfied with the coverage. In case of the periodicals Review of annual reports, it is rightly said that, 109 respondents out of 425 have satisfied the review of annual reports published by the companies. Investor’s satisfaction on planning personal investment portfolio by the periodicals are highly satisfied and given a share of 23.8 per cent. In fine, the investors’ satisfaction on report on industries by the periodicals is satisfied and given 25.6 per cent share. The chi-square of among all these groups of frequencies is placed against the figures and the results of the same say that, there is a significant relationship between these groups of frequencies. Table 8 Level of Satisfaction on Investment Information and Advice Sl. No. 1. Stock brokers 2. Sub-brokers 3. Investment advisers counselling Prospectus and annual reports Interim results 4. 5. 6. Source News papers and periodicals NAS 36 (8.5) 78 (18.40 36 (8.5) 10 (2.4) 86 (20.2) 8 (1.9) Level of Satisfaction NS IND S 109 66 129 (25.6) 15.5) (30.4) 66 86 152 (15.5) (20.0) (35.8) 66 86 129 (15.5) (20.2) (30.4) VMS 85 (20.0) 43 (10.1) 108 (25.4) X262.047; P=.000 X278.400; P=.000 X261.506; P=.000 69 (16.2) 172 (40.5) 27 (6.4) 128 (30.1) 6 (1.4) 151 (35.5) X2148.000; P=.000 X2=267.012; P=.000 X2255.929; P=.000 66 (15.5) 147 (34.6) 66 (15.5) 152 (35.8) 14 (3.3) 173 (40.7) Chi-Square (Source: Filed Survey) When the investors were asked about the level of satisfaction on investment information and advice, most of them have agreed that, they are satisfied with the stock brokers’ investment information and advice by capturing a score of 30.4 %. 35.8 % of the total respondents said that, they are satisfied with the sub-brokers information and advice. And the previous stories continued for investment advisers counselling and prospectus & annual reports and news papers and periodicals by favouring by the most of the investors. But, in case of interim results out of 425 respondents, 172 respondents said that, they are not satisfied with the interim results. Chi-sqaure test revealed a significant difference between 9 International Journal of Advanced Research in Management (IJARM), ISSN 0976 – 6324 (Print), ISSN 0976 – 6332 (Online), Volume 4, Issue 3, September - December 2013 © IAEME these groups of frequencies of responses for Stock brokers (X262.047;P=.000), Sub-brokers (X278.400;P=.000), Investment advisers counselling (X261.506;P=.000), Prospectus and annual reports (X2148.000;P=.000), Interim results (X2174.918;P=.000) and for News papers and periodicals (X2255.929;P=.000). Table 9 Adequacy of information furnished while making an investment decision Sl.N Particulars o. 1. About risks and potential returns associated with the investment 2. About any conflict of interest your advisor or the firm they work 3. About the fees charges on the investment, or whether there is a penalty if you sell it quickly or before maturity? NA IA LA Suf Chi-Square 41 (9.6) 6 (1.4) 3 (7.0) 66 (15.5) 34 (8.0) 175 (41.2) 275 (64.7) 320 (75.3) 213 (50.1) 43 (10.1) 65 (15.3) 34 (8.0) X2360.986; P=.000 X2589.748; P=.000 2 X 301.202; P=.000 (Source: Filed Survey) When it was enquired to know the level of adequacy of the information furnished to them. Most of them clearly opined that, the information about risks and potential returns associated with the investment were little adequate and gave a response of 64.7%. 75.3 % of them have also agreed that, there was a little adequate information about any conflict of interest your advisor or the firm they work. And when we enquired about the adequacy of information about the fees charges on the investment, or whether there is a penalty if you sell it quickly or before maturity? 50.1 of them said they were given little information about this. The chi-square test was applied to know the difference between these groups of frequencies of responses and it was revealed that , there is a significant difference between these groups of frequencies and the chi-square is measured at X2360.986;P=.000, X2589.748;P=.000 and X2301.202;P=.000 respectively. Table 10 Desired source of information on Risk and Return Sl.No. Kind Frequency 1. Advisor 187 2. The advisor’s firm 109 3. A regulatory body 129 4. Total 425 2 Test statistics: X 23.172;P=.000 (Source: Filed Survey) Percent 44.0 25.6 30.4 100.0 It is tried to know the desired source of information on risk and return by the investors with the help of a question. 44.0 % of them said they are desired to get the information related risk and return from the advisor and this is systematically followed by the regulatory body (30.4 %) and the advisor’s firm (25.6%) respectively. The chi-square test revealed that, there is a significant difference between these group of frequencies and valued at X2=23.172; P=.000. 10 International Journal of Advanced Research in Management (IJARM), ISSN 0976 – 6324 (Print), ISSN 0976 – 6332 (Online), Volume 4, Issue 3, September - December 2013 © IAEME ASSOCIATION BETWEEN INVESTMENT KNOWLEDGE Section –II RESPONDENTS EDUCATION VS LEVEL OF After going through a detailed analysis of Demographic Factors table-wise, it is decided to test the association between those important factors responsible for influencing the small individual investors in the Karnataka State. The following analysis is an attempt in this direction, to give a clear-cut idea about the different parameters and their effects. Table 11 Respondents’ Education Vs Level of Investment Knowledge Knowledge Educational level Little Some Moderate Good Extensive Total Total Below graduation Graduation Post Graduation Higher (Ph.D and others) F 12 60 8 0 80 % 80.0% 24.5% 5.1% .0% 18.8% F 1 68 15 0 84 % 6.7% 27.8% 9.6% .0% 19.8% F 1 112 100 1 214 % 6.7% 45.7% 63.7% 12.5% 50.4% F 1 2 24 3 30 % 6.7% .8% 15.3% 37.5% 7.1% F 0 3 10 4 17 % .0% 1.2% 6.4% 50.0% 4.0% F 15 245 157 8 425 % 100.0% 100.0% 100.0% 100.0% 100.0% Test statistics CC=.539; P=.000 (Source: Filed Survey) A significant association was observed between respondent’s educational level and their knowledge regarding investment. When these two variables were subjected to cross tabulation and tested for their association, contingency coefficient value of .539 was found to be significant at .000 level. In other words, respondent’s education had direct influence over 11 International Journal of Advanced Research in Management (IJARM), ISSN 0976 – 6324 (Print), ISSN 0976 – 6332 (Online), Volume 4, Issue 3, September - December 2013 © IAEME their knowledge on investment. From the table it is evident that as the educational level increased knowledge level regarding investment also increased linearly and significantly. Those with below graduation had little knowledge (80.0%) and graduates and post graduates had moderate knowledge (45.7% and 63.7% respectively) and those with higher degrees had extensive knowledge (50.0%). Table 12 Respondents’ Education Vs Desired Mode of Information about Investment Mode of information Educational Level Total person Frequency Bel grad 9 mail Percent Frequency 60.0% 3 44.1% 39 47.8% 43 .0% 1 45.2% 86 email Percent Frequency 20.0% 1 15.9% 93 27.4% 14 12.5% 1 20.2% 109 website Percent Frequency 6.7% 1 38.0% 2 8.9% 20 12.5% 4 25.6% 27 others Percent Frequency 6.7% 1 .8% 3 12.7% 5 50.0% 2 6.4% 11 Total Percent Frequency 6.7% 15 1.2% 245 3.2% 157 25.0% 8 2.6% 425 100.0% 100.0% Percent Test statistics 100.0% Grad 108 PG 75 Higher 0 192 100.0% 100.0% CC=.453; P=.000 (Source: Filed Survey) There exists a significant association between respondents’ level of education and their desired level of information. When these two variables were subjected to cross tabulation and tested for their association, the contingency coefficient value of .453 was found to be significant at .000 level. In other words, the respondents’ education had a direct influence over their desired level of information. It can be seen from the above landed table that, increase in the level of education leads to change in the form of desired information i.e. when the respondents’ are graduation and above graduation they are preferring in person information on the investment and in case of below the graduation, they are preferring other sources of information for their investment decisions like mail, email, website etc. 12 International Journal of Advanced Research in Management (IJARM), ISSN 0976 – 6324 (Print), ISSN 0976 – 6332 (Online), Volume 4, Issue 3, September - December 2013 © IAEME Table 13 Respondents’ Education Vs their level of Awareness about the Investment Instruments Instruments F Yes % F Yes % F No % F % F Yes % F No % F % Bel grad 140 100.0% 1 6.7% 14 93.3% 15 100.0% 2 13.3% 13 86.7% 15 100.0% Yes F % No F % F % F Yes % No F % Total F % Real Estate F Yes % Total F % Commodities F Market Yes % F No % Total F % Shares SIF Total SIO Total ETF Total SIPULIP Educational Level (EL) Grad PG Higher Total Test Statistics 133 100.0% 6 2.4% 239 97.6% 245 100.0% 13 5.3% 232 94.7% 245 100.0% 100 100.0% 51 32.5% 106 67.5% 157 100.0% 50 31.8% 107 68.2% 157 100.0% 52 100.0% 6 75.0% 2 25.0% 8 100.0% 5 62.5% 3 37.5% 8 100.0% 425 100.0% 64 15.1% 361 84.9% 425 100.0% 70 16.5% 355 83.5% 425 100.0% 1 6.7% 14 93.3% 15 100.0% 3 1.2% 242 98.8% 245 100.0% 35 22.3% 122 77.7% 157 100.0% 4 50.0% 4 50.0% 8 100.0% 43 10.1% 382 89.9% 425 100.0% 1 6.7% 14 93.3% 15 100.0% 140 100.0% 140 100.0% 4 26.7% 11 73.3% 15 100.0% 40 16.3% 205 83.7% 245 100.0% 133 100.0% 133 100.0% 60 24.5% 185 75.5% 245 100.0% 39 24.8% 118 75.2% 157 100.0% 100 100.0% 100 100.0% 38 24.2% 119 75.8% 157 100.0% 5 62.5% 3 37.5% 8 100.0% 52 100.0% 52 100.0% 6 75.0% 2 25.0% 8 100.0% 85 20.0% 340 80.0% 425 100.0% 425 100.0% 425 100.0% 108 25.4% 317 74.6% 425 100.0% - CC=.420; P=.000 CC=.356; P=.000 CC=.355; P=.000 CC=.185; P=.000 - CC=.156; P=.000 (Source: Filed Survey) A significant association is being observed between the education level and the awareness about the different investment avenues. When these to variables were put to test for their association by applying contingency of coefficient, the value found was .420 to be significant at .000 for education of the respondents and the awareness of SIF. The same association was found for all other investment avenues viz SIO, ETF,SIP/ULIP and 13 International Journal of Advanced Research in Management (IJARM), ISSN 0976 – 6324 (Print), ISSN 0976 – 6332 (Online), Volume 4, Issue 3, September - December 2013 © IAEME commodities market, the contingency of coefficient among these individual instruments and educational level were calculated and rightly placed against the name by titling as test statistics, which clearly found the linear and significant association between the education of the respondents’ and the awareness of these instruments. Table 14 Respondents’ Education Vs Compatibility of Information to understand Compatibility Educational Level (EL) Total very easy Frequency Bel grad 1 Easy Percent Frequency 6.7% 3 11.0% 8 12.7% 48 37.5% 2 12.0% 61 Some what easy Percent Frequency 20.0% 0 3.3% 20 30.6% 43 25.0% 2 14.4% 65 Not easy Percent Frequency .0% 1 8.2% 88 27.4% 33 25.0% 1 15.3% 123 Not at all easy Percent Frequency 6.7% 1 35.9% 70 21.0% 7 12.5% 0 28.9% 78 Complex Percent Frequency 6.7% 9 28.6% 32 4.5% 6 .0% 0 18.4% 47 Total Percent Frequency 60.0% 15 13.1% 245 3.8% 157 .0% 8 11.1% 425 Percent 100.0% 100.0% 100.0% Test Statistics Grad 27 PG 20 Higher 3 51 100.0% 100.0% CC=.531; P=.000. (Source: Filed Survey) It is evident from the table documented above that, the educational level has a greater influence over the compatibility of the investors. When these two variables viz education and compatibility are cross-tabulated, so as to test their association by using contingency of coefficient, it is cleared from the resulted yielded in terms of contingency of coefficient as .531 to be significant at .000 i.e, there exists a linear and significant association between these two variables and the same can be seen in the above table as higher the education level, the greater will be the things to understand and if the respondents’ are lagging behind by education , the things will be tougher to understand. 14 International Journal of Advanced Research in Management (IJARM), ISSN 0976 – 6324 (Print), ISSN 0976 – 6332 (Online), Volume 4, Issue 3, September - December 2013 © IAEME Section –III RESPONDENTS’ EXPERIENCE VS THEIR LEVEL OF AWARENESS ABOUT THE INVESTMENT INSTRUMENTS Table 15 Respondents’ Experience Vs their level of Awareness about the Investment Instruments Experience Total Instruments <2 2-5 5-10 10+ Test statistics Shares Yes SIF Yes SIO No Yes No ETF Yes SIP/ULIP No Yes No Real Estate Yes Commodities Market Yes No Total F % F % F % F % F % 140 133 100 52 425 100.0% 100.0% 100.0% 100.0% 100.0% 4 4 25 31 64 2.9% 3.0% 25.0% 59.6% 15.1% 136 129 75 21 361 97.1% 97.0% 75.0% 40.4% 84.9% 6 7 19 38 70 4.3% 5.3% 19.0% 73.1% 16.5% 134 126 81 14 355 95.7% 94.7% 81.0% 26.9% 83.5% F % F % F % F % F % 4 5 16 18 43 2.9% 3.8% 16.0% 34.6% 10.1% 136 128 84 34 382 97.1% 96.2% 84.0% 65.4% 89.9% 7 9 40 29 85 5.0% 6.8% 40.0% 55.8% 20.0% 133 124 60 23 340 95.0% 93.2% 60.0% 44.2% 80.0% 140 133 100 52 425 100.0% 100.0% 100.0% 100.0% 100.0% F % F % F % 7 23 48 30 108 5.0% 17.3% 48.0% 57.7% 25.4% 133 110 52 22 317 95.0% 82.7% 52.0% 42.3% 74.6% 140 133 100 52 425 100.0% 100.0% 100.0% 100.0% 100.0% - CC=.469; P=.000 CC=.509; P=.000 CC=.331; P=.000 CC=.438; P=.000 - CC=.420; P=.000 (Source: Filed Survey) Here with the help of the above presented table, it is being tried to locate the association between the respondents’ experiences and the awareness about the different financial avenues. In case of the awareness of the shares, the entire sample respondents’ have rightly said that, they are aware with this instrument and the same pictured was captured for real estate also. But in case of SIF,SIO, ETF, SIP/ULIP and commodity instruments , all of them are not aware with these above mentioned instruments and only few sample respondents have said that, they are aware with these instruments. To assess the association between these two i.e. between the experience and the awareness about the available individual instruments, 15 International Journal of Advanced Research in Management (IJARM), ISSN 0976 – 6324 (Print), ISSN 0976 – 6332 (Online), Volume 4, Issue 3, September - December 2013 © IAEME a test of association namely contingency of coefficient was applied to know the association between the two variables under study and the value found in case of Experience Vs SIF is CC=.469 to be significant at .000, in case of Experience Vs SIO it is CC=.469 to be significant at.000, in terms of Experience Vs ETF , it is CC=.331 to be significant at.000, in the words of Experience Vs SIP/ULIP is CC=.438 to be significant at.000, in case of Experience Vs Commodities market , it is CC=.420 to be significant at.000. This clearly speaks about the direct linear and significant association between the experience and the awareness about the various individual investment avenues. To put it in a simple term, the experience had a direct influence over the awareness level of the sample respondents and any positive change in the experience will put the same positive impact on the awareness level of the sample respondents and vice-versa. DISCUSSION MAIN FINDINGS • Though the Indian Financial System has been modernised 2 plus decades ago , still the market has not grown up to the desired level , as far as attracting the small individual investors are concerned and winning the confidence of the investors are concerned in the wake of continuous financial turmoil. • There is a clear-cut dearth of investors’ awareness programmes in India in general and Karnataka state in particular. • The Education matters a more for small individual investors. This is clearly documented in the form of above dialogue. The investors who are having more technical knowledge about the market i.e. B.Com. and M.B.A , they are more passionate about the securities market and invest in on ongoing basis. • The above case can also be seen in the people having more and more experience about the market and they are attached with the market in the form of investors. Both the hypotheses 1 and 2 are accepted as we found that there is an association between the education of the respondents and the level of knowledge of the respondents’ and there is also an association between the experience of the respondents and the awareness of about different investment avenues. An in-depth analysis of the whole picture presented above divulges that, the small individual investors’ awareness level and the knowledge level varies with different education groups and with different experience groups. As the tables discussed above say that, the respondents’ with the lack of technical education about the securities market were reluctant to park their savings in the market and vice-a-vice the small individual investors with less number of experience also unwilling to park their hard earned money in the securities market. If we take the whole India in a single instance, the major portion is dominated by the different educational groups & investors with different experience and that too, people with traditional thinking grumping the market. The only way to attracting these small investors towards the securities market and getting the maximum benefit out of it is, educating the people concerned about the capital market as a whole and its surrounding climates. In this line, the capital market regulators, specifically SEBI with the help of other counterpart officials must conduct an awareness campaign at national level, state level and also at regional level on ongoing basis, so as to inject the awareness campaign bounded with confidence, inspirations, market pictures, mechanisms available to safeguard the small individual investors i.e. how to 16 International Journal of Advanced Research in Management (IJARM), ISSN 0976 – 6324 (Print), ISSN 0976 – 6332 (Online), Volume 4, Issue 3, September - December 2013 © IAEME approach, when to approach and whom to approach etc. Then only the mindset of the small individual investors can be changed to a greater extent, so as to enable the market to tap-up the untapped saving of the individuals. REFERENCES 1. Financial Markets and Services by Gordon and Natarajan published by Himalya Publishing House. 2. The Indian Financial System and Financial Market Operation by Vasant Desai published by Himalya Publishing House. 3. Ronald C. Sprecher: Introduction to Investment Management- Houghton Mifflin Company, Boston, 1975, Page No.4. 4. Donal E. Fischer and Ronald J. Jordan: Security Analysis and Portfolio ManagementPrentice-Hall of India Pvt. Ltd., New Delhi. 1992, Page No. 2. 5. Laxman Saroop: Towards A Vibrant Capital Market- The Indian Journal of Commerce, September 1991, Vol. XLIV, Part III, No. 168, Page No. 85. 6. Gupta, L.C.: Indian Shareowners- A Survey- Society for Capital Market Research and Development, Delhi, 1991, Page No.31. 7. Siddaiah,T.: Stock Markets under Securities Scam- An Analytical Review-Fortune India, January 1-15,1993, Vol.XI, No. 5, Page No. 52. 8. Dr. K. Rakesh and Mr. V S M Srinivas, “Understanding Individual Investors Investment Behavior in Mutual Funds (A Study on Investors of North Coastal Andhra Pradesh)”, International Journal of Management (IJM), Volume 4, Issue 3, 2013, pp. 185 - 198, ISSN Print: 0976-6502, ISSN Online: 0976-6510. 9. Dr. Narayan Baser, Dr. Mamta Brahmbhatt, Jay Talati & Riddhi Sanghavi, “An Analytical Study on Investors’ Awareness and Perception Towards the Hedge Funds in Gujarat”, International Journal of Advanced Research in Management (IJARM), Volume 3, Issue 1, 2012, pp. 1 - 10”. ISSN Print: 0976 – 6324, ISSN Online: 0976 – 6332. 10. Dr. Shivakumar Deene and Dr. Satyanarayan Pathi, “Investment Strategies and Motivational Factors among Small Investors: A Study with Special Reference to Karnataka State”, International Journal of Management (IJM), Volume 4, Issue 4, 2013, pp. 34 - 48, ISSN Print: 0976-6502, ISSN Online: 0976-6510. 17