Investment Behaviour of Working Women

INVESTMENT BEHAVIOUR OF WORKING WOMEN
With a Special Focus on Equity Oriented Securities
Introduction
Investment made in different sectors is the most important determinant of growth of the
economy. Both private and public sector investment needs are largely satisfied by the flow of
funds from the general public. In case of public sector, its investment needs are partly met out of
government’s tax revenue contributed by general public. Women employees want to save a
portion of their current income to meet the future needs such as constructing a house, marriage of
children, unexpected contingencies. The main aim of the study is to analyses the investment
behavior which affects the saving habits of the women classes, as well as quantum of savings,
which in turn, has affected the investment decision of this elite class.Traditionally Indian women
were confined to the family. In today’s social settings, women have proved that they can match
with abilities of the males in undertaking all kinds of jobs. Due to the family pressures,
traditional bonds and beliefs, working women are not fully empowered to take certain decisions
on their own in general and some area like investment decisions, in particular. It is the persistent
feeling in the society that investment related decisions of working women are greatly inﬂuenced
by non-investment related factors and domination by male members. In this context an attempt is
made to study how far working women enjoy freedom to take investment related decisions on
their own and pattern of investments in the male dominated investment world in India special on
equity oriented securities.
Review of literature
1. Karthikeyan(2001) has conducted a research on small investors perception on post office

saving schemes and found that there was significant difference among the four age
groups ,in the level of awareness for KissanVikasPathra ( KVP), National saving schemes
(NSC) and Deposit Scheme for Retired Employees (DSRE) the overall score confirmed
that the level of awareness among investors in the old age group was higher than in those
of young age group.
2. National Council of applied economic research (NCEA) (1961) “Urban saving survey”
noticed that irrespective of occupation followed and education level and age attained,
households in each group thought of saving for the future was desirable. It was found that
desire to make provision for emergencies were a very important motive for saving for old
age.
3. Warren et al. (1990) and Rajarajan (2000) predict individual investment choices (e.g.,
stocks, bonds, real estate) based on lifestyle and demographic attributes. These investors
see rewards as contingent upon their own behaviour.
4. Quantitative and qualitative research carried out in the UK indicates that attitudes to
investment risk depend on factors such as personality, circumstances, educational
attainment, level of financial knowledge and experience, and extent of financial product
portfolio (Conquest Research Limited, 2004; Distribution Technology, 2005).
Quantitative research carried out in the US identifies a similar range of factors,including
income, wealth, age, marital status, gender and level of education (Finke and Huston,
2003). 5. Attitudes to risk change over time as needs alter and people’s capacity to afford
to lose varies (Conquest Research Limited, 2004).
5. Paul Slovic (1972) discussed in his research that most of the investorswhoinvested on
equity shares have a tendency of looking on the returns generated by equity shares of
well established companies or stock market indices returns before making their
investment decision. Though the past returns on equity shares do not give guarantee for
any future returns, investors perceive that equity shares are giving better returns to beat
the inflation rate and hence they are committing on equity shares.
6. Similarly, Diacon, S. (2002) found in his research that most of the investors perceive
equity investment is suitable to achieve their long term objective and hence those
investors whose needs are arising in less than three years of investment prefer to invest
on fixed income securities.
7. Lakshmi C. (2005) has stated that the reason for not investing on equity shares and equity
oriented securities by Indian investors is the perception that equity investments are risky.
She added that though the investors are aware of success stories of equity investment, as
they perceive that they do not understand various risk minimization techniques, they feel
it is better to stay away from equity investment.
8. Buehler and Ross (1994) have mentioned that people with stronger beliefs are also
having stronger confidence on themselves. After conducting a research among American
equity investors, they said, people with greater belief that equity investment will certainly
help them in achieving their financial objective have shown greater confidence on equity
investments were continue to invest on them despite of many stock market bubbles.
9. Selden (1912) in his research article “Psychology of Stock Market” mentioned that once
the equity investor develops positive attitude towards investment, he remains committed
towards it despite of resistance from any internal or external forces. Further, Weinstein,
N. (1980) added that people who are having positive attitude would like to prove those
who are injecting negativity wrong. As a result, positive attitude actually makes him
ready to face challenges which the stock market will pose due to its fluctuations.
NATURE OF RESEARCH
Descriptive research is chosen to attain the research objectives as descriptive
research studies are those studies which are concerned with describing the characteristics
of a particular individual, or of a group. Descriptive research also concerned with specific
predictions, with narration of facts and characteristics concerning individual, group or
situation. Most of the social research comes under this category.
SCOPE OF THE STUDY
Every academic research should serve a purpose of uplifting the society.This study is aimed at
motivating the equity investment culture among workingwomen so that, economy of a nation
will benefit apart from upliftment of socioeconomicstatus of women. In this study working
women with in the age group of18 years to 60 years are taken as respondents as they form the
majority of workingwomen.
As this study is based on equity investment culture and the respondents aredrawn from
Guntur Dt AP, only those respondents with minimum annual income of RupeesOne Hundred
Twenty Thousand are considered, thinking that they are financiallycapable of making
investment.
Need of the study

In general working women want to keep their earning as savings and investment without
taking more risk due to fewer earnings. But the now a days the working women made a very
vital role in economy. So the trend of women investing on equity oriented securities is not
confined only to advanced nations, in a developing nation like India. In this context there is a
greater need to study on “investment behavior of working women with a special focus of equity
oriented securities.
STATEMENT OF RESEARCH PROBLEM
The global economy went through one its worst ever recession in the recent past.
Financial markets across the world have suffered with lack of liquidity to reduce the ill
effects of recession. Coincidentally, it was also the time when proportion of working
women also started growing rapidly and so as their investment capacity. Hence, it is felt
appropriate to do research on the investment behavior of working women. The research
process began with a question “is investment behavior of women same as men?’ in a
general way. After the initial review of literature, it is found that women behave
differently than men while investment. This prompted the researcher to conduct an initial
survey of working women in the state of Andhra Pradesh in India and also brainstorming
session with personal financial planners which revealed that there are numerous internal
and external factors affecting working women’s investment decision making. This entire
process led this researcher to formulate the final research problem as “to what extent
various internal and external factors are affecting women investment
OBJECTIVES
1. To gain insight about investment behavior among women with special focus on equity
oriented securities
2. To identify various internal and external variables affecting investment decision of
women on equity oriented securities.
3. To classify all the identified variables into different factors and name them in accordance
with their underlying nature and dimensions.
4. To elicit the views of selected women investors on various aspects of equity oriented
securities.
5. To offer finding, suggestions and conclusion of the study
Research methodology
1. Sample:
A sample of 300 + working women’s overall A.P
2. Sources of data collection
The source of data will be collected through primary and secondary sources. A structured
questionnaire.
Methods of data collection
The information relating to the study will be obtained through discussions with the
working women, wed sites university library, Published articles, research study already
made.
Data analysis
The data will be analyzed with the help of tables, charts, percentages and few statistical
tools.
Significance of the study

Today, over 1 billion women participate in the global workforce. More and more women are
becoming the heads of their households, earning more than their husbands, rising faster and
further in the workforce, and starting entrepreneurial ventures. Much work has been done to
identify the demographic trends underlying the growth in wealth creation experienced by women
over the past two decades. However, very few studies have attempted to connect the dots, in a
proprietary manner, between the very powerful demographic trends in our society and the impact
these trends are having on the investing habits and desires of women investors.
The financial services sector had tended to overlook the needs of women in the past. It is
becoming increasingly important that the industry target women as individuals with their own
financial needs. A growing number of leading-edge financial institutions have been taking steps
to develop products and services, aimed at almost half of the world's adult population - women.
As more and more women are becoming financial decision makers and getting financial
clout. It has been estimated that by 2020, half of the U.S. wealth would be in the hands of
women and two-thirds by 2030. The trend is similar in other parts of the world (US Securities
Exchange Commission Report 2010). Almost one third of women are financially independent
and 23% of them earn. More than men (UN statistics 2010). The advent of the call centers and
outsourcing units have drawn up a large section of qualified women graduates and housewives,
thereby increasing the number of working women. This has resulted in their needs for savings
and investment services. However, different women have different needs, each of which need to
be taken care of specifically by the investment managers.
presentation of the study

The research is divided into six chapters as follows
Chapter-I:
The introduce the investment role in economy
Chapter -II:
This chapter is completely dedicated to review of literature. Need for the research,
objectives and methodology of the research.
Chapter –III:
Role of working women in India
Chapter – IV
Study chapter (public and private sector)
Chapter – V
Problems and challenges of working women in India
Chapter-VI:
Finding, suggestions and conclusion

Investment Behaviour of Working Women

Uploaded by

Copyright:

Available Formats

Investment Behaviour of Working Women

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Investment Behaviour of Working Women

Uploaded by

Copyright:

Available Formats

INVESTMENT BEHAVIOUR OF WORKING WOMEN

With a Special Focus on Equity Oriented Securities

1. Karthikeyan(2001) has conducted a research on small investors perception on post office

SCOPE OF THE STUDY

Need of the study

Significance of the study

presentation of the study

The introduce the investment role in economy

Role of working women in India

Study chapter (public and private sector)

Problems and challenges of working women in India

Finding, suggestions and conclusion

You might also like