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A Study on Perception about share market as an Investment Avenueamong Home- makers in Coimbatore City Deepika S R a Dr. S. Poornima b Faculty Associate Associate ProfessorGRG School of Management Studies PSGR Krishnammal College for Women
INTRODUCTION “To awake people it is the woman who must beawakened. Once she is on the move, the family moves, the village moves and the nation moves” - Pandit Jawaharlal Nehru It is essential for women, be it working women or homemakers to keep themselves and their family financially secure.
• In the olden days, women generally had a habit of saving money in containers in their kitchen, but today that is not going to get our savings anywhere when confronted with ever-growing inflation.• It is wise to choose to invest and wiser to choose the best investment.• A good investment gives us better returns than merely saving in a bank deposit or in our piggy bank.
Women in Share Market• "Gone are the days when online investing was completely dominated by men,“ - Edward Croft, chief executive of Stockopedia.• Stockopedia, a site specialising in broker research and stock market analysis, says between 30 - 40% of its user base is female.• Ten years ago, just 17% of the investors who used the online broker Selftrade were women. This year, it is 34%.• Women are generally cautious by nature and so fit perfectly into the stock market trading conditions.
Investments: What one cant believe, But true…If one would have bought 100 Wipro shares of Face Value Rs 100 in 1980…. 1981 , 1 : 1 bonus = 200 shares 1985 , 1 : 1 bonus = 400 Today’s rate is Rs. 380 1986 split to Rs 10 = 4000 Your portfolio would have 1987 , 1 : 1 bonus = 8000 been Rs. 365 crore 1989 , 1 : 1 bonus = 16000 1992 , 1 : 1 bonus = 32000 1995 , 1 : 1 bonus = 64000 Current year dividend Rs. 4 1997 , 2 : 1 bonus = 192000 per share. i. e: 4*96,00,000 1999 split to Rs 2 = 9,60,000 = 3.84 crore 2004 , 2 : 1 bonus = 28,80,000 2005 , 1 ; 1 bonus = 57,60,000 2010 3 : 2 bonus = 96,00,000
Exposure to equity market in India• The direct participation of the retail investors in India’s equity markets is only 1.4% of the population as against 50-55% in developed economies.• The distribution of shareholders across the country is skewed. More shareholders reside in big towns and cities than in small towns and villages, more than 90 per cent of transactions through the stock exchanges is confined to just 10 cities and about 100 companies.• while India has over 75 crore mobile phone connections, the country has less than 1.5 crore depository accounts.• India has got the highest percentage of savings in the world with about 36 %. About 64 % of the savings in India goes to banks in fixed deposits and 6 % to the capital markets.
OBJECTIVES OF THE STUDY• To analyse whether women (Home- makers) are financially independent• To understand the objective of investment among home-makers• To examine the highly preferred avenues of investment among home-makers• To explore the hindrances that prevent women from investing in stock market• To understand the factors that guide home-makers to invest/trade in a particular stock
METHODOLOGYType of Research - DescriptiveSample size - 50 respondentsSampling technique - Convenient samplingPeriod of study - The data was collected during the month of September 2012.Tools used - Simple percentage method Friedman Rank Test Chi-square test
ANALYSIS AND DISCUSSIONFrequency of respondents having Personal Income/Asset
Friedman’s Rank test on preferred avenues of investment among respondents Preferred avenues of Investment Mean Rank RankBank FD 2.38 2Post office savings 4.35 4Life Insurance 4.08 3Gold/Commodities 2.23 1Real estate 4.83 5Chit funds 6.00 7Mutual funds 5.85 6Share market 6.68 8Others 8.63 9
Chi – Square test to find if there is an association between the preferred avenues of investment among respondents Test Statisticsa N 40 Chi-Square 179.033 df 8 Asymp. Sig. .000 a. Friedman Test
Hindrances that prevent women from investing in stock market
Frequency of Respondents having a Demat Account
Friedman’s Rank test on Factors that guide therespondents to invest in / trade a particular stock Factors that guide one to invest in / Trade a particular stock Mean Rank Rank Tips from brokers 6.11 7 Family members/ Friends opinion 5.56 5 Coverage in press/ media 5.78 6 reputation of the firm 3.11 2 Market Analysis 2.44 1 Technical Analysis 4.78 4 Expert Comments 3.89 3 Gut feeling 7.56 8 Past Experience 5.78 6
Chi- Square to test the Association between the factors thatguide the respondents to invest in / trade a particular stock Test Statisticsa N 9 Chi-Square 24.800 df 8 Asymp. Sig. .002 a. Friedman Test
How frequent do the respondent’s trade/ Keep track on their Investments
Willingness of the respondents to continue/enter share market in future
FINDINGS• 84% of respondents have regular Household income• 76% of the respondents are financially independent• 52% of the respondents consider safety of their Principle before investment• 40% of the respondents are willing to take moderate risk while investing• 24% of the respondents have Demat Account• Gold/ Commodities are ranked as the 1St preferred avenue of Investment followed by Bank FD where as Stock market and mutual funds as the least preferred avenue of Investment
• 54% of the respondents are not willing to invest in share market because they feel that it is highly risky• 25% of the respondents strongly agree that stock market is a place only for gamblers• 52.3% of the respondents disagree that only rich people can invest in share market• 75.5% of the respondents do not have Prior Trading/ Investment experience in share market• 68% of the respondents never keep track on their investments• 56.5% of the respondents are not willing to continue/enter into share market in future
CONCLUSION• Gold and Bank FD are still one of the most popular investment options among women because they are still not aware of the benefits of holding stock. Thus creating awareness among people on stock market is necessary to remove fear of investments in shares.• 55% of the respondents invest to meet a long term goal and thus share market is relatively a right place for Long – term Investments when compared with the returns from various assets like bank deposits.• Over long terms, equities have consistently delivered higher returns.
• When we stay invested in a stock for longer than one year, the taxman wont come knocking for his share of the profit. Income from stocks held for more than one year is a long-term capital gain, which does not attract any tax.• The major advantage is that the investor is protected from the eyes of the public. Nobody knows his/her worth except he tell him/her. In other investments, people can easily look at the assets of the business or your property (real estate) and come up with approximate worth of it.
• 54% of the respondents are not willing to invest in share market because they feel that it is highly risky but actually it is not risky unless one becomes greedy.• 15% of the respondents are willing to invest but do not know how and and from where to startApproach a broker - like Sharekhan, Kotak Securities, Aditya Birla Money, etc…Open a Demat account - Gone are the days when shares were held as physicalcertificates. Today, they are held in an electronic form in Demat accounts.Apply for a PAN - This is a unique 10-digit alphanumeric number that identifiesand tracks an individual in the taxmans database. Now that you have all this in place, youre ready for the stock market. All the best!
Journals• “Financial Literacy: Indian Scenario” Asian Journal of Research in Banking and Finance Vol.2 Issue 4, April 2012, ISSN 2249 7323• “Difference in Gender Attitude in Investment Decision Making in India” Research Journal of Finance and Accounting ISSN 2222-1697 (Paper) ISSN 2222-2847 Vol 2, No 12, 2011Unpublished Dissertations and thesis• “Why Do Women Invest Differently Than Men?” Vickie L. Bajtelsmit, Alexandra Bernasek, Colorado State University• “Men engage in more overall risky behaviour than women” (2000) Zuckerman and Kuhlman• “A Survey of Financial Literacy among Students, Young Employees and the Retired in India” (2012), Sobhesh Kumar Agarwalla