International Journal of Advanced Research and Development

International Journal of Advanced Research and Development

ISSN: 2455-4030
Impact Factor: RJIF 5.24
www.advancedjournal.com
Volume 2; Issue 6; November 2017; Page No. 446-448

A study on investment preferences amongst teachers of higher education institutions in the city of Mumbai
1
Swati Suryanarayanan, 2 Dr. Seethalekshmy N
1
Assistant Professor, S.I.E.S College of Commerce & Economics, Sion, Maharashtra, India
2
Associate Professor, S.I.E.S College of Commerce & Economics, Sion, Maharashtra, India

Abstract
The development of an economy is largely influenced by the competitiveness of the financial markets. In other words, financial
markets have become one of the very important barometers to measure the growth of an economy. The financial markets in India
have undergone a seesaw change in the past two decades. The markets are flooded with innovative financial instruments like never
before. Gone are the days where an Indian investor invested in traditional investment avenues like gold, real estate, fixed deposits.
Today’s investor is very well informed and has a variety of investment choice. Mutual funds, equities, derivatives are the options
the investors are looking at. There seems to be a shift in the preferences of the investors from the traditional avenues to the
innovative ones. This research paper attempts to study the investment preferences of teachers working in junior colleges in the city
of Mumbai. Selected financial products are taken for the purpose of the study.

Keywords: investment preferences, financial products, teachers

Introduction graduate investors invest more in life Insurance while

In tandem with the rapidly changing internal and external professionals in Mutual Funds
environment, the financial markets in India have witnessed a Nagpal Sushant and Bodla B.S., (2009) brings out the
rapid change over the past few years. Moreover the demographic characteristics of investors, relationship between
investment climate has also changed drastically. Mutual fund lifestyle clusters of the respondents and their investment
investments have become the hot favorite of millions of patterns and sources of information tapped by them. The study
investors. With demonetization, the banks has reduced the concluded that investors prefer less risky investments such as
fixed deposits rates, investors have shifted their preferences to insurance policies, fixed deposits with banks and post office,
mutual fund investments to earn better returns from inflation. PPF and NSC.
The introduction of innovative and customized financial
products in the market there is a drastic change in the Objectives of the study
preferences of investment that an Indian investor is looking at. 1. To study the savings and investment pattern of the junior
college teachers in the city of Mumbai
Review of literature 2. To analyze their preferred investment avenues
Shanmugham (2000) conducted a survey of 201 individual 3. To examine is there is a difference in investment
investors to study the information sourcing by investors, their preference among the male and female teachers
perceptions of various investment strategy dimensions and the 4. To understand the factors that are considered by these
factors motivating share investment decisions, and reports that teachers before investing in an avenue
among the various factors, psychological and sociological
factors dominate the economic factors in investment decisions Rationale of the study
Karthikeyan (2001) has conducted research on Small The main rationale of the study is to analyze the extent of
Investors' Perception on Post Office Saving Schemes and awareness of the teachers in the modern investment avenues.
found that there was significant difference among the four age Teachers play a major role in shaping the lives of the young
groups, in the level of awareness for Kisan Vikas Patra minds that are the future of the nation. Therefore it becomes
(KVP), National Savings Schemes (NSS), and Deposit extremely important to create awareness and educate the
Scheme for Retired Employees (DSRE), and the overall score teachers in this higher educational institution.
confirmed that the level of awareness among investors in the
old age group was higher than in those of the young age group Scope of the study
Bahaman Das, Ms Sangeeta Mohanty & Mr. Nikhil Chandra 30 male and 30 female teachers were selected from five
Shil (2008) observed that different investment pattern do not colleges in the city of Mumbai. These respondents were from
provide the same level of services with respect to age of retail the Commerce stream of these colleges of different age groups
investors in India. It was also observed that graduate and post and varied experience.

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Research Methodology 3. Investment decisions

1. Data Collection
The data is sourced from primary and secondary sources.
Primary data is collected from the respondents by a basic
Questionnaire method
Secondary source includes books, newspaper articles,
magazines and information from websites

2. Use of statistical tools

Use of descriptive statistics like pie chart, bar diagram is used
for the purpose of analysis.

3. Sample Size
The total no of teachers who are respondents for the purpose
of the study is 60 consisting of 30 males and 30 females.
Fig 3: Influencers of investment decisions of the respondents
Findings of the study
1. Awareness of the respondents about the innovative 4. Factors influencing investment decisions of the investors
financial namely, mutual funds, equities and derivatives

Fig 4

Fig 1: Awareness about innovative financial product

2. Investment preferences of the respondents in various

avenues

Fig 5

Returns, risks, liquidity, tax benefits and the past market

trends were the five factors which were undertaken for the
purpose of the study
Fig 2: Investment preferences of male and female respondents in
various avenues

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Interpretation and Analysis of data Conclusion

1. It is observed from table 1.1 that the teachers are aware of In this 21st century and the era of globalization where we are
the innovative financial instruments like the mutual funds moving faster than never before in achieving several
and equities. As far as the derivative instruments are milestones financial markets have a larger role to play. The
concerned the awareness is very low. In other words only major reforms in our country be it Demonetization or the
15 percent of the sample are aware about the derivative introduction of the Goods and Service tax has taken our
products country a step ahead and made our country more visible in the
2. Although there is awareness about the innovative financial global map. In this scenario financial market is one of the
products in the markets the investment of this class of most important barometer from which we are measuring the
investors is still tilted towards the traditional avenues progress of our country. It is therefore the greatest challenge
namely the fixed deposits. However from table 1.2 it can to bring more and more people into this organizes system and
be observed that the investment in mutual funds is also make them shift their investment preferences which will
picking up very well which means that mutual funds have eventually help in the development of the nation is definitely
started becoming one of the preferred investment avenues the need of the hour.
of the investors
3. Table 1.3 depicts the person taking the investment decision References
of these investors. It can be analyzed that majority 1. The Indian Financial System, Bharati V. Pathak, Pearson,
i.e.63.33 percent of the male respondents make their own second edition
investment decision whereas in case of the female 2. Financial Markets and Services, E. Gordon K. Natrajan,
respondents it can be observed that 40 percent the Himalaya Publishing house, Eighth edition.
respondents take their own investment decision and 33.33 3. Financial Markets and Institutions, Dr. Guruswamy,
percent respondents say that their investment decision is McGraw Hill, Third edition.
taken by their spouse. In ten percent cases the investment 4. Stock Exchanges, Investments and Derivatives, V
decision is taken by both of them together. Investment Raghunathan, Tata McGraw Hill, Third edition.
advisor and family are least influencing the investment 5. Research Methodology, C.R. Kothari, New Age
decisions. International Publishers, Second edition
4. From table 1.4 (i) and 1.4 (ii) it can be clearly stated that in 6. www.moneymanagementideas.com
case of male respondents returns is the main factor that
they consider while taking the investment decision. It is
then followed by risk appetite, liquidity of the investment,
tax benefits derived and lastly the current market trends
that is taken into consideration. In case of female
respondents liquidity ranks first when it comes to making
an investment decision followed by risk appetite, returns
earned, tax benefits and the current market trends.

Limitations of the study

1. The study is conducted from five colleges only from the
city of Mumbai. The conclusion may not be applicable to
other cities.
2. Sample size of 60 respondents is a very small sample size
for the study.
3. Three innovative financial products are only taken for the
purpose of the study whereas there are many more such
financial products in the market which is not included in
the study.

Recommendations of the study

It can be observed from the analysis and interpretation of the
data that the government and the regulators are to a certain
extent successful in creating awareness amongst the investors
with regards to the innovative products in the financial
markets. But when it comes to the matter of actual investment
the percentage of investors who are actually investing in these
are not very satisfactory. Still majority of the investors have a
comfort or a preference towards the traditional avenues. The
regulators, banks, financial institutions have a big role to play
in this regard.

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