Investment Pattern Over the Life Cycle of Family(2)

8/8/2019 Investment Pattern Over the Life Cycle of Family(2)

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Investment pattern over the life cycle of family

,Institute for Technology and Management Kharghar August 2010


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Agenda

Investment pattern over the life cycle of family Introduction, Management Problem Research Objective Research Variable

Research Methodology, Assumptions and Hypothesis Test Applied and output Analysis & Interpretation, Findings, Conclusion and Suggestions, Learning.


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Introduction This research is conducted in order to identify and understand

saving and investment patterns as well as object based on agegroup, income group and stages of life an Indian family goesunder.

This research would fruitful in introducing a financial productaimed at focused group

R esea rch O b je ctive s

,ome invested and period of investment by different age groups income groups a.ference life stages


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Research Variables

Exploratory research Survey Questionnaire

Convenient Sampling Sample population is 204.

R ese a rch M e th o d o lo g y

A ge G rou p In com e g rou p s

Life stag e s In ve stm en t p re fe ren ces

Pe riod o f in ve stm en t Pe rcen tag e o f d ispo sab le in com e fo r in ve stm en t


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Reliability Statistics

Cronbach'sAlpha

No of Items

.659 56 . %,R eliab ility a n a lysis of th e co lle cted d a ta is 65 9 w hich m e an it is

.m o d era te ly re liab le d a ta

Data Analysis


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Where do Indian put there money?

The chart represent the where people invest most into. Saving account, bank fixed deposit , insurance and Gold/silver attract most

investable income. Only 405 of respondent invest into equity marketdirectly. Others invest through other investment products such as mutualfunds, bonds, PPF, NSC, Post office savings.

o w r i sk I n ve s tm e nt s e di um r is k i g h r i s k T r a d i t i o n a l U p c o m i n g


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Chi-Square Tests Value df Asymp. Sig.(2-sided)Pearson Chi-Square 9.474 a 10 .488

Likelihood Ratio 9.740 10 .464

Age groups investment pattern

H 0 : /There isno statisticalsignificantdifference b w age groups:H 1

Reliability StatisticsCronbach'sAlpha

N of Items.226 3


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as

-hi Square TestsValue df . . ( -symp Sig 2

)ided-earson Chi

Square.2 677 a 15 .091

ikel ihood

Rat io .7 153 15

.028


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as

aired Samples Test a ir ed D if fe re nc es t df .ig

( - )ai led%5 Confidence

nterval of the Differenceean .td

Deviat ion

.td r rorMean

Lower Upper

Pair1

% What of savings do

you invest?- Age Group

- .1 09314 .1 34865 .09442 - .1 27932 -.90696 - .11 577 203 .000

Pair2

What is the time period

you prefer-to invest? Age Group

-.36765 .1 47128 .10301 -.57075 -.16454 - .3 569 203 .000


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H0: There is no statistical/significant difference b w

income groups and period of.investment

H1: Period of investment increases with increasing

income .Null hypothesis rejected

There is a significant difference between the two

.factors High degree of association

( : %)is observed Sig 100

Investment pattern based on Income group

Reliability StatisticsCronbach'sAlpha N of Items.441 3

Chi-Square Tests Value df Asymp. Sig.

(2-sided)Pearson Chi-Square 26.412 a 6 .000Likelihood Ratio 25.055 6 .000


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A s

Chi-Square Tests Value df Asymp. Sig.



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Findings, Conclusion and Suggestions

as

aired Samples Test Paired Differences t df .ig( -

)ai led

%5 Confidence

nterval of the Differenceean

.td

Deviat ion

.td

r rorMean

Lower Upper Pair

1 What percentage

of savings do you-invest? Annual Household income

-.49261 .85810 .06023 -.61136 -.37386 - .8 179 202 .000 Pair

2 What is the time

period you prefer-to invest?

Annual Householdincome

.22660 .1 05675 .07417 .08036 .37285 .3 055 202 .003


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As

Chi-Square TestsValue df Asymp.

Sig. (2-sided)Pearson Chi-Square 14.448 a 10 .154Likelihood Ratio 11.805 10 .298

Reliability StatisticsCronbach's Alpha N of Items.266 3


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As

Chi-Square TestsValue df Asymp. Sig.



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as

Paired Samples TestPaired Differences t df Sig.

(2-tailed)95% Confidence Interval of the Difference

Mean Std.Deviation

Std.ErrorMean

Lower UpperPair 1 What %of savings doyou invest? - currentstage of life?

-.64706 1.47322 .10315 -.85043 -.44368 -6.273 203 .000

Pair 2 What is the time period you prefer toinvest? - currentstage of life?

.07843 1.68263 .11781 -.15385 .31072 .666 203 .506


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Multiple Regression

As

odel SummaryR R Square Adjusted R Square .Std Error of the

Estimate.265 a .070 .051 .97616. : ( ), , , ,a Predictors Constant Gender Age Group Annual Household income current stage.of life

Coeff ic ients a ns tanda rdi zed Coeff ic i en t s .ig . %5 0 Confidence

nterval for B.td Error ower Bound pper Bound( )Constant .1 552 .359 .4 328 .000 .845 .2 259 Annual Householdincome

.373 .104 .3 575 .000 .167 .578 Age Group .082 .089 .924 .357 -.093 .257

current stage of life -.042 .074 -.566 .572 -.188 .104Gender .018 .157 .114 .909 -.291 .327. :a Dependent Variable What is the time period you prefer to invest?


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As

odel SummaryR Square djusted R

Square.td Error of the

Est imate.283 a .080 .061 .64645. : ( ), , , ,a Predictors Constant Gender Age Group Annual Household income current stage

.of lifeCoeff ic ients a

.nstandardized Coefft Sig.

. %5 0 Confidence Interval or B.td Error ower Bound pper Bound( )Constant .1 621 .238 .6 826 .000 .1 153 .2 089.Ann Household income .164 .069 .2 368 .019 .027 .300

Age Group -.154 .059 - .2 620 .009 -.270 -.038 current stage of life .149 .049 .3 037 .003 .052 .245Gender -.040 .104 -.382 .703 -.244 .165. :a Dependent Variable What percentage of savings do you invest?


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ANOVA Sum of

Squaresdf Mean

SquareF .Sig

/I am cautious in trying new different financial products

BetweenGroups

.9 497 5 .1 899 .1 361 .241 Within Groups .276 439 198 .1 396Total .285 936 203I try to find out as much as I can

about a financial product before.buying it

BetweenGroups

.11 159 5 .2 232 .2 391 .039 Within Groups .184 777 198 .933Total .195 936 203

I would rather stick with a product I usually buy than try something I am

.unfamiliar with

BetweenGroups

.33 789 5 .6 758 .5 758 .000 Within Groups .232 383 198 .1 174Total .266 172 203

It is better to be safe and have a moderate income than to take financial risks to make a high

.income

BetweenGroups


I am more comfortable in putting my money in a bank account than in the

.stock market

BetweenGroups .

48 046 5.

9 609.

5 925.000

Within Groups .321 131 198 .1 622Total .369 176 203,In terms of investing safety is more.important than returns

BetweenGroups


I plan my investments after giving considerable thought to the

consequences

BetweenGroups

.4 566 5 .913 .1 050 .389 Within Groups .172 120 198 .869Total .176 686 203

Anova on Stages of life


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Mean Plot for risk factor and stages of life


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Mean Plot for risk factor and stages of life


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Learning's


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Thank You:Presented By Group 4

Roll No Name71 Ajay Garg50 Arun Thakur23 Ashish Shrivastava137 Goldi37 Gunjan Agarwal175 Pooja Shugani113 Ruchir Masand22 Yash Ahuja


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Assumptions and Hypothesis

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Investment Pattern Over the Life Cycle of Family(2)