ijpam.eu 1 Research scholar, Madurai Kamaraj University. 2 Associate Professor, BBA Department,VHNSN.College, Virudhunagar

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1 Volume 119 No , ISSN: (printed version); ISSN: (on-line version) url: ijpam.eu EXPECTATANCY: A KEY FOR INVESTMENT PRODUCT CHOICE DECISIONS AMONG WOMEN EMPLOYEES OF TAMILNADU Presented by K. Muthuselvi 1 Dr. G.Murugesan 2 Dr. S.C.Sivasundaram Anushan 3 Dr. V. Vijay Anand 4 1 Research scholar, Madurai Kamaraj University. 2 Associate Professor, BBA Department,VHNSN.College, Virudhunagar 3 Visiting Professor, Department of Management Studies, Madurai kamaraj University, Madurai. 4 Assistant Professor, School of Management Studies, SASTRA Deemed University, Thanjavur. Abstract The role of expectancies in the choice of investment products among Women employees of Tamilnadu was carried out in Tamilnadu among 348 respondents. The first ranked investment expectancy was tax benefits the second ranked expectancy was returns, the third ranked expectancy was safety and the fourth ranked expectancy was liquidity. The investment products that were significant in the estimation of tax benefits were Life Insurance Policies, Bank deposits, Mutual funds, Government Bonds and debentures, ULIPs, and Postal Schemes. The investment products that were significant in the estimation of returns were Company deposits NCDs, Chit funds, Commodities, Equity shares, Mutual funds, Futures/options/derivatives and Real estate. The investment products that were significant in the estimation of safety were Life Insurance Policies, Postal Schemes, Bank deposits, Government Bonds and debentures, Gold, and Real estate. The investment products that were significant in the estimation of liquidity were Chit funds, Equity shares, Mutual funds, Foreign exchange, Gold, and Futures/options/derivatives. Introduction to the study In an attempt to study the role of expectancies in the choice of investment products among Women employees of Tamilnadu, the researcher was able identify four expectancies namely tax benefits, returns, safety and liquidity. The investment products taken for the study were Life Insurance Policies, Company deposits NCDs, Postal Schemes, Chit funds, Commodities, Equity shares, Bank deposits, Mutual funds, Government Bonds and debentures, 2813

2 Gold, ULIPs, Foreign exchange, Futures/options/derivatives and Real estate. The study covered entire Tamilnadu and the results are furnished. 2. Need for the study Several investment product choices are available to investors. The choice of a product depends upon their expectancies from the investments. There is a need to identify the investment product that suits the specific investor expectancy. 3. Literature Review Ambrose Jagongo, Vincent S. Mutswenje (2014), found that factors that influence individual investment decisions were 1.Reputation of the firm, 2.Firm s status in industry, 3. Expected corporate earnings, 4. Past performance firms stock, 5. Price per share, 6.Feeling about the economy and 7. Expected dividend. Awais et al. (2016) dealt with the process of investors which influence the decision making. It depends upon the degree of the risk factors. They found that for managing investment efficiently the investor should increase the level of financial knowledge, increase the ability to analyze financial information, and improve the capacity to earn high returns even through risky investments. Gaurav Kabra, et al. (2010) has stated that the risk taking ability of the investors depends on their age. Jeet Singh, Preeti Yadav(2016) advice that investors should use fundamental analysis, technical analysis and financial analysis before investing in the equity shares. Investors should invest their funds in different assets. Dr. V.G.Jisha, & V. Gomathi(2017) in their research they found that the relationship between the factors influencing the level of awareness of various investment and factors influencing the benefits. For choosing an investment investors described the priority was safety of funds. Kevin M Musundi (2014), in his research work he found that how financial literacy has an effect on investment decision making by real estate investors shows that a high percentage of investors considers financial concepts such as returns, investment risks, investment portfolio management and trends in interest rates at a great extent. PritiMane (2016) discussed how the mutual funds types were preferred by the customer perception and dealt with different investment options, such as bonds, postal saving schemes, shares, and recurring deposits. 2814

3 Mustabsar Awais, et al. (2016), they concluded that their study has constructed a theoretical model for the decision making process for investors that help them to make the right decision and hence losses can be avoided or reduced in the future. Sreelatha Reddy K, Lalitha Narayanan(2015) in their study examined that the awareness and preferences among working women towards different investment options available and studied the factors affecting their perceived preferences. Dr. Taqadus Bashir, AaqibaJaved, Arslan Ali Butt, NazishAzam, Ayesha Tanveer, IrtazaAnsar (2013) identified the major influences on Pakistani investor. They identified the most and the least influential factors. 4. Objective of the study To identify the choice of investment products among the women employees those are influenced by their financial expectancies. 5. Research methodology A descriptive research using primary data collected using a structured undisguised questionnaire, adopting area sampling method among 348 respondents was carried out. Analytical tools like Descriptive statistics, one way ANOVA, and multiple regression were used. 6. Analysis and interpretation The analysis consists of demographics, investment details, investment products, investment expectancies, Estimation of various investor expectancies Demographic characteristics of the respondents The table below summarizes the personal characteristics such as age, income, education, civil status, occupation sector, religion, type of family, and number of dependents. Table: 1 Summary of Demographic characteristics of the respondents yrs yrs yrs yrs Above 60 yrs Age Frequency Percentage Marital Status Married Unmarried Frequency Percentage Education Plus 2 Under Post Other graduation graduation qualifications Frequency Percentage Occupied in Public Private 2815

4 sector sector Frequency Percentage Type of family Nuclear Joint Family Frequency Percentage Number of dependents None One Two More than two Frequency Percentage Earnings per Less than 10,000 to 30,000 to month in Rs. 10,000 30,000 50,000 Above 50,000 Frequency Percentage Religion Hinduism Islam Christianity Frequency Percentage (Source primary data) 6.2. Investment details of the respondents The table below presents the details such as annual amount invested, source of investment information, Investment period, and the time frequency of making a churn in the investment. Table: 2 Summary of Investment details of the respondents Annual investment in Rs. Less than 50,000 to 100,000 to 50, , Frequency Percentage Source of investment information Friends Relatives Newspapers Consultants Frequency Percentage Horizon of Investment Long term Medium term Short term Frequency Percentage Frequency of investment Above 1 1 month 1-6 months 1 year churn year Frequency Percentage (Source primary data) 6.3. Investment Expectations The table below presents the descriptive statistics for the expectancy for returns, safety, tax benefits, and liquidity. It also presents the F values and their significance for one way analysis of variance with age, income and annual amount invested by the respondents. 2816

5 Expectations Descriptive statistics of rank Table: 3 Investment Expectations Age of the respondents Income of the respondents Annual investment Mean S.D F Sig. F Sig. F Sig. 1. Tax benefits * 2. Returns Safety Liquidity * (Calculated from the primary data) (*=H 0 accepted at 5% level) From the mean value of the expectations it can be noted that tax benefits is the most expected expectation with a mean of 4.28and liquidity is the least expectation with a mean of The second placed expectation was returns with a mean of The third placed expectation was safety with a mean of Further the expectations from investment such as returns, safety, tax benefits and liquidity were subjected to one way ANOVA with age, income and amount invested by the respondents. H o : The expectations from investment do not vary with age, income and amount invested by the respondents at 5%. The significance of F is less than 0.05, so the expectations from investment such as returns, safety, tax benefits and liquidity do vary with age, and earnings. The F significance is less than 0.05, so the expectations from investment such as safety, and tax benefits do vary with the amount invested by the respondents. As the significance of F is more than 0.05, the expectations from investment such as returns, and liquidity do not vary with the amount invested by the respondents Investment products The table below summarizes the descriptive statistics for the 14 investment products prefereed by the respondents Table: 4 Descriptive statistics for the Investment products preferred Investment options and products Mean Std. Dev. 1. Life Insurance Policies

6 2. Company deposits NCDs Postal Schemes Chit funds Commodities Equity shares Bank deposits Mutual funds Government Bonds and debentures Gold ULIPs Foreign exchange Futures/options/derivatives Real estate (Calculated from the primary data) The highest agreement is observed for the investment product Mutual funds with a mean of 4.52, followed by Bank deposits with a mean of 4.19, followed by Postal Schemes with a mean of The lowest agreement is observed for the investment product Foreign exchange with a mean of 1.95, followed by Futures/options/derivatives with a mean of 2.17, followed by Commodities with a mean of Estimation of the expectation tax benefits When a regression modal for estimation of tax benefits out of the dependent variables of Real estate, Chit funds, Futures/options/derivatives, Life Insurance Policies, Equity shares, Postal Schemes, Commodities, Bank deposits, Mutual funds, Foreign exchange, Company deposits NCDs, Gold, Government Bonds and debentures, ULIPs was constructed the modal summary was as follows. Table: 5 Multiple regression Modal summary for Tax benefits from investment products R r 2 S.V S.S Deg. free. M.S F Sig Regression Residual Total An r 2 of 0.90 shows that the modal variables are able explain the dependent variable 89.9% and the significance of F statistic in one way ANOVA of 0.000, shows that the modal is fit. Table: 6 Modal coefficients and significance of t statistic 2818

7 Predictors U.S.C S.C B S.E β t Sig. (Constant) Life Insurance Policies * Company deposits NCDs Postal Schemes * Chit funds Commodities Equity shares Bank deposits * Mutual funds * Government Bonds and debentures Gold ULIPs * Foreign exchange Futures/options/derivatives Real estate (*=Significant at 5% level) Life Insurance Policies, Bank deposits, Mutual funds, Government Bonds and debentures, ULIPs, and Postal Schemes are significant while estimation of Tax benefits Estimation of the expectation returns When a regression modal for estimation of returns out of the dependent variables of Real estate, Chit funds, Futures/options/derivatives, Life Insurance Policies, Equity shares, Postal Schemes, Commodities, Bank deposits, Mutual funds, Foreign exchange, Company deposits NCDs, Gold, Government Bonds and debentures, ULIPs was constructed the modal summary was as follows. Table: 7 Multiple regression Modal summary for estimation of returns from investment products r r 2 S.V S.S Deg. free. M.S F Sig. Regression Residual Total An r 2 of shows that the modal variables are able explain the dependent variable 89.9% and the significance of F statistic in one way ANOVA of 0.000, shows that the modal is fit. Table: 8 Estimation of returns modal coefficients and significance of t statistic 2819

8 Predictors U.S.C S.C B S.E β t Sig. (Constant) Life Insurance Policies Company deposits NCDs * Postal Schemes Chit funds * Commodities * Equity shares * Bank deposits Mutual funds * Government Bonds and debentures Gold ULIPs Foreign exchange Futures/options/derivatives * Real estate * (*=Significant at 5% level) Company deposits NCDs, Chit funds, Commodities, Equity shares, Mutual funds, Futures/options/derivatives and Real estate are significant while estimation of returns Estimation of the expectation safety When a regression modal for estimation of safety out of the dependent variables of Real estate, Chit funds, Futures/options/derivatives, Life Insurance Policies, Equity shares, Postal Schemes, Commodities, Bank deposits, Mutual funds, Foreign exchange, Company deposits NCDs, Gold, Government Bonds and debentures, ULIPs was constructed the modal summary was as follows. Table: 9 Multiple regression Modal summary for estimation of safety from investment products r r 2 S.V S.S Deg. free. M.S F Sig. Regression Residual Total An r 2 of shows that the modal variables are able explain the dependent variable 89.9% and the significance of F statistic in one way ANOVA of 0.000, shows that the modal is fit. Table: 10 Estimation of safety modal coefficients and significance of t statistic 2820

9 Predictors U.S.C S.C B S.E β t Sig. (Constant) Life Insurance Policies * Company deposits NCDs Postal Schemes * Chit funds Commodities Equity shares Bank deposits * Mutual funds Government Bonds and debentures * Gold * ULIPs Foreign exchange Futures/options/derivatives Real estate * (*=Significant at 5% level) Life Insurance Policies, Postal Schemes, Bank deposits, Government Bonds and debentures, Gold, and Real estate are significant while estimation of safety Estimation of the expectation liquidity When a regression modal for estimation of liquidity out of the dependent variables of Real estate, Chit funds, Futures/options/derivatives, Life Insurance Policies, Equity shares, Postal Schemes, Commodities, Bank deposits, Mutual funds, Foreign exchange, Company deposits NCDs, Gold, Government Bonds and debentures, ULIPs was constructed the modal summary was as follows. Table: 11 Multiple regression Modal summary for estimation of liquidity from investment products r r 2 S.V S.S Deg. free. M.S F Sig. Regression Residual Total An r 2 of shows that the modal variables are able explain the dependent variable 89.9% and the significance of F statistic in one way ANOVA of 0.000, shows that the modal is fit. Table: 12 Estimation of liquidity modal coefficients and significance of t statistic 2821

10 Predictors U.S.C S.C B S.E β t Sig. (Constant) Life Insurance Policies Company deposits NCDs Postal Schemes Chit funds * Commodities Equity shares * Bank deposits Mutual funds * Government Bonds and debentures Gold * ULIPs Foreign exchange * Futures/options/derivatives * Real estate (*=Significant at 5% level) Chit funds, Equity shares, Mutual funds, Foreign exchange, Gold, and Futures/options/derivatives are significant while estimation of liquidity. 7. Findings and conclusion Tax benefits is the most expected expectation and liquidity is the least expectation. Returns and safety are the moderate expectations among women employees of Tamilnadu. Life Insurance Policies, Bank deposits, Mutual funds, Government Bonds and debentures, ULIPs, and Postal Schemes are significant while estimation of Tax benefits. Company deposits NCDs, Chit funds, Commodities, Equity shares, Mutual funds, Futures/options/derivatives and Real estate are significant while estimation of returns. Life Insurance Policies, Postal Schemes, Bank deposits, Government Bonds and debentures, Gold, and Real estate are significant while estimation of safety. Chit funds, Equity shares, Mutual funds, Foreign exchange, Gold, and Futures/options/derivatives are significant while estimation of liquidity. References 1. Ambrose Jagongo, Vincent S. Mutswenje, A Survey of the Factors Influencing Investment Decisions: The Case of Individual Investors at the NSE, International Journal 2822

11 of Humanities and Social Science, Vol. 4 No. 4 [ February 2014] p.g.no Awais M, Laber F, Rasheed N, Khursheed A (2016), Impact of Financial Literacy and Investment Experience on Risk Tolerance and Investment Decisions: Empirical Evidence from Pakistan, International Journal of Economics and Financial 6: Dr. Taqadus Bashir, AaqibaJaved, Arslan Ali Butt, NazishAzam, Ayesha Tanveer, Irtaza Ansar (2013), An Assessment Study on the Factors Influencing the Individual Investor Decision Making Behavior IOSR Journal of Business and Management, Volume 9, Issue 5 (Mar. - Apr. 2013), PP Dr. V.G.Jisha1 & V. Gomathi(2017) A Study on the Perception of Investment Pattern among Urban Working Women with Reference to Coimbatore City International Journal of Engineering Science and Computing, February 2017, p.g.no Gaurav Kabra, Prashant Kumar Mishra, Manoj Kumar Dash(2010), Factors Influencing Investment Decision of Generations in India: An Econometric Study, ASIAN JOURNAL OF MANAGEMENT RESEARCH, Copyright 2010 All rights reserved Integrated Publishing association p.g.no K.Rajkumar, 2 S.A.Mohammed Uveise, A Network Lifetime Enhancement Method For Sink Relocation And Its Analysis In Wireless Sensor Networks, International Journal of Innovations in Scientific and Engineering Research (IJISER), Vol.2, No.4, pp.77-82, Jeet Singh, Preeti Yadav, A Study on the Factors Influencing Investors Decision in Investing in Equity Shares in Jaipur and Moradabad with Special Reference to Gender Amity Journal of Finance, Amity University Rajasthan, Jaipur, Rajasthan, India, Volume 1 Issue , p.g.no Kevin M Musundi A,The Effects of Financial Literacy on Personal Investment Decisions in Real Estate in Nairobi County, A Research Project Submitted to The Degree of Masters of Science in Finance; School of Business, University of Nairobi October, Mane P (2016) A Study of Investors Perception towards Mutual Funds in the City of Aurangabad, The SIJ Transactions on Industrial, Financial and Business Management 4: Mustabsar Awais, M. Fahad Laber, Nilofer Rasheed, Aisha Khursheed, Impact of Financial Literacy and Investment Experience on Risk Tolerance and Investment 2823

12 Decisions: Empirical Evidence from Pakistan, International Journal of Economics and Financial Issues, 2016, Vol 6 Issue 1, Sreelatha Reddy K, Lalitha Narayanan(2015) Investment pattern of working women in the twin cities of Hyderabad and Secunderabad A study, Asian Journal of Management Research Volume 6 Issue 1, 2015, p.g.no

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