Investment attitude of B.School students
- An analysis with respect to Kerala


By

Prof. (Dr).R. Jubi
HOD, MBA
MIIT, Kollam, Kerala

Mr. Jithin Raj R
Asst. Professor, MBA
MIIT, Kollam, Kerala
 

 

Abstract

Investment is a commitment of funds made in the expectation of some positive rate of return .If the investment is properly undertaken, the return will be commensurate with the risk the investor assumes .This study is all about finding of investment attitude of B-School students from their own savings during the period of study. Another intention of this study is to elucidate different investment opportunities. 

Key words

Investment, investment attitude, investment opportunities

Introduction

Economic scenario of Kerala

After the introduction of Liberalisatio, Privatisation, and Globalization (LPG) the Indian Economy got open up, it changed the economic scenario of India as well as Kerala. Now there is wide range of investment opportunities in Kerala to invest in different scenario. This positive change in investment is not being restricted by the political or any other types of constraints. This positive change in attitude is being clearly shown by the new generations especially the students undergoing professional courses since they are into the global scenario like being self dependent like foreign countries.

Educational status of Kerala

The educational status of Kerala is totally different from other states of India .We give more importance to Education rather than anything .Kerala got attained cent percent literacy rate, so they are well aware about the economic changes and the different investment opportunities, even though they are very much afraid about the risk involved in investment.

B-Schools

B Schools are the educational institution that moulds and develop management Professionals. Its play vital role in the field of Business and its encourages the aspirants to invest money in different area. It will provide a platform for them to identify different investment opportunity. In the present scenario the different levels of economic sources are considered since our aim is to make India a developed country. So each and every aspects of financial inclusion area has to be considered through which we can achieve our goal.

In the present scenario, while dealing different areas it is a thrilling experience to concentrate the study on the investment attitude of students in the Kerala scenario. Once again the student category was analyzed and the specific population was observed to be on the professional students. The reason behind the same is the Management professionals students who are passionate in their future to become self-dependent.

Investment attitude

Investment attitude means the attitude or behavior shown by the investors to invest money in different area to generate income or wealth from it.Investment can be different scenarios like shares, debentures, bonds,insurance,mutual funds, bank deposits etc. Even purchasing a text book itself is an investment since it empowers the knowledge pool of the individual. Recently the objective behind investment transformed from profit maximization to wealth maximization.

New horizon

With the objective of promoting the investment attitude of students RBI has undertaken a project. The Reserve Bank of India has undertaken a project titled "Project Financial Literacy". The Objective of the project is to disseminate information regarding the central bank and general banking concepts to various target groups, including, school and college going children, women, rural and urban poor, defence personnel and senior citizens. The project has been designed to be implemented in two modules, one module in which Money Kumar will familiarize you with the role and functions of the Reserve Bank of India; and through the other module


Research Methodology adopted for the study

Research is an active, diligent and systematic process of enquiry in order to discover, interpret, and revise facts, events, behavior or theories or to make practical applications with the help of such facts, laws or theories. In the present analysis the study is based on the data collected from the candidates of B.Schoools.

Statistical tools applied for analysis

* Percentage analysis
* Correlation analysis
* Hypothesis testing etc.

Data analysis and interpretation

Data analysis and interpretation is an essential part of any survey based study. The present study of investment analysis also uses the same level of data collection and analysis for the same.

The average amount of savings

Category

Respective sample

Percentage(%)

1000

60

60

1000-5000

34

34

5000 above

6

6



Inference

The analysis shows the majority of the sample belongs to the first category. Being the students, they can be in the first category due to their personal constraints, and hence they are in the first category. The second category belongs to the second category, Rs.1000-5000/-.

Preference to the type of investment

Category

Respective sample

Percentage (%)

Bank savings

46

46

Equities

6

6

Mutual Funds

28

28

Insurance

20

20



Inference

The investment preference for the sample was analyzed and it was interesting to note that the main mode of investment was bank savings. Here the main category was 46 % and the next category is Mutual Funds. The students are aware of the risk involved in investment and its after effect also.

Preference for the extent of savings.

Category

Respective sample

Percentage

Less than 5 years

31

31

5-10 years

49

49

10-15 years

10

10

15-20 years

8

8

More than 20 years

2

2



Inference:

The inference of the same is the main category falls on the 5-10 years, which has the highest chance for the extent of payment that the samples prefer to have the return of payment. The next category falls on less than 5 years. The third category falls on 10-15 years where the samples are having the return of payment after the structuring of their life.

CORRELATION ANALYSIS

In correlation analysis, Spearman's rank correlation coefficient is found out. This is obtained from the formula:

Rank correlation coefficient
When there is no repetition of rank

Where,

                   d = Difference in ranks (R1 - R2)
                   n = Number of respondents

The value of 'r' range from -1 to +1. This method is used to find the relationship the investment attitude and the type of payment

Expectations of future returns .

 

Decrease of income

    Income to keep pace with inflation

    Increase ahead of inflation

    Fluctu ations in income

    None of the above

    Male

    8

    33

    2

    26

    6

      Female                            

    3

    14

    0

    7

    1

    Rank R1

    3

    1

    5

    2

    4

    Rank R2

    3

    1

    5

    2

    4

    d=R1-R2

    0

    0

    0

    0

    0

    d2

    0

    0

    0

    0

    0



Interpretation:

The value of 'r' is 1. This means that there is a high positive correlation between the male and female samples in the case of their expectations related with the investment.

Hypothesis

H0 : Parameter that captures the attention of the students in investment is the profit for their future
H1 : Parameter that captures the attention of the students in investment is not alone the  profit for their future

    Factors

Highly Satisfied

Satisfied

Neither satisfied nor Dissatisfied

Dissatisfied

Highly Dissatisfied

    Mode of payment

    45

    35

    5

    4

    1

    The type of investment

    79

    11

    3

    6

    1

    Net outcome

    74

    16

    5

    4

    1

    Type of payment

    67

    23

    6

    3

    1

    Frequency of payment

    31

    59

    6

    4

    0

    Safety of future

    19

    71

    4

    5

    1

    Period of return

    36

    53

    6

    3

    1


    OBSERVED

    EXPECTED

    (O-E)2

    (O-E)2/E

    45

    50.14

    26.4196

    0.526916633

    79

    50.14

    832.8996

    16.61147986

    74

    50.14

    569.2996

    11.35420024

    67

    50.14

    284.2596

    5.66931791

    31

    50.14

    366.3396

    7.306334264

    19

    50.14

    969.6996

    19.33984045

    36

    50.14

    199.9396

    3.987626645

    89

    72.85714286

    260.5918367

    3.5767507

    61

    72.85714286

    140.5918367

    1.929691877

    64

    72.85714286

    78.44897959

    1.0767507

    64

    72.85714286

    78.44897959

    1.0767507

    68

    72.85714286

    23.59183673

    0.323809524

    75

    72.85714286

    4.591836735

    0.06302521

    89

    72.85714286

    260.5918367

    3.5767507

    14

    21.85714286

    61.73469388

    2.824463119

    9

    21.85714286

    165.3061224

    7.56302521

    11

    21.85714286

    117.877551

    5.39309057

    17

    21.85714286

    23.59183673

    1.079365079

    36

    21.85714286

    200.0204082

    9.151260504

    41

    21.85714286

    366.4489796

    16.76563959

    25

    21.85714286

    9.87755102

    0.451914099

    2

    5

    9

    1.8

    1

    5

    16

    3.2

    1

    5

    16

    3.2

    2

    5

    9

    1.8

    15

    5

    100

    20

    14

    5

    81

    16.2

    0

    5

    25

    5

    0

    0.142857143

    0.020408163

    0.142857143

    0

    0.142857143

    0.020408163

    0.142857143

    0

    0.142857143

    0.020408163

    0.142857143

    0

    0.142857143

    0.020408163

    0.142857143

    0

    0.142857143

    0.020408163

    0.142857143

    1

    0.142857143

    0.734693878

    5.142857143

    0

    0.142857143

    0.020408163

    0.142857143

   

    TOTAL

    176.8480036


2 = 176.8480036

Table value for 24 degrees of freedom

    24

    36.42


Inference:

Hence the table value of 20 degrees of freedom is less than the calculated value, the null hypothesis is rejected. This means that the alternate hypothesis has to be accepted Parameter that captures the attention of the students in investment is not alone the profit for their future

Findings & Suggestions

  • The analysis shows the majority of the sample belongs to the first category. Being the students, they can be in the first category due to their personal constraints, and hence they are in the first category.
  • The investment preference for the sample was analyzed and it was interesting to note that the main mode of investment was bank savings.
  • There is a high positive correlation between the male and female samples in the case of their expectations related with the investment.
  • From the hypothesis testing Parameter that captures the attention of the students in investment is not alone the profit for their future

Conclusion

The analysis clearly shows the attitude of the students towards the investment. The main thing behind this research is to motivate the youth of our state via nation to develop the investment attitude through which the future of the same can be established to a higher extent. The inhibition for investment can be rectified so that this will pay more attention towards investment so that more students can be incorporated for payment through which economic development of the country can be achieved.

Bibliography

    • Zavi Bodie, Alex Kane.Alan J Marcus & Pitabas Mohanty,Investments,pp1-10,(2009),TMH,8th edition
    • Security Analysis and Portfolio Management ,pp 1-12 (2009),Donald E Fischer & Ronald J Jordan, person publications ,6th  edition.
    • Investment Analysis and Portfolio Management, pp 10-32 (2009),Reilly & Brown,Thomson ,8th edition
    • C.R.Kothari,"Research Methodology" pp.184- 283. (2003)New Age International
    • Ltd.
    • Prasad L.M., pp. 141-195,(2004) "Principles and practice of Management", Sultan Chand & Sons.

    Websites

    www.investopedia.com
    www.rbi.com
     


Prof. (Dr).R. Jubi
HOD, MBA
MIIT, Kollam, Kerala

Mr. Jithin Raj R
Asst. Professor, MBA
MIIT, Kollam, Kerala
 

Source: E-mail January 23, 2012

          

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