A Study of Saving and Investment Behaviour of Individual Households – An Empirical Evidence from Orissa
19 Pages Posted: 30 Oct 2012
Date Written: 2011
Investment is one of the foremost concerns of every individual investor as their small savings of today are to meet the expenses of tomorrow. Taking 200 respondents in the survey from the state of Orissa (India), the paper attempts to analyse the investment pattern, saving objective and preferences of individual investor’s for various investment options available in India. For the purpose of the study, parametric and non-parametric statistical methods have been employed. The study used a structured questionnaire in which potential investors were asked for their reactions to some specific situations. The result shows that, objective to saving is significantly influenced by demographic factors such as age, occupation and the income level of investors. The study exhibits the saving habit of retail investors across the different income levels. Savings is a habit specially embodied into women. It was found that female investors tend to save more in a disciplined way than the male investors. Paper attempts to explore whether dichotomy of the popular believes that men are more pro-risk than women. It was observed that women are risk averse indeed but save more than the male counterparts as the income level rises. From the research point of view, such a study will help in developing and expanding knowledge in this field of personal finance and investment.
Keywords: Personal finance, retail investors, saving habit, personal investment
JEL Classification: E21
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