A Study On Financial Literacy And Investment Behaviour Of Working Women In Thanjavur District ( IJIFR/V4/ E1/ 007)

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InternationalJournalofInformative&FuturisticResearch ISSN: 2347-1697
Volume 4 Issue 1 September 2016www.ijifr.com
Abstract
In the ancient times, women were not allowed to even get education. Their
role was purely to look after home. Their world was limited to their
families. But then, the people slowly started recognizing the importance of
education for women. And today, we find many highly educated women.
They are progressing in real sense because in almost all sectors we find
women working successfully. And of course, while doing so, they haven’t
forgotten their job of homemaker. On both the fronts i. e. home & job, they
are doing just fine. They know how to manage work life balance. Now-a-
days, we find more and more women who are financially independent. Men
and women are born equal and both play an important role in the creation
and development of family in particular and society in general. In the
traditional family husband earns for the family and wife maintains it. Her
role was mainly confined to domestic works. She creates life, nurtures, and
guards and strengthens it. She plays the role of wife, mother, sister, sister-
in-law, daughter, daughter-in-law, grand-daughter etc. She is the
transmitter of tradition and the instrument by which the family culture is
preserved.
A Study On Financial Literacy And
Investment Behaviour Of Working Women
In Thanjavur District
Paper ID IJIFR/V4/ E1/ 007 Page No. 4832-4842 Subject Area
Business
Administration
Keywords Working Women, Investment Pattern, Influence, Return, Risk
1st
Dr. N.R.Saravanan Head of the Department (HOD),
Department of Business Administration (BBA),
Annai College of Arts and Science,
Kumbakonam, TamilNadu
2nd S.Arulmozhi
Assistant Professor,
Department of Business Administration (BBA),
Annai College of Arts and Science,
Kumbakonam, TamilNadu.
3rd V.Manjula
4th B.Srisundar
5th S.Subapriya

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ISSN: 2347-1697
International Journal of Informative & Futuristic Research (IJIFR)
Volume - 4, Issue -1, September 2016
Continuous 37th Edition, Page No: 4832-4842
Dr. N.R.Saravanan, S.Arulmozhi, V.Manjula, B.Srisundar,
S.Subapriya :: A Study On Financial Literacy And Investment
Behaviour Of Working Women In Thanjavur District
I. INTRODUCTION
Women’s role which was confined to domestic areas has now switched over to the other
areas where she is competing with her male counterpart. This is due to the education she is
getting, the women centered policies, programmes of the government and the job
opportunities available to her in the wake of modernization, urbanization, industrialization,
liberalization, globalization etc. The opportunities available to women paved the way for
economic independence and their involvement in political and social sphere has increased to
a great extent.
In India’s household sectors contribute about 80% of Gross domestic savings. Savings and
Investments are the most important sources of our economy. Savings are obtaining from
present consumption for future use. Savings and Investments are sometimes autonomous
coming from household as a matter of habit, but bulk of the savings and investments come
from specific objectives like interest, return on investment, future needs, contingencies,
precautionary motive or growth in future wealth leading to rise in standard of living etc.
Every household tends to keep some cash balance and maintain certain amount of money in
the form of bank deposits to meet their transactions and precautionary needs. Investor’s
expectation is very important factor to be analyzed for the alternative avenues of
investments. The present study focuses on measuring the expectations of working women
investors. It also attempts to gauge the factors that they take into considerations before
making any investments.
Many financial assets are available in the forms of bank fixed deposits, government and
corporate fixed income securities, mutual fund units, common stocks, provident funds,
pension funds insurance home, real estate, gold etc .Each asset has a different rate, return
risk and liquidity. This research attempts to characterize and profile the individual investors
in order to determine whether the variables like age income occupation designation
dependent impact the risk aptitude of an investor. The findings will provide some
opportunities for purveyors of financial services to be selective in their approach to various
groups of individual investors.
1.1 What is income?
Income is the consumption and savings opportunity gained by an entity within a specified
timeframe, which is generally expressed in monetary terms. However, for households and
individuals, "income is the sum of all the wages, salaries, profits, interests payments, rents
and other forms of earnings received... in a given period of time”. It also means, money or
other forms of payment (received periodically or regularly) from commerce, employment,
endowment, investment, royalties, etc.
1.2 What is investment?
In finance, the purchase of a financial product or other item of value with an expectation of
favorable future returns. In general terms, investment means the use money in the hope of
making more money. It also means money committed or property acquired for future
income.

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There are basically two main classes of investment (1) Fixed income investment such as
bonds, fixed deposits, preference shares, and (2) Variable income investment such as
business ownership (equities), or property ownership. In economics, investment means
creation of capital or goods capable of producing other goods or services. Expenditure on
education and health is recognized as an investment in human capital.
1.3 Defining women’s work and income and investment
Women’s income is always considered as a supplementary income within the family.
Usually women’s work/domestic work is included in the nonproductive category in the
earlier censuses – showing that other categories are supposed to be reproductive. It is
universally considered as, women and children in the family are consumers, not producers.
(U.Kalpagam, Labor and Gender, 1994). But the growing importance of income earned by
women raises many interesting issues worth serious consideration. First, it is related to the
share in the total household income. Second is related to their control over the expenditure
of the total household income – that means who took decisions and what are the decisions
etc. Third is, after spending a considerable amount of earnings, what are the investment
tools opted by women to save their earnings. During this survey, it was found that
respondents were highly educated, typically employed, and almost all have savings and
assets. The economic crisis has heightened women’s recognition of the need to develop a
financial plan that will meet long-term financial goals. Women are more involved than ever
in their households’ investment and financial decision making. Among the survey
respondents, 95% of women were involved in financial decision-making in their
households, and one-fourth was the primary decision makers. Married women played a key
role in the financial decisions of their households as well. While most decisions were made
jointly, 84% say they were involved in their household’s financial decisions.
1.4 Reason for increasing popularity of investments
Investing has been an activity confined to the rich and business class in the past. This can be
attributed to the fact that availability of investable funds is a pre-requisite to deployment of
funds. But today, we find that investment has become a household world and is very popular
with people from all walks of life.
The following are the reasons for increasing the popularity of investment;
 Increasing working population, larger family incomes and consequent higher
savings.
 Provisions of tax incentives in respect of investment in specified channels.
 Increasing tendency of people to hedge against inflation.
 Availability of large and attractive investment alteration.
 Increase in investment related publicity.
 Ability of investments to provide income and capital gains etc.
1.5 Factors of sound investments
(i).Liquidity
Liquidity refers to the speed and ease with which an investment can be sold for a fair price.
(ii) Risk of investment

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If returns are not stable, then the investment is termed as risky
(iii) Capital Appreciation
If the matured value of investments more than the initial deposit is termed as capital
appreciation.
(iv) Tax aspects of investment
An investment which enjoy tax benefit under income tax Act
(v) Investment Horizon
It refers to the planned liquidation date of the investment.
1.6 Risk associated with investment
1.6.1 Systematic Risk
The entire market is moving in a particular direction either upward or downward due to
political condition, economic conditions, sociological changes. It may be
 Market risk
 Interest rate risk
 Purchasing power risk etc.
1.6.2 Unsystematic Risk
Unsystematic risk is unique and peculiar to a firm or an industry. Unsystematic risk stems
from managerial inefficiency, technological changes in production process, availability of
raw materials, changes in consumer preference, and labour problems etc. It may be (i)
Business risk (ii) Financial risk.
II. REVIEW OF LITERATURE
Palacious (2001) in his study had observed the challenges of old age income security in
India. It was found that one eight of the world’s elderly population lives in India. By 2020,
about 15 % of the population will be over age 60 in Tamil Nadu and Kerala-roughly the
same proportion as Australia today. The study concluded that reforms would provide
current and future contributors with a viable alternative to a traditional family support
system that will come under increasing strain in the course of the demographic transition.
Suresh (2004) in an analysis of popular perceptions said that retail investors swarmed back
to the stock market in the year 2003-04. The investments of households in shares and
debentures rose by a paltry 8.6 percent to Rs 5,847 crore in 2003-04. Households had
deposited Rs 169000 crores in bank deposits while investments in small savings rose 19
percent. The data suggests that in 2003-04 the household investor had tuned extremely
conservative.
Karthikeyan (2001) has conducted research on Small Investors Perception on Post office
Saving Schemes and found that there was significant difference among the four age groups,
in the level of awareness for Kisan Vikas Patra (KVP), National Savings Scheme (NSS),
and deposit Scheme for Retired Employees (DSRE), and the Overall Score Confirmed that
the level of awareness among investors in the old age group was higher than in those of
young age group. NO differences were observed among male and female investors except
for NSS and KVP. Savings and Investments Attitude

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III. OBJECTIVES OF THE STUDY
 To examine the investment objectives of working women investors.
 To study the life style of working women investors.
 To identify the sources influencing the scheme selection decision of working women
investors
 To measure the positive and negative aspects of various investment pattern.
IV. RESEARCH METHODOLOGY
A research design must contain the clear statement of the research problem, procedures and
techniques for gathering information, the population to be studied and the methods used in
processing and analyzing data (Kothari, 1999). This is a descriptive research involving the
data collection from primary as well as secondary sources. In case of primary data collection
a well-structured questionnaire was prepared using different scales and the data was
collected from the investors through survey method. Information was gathered from various
secondary sources such as journals, web sites, books and research articles etc.
4.1 Population and samples
The investors who invest their money in different alternative avenues are treated as the
population of the study. Thanjavur District is the geographical area of the present study. As
the population is infinite one the method of selecting the sample investor is a difficult
process. Here the respondent who have been working in private and government
undertakings are considered as the appropriate sample of the study. 250 self-administered
questionnaires were administered on the participants and they were briefed about the
purpose of the study, and given enough time to fill out the questionnaire So, those investors
have been selected at random from eight revenue block of the Thanjavur District. There are
Thanjavur Town, Kumbakonam, Papanasam, Thiruvidaimarudur, Orathanadu, Pattukkottai,
Peravurani and Thiruvaiyaru. Representation has been given to every type of stratum viz.,
rural- urban, income category, occupation, educational qualification etc.
4.2 Dimensions of the Study
The present study takes the following dimensions for its analysis.
 The demographic profile of the investors
 Investors Profile of the investment
 Attitude of the investors
 Risk factor of the investment
 Investors expectations
 Motivational factor of investors
 Investors Satisfaction towards investment
4.3 Hypothesis of the Study
 There is no significant association between demography of the investors and
investment pattern
 There is no significant association between demography of the investors and risk
factor

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 There is no significant association between demography of the investors and
expectations.
 There is no significant association between demography of the investors and their
attitude.
4.4 Analytical Tools
Apart from the percentage analysis, the study takes chi square test, ANOVA, Regression
Analysis, correlation analysis, multiple regression, Standard Deviation, and factor analysis.
V. ANALYSIS AND INTERPRETATION
Table 5.1 -Age wise Classification of the Respondents
S.No Age No. of Respondents Percentage
1 26 to 35 years old 142 57
2 36 to 45 years old 57 23
3 46 to 60 years old 51 20
Total 250 100
Source: (Primary Data)
From the above table it was inferred that 57% of the respondents are 25 - 35 years. 23% of
the respondents belong to the age group of 36-45 and the remaining 20% of the respondents
belong to the age group of 46-60.
Table 5.2 Distribution of Respondents by their Educational Qualification
S.No Qualification No. of Respondents Percentage
1 Professional Degree 82 33
2 Post - Graduation 104 42
3 Under - Graduate 38 15
4 Diploma and Others 26 10
Total 250 250
The study reveals that 104 (42%) respondents out of 250 Post-Graduates and above. The
remaining employees are professional, technical and Diploma level educated persons.
Table 5.2(A): Family Type wise Classification of the Respondents
S.No Family Type No. of Respondents Percentage
1 Joint 62 25
2 Nuclear 188 75
Total 250 100
The study further reveals that 188 (75%) respondents out of 250 Nuclear family type. The
remaining women’s are having Joint Family type.
Table 5.3 Distribution of Respondents by their Marital Status
S.No Marital Status No. of Respondents Percentage
1 Married 180 72
2 Unmarried 55 22
3 Divorced 15 6
Total 250 100

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The study further reveals the marital status of the women employees. Out of 250
respondents selected for the study, as many as 180 (72%) are married employees.
Table 5.4: Distribution of Respondents by their Working Industry
S.No Work Industry No. of Respondents Percentage
1 Government organization 42 17
2 Private organization 208 83
Total 250 100
From the above table it is inferred that 17% of the respondents are working in Government
organization and 83% of the respondents are working in Private organization.
Table 5.5 Distribution of Respondents by their Annual Income
S.No. Monthly Income No. of Respondents Percentage
1 10,000 - 20,000 107 43
2 20,000 – 40,000 52 21
3 40,000 – 60,000 71 28
4 Above 60,000 20 8
Total 250 100
Nearly 43% of the respondents are having a monthly salary between Rs.10, 000-20,000.
Table 5.6: What are their main preferred tools for investment?
Percentage, Mean and standard deviation of respondent’s responses on categories where
they invest their money
Degrees of Agreement
Options
Strongly
Agree
Agree
Neutral
DisAgree
Strongly
Disagree
Mean
Std.
Deviation
Fixed deposits with banks 225 73.33 40 16.67 1.67 3.57 1.81
Mutual funds 8.33 26.67 20 6.67 16.67 0.78 0.15
Stocks/ shares 8.33 20 10 23.33 20 0.82 0.13
Gold 166.67 100 45 20 10 3.42 1.71
Real estate 25 40 10 23.33 13.33 1.12 0.08
Fixed deposits with
companies
0.00 13.33 20 16.67 11.67 0.62 0.27
Insurance 58.33 80.00 85 20 3.33 2.47 1.04
Post office/ PPF/
Government scheme
50 33.33 25 13.33 8.33 1.3 0.21
Any other 0.00 0.00 0.00 0.00 1.67 0.02 0.7
Since most of the respondents surveyed mentioned that their income was not the major
source of earning for their family, whatever they earned only doubled up in total family
investment in various sectors. The findings were as follows,

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 They preferred to save their wealth in fixed deposits with banks.
 Second option preferred by them was to invest in gold by buying jewellery
 The third preferred option was insurance schemes.
 In the fourth slot, there was a tough competition between post office/PPF schemes
and real estate, where post office and government schemes was picked up.
Table 5.7: Percentage, Mean and standard deviation of respondent’s responses on their main
reasons of investment
Percentage, Mean and standard deviation of respondent’s responses on their main
reasons of investment
Degrees of Agreement
Main Reasons for
Investment
Strongly
Agree
Agree
Neutral
DisAgree
Strongly
Disagree
Mean
Std.
Deviation
High Returns 333.33 46.67 10.00 20.00 1.67 4.12 2.2
Tax benefits 25.00 80.00 25.00 16.67 8.33 1.55 0.39
Emergency need 16.67 33.33 55.00 10.00 3.33 1.18 0.13
Retirement plans 33.33 60.00 20.00 23.33 15 1.52 0.47
Security for the family 8.33 6.67 15.00 16.67 5.00 0.52 0.34
Education of children 16.67 33.33 30.00 13.33 6.67 1.00 0.00
Marriage of children 0.00 20.00 10.00 6.67 3.33 0.4 0.32
To spend later in life 33.33 40.00 20.00 10.00 13.33 1.17 0.42
Others: 8.33 20.00 15.00 6.67 3.33 0.53 0.33
 The main reasons voiced by the respondents for investment in various tools were high
returns followed by retirement plans and to spend later in life.
 They also mentioned that tax benefits also lured them towards safer investment options
VI. FINDINGS OF THE STUDY
 17% of women investors are government employee. They get more income and
allowances. So their contribution to invest is higher than others.
 The majority (72%) of the women investors are married. The savings of the married
women investors are more than unmarried investors. Because the responsibilities of
them are increased after marriage.
 The most vital problem spotted is family commitments and frustration. Only 40% of the
investors invested in capital market instruments.
 Maximum (62%) of the investors attitudes are control over their expenditure.
 The majority (64%) of the women investors expected safety of their investment.
VII. SUGGESTIONS
 Women investors must resolve the problem of their limited movements which itself is a
hazard for their development by breaking through by some means or other. They must
switch over their aptitude from traditional investment to speculative investment.

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 Apart from all these things the economic policies of the government should be closely
watched by any investor. The economist and policy makers should not hesitate to warn
the government in case of adverse change in economic policies.
 Each and every citizens of the nation is either directly or indirectly responsible for the
inflation rate. So, the investing public should think properly and protectively, that
reduces the impact of inflation.
 Working women investors also hesitate to invest in marketable securities. So, it is
evident that a wide publicity through media be done.
 The policy “invest for Tomorrow” should be inculcated in the minds of the young
generation.
VIII. CONCLUSION
The position and status of women in any society is an index of the socio-economic and
cultural achievement of that society. They have been subjected to some changes in the
position of women in India over the years but these changes are not uniform. Women small
investor’s options are thus limited only to the traditional investment scheme. They can’t
take the risks of putting their money in speculative financial institutions. Devoid of a
concrete option, they prefer to put most of their investment in financial securities. As for
small investors their frustration has rarely been obvious. There are no new avenues for
savings or is there any social security network. They are forced to keep most of their
investments in traditional investment securities when they should have been looking for
diversified investment.
IX. SCOPE FOR FURTHER STUDY
Although the study yields significant insights, certain limitations are worth addressing. The
study has used random sampling for selection of respondents. This may result in selection
bias and limit the generalizability of the findings. The study has not taken foreign
investment into consideration, which might have imparted greater significance to the
outcome. The survey area of the study is confined to Thanjavur District, which again
restrict results. The results are also subject to response biasness. Wider area of coverage
maybe considered in future research for more generalizable findings.
X. REFERENCES
[1] Kothari, A.R (2004) Research Methodology methods and Technique, New Age International
Publisher, New Delhi.
[2] Khan & Jain Financial Management Theory and Practice, 3rd
Edition Tata Mcgraw Hill
Publishing Prentice Hall.
[3] Prasanna Chandra Financial Management Theory and Practice, 6th
Edition, Tata McGraw Hill
[4] Bruner R,F, Case Studies in Finance, Fifth Edition, Tata Mcgraw Hill, New Delhi.
[5] Robinson Marguerite (1995) Introducing Savings Mobilization in Micro Finance network
Cative Philippines and HID, USA, USA NOV
[6] Roa VSP(1999) Bank Management, Discovery Publishing House, New Delhi.

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[7] Pandian Punithavati and R.Eswaran (1990) “The rolegroups and credit co-operatives in rural
lending” World Bank Research Observer No-5.
[8] Holst J.U(1985) The role of informal FinancialInstitutions in the Mobilization of
savings,Savings and Development.
AUTHOR’S BIOGRAPHIES
Dr. N.R.Saravanan, M.B.A., M.A (Yoga) M.Phil., Ph.D - at present
doing academic service at, Head of the Department (HOD) in Department
of Business Administration at Annai college of Arts and Science,
Kumbakonam. He having more than 12 years of academic and teaching
experience, and specialized in the areas of marketing, banking, finance
and systems by obtaining double M.B.A degrees and he also imparts with
postgraduate diploma in computer science and human resources. He is
always having more thrust for knowledge and studies thus he obtained
various certificate courses in the areas of yoga, consumerism, journalism,
photography and share investment management. In his higher secondary
he achieved as school first and won gold medal. He has attended a
number of National and International Conferences where he has presented research papers in his area
of specialization. He has attended professional development programs like research methodology
workshops, case writing workshops, seminars, and faculty development programs. He has also
supervised a number of research projects. Fun loving he has a blend towards moral education and
social networking as an asset to seek knowledge and be a learner always.
Mrs.S.Arulmozhi B.Com, MBA, M.Phil- She is working as an
Assistant professor in Department of Business Administration at Annai
College of Arts & Science, Kumbakonam. She is one of the senior
faculty in the institute with Seven years of experience. She is currently
pursuing her PhD in the topic “Work Life Balance of Women
Nurses in Tanjore District”. She has Ability to work in a fast-
paced environment to set deadlines. She has attended various
management conferences, workshops and faculty development programs
and also acted as resource person in some workshops. Highly passionate
towards empowering students towards Employability and Skill
development. In addition to this he has successfully coordinated many
academic activities like Coordinator of Management Meet and Club
Activities. Over the years, she has developed an innovative approach to teaching and conducting
research with the simulation games for students.
Mrs.V. Manjula B.Sc, MBA- She is working as an Assistant professor
in Department of Business Administration at Annai College of Arts &
Science, Kumbakonam. She is currently specializing in the area of
Human Resource Management, Organizational Behavior and
Organizational Effectiveness. Her area of research includes Stress and
Job Satisfaction and is currently pursuing her PhD in the topic “Job
Satisfaction: Panacea to Stress – A Study with Teaching Professionals
of Engineering Colleges in Thanjavur District”. She has attended
professional development programs like research methodology
workshops, case writing workshops, seminars, and faculty development
programs. In addition to the above she has coordinated many activities
like IQAC (Internal Quality Assurance Cell), Women Welfare cell. Her expertise lies in preparing

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students for their job interviews and self grooming. She has excellent oral and written
correspondence with an exceptional attention to detail.
Mr.B.Srisundar B.Sc, MBA- He is working as an Assistant
professor in department of BBA in Annai College of Arts and Science.
He is a MBA graduate and specialized in finance and marketing. He is
pursuing his PhD from Annamalai University, Chidambaram. He has
cleared UGC-NET which was held on June 2014 in management
paper. He has total 9 years of experience including 5 years of
industrial experience as a sales manager He also got empanelled as a
resource person from SEBI. He also attended several workshops,
training programmes and seminars. He is hardworking, sincere, a good
team player and also given guest lectures on Entrepreneurship, How to
start a small business. He also possesses practical knowledge in the
field of accounting, audit and taxation
S.Subpriya B.Com, MBA-She is working as an Assistant professor in
Department of Business Administration at Annai College of Arts &
Science, Kumbakonam. She has attended many workshops and seminars
and also presented papers in international conferences. She has over 3
years experience in the Accountancy area. She has also presented and
participated in various National level seminars. She has been involved
with teaching Financial Management, Advance Corporate Accounts,
Financial Services, Accounting and Finance for Managers, Income Tax,
Entrepreneurship and other finance oriented subjects/courses.

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