Investment Behaviour among Information Technology Professionals in Tamilnadu

Selvaraj N^*
*Correspondence: Selvaraj N, Assistant Professor of Commerce, Saraswathi Narayanan College, Madurai, India, Tel: + 919843727975, Email:

Keywords

Awareness • Knowledge • Activities • Angle and Investment call

Introduction

An “investment could be a sacrifice of current cash or different resources for future benefits” and investment could also be outlined because the web addition to a nation’s physical stock of capital. Within the gift monetary market situation, various avenues of finance square measure obtainable. The two vital aspects of any investment square measure time and risk. Our economic well-being, within the end of the day, depends considerably on however with wisdom or unwisely we have a tendency to invest. “Investing is easy, however not easy” it’s not a joke, aforesaid by Warren Buffet one in every of the richest men within the world, and doubtless, the foremost fortunate capitalist, having created his fortune of quite $ forty billion nearly solely through finance. There square measure voluminous fortunate investors within the world. Investment is easy as a result of it simply means that keeping some cash aside in order that it grows additional valuable when it slow. At an equivalent time, finance is tough as a result of it challenges our elementary attribute our urge to pay, get pleasure from and satisfy our desires as early as we are able to then later. It’s tough as a result of individuals got to wait and see and disciplined for long periods. It’s as a result of all around U.S. we have a tendency to see individuals outlay and having the time of their lives whereas we have a tendency to sacrifice those pleasures.

Need for the Study

Investing in multiple kinds of assets is a more and more fashionable activity that draws individuals from all walks of life no matter their occupation, economic standing, education or family background. Once an individual has more cash than he needs for current consumption, he would create by mental act as a possible capitalist. The capitalist United Nations agency has additional money may invest it in securities or the other assets like gold or real state or may deposit it in his checking account. The businesses that have additional financial gain could wish to invest their surplus in extending the prevailing firm or commencing a brand new venture. All of those activities, during a broader sense, low investment. The investment behaviour of data technology professionals is somewhat totally different from that of institutional investors. people tend to take a position comparatively additional in non-tradable assets like property, hedge funds or structured merchandise. The term ‘institutional investor’ is mostly accustomed describe an organization that invests on behalf of others, like a fund, pension fund or charitable organization. Hence, the current study tried to review investment behaviour among data technology professionals in Tamilnadu.

Statement of the matter

There square measure several investment alternatives obtainable for investors to secure their savings. It’s crucial to grasp whether or not these alternatives square measure employed by them seriously as AN investment involves several vital selections which might have an effect on the speed of come and additionally contributes to economic development. In typical monetary theory, investors square measure assumed to be rational wealth maximizer’s, United Nations agency follow basic business rules and base their investment methods strictly on the risk-return thought because the factors expected to influence investment behaviour. Ancient theory assumes that folks square measure rational agents United Nations agency create selections objectively to require advantage of the opportunities obtainable to them. Investors think about themselves as rational and logical. however at the time of investment, their emotional inclinations, deep-seated thought patterns, psychological biases and different factors could have an effect on their investment behaviour. This study seeks to comment on the result of demographic factors, investment data, and sources of investment, investment awareness, investment information, investment activities, investment decisions, investment risk angle, investment call, investment issues and investment behaviour among data technology professionals in Tamilnadu.

Scope of the Study

The scope of the current study is restricted to investment behaviour among data technology professionals in Tamilnadu. There square measure ten data Technology corporations in Tamilnadu square measure hand-picked for information assortment.

Objectives of the Study

The confined objectives of the current study are:

i. to live the extent of investment behaviour among the demographic profile of data technology professionals.

ii. To assess the investment behaviour towards data technology professionals.

iii. To review the investment issues two-faced by data technology professionals.

iv. To supply appropriate suggestions for enhancing the investment behaviour among data technology professionals supported findings of the study.

Literature Review

Security Exchange Board of Asian country (SEBI) together with National Council of Applied Economic analysis (NCAER) conducted a comprehensive survey of the Indian capitalist households entitled, “Survey of Indian Investors”, so as to review the impact of the expansion of the stock market on the households and to analyze the standard of its growth. Twenty-five thousand investors square measure exhausted from places everywhere Asian country, and also the information were collected by administering form and thru personal interviews. The survey was disbursed with the most important objective of the diagram a profile of the households and investors and to explain the demographics, economic, monetary and equity possession characteristics. The study unconcealed that a majority of the equity investors had future motive of investment. Investors unconcealed that that they had many broker connected issues than the institution connected issues.

Mohanty BK [1] in his article, “Market capitalization: an acceptable growth approach for share holders’ price creation”, before economic reforms square measure initiated in 1991, corporations within the Indian company sector had to operate amidst the licensing regime, quotas and restrictions, high taxes and host of different rules and rules. Corporation’s square measure currently allowed borrowing from and investing abroad quite generously. All this has done wonders for company Asian country. Over the past fifteen years of reforms, company profits have gone from Rs. 6440 large integer within the yr 1991 to Rs.1,67,801 large integer within the yr 2006.

K. Parimalakanthi and M. Ashok Kumar [2] had AN aim to seek out the obtainable investment avenues/ opportunities in Indian monetary Markets and also the behaviour of individual investors in Coimbatore town. the assorted investment avenues obtainable square measure a bank account, fastened time deposit account, government securities, company bonds, insurance policies, real estates, commodities, share and mutual funds, tab funds and Gold & Silver. All the individuals invest their surplus cash in anyone of the higher than investment avenues looking on their risk taking capability. The information were collected through a structured form from 107 customers United Nations agency were hand-picked on a convenient sample technique. The investigator used the Friedman test, Garratt Ranking technique and co relational analysis to seek out the result. Garratt ranking technique reveals that respondents favor to invest in bank account followed by Gold & Silver, fastened Deposits and also the like. it had been all over that almost all investors in Coimbatore town like bank deposits followed by Gold & Silver.

P. Sasirekha and U. Jerinabi [3] in their study “Investors’ angle towards investment and risk”, tried to seek out the degree of awareness and angle towards investment and risk regarding data technology professionals. The worker force was actuated to take a position by their colleague. The study was descriptively conducted in Coimbatore town from Sept 2011 to March 2014. The investigator has adopted time period sampling techniques for choosing 482 samples. The information was collected victimization AN interview schedule. The null hypothesis was framed and was checked through a chi-square test. The resultants, P-Value of the factors except gender square measure important in 1 Chronicles level. Thus, the null hypothesis was rejected and unconcealed that the danger angle of the respondent depends on all different factors in socio-economic profile. they need all over that the extent of awareness is that the most significant issue that motivates on investment, that is that the vital determinant for making angle towards investment and risk.

Priyanka Sharma & Payal Agrawal [4] for his or her study “Investors perception and angle towards fund as an investment option” surveyed fifty respondents hand-picked indiscriminately, and picked up the information through a structured form to spot the intensity of varied factors that completely and adversely have an effect on buyer’s call. They introduced eight factors like potential returns, diversification, and lower risk, credit rating, past performance, whole image, liquidity and tax write-off. Among the higher than factors, the whole image of fund powerfully influence and liquidity and tax edges square measure least effective in influencing the shopping for behaviour of the fund. They all over that the radio frequency business in Udaipur remains are an embryonic stage, and also the success depends upon the issue life high returns, skilled ability of fund managers.

Pritimane [5] fund investment has many edges like skilled management, liquidity, flexibility, low dealing value, transparency, well regulated and monitored by the SEBI. The analysis objective was to grasp the notice level of fund investment among Aurangabad individuals within the town. The information was collected through a well-structured form by taking the minimum sample size, i.e. 30 samples. The information was analyzed by adopting a chi-square check through SPSS Package. She found that there's no important distinction within the preference for investment. The hypothesis was rejected, because the expected frequency was but zero.05. She found that the notice levels of fund among the investors square measure terribly low as a result of the solely have the partial information that stops them from finance in radio frequency.

Research Gap

In this paper, the investigator has given varied literature associated with the study space. From the higher than literature review, it can be seen that studies are created earlier for Investors’ Awareness, Perception, Investment Avenues, Investment Pattern, Behaviour and Investment call for workers in data Technology sector, Government workers, personal workers, Salaried category, girls workers and foreign investors. Also, studies were ready concerning IT professionals towards their preference for investment. however no comprehensive analysis has been done up to now in respect of IT professionals particularly for his or her investment awareness, investment information, investment activities, investment decisions, investment risk angle, investment call, investment issues and investment behaviour. thus gift analysis titled “A Study on Investment Behaviour among data Technology Professionals in Tamilnadu” was preoccupied.

Research Methodology

The analysis methodology could be scientific and systematic thanks to solve analysis issues. The analysis methodology deals with analysis ways and takes into thought the logic behind the techniques. In total, the analysis methodology of the study includes analysis style, sampling framework, information assortment, the framework of research and limitations.

Research style of the Study

Research style is that the abstract structure at intervals that the analysis conducted. It’s a blueprint for the gathering, management and analysis of the information. The analysis style within the gift study is descriptive since it describes the phenomena of investment behaviour among data technology professionals in Tamilnadu. Aside from this, the current study has personal objectives and pre-determined methodology. It’s strictly descriptive.

Sampling Framework of the Study

The sampling framework of the study consists of the determination of sample size and sampling procedure of the study.

Sources of information

The current study supported primary knowledge. The secondary knowledge collected from the books, journals, magazines and websites were accustomed kind the abstract framework of the analysis and also the review of the literature. the first knowledge was collected in person with the assistance of a structured form.

Framework of study

The analysis of information in analysis plays a crucial role within the sense that it interprets, justifies and proves the hypothesis and also the proposals. The delicate mix of analytical tools used has a bearing on the findings of the analysis, thereby creating it extremely objective and scientific. During this context, the tools for analysis have justly chosen as follows.

• Chi-Square check

• T-Test

• Analysis of Variance (ANOVA)

• Multiple multivariate analysis

Limitations of the Study

The current study subjected to the subsequent limitations:

• The gift study includes data technology professionals in Tamilnadu.

• The answers given by the respondents towards investment behaviour could also be full of personal judgment.

• The aspects of investment awareness or attainment, investment data, investment activities, investment selections, investment risk angle, investment call, investment issues and investment behaviour have measured with the assistance of the variables drawn from previous studies.

• All the informative variables have measured by Likert 5 points scale.

Association between Level of Investment Behaviour with reference to Demographic profile of the knowledge Technology Professionals

Table 1 shows the Chi-square worth and P worth.

H0: there's no association between Level of Investment Behaviour and Gender.

Since P worth is a smaller amount than zero.05, the null hypothesis is rejected at a five % level of significance. Hence it will be all over that there's associate degree association between Level of Investment Behaviour and Gender.

Table 2 shows the Chi-square worth and P worth.

H0: there's no association between Level of Investment Behaviour and Age.

Since P worth is quite zero.05, the null hypothesis is accepted. Hence it will be all over that there's no association between Level of Investment Behaviour and Age.

Table 3 shows the Chi-square worth and P worth.

H0: there's no association between Level of Investment Behaviour and legal status.

Since P worth is quite zero.05, the null hypothesis is accepted. Hence it will be all over that there's no association between Level of Investment Behaviour and legal status.

Table 4 shows the Chi-square worth and P worth.

H0: there's no association between Level of Investment Behavior and Graduation.

Since P worth is a smaller amount than zero.01, the null hypothesis is rejected at 1 Chronicles level of significance. Hence it will be all over that there's associate degree association between Level of Investment Behavior and Graduation.

Table 5 shows the Chi-square worth and P worth.

H0: there's no association between Level of Investment Behavior and Designation.

Since P worth is a smaller amount than zero.05, the null hypothesis is rejected at a five % level of significance. Hence it will be all over that there's associate degree association between Level of Investment Behavior and Designation.

Table 6 shows the Chi-square worth and P worth.

H0: there's no association between Level of Investment Behavior and Years of expertise.

Since P worth is a smaller amount than zero.05, the null hypothesis is rejected at a five % level of significance. Hence it will be all over that there's associate degree association between Level of Investment Behavior and Years of expertise.

Table 7 shows the Chi-square worth and P worth.

H0: there's no association between Level of Investment Behavior and Monthly financial gain.

Since P worth is a smaller amount than zero.01, the null hypothesis is rejected at 1 Chronicles level of significance. Hence it will be all over that there's associate degree association between Level of Investment Behavior and Monthly financial gain.

Table 8 shows the Chi-square worth and P worth.

H0: there's no association between Level of Investment Behavior and Family Size.

Since P worth is quite zero.05, the null hypothesis is accepted. Hence it will be all over that there's no association between Level of Investment Behavior and Family Size.

Impact of varied Dimensions of Investment on Investment Behavior

Regression is that the determination of a applied math relationship between 2 or a lot of variables. In statistical regression, 2 variables ar used. One variable (independent) is that the reason for the behavior of another one (dependent). once there ar quite 2 freelance variables, the analysis regarding relationship is thought as multiple correlations, and also the equation describing such a relationship is named because the multivariate analysis equation.

{Regression associate degree alysis|multivariate analysis} is bothered with the derivation of an applicable mathematical expression comes for locating values of a variable on the premise of the experimental variable. it's therefore designed to look at the connection of a variable Y to a collection of alternative variables X1, X2, X3………….Xn. the foremost normally used equation in Y=b1 X1 + b2 X2 +……+ bnXn + b0

Here Y is that the variable, that is to be found. X1, X2, … and Xn ar the glorious variables with that predictions are to be created and b1, b2,….bn ar constant of the variables.

During this study, the variable is Investment behavior; freelance variables ar Investment they're Investment awareness, Investment data, Investment activities, Investment selections, Investment risk angle, Investment call and Investment issues are mentioned as follows:

• Dependent Variable – Investment behaviour (y)

• Independent Variable

i. Investment awareness (X1)

ii. Investment data (X2)

iii. Investment activities (X3)

iv. Investment selections (X4)

v. Investment risk angle (X5)

vi. Investment call (X6)

vii. Investment issues (X7)

• Multiple R-value: zero.884

• R sq. value: zero.721

• Adjusted R sq. value: zero.710

• F value: 261.873

• P value: zero.000

The multiple regressions constant is zero.884 measures the degree of relationship between the particular values and also the foretold values of the investment behavior. As a result of the anticipated values ar obtained as a linear combination of Investment awareness (X1), Investment data (X2), Investment activities (X3), Investment selections (X4), Investment risk angle (X5), Investment call (X6) and Investment issues (X7) the constant worth of zero.884 indicates that the connection between investment behavior and also the seven freelance variables is kind of sturdy and positive.

The constant of Determination R-square measures the goodness-of-fit of the calculable Sample Regression Plane (SRP) in terms of the proportion of the variation within the dependent variables explained by the fitted sample regression of y on x. Thus, the worth of R sq. is zero.721 merely implies that concerning seventy two.1% of the variation in investment behavior is explained and R sq. worth is critical at 1 Chronicles level.

The multivariate analysis equation is

Y= 3.042 + 0.115 X1 + 0.066 X2 + 0.078 X3 + 0.083 X4 + 0.063 X5 + 0.113 X6 + 0.228 X7

Here the constant of X1 is zero.115 represents the partial result of Investment awareness on investment behavior, holding the opposite variables as constant. The calculable positive sign implies that such result is positive that investment behavior would increase by zero.115 for each unit increase in Investment awareness, and this constant worth is critical at 1 Chronicles level. The constant of X2 is zero.066 represents the partial result of Investment data on investment behavior, holding the opposite variables as constant. The calculable positive sign implies that such result is positive that investment behavior would increase by zero.066 for each unit increase in Investment data, and this constant worth is critical at five-hitter level. The constant of X3 is zero.078 represents the partial result of Investment activities on investment behaviour, holding the opposite variables as constant. The calculable positive sign implies that such result is positive that investment behaviour would increase by zero.078 for each unit increase in Investment activities, and this constant worth is critical at 1 Chronicles level. The constant of X4 is zero.083 represents the partial result of Investment selections on investment behaviour, holding the opposite variables as constant. The calculable positive sign implies that such result is positive that investment behaviour would increase by zero.083 for each unit increase in Investment selections, and this constant worth is critical at 1 Chronicles level. The constant of X5 is zero.063 represents the partial result of Investment risk angle on investment behaviour, holding the opposite variables as constant. The calculable positive sign implies that such result is positive that investment behaviour would increase by zero.063 for each unit increase in Investment risk angle, and this constant worth isn't vital at 1 Chronicles level. The constant of X6 is zero.113 represents the partial result of Investment call on investment behaviour, holding the opposite variables as constant. The calculable positive sign implies that such result is positive that investment behaviour would increase by zero.113 for each unit increase in Investment call, and this constant worth is critical at 1 Chronicles level. The constant of X7 is zero.228 represents the partial result of Investment issues on investment behaviour, holding the opposite variables as constant. The calculable positive sign implies that such result is positive that investment behaviour would increase by zero.228 for each unit increase in Investment drawback, and this constant worth is critical at 1 Chronicles level.

Based on the standardized constant, Investment issues (0.334), Investment awareness (0.147), Investment selections (0.121), Investment call (0.113) and Investment activities (0.104) is that the most vital factors to extract investment behaviour, followed by Investment data (0.093) and Investment risk angle (0.070).

Findings

Association between Level of Investment Behaviour regarding Demographic profile of the knowledge Technology Professionals

i. There's associate degree association between Level of Investment Behaviour and Gender.

ii. There's no association between Level of Investment Behaviour and Age.

iii. There's no association between Level of Investment Behaviour and legal status.

iv. There's associate degree association between Level of Investment Behaviour and Graduation.

v. There's associate degree association between Level of Investment Behaviour and Designation.

vi. There's associate degree association between Level of Investment Behaviour and Years of expertise.

vii. There's associate degree association between Level of Investment Behaviour and Monthly financial gain.

viii. There's no association between Level of Investment Behaviour and Family Size.

Impact of varied Dimensions of Investment on Investment Behaviour

Based on the standardized constant, Investment issues (0.334), Investment awareness (0.147), Investment selections (0.121), Investment call (0.113) and Investment activities (0.104) is that the most vital factors to extract investment behaviour, followed by Investment data (0.093) and Investment risk angle (0.070) (Table 9).

Suggestions The following suggestions may be made of the findings of the study. 1. Investment is undertaken within the expectation of a comeback that is in proportion to the danger the capitalist assumes. 2. Favorable activities about investment consist of the acquisition of assets, their maintenance and therefore the liquidation of assets. 3. A decent investment market ought to facilitate these investments activities and foster growth. 4. Awareness may be given to professionals regarding some investment plans like National Saving Certificate, oldster saving theme, open-end investment company, Systematic investment set up etc. 5. Motivation ought to be to extend savings. 6. Investment risk should be decreased, which will, in turn, increase the investment by aged professionals. 7. Awareness of varied investment avenues should be created to the professionals with their relative deserves and demerits. 8. The data technology professionals should be educated regarding the varied avenues of investment. 9. Additional coaching is required for data technology professionals to create investments in varied avenues. They need to choose a consultation before finance. 10. Additional tax concessions should be introduced by the govt for increasing the investments in varied avenues, particularly to the data technology professionals. 11. The procedural formalities concerning bound investments should be reduced. 12. Investment follow is high in families having 2 financial gain earners. Therefore in families wherever financial gain earners square measure over 2, they need to consult monetary advisors before finance. 13. Capitalist tips should be created identified to each data technology professionals through their agents.

Conclusion

Investment may be a terribly basic demand for every. It plays a significant appear education, health, snug living, making wealth, meeting emergencies, organizing major events in one’s life. Good investment designing can take someone cross through the crisis amount. Investing, for future profit, on one facet is associate angle associated defrayal and fulfilling the immediate needs is additionally an angle within the different finish. However the thought of investment can continually yield future returns. Finance is additionally tough as a result of we've to create heaps of selections differentiating between wants and needs. Food, clothing, house, medicines, and education: these square measure wants. Eating out, happening vacations, looking at movies - these square measure needs and will be reduced to stay aside cash for finance, as a result of it's really easy to offer in to those temptations, finance is such a challenge for individuals. The study Investment Behavior among data technology professionals in Tamilnadu is principally specializing in the investment behavior of the professionals within the data Technology business. It’s conjointly concentrating on the investment choices they're selecting to take a position their surplus fund and their awareness regarding these investment alternatives. Scope for any analysis the study has been conducted in Tamilnadu solely thanks to personal limitations and conjointly a limitation of your time. So, the result cannot be generalized for different states. This same study may be conducted for varied different states likewise. Extended analysis work may be followed to review the issues of investors.

References

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2. Parimalakanthi K and Ashok Kumar M. “A Study on Investment preference and behavior of individual investors in Coimbatore City.” Bonfiring Int J Bus Eng and Manag Sci 5 (2015): 170-174.
3. Sasirekha P and Jerinabi U. “Investors’ angle towards investment and risk.” Indian J Appl Anal 5 (2015): 359-361.
4. Sharma P and Agrawal P. “Investors perception associated angle towards open-end investment company as an investment option.” J Bus Manag scientific discipline Anal 4 (2015): 115- 119.
5. Pritimane S. “A Study of investor’s perception towards Mutual Funds within the town of Aurangabad.” SIJ Transactions on Indus Monetary Bus Manag 4(2016): 30-38.