19.vol - 01 - Issue - 05 K C John Sasi Kumar

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International Journal of Multidisciplinary Research Vol.1 Issue 5, September 2011, ISSN 2231 5780
A STUDY ON SOCIO-ECONOMIC CHARACTERISTICS OF INDIAN SHARE MARKET INVESTORS [WITH SPECIAL REFERENCE TO COIMBATORE]
K.C.JOHN SASI KUMAR*; DR.P.VIKKRAMAN**
*PhD Research Scholar, Velammal College of Engg.& Tech., Anna University, Coimbatore - 47, Madurai - 9. **Professor, School of Management Studies, Anna University, Coimbatore - 9.
ABSTRACT This paper while discussing the characteristics of the Indian individual investors along makes an attempt to discover the relationship between a dependent variable like Risk Tolerance level and independent variables such as Age, Gender of an individual investor on the basis of the survey. Indian investors are high income, well educated, salaried, and independent in making investment decisions and conservative investors. The research design constitutes the blue print for the data collection, measurement and analysis of data. The descriptive research design has been employed for the present study. It is the overall operational pattern or framework of the research that stipulates what information is to be collected from which sources by what procedures. The results indicate that majority of the investors are regular traders. KEYWORDS: Investors, Share market, CSE.
INTRODUCTION There is an extraordinary growth in the investment sector both in terms of volume and number of investors in India over the past decade due to the deregulation of Indian financial sector. There is a spurt of various investment products with numerous options to lure the investors to invest. The commodity market is getting momentum, the reality market is booming, the Gold market is at its peak, the capital market reforms also boosted the investors to invest huge fund in share market, the advancement in technology also heighten the investment opportunities to the small and medium investors at present. The number of regional stock exchanges in India has increased to 22. Equity shares as an investment option has come a long way from the mere higher dividend expectations to the greater capital appreciation. Price discovery through Book Building process has given tremendous boost to the Initial public offers (IPO) and further public offers (FPO). The structure of the Indian investment market -Investor, Issuer, intermediaries and Regulator, has strengthened by the SEBI Act and their continuous monitoring and various regulatory reforms. The pattern and dimension of investment has changed over time. The investment Scenario of Indian Financial market wears a new look, with a overwhelming response
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not only from the Indian investors but also from foreign institutional investors. The quality of ever changing regulations, the payment guarantee by the depositories, Productive involvement of the Government, vibrant intermediaries and up to date and technologically advanced exchanges, all have instilled a sense of confidence among the investors in India. A stock market or equity market is a public entity for the trading of company stock (shares) and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded privately. The size of the world stock market was estimated at about $36.6 trillion at the start of October 2008. The total world derivatives market has been estimated at about $791 trillion face or nominal value 11 times the size of the entire world economy. The value of the derivatives market, because it is stated in terms of notional values, cannot be directly compared to a stock or a fixed income security, which traditionally refers to an actual value. Moreover, the vast majority of derivatives 'cancel' each other out (i.e., a derivative 'bet' on an event occurring is offset by a comparable derivative 'bet' on the event not occurring). Many such relatively illiquid securities are valued as marked to model, rather than an actual market price. Participants in the stock market range from small individual stock investors to large hedge fund traders, who can be based anywhere. Their orders usually end up with a professional at a stock exchange, who executes the order. Some exchanges are physical locations where transactions are carried out on a trading floor, by a method known as open outcry. This type of auction is used in stock exchanges and commodity exchanges where traders may enter "verbal" bids and offers simultaneously. The other type of stock exchange is a virtual kind, composed of a network of computers where trades are made electronically via traders. Actual trades are based on an auction market model where a potential buyer bids a specific price for a stock and a potential seller asks a specific price for the stock. (Buying or selling at market means you will accept any ask price or bid price for the stock, respectively.) When the bid and ask prices match, a sale takes place, on a first-come-first-served basis if there are multiple bidders or askers at a given price. The purpose of a stock exchange is to facilitate the exchange of securities between buyers and sellers, thus providing a marketplace (virtual or real). The exchanges provide real-time trading information on the listed securities, facilitating price discovery.
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This paper while discussing the characteristics of the Indian individual investors along makes an attempt to discover the relationship between a dependent variable like Risk Tolerance level and independent variables such as Age, Gender of an individual investor on the basis of the survey. Indian investors are high income, well educated, salaried, and independent in making investment decisions and conservative investors. REVIEW OF LITERATURE Horvath and Zuckerman (1993) suggested that ones biological, demographic and socioeconomic characteristics; together with his/her psychological makeup affects ones risk tolerance level. Malkiel (1996) suggested that an individuals risk tolerance is related to his/her
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household situation, lifecycle stage and subjective factors. Mittra (1995) discussed factors that were related to individuals risk tolerance, which included years until retirement, knowledge sophistication, income and net worth. Literature suggests that major research in the area of investors behavior has been done by behavioral scientists such as Weber (1999), Shiller (2000) and Shefrin (2000). Shiller (2000) who strongly advocated that stock market is governed by the market information which directly affects the behavior of the investors. Several studies have brought out the relationship between the demographics such as Gender, Age and risk tolerance level of individuals. Of this the relationship between Age and risk tolerance level has attracted much attention. Guiso, Jappelli and Terlizzese (1996), Bajtelsmit and VenDerhei (1997), Powell and Ansic (1997), Jianakoplos and Bernasek (1998), Hariharan, Chapman and Domain (2000), Hartog, Ferrer-I-Carbonell and Jonker (2002) concluded that males are more risk tolerant than females. Wallach and Kogan (1961) were perhaps the first to study the relationship between risk tolerance and age. Cohn, Lewellen et.al found risky asset fraction of the portfolio to be positively correlated with income and age and negatively correlated with marital status. Morin and Suarez found evidence of increasing risk aversion with age although the households appear to become less risk averse as their wealth increases. Yoo (1994) found that the change in the risky asset holdings were not uniform. He found individuals to increase their investments in risky assets throughout their working life time, and decrease their risk exposure once they retire. Lewellen et.al while identifying the systematic patterns of investment behavior exhibited by individuals found age and expressed risk taking propensities to be inversely related with major shifts taking place at age 55 and beyond. Indian studies on individual investors' were mostly confined to studies on share ownership, except a few. The RBI's survey of ownership of shares and L.C. Gupta's enquiry into the ownership pattern of Industrial shares in India were a few in this direction. The NCAER's studies brought out the frequent form of savings of individuals and the components of financial investments of rural households. The Indian Shareowners Survey brought out a volley of information on shareowners. Rajarajan V (1997, 1998, 2000 and 2003) classified investors on the basis of their demographics. He has also brought out the investors' characteristics on the basis of their investment size. He found that the percentage of risky assets to total financial investments had declined as the investor moves up through various stages in life cycle. Also investors' lifestyles based characteristics has been identified. The above discussion presents a detailed picture about the various facets of risk studies that have taken place in the past. In the present study, the findings of many of these studies are verified and updated. STUDY AREA Coimbatore District is one of the more affluent and industrially advanced districts of the state of Tamil Nadu in India. It has the highest GDP among the districts of Tamil Nadu, even ahead of the state capital Chennai. The headquarters of the district is Coimbatore city, the second
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largest city in Tamil Nadu, which is highest revenue yielding district in the state, next to Chennai. It had a population of 2916620 as of 2001, with a decennial growth rate of 21.76 per cent. The literacy rate of the district is 69 per cent. Textiles are the major industry in the Coimbatore district; it is one of the important textile hubs of India. Coimbatore is also called the "Manchester of South India" because it houses many textile industries. In the rain shadow region of the Western Ghats, Coimbatore enjoys a very pleasant climate all the year round, aided by the fresh breeze that flows through the 25 kms long Palakkad gap. The rich black soil of the region has contributed to Coimbatore's flourishing agriculture industry and it is in fact the successful growth of cotton that served as a foundation for the establishment of its famous textile industry. The result has been a strong economy and a reputation as one of the greatest industrial cities in South India. There are more than 25000 small, medium, large sale industries and textile mill. Coimbatore is also famous for the manufacture of motor pump sets and varied engineering goods. There are many electric pump manufacturing companies in and around Coimbatore, such as Deccan, CRI, Texmo, KSB, Sharp. Coimbatore also houses some auto component manufacturing brands, such as Roots, Pricol and LGB. German auto component major Robert Bosch started their Research and Development facility in Coimbatore. Coimbatore also houses many Information Technology and Business Process Outsourcing companies, such as Cognizant Technology Solutions and Perot Systems. COIMBATORE STOCK EXCHANGE LIMITED The Coimbatore Stock Exchange Limited, (CSX) is located in Coimbatore, Tamilnadu, India. It is the youngest stock exchange in India. It was founded by K.G. Balakrishnan. The Exchange has successfully implemented Screen Based Trading (SBT) system and commenced its operations with effect from 9th October, 1996. The system is capable of handling 25000 trades per day. All the members of the Exchange are connected in a Local Area Network (LAN). The system can be expanded to handle up to 400 members. The SBT system has been interfaced with the existing settlement system. The margins are monitored online on the SBT system. Each member is given a computer terminal, telephone connections which are accommodated in a cubicle. The communication facilities include the terminals of Reuters and Knight Ridder constantly updating economic and capital market related news. CSX is the youngest Stock Exchange in India. CSX was founded by K.G.Balakrishnan (founder president) and his group and is now governed by the Governing Board consisting of the member brokers. Currently the segregation of Coimbatore Stock Exchange is as follows: Individual Members - 136
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Corporate Members - 57 Chartered Accountants/ Company Secretaries - 40 MBAs - 17 Engineers - 14 Cost Accountants - 10 Post Graduates - 25
Coimbatore Stock Exchange Facilities Coimbatore Stock Exchange provides well equipped facilities to its members and investors. The facilities are library, canteen, spacious parking area, STD and Internet booths, Bank with security lockers, conference hall, gymnasium and other necessary services. In near future, the exchange is planning for the implementation of Interconnected Stock Exchange to bring more business to the centre. Apart from the infrastructure, the exchange is planning for the set up of a Training Academy, Software Development, Research Centre and other useful activities. It also has a plan to set up Additional Trading Floor (ATF) which will bring more traffic to the CSE building. Wide Area Networks through VSATs are also in the planning card. RESEARCH METHODOLOGY The research design constitutes the blue print for the data collection, measurement and analysis of data. The descriptive research design has been employed for the present study. It is the overall operational pattern or framework of the research that stipulates what information is to be collected from which sources by what procedures. Among the regional stock exchanges in India, the Coimbatore has been purposively selected for the present study. The share brokers and investors have been selected by adopting stratified random sampling technique through pre-tested, structured interview schedule through direct interview method. The data and information have been collected from 150 share brokers and 450 investors, thus, the total sample size for the present study is 600. The data and information collected from share brokers and investors pertains to the year 2009-2011. DATA ANALYSIS The socio-economic characteristics of investors were analyzed and the results are discussed in the following sub-headings.
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GENDER The distribution of gender of investors was analyzed and the results are presented in Table1 TABLE-1 DISTRIBUTION OF GENDER OF INVESTORS Gender Male Female Total Frequency 351 99 450 Per Cent 78.00 22.00 100.00 0.01 0.02 Chi-Square Value Sig
Source: Primary & Computed Data From the above table, the results show that about 78.00 per cent are males while the rest of 22.00 per cent are females. The chi-square value of 0.01 is significant at five per cent level indicating that there is a significant difference among the gender of investors. The distribution of gender of investors is graphically presented in Figure-1. DISTRIBUTION OF AGE OF THE INVESTORS The distribution of age of investors was analyzed and the results are presented in Table .2. TABLE-.2. DISTRIBUTION OF AGE OF INVESTORS Age(Years) <30 31-40 41-50 >50 Total Source: Primary & Computed Data From the results, it is observed that about 61.33 per cent of investors belong to the age group of 31-40 years followed by 41-50 years (18.00 per cent), less than 30 years (15.56 per cent) and more than 50 years (5.11 per cent). Frequency 70 276 81 23 450 Per Cent 15.56 61.33 18.00 5.11 100.00
Chi-Square Value
Sig
0.03
0.02
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The chi-square value of 0.03 is significant at five per cent level indicating that there is a significant difference among the age group of investors and the same is graphically shown in Figure-2.
EDUCATIONAL QUALIFICATION OF THE INVESTORS The distribution of educational qualification of investors was analyzed and the results are presented in Table 3. TABLE-3. DISTRIBUTION OF EDUCATIONAL QUALIFICATION OF INVESTORS Educational Qualification Frequency Per Cent Chi Square Value Sig
Secondary Higher Secondary Under Graduation Post Graduation Doctorate Total Source: Primary & Computed Data
21 47 145 219 18 450
4.70 10.40 32.20 48.70 4.00 100.00 0.04 0.03

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From the results, it is apparent that about majority of investors (48.70 per cent) are post graduates followed by under graduation (32.20 per cent), higher secondary (10.40 per cent), secondary (4.70 per cent) and doctorate (4.00 per cent). The chi-square value of 0.04 is significant at five per cent level indicating that there is a significant difference among the educational qualification of investors and the same is depicted in Figure-3.
OCCUPATION OF THE RESPONDENTS The distribution of occupation of investors was analyzed and the results are presented in Table .4.
The results indicate that about 14.70 per cent of investors are having occupation in banking followed by State Government (12.70 per cent), business (12.40 per cent), telecom (10.40 per cent) and teaching (10.20 per cent). The results also show that the occupation of investors is varying from Central Government (7.60 per cent) to doctor (3.10 per cent). The rest of the investors are having the occupation of insurance and real estate (7.30 per cent), accountant (5.10 per cent), auditor (4.90 per cent) and lawyer (4.20 per cent)
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TABLE-4. DISTRIBUTION OF OCCUPATION OF INVESTORS Occupation Accountant Lawyer Auditor Banking Business Central Government Doctor Insurance Teaching Real Estate State Government Telecom Total Source: Primary & Computed Data The chi-square value of 0.11 is significant at five per cent level indicating that there is a significant difference among occupation of investors. The distribution of occupation of investors is depicted in Figure-4. Frequency 23 19 22 66 56 34 14 33 46 33 57 47 450 Per Cent 5.10 4.20 4.90 14.70 12.40 7.60 3.10 7.30 10.20 7.30 12.70 10.40 100.00 0.11 0.03 Chi-Square Value Sig
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MARITAL STATUS The distribution of marital status of investors was analyzed and the results are presented in Table 5. TABLE-5. DISTRIBUTION OF MARITAL STATUS OF INVESTORS Marital Status Married Unmarried Total Source: Primary & Computed Data The results show that majority of the investors (89.60 per cent) are married while the rest of 10.40 per cent of investors are unmarried. The chi-square value of 0.02 is significant at five per cent level indicating that there is a significant difference among the marital status of investors and the same is graphically presented in Figure-5. Frequency 403 47 450 Per Cent 89.60 10.40 100.00 0.02 0.03
Chi Square Value
Sig
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ANNUAL INCOME The distribution of annual income of investors was analyzed and the results are presented in Table 6. TABLE-6. DISTRIBUTION OF ANNUAL INCOME OF INVESTORS Annual Income (Rs in Lakhs) < 2.00 2.01-4.00 4.01-6.00 > 6.00 Total Source: Primary & Computed Data 17 196 200 37 450 3.78
Frequency
Per Cent
F- Value
Sig
43.56 44.44 8.22 100.00 11.542 0.03
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From the results, it is apparent that about 44.44 per cent of investors belong to the income group of Rs. 4.01-6.00 lakhs followed by Rs.2.01-4.00 lakhs (43.56 per cent), more than six lakhs (8.22 per cent) and less than two lakhs (3.78 per cent). The F- value of 11.542 is significant at five per cent level indicating that there is a significant difference among annual income of investors and the same is graphically depicted in Figure-6.
ANNUAL FAMILY INCOME The distribution of annual family income of investors was analyzed and the results are presented in Table 7. TABLE-7. DISTRIBUTION OF ANNUAL FAMILY INCOME OF INVESTORS Annual Family Income (Rs in Lakhs)
Frequency
Per Cent
F- Value
Sig
< 3.00 3.01-5.00 5.01-7.00 > 7.00 Total Source: Primary & Computed Data
34 200 192 24 450
7.56 44.44 42.67 5.33 100.00 10.984 0.02
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From the results, it is clear that about 44.44 per cent of investors belong to the annual family income group of Rs. 3.01-5.00 lakhs followed by Rs.5.01-7.00 lakhs (42.67 per cent), less than three lakhs (7.56 per cent) and more than seven lakhs (5.33 per cent). The F- value of 10.984 is significant at five per cent level indicating that there is a significant difference among annual family income of investors and the same is graphically shown in Figure-7.
FAMILY SIZE The distribution of family size of investors was analyzed and the results are presented in Table 5.1.8. TABLE-8. DISTRIBUTION OF FAMILY SIZE OF INVESTORS Family Size Three Four Five Six Seven Total Source: Primary & Computed Data Frequency 21 128 188 94 19 450 Per Cent 4.70 28.40 41.80 20.90 4.20 100.00 11.986 0.04
F- Value
Sig
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The results show that about 41.80 per cent of investors belong to the family size of five followed by four (28. 40 per cent), six (20.90 per cent), three (4.70 per cent) and seven (4.20 per cent). The F-value of 11.986 is significant at five per cent level indicating that there is a significant difference among the family size of investors and the same is graphically depicted in Figure-8.
NATIVE AREA The distribution of native area of investors was analyzed and the results are presented in Table 5.1.9.
TABLE-9. DISTRIBUTION OF NATIVE AREA OF INVESTORS Native Area Rural Urban Total Source: Primary & Computed Data Frequency 213 237 450 Per Cent 47.30 52.70 100.00 0.02 0.03 Chi Square Value Sig
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The results show that majority of the investors (52.70 per cent) belong to urban area while the rest of 47.30 per cent of investors belong to rural area. The chi-square value of 0.02 is significant at five per cent level indicating that there is a significant difference among native area of investors and the same is graphically presented in Figure-9.
EXPERIENCE IN SHARE MARKET The distribution of experience in share market of investors was analyzed and the results are presented in Table 10. TABLE-10. DISTRIBUTION OF EXPERIENCE IN SHARE MARKET OF INVESTORS Experience in Share Market Up to 1 year 1 to 3 year 3 to 5 year Above 5 year Total Source: Primary & Computed Data
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Frequency 22 154 245 29 450
Per Cent 4.90 34.22 54.44 6.44 100.00
Chi-Square Value
Sig
0.03
0.02
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The results indicate that about 54.44 per cent of investors have the experience 3 to 5 years in share market followed by 1 to 3 years (34.22 per cent), above 5 years (6.44 per cent) and up to 1 year (4.90 per cent). The chi-square value of 0.03 is significant at five per cent level indicating that there is a significant difference among experience in share market of investors and the same is graphically shown in Figure-10.
INVESTMENT EXPERIENCE The distribution of investment experience of investors was analyzed and the results are presented in Table 11. TABLE-11. DISTRIBUTION OF INVESTMENT EXPERIENCE OF INVESTORS Investment Experience Up to 1 year 1 to 3 year 3 to 5 year Above 5 year Total Source: Primary & Computed Data Frequency 37 186 191 36 450 Per Cent 8.22 41.33 42.45 8.00 100.00 0.03 0.02
Chi-Square Value
Sig
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The results show that about 42.45 per cent of investors have the investment experience of 3 to 5 years followed by 1 to 3 years (41.33 per cent), up to 1 year (8.22 per cent) and above 5 years (8.00 per cent). The chi-square value of 0.03 is significant at five per cent level indicating that there is a significant difference among investment experience of investors and the same is graphically shown in Figure-11.
NATURE OF INVESTMENT The distribution of nature investment of investors was analyzed and the results are presented in Table 12.
The results indicate that about 56.90 per cent of investors are regular traders followed by investor in both primary and secondary market (12.70 per cent), regular investor (11.30 per cent), occasional trader (7.60 per cent), occasional investor (5.60 per cent), investor in primary market only (5.30 per cent) and investor in secondary market (0.70 per cent). TABLE-12. DISTRIBUTION OF NATURE INVESTMENT OF INVESTORS Nature of Investment Regular Trader Frequency 256 Per Cent 56.90 Chi-Square Value Sig
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Regular Investor Occasional Trader Occasional Investor Investor in Primary Market Only Investor in Secondary Market Only Investor in both Primary and Secondary Market Total Source: Primary & Computed Data
51 34 25 24 3 57 450
11.30 7.60 5.60 5.30 0.70 12.70 100.00 0.06 0.03
The chi-square value of 0.06 is significant at five per cent level indicating that there is a significant difference among nature of investment of investors and the same is graphically shown in Figure-12.
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FINDINGS The results show that about 78.00 per cent are males while the rest of 22.00 per cent are females. It is observed that about 61.33 per cent of investors belong to the age group of 31-40 years followed by 41-50 years (18.00 per cent), less than 30 years (15.56 per cent) and more than 50 years (5.11 per cent). The majority of investors (48.70 per cent) are post graduates followed by under graduation (32.20 per cent), higher secondary (10.40 per cent), secondary (4.70 per cent) and doctorate (4.00 per cent). The occupation of investors is varying from Central Government (7.60 per cent) to doctor (3.10 per cent). The rest of the investors are having the occupation of insurance and real estate (7.30 per cent), accountant (5.10 per cent), auditor (4.90 per cent) and lawyer (4.20 per cent). The majority of the investors (89.60 per cent) are married while the rest of 10.40 per cent of investors are unmarried. It is apparent that about 44.44 per cent of investors belong to the income group of Rs. 4.01-6.00 lakhs followed by Rs.2.01-4.00 lakhs (43.56 per cent), more than six lakhs (8.22 per cent) and less than two lakhs (3.78 per cent). It is clear that about 44.44 per cent of investors belong to the annual family income group of Rs. 3.01-5.00 lakhs followed by Rs.5.01-7.00 lakhs (42.67 per cent), less than three lakhs (7.56 per cent) and more than seven lakhs (5.33 per cent). The results show that about 41.80 per cent of investors belong to the family size of five followed by four (28. 40 per cent), six (20.90 per cent), three (4.70 per cent) and seven (4.20 per cent). The results indicate that majority of the investors (52.70 per cent) belong to urban area while the rest of 47.30 per cent of investors belong to rural area. The results indicate that about 54.44 per cent of investors have the experience 3 to 5 years in share market followed by 1 to 3 years (34.22 per cent), above 5 years (6.44 per cent) and up to 1 year (4.90 per cent). The results show that about 42.45 per cent of investors have the investment experience of 3 to 5 years followed by 1 to 3 years (41.33 per cent), up to 1 year (8.22 per cent) and above 5 years (8.00 per cent). The results indicate that about 56.90 per cent of investors are regular traders followed by investor in both primary and secondary market (12.70 per cent), regular investor (11.30 per cent), occasional trader (7.60 per cent), occasional investor (5.60 per cent), investor in primary market only (5.30 per cent) and investor in secondary market (0.70 per cent). CONCLUSION The Coimbatore Stock Exchange Limited, (CSX) is the youngest stock exchange in India. The Exchange has successfully implemented Screen Based Trading (SBT) and commenced its operations with effect from 9 th October, 1996. It is observed that more number of investors is
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interested to enter in to the stock market due to fear and risk aversion they are not ready to enter in to the capital market. The government and regional stock exchanges has to motivate the small and medium investors to invest so that the unutilized money will come to the market that consequently develop the economy of the nation. REFERENCE 1. Admati, Anat and Paul Pfleiderer, 1997, Does it All Add Up? Benchmarks and the Compensation of Active Portfolio Managers, Journal of Business, Vol. 70, pp. 32350. 2. Arrow, K. J. (1971). Essays in the theory of risk-bearing. Chicago: Markham Publishing Co. 3. Bajtelsmit, V. L., & Bernasek, A. (1996). Why do women invest differently Than men? Financial Counseling and Planning, 7, 1-10. 4. Bajtelsmit, V. L., & Bernasek, A. &Jianakoplos, N. A. (1999). Gender differences in defined contribution pension decisions. Financila Services Review, 8(1), 1-10. 5. Barberis, N., A. Shleifer, and R. Vishny, 1998. A Model of Investor Sentiment, Journal of Financial Economics 49, 307-343. 6. Cohn, Richard A., W. G. Lewellen, R.C Lease and G. G Schlarbaum. (1975) Individual Investor Risk Aversion and Investment Portfolio Composition. Journal of Finance, Vol. 30, No.2, May 1975, pp.605-620. 7. Daniel, K., D. Hirshleifer and A. Subrahmanyam, 1998. Investor Psychology and Security Market under- and Overreactions, Journal of Finance 53, 1839 1886. 8. Daniel, K., D.Hirshliefer and S.H.Teoh, 2002, Investor Psychology in Capital Markets: Evidence And Policy Implication,Journal of Monetary Economics, v49, pp.139 209. 9. Froot, Kenneth A., and Emil A. Dabora, 1999. How are stock prices affected By the location of trade? Journal of Financial Economics 53, 189-216.
10. Guiso, L., Jappelli, T., & Terlizzese, D. (1996). Income risk, borrowing Constraints, and portfolio choice. American Economic Review. 86(1), 158-172. 11. Hanna, S. D., Gutter, M. S., & Fan, J. X. (2001). A measure of risk tolerance Based on economic theory. Financial Counseling and Planning, 12(2), 53-60. 12. Hariharan, G., Chapman, K. S., & Domain, D. L. (2000). Risk tolerance and asset allocations for investors nearing retirement. Financial Services Review, 9(2), 159-170. 13. Hinz, R. P., nccarthy, D. D., & Turner, J. A. (1997). Are women conservative Investors? Gender differences in participated-directed pension investments. In
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14. Micheal S. Gordon, Olivia S. Mitchell, and Marc M. Twinney (Eds.), Positioning Pensions for Twenty-Firt Century. Philadelphia: University of Pennsylvania Press. Pp 91103. 15. Horvath, P., & Zuckerman, M. (1993). Sensation seeking, risk appraisal and Risky behavior. Personality and Individual Differences, 14, 41-52. 16. James J. Choi, David Laibson, How Does the Internet Affect Trading? Evidence from Investor Behavior in 401(k) Plans, The Wharton School University 17. Malkiel, B. G. (1996). A random walk down Wall Street. New York: W. W. Norton & Co. 18. Maccrimmon, K. R. & Wehrung, D. A. (1986). Taking risks.New York: The Free Press. Mittra, S. (1995). Practicing financial planning: A complete guide For professionals. Michigan: Mittra & Associates. 19. Philip Kotler, Hermawan Kartjaya, S. David Young, Attracting Investors, Ed10, John Wiley & Sons, Inc., United States of America, 2004. 20. Rajarajan.V (1998) Stages in Life Cycle and Investment Pattern, The Indian Journal of Commerce, Vol.51, No. 2 & 3, April-September 1998, pp.27-36. 21. Rajarajan.V (2000) Investors Lifestyles and Investment Characteristics, Finance India, Vol. XIV, No. 2, June 2000, pp.465-478. 22. An Empirical Study of Indian Individual Rajarajan.V (2003) Investors Demographics and Risk Bearing Capacity, Finance India, Vol. XVII, No. 2, June 2003, pp.565-576. 23. Reserve Bank of India,(1965) Survey of Ownership of Shares in Joint Stock Companies as at the End of December 1965. Reserve Bank of India Bulletin, February 1968, pp. 137-151. 24. Robert A. Nagy and Robert W. Obenberger, Factors Influencing Individual Investor Behaviour, Financial Analysts Journal, July/August 1994.
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29. Yao, R., Gutter, M.S., & Hanna, S.D. (2005). The financial risk tolerance of Blacks, Hispanics and whites. Financial Counseling and Planning, 16 (1), 51- 62. 30. Yao, R. & Hanna, S.D. (2005). The effect of gender and marital status on Financial risk tolerance. Journal of Personal Finance, 4 (1), 66-85.
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ZENITH

21 47 145 219 18 450

4.70 10.40 32.20 48.70 4.00 100.00 0.04 0.03

Chi Square Value

43.56 44.44 8.22 100.00 11.542 0.03

34 200 192 24 450

7.56 44.44 42.67 5.33 100.00 10.984 0.02

Frequency 22 154 245 29 450

Per Cent 4.90 34.22 54.44 6.44 100.00

11.30 7.60 5.60 5.30 0.70 12.70 100.00 0.06 0.03

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