Capítulo 3. Cálculos de ejes
3.3 Eje intermedio
Analysis is the process of placing the data in the ordered form, combining them with the existing information and extracting the meaning from them. In other words, analysis is an answer to the question “what message is con- veyed by each group of data “. Data, which are otherwise raw facts and are unable to give a meaningful information. The raw data become information only when they are analyzed and when put in a meaningful form.
Interpretation is the process of relating various bits of information to other existing information. Interpretation attempts to answer “what relationship exists between the findings to the research objectives and hypothesis framed for the study in the beginning”.
Table 4.1 Age of Respondents
Age Group No. of Respondents Per cent
Below 25 30 15.0 26-35 58 29.0 36-45 43 21.5 46-55 37 18.5 Above 55 32 16.0 Total 200 100
(Source: Field survey)
Figure 4.1 Age of Respondents
0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% Below
25yrs 26-35 yrs 36-45 yrs 46-55 yrs Above55yrs 15.00%
29.00%
21.50%
18.50%
Interpretation:
From the above table it is very evident that majority of the respondents be- long to the age group of 25 – 35 years. Out of the total number of respond- ents, 58 of them belong to the age group of 25 -35 years, 43 of the respond- ents belong to the age group of 35 -45 years and 37 of them belong to the age group of 45-55 years, but only 32 of them belong to the age group above 55 years and 30 of the respondents is below 25years.
Out of the total number of respondents, 15.0 percent of the respondents be- long to the age group below 25 and 29.0 percent of the respondents belong to the age group of 25 – 35 years. 21.5 per cent of the respondents constitute the age group of 35-45 years, 18.5 per cent of them belong to 45- 55 years age group and 16 per cent of them belong to the age group of above 55 years.
So it is very clear that the most of the respondents belong to the age group of 25 – 35 years.
Table 4.2 Employment Status
Category No. of Re-
spondents Per cent
Salaried 129 64.8
Professional 21 10.5
Business 26 13.0
Others 23 11.5
Total 200 100
(Source: Field survey)
Figure 4.2 Employment Status
Salaried 65% Professional 10% Business 13% Others 12%
Interpretation:
Table 3.2 indicates that most of the respondents are from the working or employed class. The respondents were given four options to choose from: Salaried, Professional, Business and Others. Others here represent the retired and the homemakers who are investors.
Out of the 200 respondents, 129 of them form the salaried class, 26 of them belong to the business class, and 23 of them belong to the group ‘Others’, which includes retired and house wives. Only 21 of the respondents are from the professional class.
From the above pie chart, it is very clear that 64.8 per cent of the respond- ents were salaried, 10.5 per cent of them belong to the professional group, 13.0per cent of the respondents belong to the business class and 11.5 per cent of them are house makers or retired.
Therefore, from the above table and chart it is very clear that investments are not very prominent with the house makers but it’s very prominent among the salaried and the business class.
Table 4.3 Income wise Classification
Range of Income No. of Respondents Per
cent Below AED 1,000 51 25.5 AED 1,001 – AED 5,000 70 35.0 AED 5,001 – AED 10,000 47 23.5 Above AED 10,000 32 16.0 Total 200 100
(Source: Field survey)
Figure 4.3 Income wise Classification:
0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% Below AED
1000 AED 1001 -5000 AED 5001 -10000 Above 10000 25.50%
35.00%
23.50%
Interpretation:
The income of the respondents was also analyzed to find out the income lev- el of the respondents. There were given four options: below AED 1,000, Be- tween AED 1,000 and AED 5,000, between AED 5,000 and AED 10,000 and above AED 10,000.
Table 3.3 points out that Out of the total number of respondents, 70 of the respondents belong to the income group of AED 1000 – AED 5000. 51respondents belong to the first group, i.e., below AED 1000, and 47 of the respondents belong to the third group, i.e., income between AED 5000 – 10000 and only 16 of the respondents belong to the income group above AED 10,000.
From the above table and chart it is very clear that 25.5 per cent of the re- spondents were from the income group below AED 1,000 and 35.0 per cent of the respondents belong to the income group of AED 1000- 5000 but only 23.5 per cent of the respondents were of the income category of AED 5000- 10000 and only 16.0 per cent of the respondents belong to the income group of above AED 10000.
Table 4.4 Saving Objective:
Occupation No. of Respondents Per cent
Children’s Education 12 6
Growth Plan 72 36
Retirement Plan 48 24
Health Care Expenses 8 4
Home Purchases 40 20
Others 20 10
TOTAL 200 100
(Source: Field survey)
Figure 4.4 Saving Objective:
0% 10% 20% 30% 40% 6% 36% 24% 4% 20% 10%
Interpretation:
The respondents were asked about their savings objectives and they were given six options to choose from and they were Children’s Education, Growth Plan, Retirement Plan, Health Care Expenses, Home Purchase and Others. Here ‘Others’ represents investment made by investors for marriage purposes or for wealth maximization.
Table 3.4 indicates that Out of the total number of respondents, 72 of the re- spondents have growth plan as their savings objective, 48 of the respondents have retirement plan as their savings objective, 40 of them wanted to save to buy or build a home, 12 of the respondents wanted to save for children’s ed- ucation and 8 of the respondents had health care expenses of the future as their objective and 20 of them had different other objectives to save other than the above mentioned.
From the above figure, it can be clearly concluded that, majority of the re- spondents wanted to save for future growth prospects. i.e., 36 per cent of the respondents had growth as their savings objective, 24 per cent of them had retirement as their savings objective and only 4 per cent of the respondents
save for the purpose of dealing with the health care expenses they have to bear in future. 20 per cent of the respondents save for the purpose of buying
or building up a home and 10 per cent of them had other savings objectives other than mentioned. 6 per cent of the respondents wanted to save for their marriage or as wealth maximization objectives.
Table 4.5 Investment Objectives:
Investment Objectives No. of Respond-
ents Per cent
Income & Capital appre- ciation
46 23.0
Growth & Income 44 22.0
Long-term growth 79 39.5
Aggressive Growth 31 15.5
TOTAL 200 100
(Source: Field survey)
Figure 4.5 Investment Objectives:
0.00% 10.00% 20.00% 30.00% 40.00% Income &
Capital Growth &
Income Long-term Growth Aggressive Growth 23.00% 22.00% 39.50% 15.50%
Interpretation:
The respondents were asked about their investment objectives and they were given four options, Income and Capital appreciation, Growth and Income, Long-Term Growth and Aggressive Growth.
Out of the total number of respondents,79 of the respondents had long-term growth as their investment objective, 46 of the respondents had income and capital preservation as their investment objective. 44 of the respondents in- vest for their growth and income and 31 of them had aggressive growth as their investment objective.
Out of the 200 respondents, 23.0 per cent of the respondents have income and capital appreciation as their investment objective, 22.0 per cent of them have growth and income as their investment objective and 39.5 per cent of the respondents had long-term growth as their investment objective. But on- ly 15.5 per cent of the respondents have aggressive growth as their invest- ment objective.
It is very clear from the above table and chart that long- term growth of the respondent is one and the major reason why they choose to invest.
Table 4.6 Frequency of Investment in India:
Frequency No. of Respondents Per cent
Monthly 21 10.5
Quarterly 52 26.0
Half yearly 56 28.0
Annually 71 35.5
Total 200 100
(Source: Field survey)
Figure 4.6 Frequency of Investment in India:
0.0% 10.0% 20.0% 30.0% 40.0% Monthly Quarterly Half-Yearly Annually 10.5% 26.0% 28.0% 35.5%
Interpretation:
The above table and chart helps to understand the frequency of investment made by the investors in India. The respondents were given four options and they were: Monthly, Quarterly, Half-yearly and annually.
Out of 200 respondents, 71 of the respondents make an investment annually, 56 of them invests half yearly and 52 of the respondents invest quarterly but only 21 of the respondents invest monthly.
From the above chart it is very clear that most of the respondents invest an- nually, say in the form on fixed deposits, installments to be paid for insur- ance or real estates. 35.5 per cent of the respondents invest annually, 28 per cent of them invest half yearly and 26.0 per cent of them invest quarterly and 10.5 per cent of them invest monthly
Table 4.7 Financial Advisor
Frequency No. of Respondents Per cent
Yes 169 84.5
No 31 15.5
TOTAL 200 100
(Source: Field survey)
Figure 4.7 Financial Advisor:
`
Yes 0.85 No
Interpretation:
The respondents were asked whether they have a financial advisor who prompted them to invest in the different investment avenues available in In- dia. Most of the respondents have a financial advisor, who has advised them to invest in the different investment avenues available for the purpose of savings and a steady income.
Out of the 200 respondents, 169, i.e., more than Eighty percent of the re- spondents have taken the advice of their friends, banks, financial institutions and advertisements. And 31 of the respondents have not taken the advice of their friends or other financial advice providers, i.e., 15.5 percent of the re- spondents did not make their investments due to the advice provided by oth- ers.
Table 4.8 Who has been the Financial Advisors
Advisor No. of Respond-
ents Per cent
Friends/ Relatives 37 22 Financial Consultants 32 18.9 Investment Institutions 47 27.8 Portfolio Departments in Banks 53 31.3 Total 169 100
(Source: Field survey)
Figure 4.8 Who has been the Financial Advisor
0.0% 10.0% 20.0% 30.0% 40.0% Friends/ Relatives Financial Consultants Investment
Institutions Portfolio Dept. in Banks 22.0%
18.9% 27.8%
Interpretation:
From the above table, the surveyor wanted to know the actual motivator for the respondent to invest. The respondents were given five options: Friends/Relatives, Financial consultants, Investment Institutions, Portfolio Department in Banks.
Out of the total number of respondents, 53 of them made investments by taking the advice from the Portfolio Departments of Banks, 37 of them of them took the advice from their friends or relatives and 32 of respondents took the advice from financial consultants to invest in the various investment avenues available in India and 47 of them took advice from investment insti- tutions.
From the above figure, it is very evident that majority of the respondents took advice from Portfolio Departments in Banks which help them to decide the best investment avenue that would suit their personal investment strate- gy. Out of the 200 respondents, around 31.3 per cent of the respondents took advice from the portfolio departments of the banks, 27.8 per cent of them took advice from the investment institutions especially formed for this pur- pose. 22 per cent of the respondents take advice from their friends or rela- tives and only 18.9 per cent of them took investment advice from financial consultants.
Table 4.9 Investment Portfolio of the Respondents Investment Portfolio Invested Not In- vested % of Invested People Bank Deposits 139 61 69.5 Post Office Savings 84 116 42.0 Shares/Bonds/ Debentures 73 127 36.5 Mutual Funds 70 130 35.0 Life Insurance 150 50 75.0 Real Estate 90 110 45.0 Gold 142 58 71.0
(Source: Field survey)
Figure 4.9 Investment Portfolio of the Respondents
0.0% 20.0% 40.0% 60.0% 80.0% 69.5% 42.0% 36.5% 35.0% 75.0% 45.0% 71.0%
Interpretation:
The respondents were asked to select from the given options to make up their present investment portfolio. The respondents were given six options: Bank Deposits, Post Office Savings, Shares, Mutual Funds, Life Insurance, Real Estate and Gold.
Out of the 200 respondents, 139 of them had invested in Bank as Deposits and 61 of them did not deposit in bank. That is, around 69.5 per cent of them had bank deposits included in their investment portfolio.
84 of the respondents had investments as Post Office Savings, mainly wom- en, and 116 of them did not include this option in their respective portfolios. So, from the above table it is very clear that only 42per cent of them have investments in post office savings.
From the total number of respondents, 127 of them had not invested in shares but only 73 of them opted for that investment option. i.e., only 36.5per cent of them had invested in Shares.
130 of them had not invested in mutual funds, and only 70 of them, out of the total number of respondents, invested in mutual funds, which means, on- ly 35per cent of the respondents had investments in mutual funds.
The interesting fact is that 150 of the respondents had an investment in the form of Life Insurance and only 50 of them dint have that in their invest- ment portfolio. 75.0 per cent of the respondents had life insurance included in their investment portfolio.
Out of the total number of respondents, 110 had not invested in Real estate and almost the same number of respondents, i.e., around 90 of them had in- vested in real estate. Thus 45.0 per cent of the respondents had included Re- al estate as one of their investment options.
142 of the respondents had invested in gold maybe in the form of jewelry. Only 58 had not invested in this form of investment option available. i.e., 71per cent of them had invested in gold.
Table 4.10 NRIs Awareness level towards the various investments in India
(Source: Field survey)
Options No of respond-
ents Aware of the investment alternatives
No of respond- ents not aware of the invest- ment alterna- tives
Per cent
Bank Deposits 200 Nil 100
Shares/ Con- vertible Deben- tures/ Non- Convertible Debentures 67 133 33.5 Mutual Funds 103 97 51.5 Bonds- invested out of NRO/ FNCR/NRE 84 116 42.0 Immovable Property 194 6 97.0 Partnership concern in India 41 159 20.5 Deposits in In- dian Companies through NRO accounts 68 132 34.0
Figure 4.10 NRIs Awareness level towards the various investments in India
Interpretation:
The respondents were then asked a question which would help the surveyor to determine the awareness level of the NRIs towards the various investment options available to them in their home country. The respondents were asked to mark those investments which were familiar or which they were aware of. The different investment options given were: Bank deposits, Shares/ Con- vertible Debentures/ Non- Convertible Debentures, Mutual Funds, Bonds- which is invested out of the NRO/FNCR/ NRE accounts, Immovable proper- ty, Propitiatory/ Partnership concern in India, deposits in Indian companies through NRO accounts.
There was no doubt about the awareness level of the bank deposits among the NRIs. The 200 respondents were aware of the bank deposit schemes available in India for them,. Only 67 of the respondents of them were aware of shares/ convertible or non-convertible debentures available for NRIs in India. But around 103 of the respondents were aware of the Mutual Fund
0.0% 50.0% 100.0% 100.0% 33.5% 51.5% 42.0% 97.0% 20.5% 34.0%
scheme available in India through the Banks and various other financial in- stitutions. 84 of the respondents had knowledge about the Bond scheme which was invested out of the NRO/FNCR/NRE accounts of the NRIs and 41 of the respondents were aware of an investment option available in the form of being a partner in an Indian company. But majority of the respond- ents, i.e., 159 of them were not aware of this option. Out of the total number of respondents, only 68 of them knew that they could deposit their earnings in an Indian company. But 132 of them were not aware of this option.
Out of the total number of respondents, 100 percent of them were aware of the bank deposits available in India for NRIs, only 33.5 percent of the re- spondents were aware of the shares/convertible or non-convertible debenture option. But 51.5 percent of the respondents were aware of the
Mutual Fund scheme and 97 per cent of them had good knowledge and awareness about the immovable property, another investment alternative, available to them. Only 42 per cent of the respondents were aware that they could invest their hard earned money in Bonds which can be invested out of their NRO/FNCR/NRE accounts and only 34 per cent of them were aware that they could deposit their earnings in Indian companies through their NRO accounts. 20.5 per cent of them were aware that they could invest in the form of a partnership with an Indian Company.
From the above table and chart, it is very evident that the investors or the NRIs lack sufficient information about the various investment options avail- able to them in India. Thus our government, banks and even the private fi- nancial institutions should take a step in creating awareness and also educat- ing the investors about the diverse investment portfolios.
Table 4.11 Level Of Satisfaction With the Investment Made Level of Satisfaction No. of Re-
spondents Per cent Highly Satisfied 72 36 Satisfied 88 44 Unsatisfied 40 20 TOTAL 200 100
(Source: Field survey)
Figure 4.11 Level Of Satisfaction With the Investment Made
Highly satisfied, 36%
Satisfied, 44%
Unsatisfied, 20%
Interpretation:
The above table shows the respondents reaction when asked about the level of their satisfaction with their investment they have made. The respondents were given three options to choose from Highly Satisfied, Satisfied and Un- satisfied.
Out of the total number of respondents, 72 of them were highly satisfied with the investments they had made in India. 88 of them were satisfied with the investment they have made and 40 of them were unsatisfied with the in- vestment they have made.
From the above table and pie chart it is very clear that majority of the re- spondents are highly satisfied with the investment made in home country. That is around 36 per cent of the respondents are highly satisfied with the investments they have made, 44 per cent of the respondents are satisfied with the investments and only 20 per cent of them are unsatisfied with the investments they have made in home country.
So majority of the NRI’s who were the part of this survey were happy with the investments they made in India in different investment alternatives available to them, i.e., around 160 of the respondents were happy with the investments they have made.
Table 4.12 Investment Experience: Investment experi- ence No. of Respond- ents Per cent
Beginner (no invest- ment experience) 25 12.5 Moderately Experi- enced Investors 71 35.5 Knowledgeable Inves- tors 60 30.0 Experienced Investor 44 22.0 TOTAL 200 100
(Source: Field survey)
Figure 4.12 Investment Experience:
0.0% 10.0% 20.0% 30.0% 40.0% Beginner Moderately Experienced Investor Knowledgable Investor Experienced Investor 12.5% 35.5% 30.0% 22.0%
Interpretation:
The respondents were asked about their personal experience in investing in the different investment avenues. The respondents were given four options: Beginner or no investment experience, moderately experienced investor, knowledgeable Investor and Experienced Investor.
Out of the total number of respondents, 60 of the respondents classified themselves as knowledgeable investors, 71 of them have classified them- selves into the group of moderately experienced investor. Only 44 of the respondents have graded themselves as experienced investor and 25 of them classified themselves as a beginner or no investment experience. From the total number of respondents, 12.5 per cent of them classified themselves as a beginner or a person with no prior experience in investing, may be like college students or housewives. 35.5 per cent of the investors have classified themselves into the category of moderately experienced in- vestor. These investors are those who have experience in investing in Mu- tual funds and bank deposits. 30.0 per cent of the respondents have graded themselves as Knowledgeable experienced investor. They are those inves- tors who have individually bought and sold stocks or bonds of corporate bodies. Only 22.0 per cent of the respondents graded themselves as experi- enced investors. They are those who have experience in all the investment avenues available in the market and also have an experience in buying and selling of stock, they have exercised stock options or stock warrants and have also traded stock options.