THE DETERMINANTS OF TEACHERS’ INVESTMENT DECISION IN INDIAN

Abstract

In recent years, financial awareness has become an important subject and institutions like government, bankers, employers & other people are taking interest. A number of factors, including complexity of financial markets, new financial instruments, and change in economics, political, and demographic factors, have resulted in improving financial literacy and awareness. Investment ideologies as well as the pattern can be differentiated with every individual. There is effective diversification in the available financial instruments for people who appetite to see their money blossom. Returns generated from the investment can be used to fulfill their basic objective such retirement planning, meeting short-term fund requirements, repayment of debt, capital appreciation etc. While there are different financial instruments which are being used for fulfilling financial goals of an individual such instruments are real estate, mutual funds, gold, banks, shares, etc. The aim of this study is to focus on the teaching professionals to know their preferred investment avenues, their psychology. Hence, through a purposive sampling Some teachers rely on savings rather than investing, but now a days replying on saving may not be adequate to guarantee financial stability. Money in bank or locker may not serve the purpose. With the help of investment, one can achieve various goals set by themselves such as capital appreciation, meeting future goals such as house planning, planning for foreign trip, or retirement planning. The Attitude of teachers towards investment, there preferences regarding financial instrument would be a reflection of their spending habits, which in turn would have an impact on their profession and quality of life. There are various factors that affects investment decision made by teachers which defines the degree of risk that they are willing to take, investment patter followed by them, factors on the basis of which the they preferred to invest in various financial instruments. The study aims in investigating “the diversified avenues of investment preferred to the teachers”, identifies the preferred investment option of the majority & evaluating the investment pattern followed by teachers with different level of income, age, gender etc. vi method, data has been collected and used to select the sample respondents from the teachers who are teaching in schools, colleges, Institutions etc. Out of 100 teachers, the data of 60 Teachers have been collected using Google Forms and analyzed with the simple percentage, Chi-square, Correlation and Regression. From this study we have built some hypothesis and analysis came to a conclusion that majority of the respondent preferred to invest in bank deposit i.e.,26 respondent opted Bank Deposit, then 17 respondents opted for Gold as it is less likely to change its current price, it can be used to hedge against inflation & deflation. Both Gold & Bank deposits are safe investment. Mutual funds are being mostly preferred by the age group of below 25. Both male & female prefers to take moderate risk. It has been noted that there is no correlation between various demographics & the risk the respondent preferred to take. While examining hypothesis 5 and applying Chi-Square test, the significance of the data can be found. The critical value of X2 is 29.69 where the degree of freedom = 16. The calculated P2 = 0.020 which is smaller than 0.05 which means that we reject null hypothesis and there was correlation between various demographics & the how frequently they are investment. There is more relation between Respondents influenced by social media for financial decision & Financial advisor i.e., .298. Whereas there is less relation between respondents influenced by financial advisor & friends & family i.e., 0.039. On the other hand, there were no correlation between various demographics and risk preferred by various respondents.