A Study based on Gender Behavioral differences on Investment Decisions in State of Gujarat

Abstract

Recent years have seen rapid and structural changes in Indian Financial market. As Indian economy is growing, individual investors and households can only grow when they are financial literate. Recently, financial literacy have gain attention from policy makers, regulators, government and other organizations. But, if investors cannot have risk tolerance capacity then financial literacy cannot give desire results. In spite of increased research interest, considerable research related to financial literacy and risk tolerance in rural areas were few. In this context, an attempt was made to study financial literacy among rural areas and financial risk tolerance among rural areas as broad concept. Based on identification of the research gaps, the present study aims at exploring the interplay between the two aspects of the financial literacy, and the risk tolerance of the investors. Investing behavior of women being the focus of this study, a comparison of investing behavior of women with that of men is done. Further, it is possible that a difference in the demographic factors of women investors in rural and urban areas may result into a difference in their investing behavior. Therefore, a comparative study of the investing behavior of rural and urban women is also undertaken. This assumes a lot of importance from the perspective of ensuring socioeconomic well-being of the society. Therefore, I have designed this study in such a manner that it can help various stakeholders in developing further insights into understanding this socioeconomic aspect of women investors. On basis of previous research, some hypothesis regarding the relationship between gender and financial literacy and gender and financial risk tolerance, and gender capacity are generated and tested. The study relied question on survey method for data collection and responses were obtained by administering questionnaire to individual retail investor respondents were identified through convenience and network of initial contact. The analysis was done using statistical techniques such as Chi-square, K-W test, correlation and cross tabulation. The results of the study indicate that: 1. Significant relationship was observed between financial literacy and age, income, gender, occupation.

2. Urban women are more financially literate than rural women but less financially literate than men. 3. In urban, investors take high risk in comparison to rural, but most of investors prefer low risk. Again, women take less risk compared to men, both in rural and urban. The findings of the study are likely to be of interest to academicians and practitioners. This study may help policy makers, authorities, N.G.O., Financial planners and institutions those who are engaged in promotion of financial literacy through financial education.