Research Methodology Literature Review

(2020-21)
BBA Semester IV
Date of submission: 18th February, 2021

Research Paper Title:

“Investment Pattern Among Youth in India”

Division, Roll No, and Name of the Students

1) D-10, Devang Jajodia

2) D-14, Hirtik Chainani

3) D-37, Priya Kejriwal

4) D-43, Sarthak Bansal

5) D-48, Sugansha Bhatnagar

6) D-50, Tanishq Gupta

7) D-62, Kushagra Aswani

Introduction
Since economic liberalization there are various investment alternatives available in the Indian
markets and the main aim is to understand preferences of the investment alternatives among
the youth. It depends upon the risk appetite of a person so that they can choose out of the
different investment alternatives like, bank deposits, private bonds, shares, derivates, real
estate, and gold.
The Youth of Present generation faces high levels of debt. They often have the burden of
substantial amounts of Education Loans. They must be made aware of the Financial
Concepts; they must know about all the risks beforehand. Today’s youth is financially
illiterate about inflation, interest rates and risk diversification. The sociodemographic
characteristics and family’s financial sophistication largely influenced the risk diversification
knowledge of a person.
These days youngsters follow the policy of earn and burn policy without thinking about the
need of money in future for in case of emergency. Therefore, youth need to be made aware
about certain money management practices which involves making decision with respect to
savings and proper investment. There cannot be a fixed pattern for investment for all families.
Youth these days are more creative and tech savvy than the older generation socially and
even financially. Based upon literature of awareness, there are three independent variables
recognized financial literacy, personal interest, and environment that relate to the dependent
variable, the awareness on investment.
Motivation to do our research on the topic “Investment patterns among youth” would be our
common interest in the finance domain. And aim to develop a financial awareness with an
understanding of how does the youth reacts to the investment opportunities in the market
these days.

A study was conducted to examine whether independent variables like gender, geographical
location, ethnicity, financial education and family background influence the expenditures and
the Finance Management Behaviour of the Undergraduate students of Malaysia Sabah
University. The research was done on 2 groups, a control group and treatment group.
Undergrad students with Financial Management Subjects were in the Treatment Group and
the others were in the Control Group. The study concluded that Family’s influence is the
most impactful variable which influences the financial management behavior.
The inquisition dependent on correlation analysis is used to examine the association among
income, age, pattern of investment and the occupation. The analysis demonstrates
constructive correspondence between the occupation and the level of earnings and the
research discloses an elevated association between the investment choices and profession.
Therefore, we come to the conclusion that occupation is a substantial influencer with respect
to the investment choice and risk-return perspective.
Now days there’s an increase in literacy rate in our country, youth is starting to develop an
interest for the stock markets and other investment opportunities. Youth have also started to
learn about the concept of productive savings which acts as a stimulus to investment. So, to
learn about these very subjects in brief we chose this topic.

Extensive research in this topic will also help us to increase our financial awareness, as it
would help us to understand the investment pattern and financial literacy among youth in a
prominent way.

The youth is the future and resource of the country. The necessity is to understand and work
on effective and efficient spending pattern of the employed population including the best
suited tax saving schemes.

Research Questions Identified

1. Are young adults, literate and well equipped to make financial decisions?
2. What are the factors that affect the investment behaviour among young professionals?
3. What types of saving and spending practices are adopted by students, employed youth
and young married couples?

Research Objectives
Broad Objective - To identify the relationship between financial literacy and investment
awareness of youth of India
Financial literacy is characterized as the capacity to peruse, decipher and examine, deal with
the cash, convey about personal monetary conditions that influence material prosperity,
figure, create autonomous judgment, and make moves coming about because of those cycles
to flourish in our complex monetary world. It additionally incorporates the capacity to
observe monetary decisions, talk about cash and monetary issues without distress, plan for
the future, and react dexterously to life occasions that influence ordinary monetary choices,
remembering occasions for the overall economy.
A significant component called financial literacy turns out to be more significant when there
is a liberation of the monetary market, and things make it simple to get to banks. As it has a
well-built fierce environment between monetary organizations to build their piece of the
overall industry.

Specific objectives of this Research Paper are as Follows: -

1. To examine the degree of correlation between age & investing activities
Investment conduct uncovers how the individual financial investor distributes the excess
monetary assets to different instruments accessible. This paper breaks down the exchanging
or putting conduct of experts who are in the age section of 25 years to 35 years.
These youthful financial investors, by and large, take exchanging choices dependent on their
self-perceived capability yet in some cases with the assistance of expert consultants as well.
Their venture objective likewise varies from monetary security to extra pay, etc. This paper
endeavours to discover the variables liable for expanded contributing exercises among
youthful experts. The present has inspected the exchanging conduct of youthful financial
investors by utilizing an organized poll. In light of the discoveries of the review, the
investigation looks at the factor influencing the venture conduct in the securities exchange.
Based on age, pay and sexual orientation it tends to be presumed that for youthful financial
investors' speculation is autonomous in terms of age, pay and gender.

2. To study the saving & spending pattern of students and awareness of tax saving
schemes among employed youth
Many research studies have shown that spending and saving examples of youth in India have
rendered definitely throughout the most recent couple of many years. This can be a
consequence of westernization and acknowledgment of a cutting-edge civilization that
Indians were very little mindful of many years prior. It is obvious that Indian youth is
currently captivated towards spending an extensive amount of their pay on amusement and
shopping. An ideal illustration of this can be appreciated by taking the all outnumber of
shopping centres that have arisen in India over the most recent couple of many years. The
spending and Investment pattern of youth is being concentrated around the world and
globally and results in change according to test unit and test size. This examination centres
around discovering the Spending and Investment pattern of graduated and utilized youth and
their awareness of expense saving plans.

Hypothesis

H01: Age is correlated to the investment patterns/activity

H02: Youth is partially aware of the tax saving schemes
H03: There is a relation between saving & spending practices and investment pattern.

Conceptual Framework

There are many factors that affect Investment patterns among the youth of India. However,
we have taken three independent variables - financial literacy, spending behaviour and
occupation that affect investment patterns. Investment awareness and tax saving schemes
awareness are moderator variables of financial literacy on investment. Income level is also a
moderator variable between occupation's impact in investment. These relations have been
derived from data in the literature reviews.
Methodology
Source of Data:
This study is highly dependent on secondary data was obtained from already published
research works, journals, newspaper reports, financial management textbooks etc. and the
published work is further dependent on primary data which was collected directly from the
respondents through questionnaire.

Data Collection and Instruments Design:

Questionnaire can be used in the research. Bilingual written questionnaire was used in the
research. English to be selected as the primary language. The questionnaires to be
constructed by adapting and modifying related questionnaire on the topic.
The questionnaires to be divided into three sections which are A, B and C. Section A
investigates the demographic information (gender, current CGPA, household income,
ethnicity, geographical location of hometown and information about taken or not financial
management subject). Section B measuring the Independent Variables (Respondent
Characteristics) specifically financial education program and parents’ influence. Finally,
Section C which consists of the Dependent variable (Saving Behaviour).
Questionnaires mainly included some items that the youth are more prone to spending upon
like movie, shopping, fast food etc. The questionnaire also evaluates the consciousness of
youth on tax saving investment schemes that are suitable to them. Mostly multiple-choice
questionnaire is employed. Working individuals to list their opinion and awareness about the
investment avenues and their investment behaviour to identify the investment pattern. A
closed ended questionnaire was administered to analyse and assess the relative importance of
each of the statement on a five-point liker scale.

Analysis Used:
 Independent variables were measure by Likert’s Five (5) Point Scale: 1= very disagree,
2= disagree, 3= neutral, 4= agree, 5= very agree.
 A Chi-Square-Test (a test of independence, that determines whether there is an
association between categorical variables) has been done to examine whether there exists
any dependency between investment and each demographic factor.
 The Pearson Moment – Product Correlation Analysis (a measure of the strength of a
linear association between two variables) was employed to figure out the relation between
gender of the respondents and their investment trend
Expected Implications
This study mainly focused on identifying the spending and investment trend of youth. The
statistical analysis has brought down an acceptable conclusion for the hypothesis formulated.
A descriptive statistical analysis enumerated the spending pattern of youth taken on an
average measure. It states that majority of their total income spending.

This study has helped in throwing light on factors that creates an impact on investing activity
of young professionals. Also, this study has revealed that investing activity of young
professionals is independent of gender but dependent on Income and Literacy.

Problem and Limitations of the Research

The study has been conducted by using a structured questionnaire. The response can be
biased. Therefore, the same study can be conducted by using disguised questionnaire for
better responses.
If respondents were to optimist or pessimist toward their financial practices, it might
influence the result. Therefore, respondents might report the answer that they felt ‘correct’
rather than ‘actual’.
The reactions of the investors can be biased as they might be reluctant in disclosing the real
response.
Longitudinal research is recommended to further investigate the relationship between
selected independent variables and dependent variables. As a working adult, respondents’
financial practices might project a clearer picture which might improve the effectiveness of
models.
Reference
Annamaria Lusardi, Olivia S. Mitchell, Vilsa Curto (2009). Financial Literacy among the
young: Evidence and Implications for Consumer Policy. Pension Research Council.
Sam Yet Huat, Caroline Geetha, Rosle (2010). Financial Behavior Amongst Undergraduate
Students With And Without Financial Education. National University of Malaysia, V (2231-
962X).
Ms. Lubna Ansari, Ms Sana Moid (2013). Factors Affecting Investment Behaviour Among
Young Professionals. International Journal of Technical Research and Application, 1 (2).
Shilpa Chhabra (2016). Saving & Spending Trends Among Youth: An Empirical Study Of
Sirsa District. International Journal Of Science Technology & Management, 5 (8).
Dr. Rupinder Kaur Ghumman (2017). Emerging Saving and Investment Pattern Among
Youngsters. International Journal of Research and Analytical Reviews, 4 (4).
Zainal Azhar , Juliza, Nor Azilah , Amirul Syafiq (2017). Investment awareness among
young generation. Atlantic Press, Vol. 36, ICBMR 2017.
Dr. Jnaneshwar Pai Maroor, Dr. B Vamana Baliga (2017). Individual Investment Behaviour
of Young Investors in Stock Market. MBA Journals (Consortium eLearning Network Pvt
Ltd), 1 (1).
Dr. Ajaz Ahmad Bhat (2018). Preferences of youth towards financial investment. Everant
Publishers, 2 (6).
Dr. Madhavi Karanam, Dr. R. Shenbagavalli (2019). Investment pattern of Millennials: A
Path Ahead. The International Journal Research Publication, 9 (22511571).
Joby J Babu, Dr. Dayana Das (2020). Spending and Investment Trend Among Youth And
Their Consciousness Of Tax Saving Schemes. International Journal of Advance Science and
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Name Research Paper

1. Devang Jajodia 1) Emerging Saving and Investment Pattern Among Youngsters
1) Saving & Spending Trends Among Youth: An Empirical Study Of Sirsa
2. Hirtik Chainani
District
3. Priya Kejriwal 1) Investment pattern of Millennials: A Path Ahead.
1) Investment awareness among young generation.
4. Sarthak Bansal
2) Preferences of youth towards financial investment
1) Spending and Investment Trend Among Youth And Their
5. Sugansha
Bhatnagar
Consciousness Of Tax Saving Schemes
2) Factors Affecting Investment Behaviour Among Young Professionals
1) Financial Behavior Amongst Undergraduate Students With And Without
6. Tanishq Gupta Financial Education
2) Financial Literacy among the young
7. Kushagra
Aswani
1) Individual Investment Behaviour of Young Investors in Stock Market