Analysis - of - Investment - in Financial - and - Physical - Assets

International Journal of Research in Management, Economics & Commerce
Impact Factor: 5.662, ISSN 2250-057X, Volume 5 Issue 4, April 2015

Website: www.indusedu.org
ANALYSIS OF INVESTMENT IN FINANCIAL AND PHYSICAL ASSETS:
A COMPARATIVE STUDY
Dr. Adinath B. Kuchanur
Professor, Department Of Master Of Business Management, Jspm‟s Rajarshi Shahu College Of
Engineering, Pune, Maharashtra
ABSTRACT
Household sector comprising individual investors significantly contributes to the capital
formation in India by investing their savings in various investment opportunities such as
financial assets and physical assets available to them in the market. It is understood that they
prefer to invest their savings in those assets they find suitable ones for them. While investing in a
particular asset, individual investors look into various factors like size of cash outflow, risk
associated with an asset, return from asset, marketability of an asset, etc. A study on which
assets are preferred and chosen by individual investors for investment purpose assumes a great
significance, In this backdrop, this study is an effort to make a comparison between investment in
financial assets and investment in physical assets made by individual investors by tracing the
size and pattern, asset preference, drives and length of investment.
The study reveals that the majority of individual investors have an investment size between Rs
37,501 and Rs 75,000 whereas among the financial assets, life insurance policies and
government securities and among physical assets, agricultural land and gold are the most
preferred assets. Individual investors prefer regular and steady income from and safety of
financial assets while they prefer local accessibility to and easy manageability of physical assets.
It is traced that 26.67% of individual investors have investment length between 6 to 10 years in
financial assets and similar percentages of investors have investment length between 16 to 20
years in physical assets. The study suggests that individual investors need to check the quality of
assets before they select any assets for investment purpose since the investment markets have
become more turbulent due to recent scams prevailing one after another.
Key Words: Individual Investors, Financial and Physical Assets, Risk and Return, Regular and
Steady Income, Investment Size and Marketability.
E-mail id:- editorindus@gmail.com Page 61

I. INTRODUCTION
The term „investment‟ signifies a commitment of funds for a fruitful purpose. Fischer and Jordan
rightly defined investment as “a commitment of funds made in the expectations of some positive
rate of return. If the investment is positively undertaken, the return will be commensurate with
the risk the investor assumes”. The activity of investment involves the judicious and proper
employment of funds with the aim of achieving additional income or growth in values.
Investment also involves a commitment of resources, which have been saved in the hope that
some benefits will accrue in future. The essential quality of an investment is that it involves
waiting for a reward. Investing entails a continuous flow of decisions that cannot be avoided. All
investment choices are made at different points of time and in contemplation of an uncertain
future. Investors will reappraise from time to time and review their various investment
commitments in the light of new information and changed expectations. The investors reinforce
their bargaining position by analyzing the investment opportunities available in the market. Thus,
individual investors choose investment avenues considering their needs for investing out of their
savings.
The individual investors would like to know the investment avenues so that they can use their
discretion and invest in those avenues, which will give them security and stable return. The
ultimate aim of the individual investors is to find a variety of investment avenues that meet their
preference for risk and expected return. The investment avenues like financial and physical
assets have a wide range of risk from risk-free to highly speculative avenues. From this broad
spectrum, the individual investors will have to select these avenues that maximize their utility.
The investment decisions are influenced by some factors such as preferences, size of amount
involved, safety of funds, regular and steady returns, easy accessibility and manageability of
assets, etc. Hence, individual investors are to choose financial and physical assets that fulfill their
future expectations.
II. REVIEW OF LITERATURE
A number of studies have been carried out to examine the savings and investment preferences,
practices, etc. of the individual investors. The important ones are reviewed hereunder.

Samuelson (1969) suggests that the older individuals rationally reduce their risk exposure
because they need to ensure that their savings provide sufficient means to satisfy their levels of
minimum consumption. Lewellen (1977) finds that age, sex, income and education affect
investors‟ preferences for assets whereas Morin (1983) finds evidence of increasing risk aversion
with age although the households appear to become less risk averse as their wealth increases.
Warren (1990) predicts that the individual investment choices like financial and physical assets
are based upon lifestyle and demographic attributes. Bandgar (2000) reveals that most of the
individual investors are highly educated and, therefore, they consider their own observation of
the markets as an important factor for their investment decisions and hence most of the investors
take investment decisions on their own. Rajarajan. (2000) indicates that the investment size,
portfolio choice, risk bearing capacity and locus of control have significant influence on the rate
of return expected by an individual investor on his investment in various assets. Porta, Lopez-de-
silanes, Shleifer and Vishny (2000) reveal that strong investor protection might be particularly an
important manifestation of the greater security of property. Shollapur M. R. and Kuchanur A. B.
(2008) reveal that among financial assets individual investors prefer to invest in bank deposits
followed by life insurance policies and prefer less to invest in post office savings, corporate
securities. Kuchanur A. B. (2010) identifies the individual investors‟ perceptions as financial
perceptions and non-financial perceptions towards investment in various assets. The financial
perceptions cover amount of investment, regular and steady income, capital appreciation, tax
benefits, etc whereas non-financial perceptions include low intensity of risk, statutory protection,
length of investment, service delivery, etc.
It is clear from the preceding discussion that the individual investors prefer for investments in
financial as well as physical assets for various reasons and they expect that such assets must
fulfill their expectations in the years to come. In this context, the present study entitled Financial
and Physical Assets: A Comparative Study assumes a special significance. The present study
focuses on individual investors‟ (household sector) investments in financial and physical assts
III. NEED FOR INVESTMENT
Investment is both important and useful in the context of present-day conditions. The following
factors such as a) Longer life expectancy, b) Increasing rates of taxation, c) Interest rates, d)

Inflation, e) Income, f) Investment channels, etc. have made investment decisions increasingly
important for the individual investors.
The savings of individuals flow into the financial markets through the financial investment.
While making such investment the individuals consider risk and return, safety,
liquidity/marketability, time, investment climate, etc. In addition, the investors are expected to
possess certain qualities required for being successful investors. These qualities are: (a) contrary
thinking, (b) patience, (c) composure, (d) flexibility and openness and (e) decisiveness. If the
investors possess these qualities, they would rather be successful investors. The most successful
investors tend to be those who are willing to make bold positions consistent with their
convictions.
FINANCIAL ASSETS AND PHYSICAL ASSETS: A THEORETICAL FRAMEWORK
In view of the significance of this study, a brief discussion on various avenues of financial assets
and physical assets is presented as under.
A. FINANCIAL ASSETS
The avenues of investment in financial assets can be broadly classified as (i) fixed return
investment avenues and (ii) variable return investment avenues.
a) Fixed return investment avenues: The fixed return investment avenues provide a stable rate of
interest and dividends to the investors. Their level of current income is fixed for a stipulated
period of time, usually the life of the issue. These can be used conservatively by the investors
who primarily seek high current income to supplement their income from other sources. They
can also be used for trading purpose by the investors who actively seek capital gains. Short-term
fixed return investment avenues normally mature within a year while long-term avenues mature
after a year. The forms of fixed return investment avenues of financial assets include: a) Bank
deposits, b) Government securities, c) Small savings schemes, d) Public sector bonds, e)
Debentures, f) Company deposits and g) Preference shares.
b) Variable return investment avenues: The variable return investment avenues are those avenues
on which the earnings vary from time to time. Normally, the individual investors expect higher
returns due to comparatively higher degree of risk. The ultimate objective of the investors is to
derive a variety of investment avenues that meet their preferences for risk and expected return.

The variable return investment avenues of financial assets are: a) Life insurance policies, b)
Mutual funds and c) Equity shares
B. PHYSICAL ASSETS
Unlike the return on investment in financial assets, the return on investment in physical assets
can be generated only when such assets are sold out and therefore the difference between the
sales proceeds and purchases price is the return. Thus, the return on investment in physical assets
is in the form of capital appreciation. The avenues of investment in physical assets include: a)
Real estate, b) Agricultural land, c) Gold, silver and other metals d) Commodities, e) Antiques, f)
Paintings, etc.
The preceding discussion reveals that there are various investment avenues such as financial and
physical assets available to the investors. Some of them are less risky with low return whereas
others are riskier with high returns. Therefore, the investors have to make a judicious investment
decision to invest in any one of the investment avenues depending upon their incomes, savings
and motives. Thus, the investment may be in the form of financial assets and/or physical assets.
The information relating to the conceptual aspects of these assets are presented in Table 1.
Table 1
Financial and Physical Assets: A Conceptual Framework
Sl
Features Financial assets Physical assets
no
Return on Both periodical returns and capital
1 Capital appreciation
Investment appreciation.
All assets have either short term or long-term These assets do not have any fixed
2 Maturity Period
maturity period. maturity period.
Some are riskier while others are risk less or Risk is inherent. But, the amount
3 Risk
risk- free. involved is not known
Few are liquid and marketable while others These are less liquid and not marketable
4 Liquidity
are not. easily.
Types of All types of investors can invest including low All types of investors cannot afford to
5
investors income groups invest
The information relating to the trends and pattern in household investment is presented in
Table 2

Table 2
Trends and pattern in household investment (%)
Year Financial Assets Physical Assets Total
1970-71 29.59 70.41 100
1980-81 43.34 56.66 100
1990-91 45.17 54.83 100
1995-96 48.91 51.09 100
2000-01 52.50 47.50 100
2009-10 47.50 52.50 100
2010-11 43.00 57.00 100
2011-12 30.80 69.20 100
2012-13 32.40 67.60 100
Source: Compiled from National Income Statistics, Center for Monitoring Indian Economy,
January 2003 and Economic Outlook dated 10-02-2014.
Table 2 reveals that the household investments are more in physical assets during 70s, 80s, and
90s whereas the amount of investment in financial assets had increased to 52.50% during 2000-
01. However, the household investments in financial assets started declined in the subsequent
decade i.e. from 52.50% to 47.50% between 2000-01 and 2009-10. Further, the falling trend
continued even after 2009-10. In other words, the households prefer investment in physical
assets rather than financial assets as a result of financial meltdown in the recent times. Further,
the investment of the household in physical assets rides over the investment in financial assets
over the last 1 ½ decade duration. The financial investments accounted for less than a third of the
household investment in the last two years. The household started showing a serious aversion
towards investing its money in financial assets since 2010-11. The share of financial investments
in total household investments dropped from 47.50% in 2009-10 to 43.00% in 2010-11. Further,
it plummeted to 30.80% during 2011-12 and remained law at 32.40% in 2012-13.
Thus, the preceding discussion reveals that individuals prefer physical assets to financial assets
as the value of the farmer goes on appreciating over a period of time. In other words, there are
two main reasons as to why the individuals have shown a clear preference for physical assets
over financial assets in the recent times-negative real returns on financial investments and easy

availability of personal loans. The investments in financial assets yielded either marginal or
negative real returns during the last three years because of prevailing high rate of inflation.
IV. NEED FOR THE STUDY
The present study traces the trends in investments made by individual investors in financial and
physical assets. Since, the economic liberalization was initiated in 1990-91; there has been
noticeable shift in the investment pattern on account of change in life style, introduction of
different investment schemes, safety of investment, etc. The individual investors prefer to invest
in those assets they consider suitable ones or fulfill their needs either in the short-term or in the
long-term. However, the size of income and savings influence the quantum of investment. The
study covers the individual investors engaged in various occupations namely agriculture,
business, service, profession and other activities of Bijapur district in Karnataka state.
V. OBJECTIVES OF THE STUDY
The main objective of the present study is to find out the size and pattern of investment in
financial assets and physical assets, assetwise preferences of individual investors, investment
drivers and length of investment in both the assets.
VI. METHODOLOGY
The study is based on the primary data, which were obtained by administering a structured
questionnaire on 300 individual investors in Bijapur district in Karnataka state. The
questionnaire was administered in February 2014. The data are presented in the form of tables
(See Appendix) and their analysis is made with the help of percentage and trend ratios. In this
study, individual investors belong to household sector in India. The profile of the individual
investors covered in this study is presented in Table 3.
Table 3: General profile of individual investors
Sl no Variables Categories Investors Percentage
Male 219 73
1 Genderwise distribution Female 81 27
Total 300 100
Married 273 91
2 Marital status Unmarried 27 9
Total 300 100
3 Agewise distribution Below 25 years 18 6

26 to 35 years 72 24
36 to 45 years 84 28
46 to 55 years 60 20
Above 55 66 22
Total 300 100
Illiterate 30 10
Non-matriculation 48 16
Matriculation 60 20
4 Educational profile Degree 84 38
Master‟s degree 36 12
Others 12 4
Total 300 100
Agriculture 60 20
Business 60 20
Service 60 20
5 Occupationwise distribution
Profession 60 20
Others 60 20
Total 300 100
Two 6 2
Three 18 6
Four 81 27
6 Number of family members
Five 66 22
More than five 129 43
Total 300 100
Yes 192 64
No 99 33
7 Tax liabilitywise distribution
Exempted 9 3
Total 300 100
10 percent 12 4
20 percent 66 22
8 Rate of tax applicable
30 percent 222 74
Total 300 100
Rural 120 40
Urban 48 16
9 Domicilewise distribution
Semi-urban 132 44
Total 300 100
Sources: Survey data

Table 3 reveals that the majority of individual investors are: i) male, ii) married, iii) in the age
group between 36 to 45 years, iv) graduates, v) having more than five family members, vi) liable
to pay tax on their income at the rate of 30% and vii) living in semi-urban areas.
Analysis and Discussion
An individual invests either in financial assets and/or physical assets out of his/her savings.
Factors such as size and pattern of investment, assets preferences, investment drivers, length of
investment, etc, together, influence the process of choice and/or selection of different types of
assets. A close scrutiny of individual‟s size of investment, asset preferences, investment
motivators, etc offers insight about his asset selection for investment purpose. Hence, the
discussion on investment in financial and physical assets focuses on the following points of view.
1. Size and pattern of investment;
2. Assetwise preferences of investors;
3. Investment drivers and
4. Length of investment
1. Size and pattern of investment: Individual Investors invest different sums of money in
different financial and physical assets. The amount/size of investment varies from one asset to
the other. For example, the amount of investment would be more in the case of government
securities, life insurance policies, agricultural land, real estate etc. whereas it could be relatively
less in the case of bank deposits, corporate securities, gold, silver and such other financial and
physical assets. Such an amount of investment in a specific asset is a key variable reflecting size
and pattern of investment behavior. Hence, there is a need to ascertain the size of investment in
each asset. The information relating to the size and pattern of investment in financial and
physical assets is presented in Table 4.
Table 4 reveals that the majority of investors in financial assets (30%) belong to investment size
of Rs 37,501 to Rs 75,000 followed by 18.60% of investors belonging to the range above Rs
1,50,000, 15.60% of investors belonging to the range of Rs 75,001 to Rs 1,50,000, 11.73% of
investors belonging to the investment size of Rs 22,501 to Rs 37,500 range and 13.90% of
investors belong to slab of investment below RS 22,500. About 10.07% of investors belong to
the investment slab of Rs 30,001 to Rs 37,500. In the meantime, Table 4 also portrays that the

majority of investors in physical assets (31%) belong to investment size of Rs 37, 501 to Rs
75,000 followed by 27% of investors belonging to Rs 75,501 to Rs 1, 50,000 range, 21% of
investors belonging to investment slab of Rs 22,501 to Rs 37,500 range and 16% of investors
belong to slab of investment below Rs 22,500. A very few investors (5%) belong to the highest
investment slab i.e. investment exceeding Rs 1, 50,000. The overall assetswise preferences of the
maximum number of investors who belong to the investment size of Rs 37,501 to Rs 75,000
range are: 1) Bank deposits, 2) Life insurance policies, 3) Corporate securities, 4) Agricultural
land, 5) Real estate and 6) Gold. A similar pattern of investment is also noticed in other
investment slabs as well.
2. Asset wise preferences of investors: Investors prefer to invest funds in financial and/or
physical assets of their choice. The investors‟ preferences for different assets mainly depend on a
number of factors such as the end use, risk and return, liquidity, safety etc. The intensity of
preference varies from one asset to the others. For instance, servicemen or professionals prefer to
invest in bank deposits, life insurance policies, securities, etc whereas agriculturists generally
prefer to invest in agricultural land and businessmen tend to invest in real estate, bullion etc.
Thus, the preferences of investors for different financial and physical assets assume significance.
Hence, there is a need to examine the preferences of investors for different assets. The
information relating to the asset wise preferences of investors in financial and physical assets is
presented in Table 5.
Table 5 shows that the bank deposits is the strongest preferred form of financial assets followed
by corporate securities, government securities, life insurance policies, and post office savings
and certificates. In addition, Table 5 also reveals that the agricultural land is the strongest
preferred form of physical assets followed by the real estate, silver and other physical assets. The
majority of investors have accorded the top priority to bank deposits and agriculture land
together among financial and physical assets respectively.
3. Investment drivers: Each financial and physical asset possesses its own key features such as
regular and steady income, tax benefits, statutory compulsion, local accessibility of assets, easy
manageability, legal and procedural simplicity, quality of satisfying investors‟ expectations, etc.
These key features encourage the investors to invest in a particular financial and physical asset.

Hence, there is a need to identify the factors enabling investment in financial and physical assets
and the extent of investors‟ preferences to these motivating factors. The information relating to
the drivers of investment in financial and physical assets is presented in Table 6.
Table 6 reveals that the majority of investors find „tax benefits and statutory compulsion of
investment in financial assets as a strong investment driver whereas „easy manageability of
investment‟ is a strong investment driver for investing in physical assets. Safety of investment in
financial assets and procedural simplicity and local accessibility of physical assets are the other
triggering factors. A few investors also find the relatively other motivators and satisfying quality
of investment in financial and physical assets respectively as much preferred investment drivers.
4. Length of investment: The length of investment refers to the total number of years of
investment experience in financial and physical assets. The experience gained over the years
enables the investors to understand the associated risk-return and to manage investments
effectively. In view of this, there is a need to study the length of investment as a key variable of
investment behavior. The information relating to the length of investment in financial and
physical assets is presented in Table 7.
Table 7 indicates that the majority of investors (80%) are investing in financial assets since the
last 6 to 10 years and 26% are investing in physical assets since the last 16 to 20 years. 21% of
investors have an investment experience of 6 to 10 years. Thus, it is significant to note that there
are 35% of investors with the investment experience of more than 20 years.
The occupational pattern of investors reveals (Table 7) that the investors with the highest length
of investment experience (i.e. 25 years and above) are engaged in agriculture (32%), other
activities (30%), service (18%) etc. whereas the investors with the least experience (i.e. below 5
years) belong to other category (35.29%) followed by business (29.42%), agriculture (17.65%)
etc.
VII. FINDINGS
The following are the major findings of the present study
1. The present study reveals that the household investments are more in physical assets (i.e.
67.60%) and financial assets (i.e. 32.40%) in 2012-13;
2. The majority of individual investors belong to semi-urban areas of Bijapur district;

3. The data analysis shows that the majority of investors in physical assets (31%) and
financial assets (30%) belong to investment size of Rs 37,501 to Rs 75,000;
4. The results indicate that government securities are the strongest preferred form of
financial assets whereas the agricultural land is the strongest preferred form of physical
assets;
5. The analysis reveals that the majority of investors find „tax benefits and statutory
compulsion of investment in financial assets as a strong investment driver whereas „easy
manageability of investment‟ is a strong investment driver for investing in physical assets
and
6. The study indicates that the majority of investors (80%) are investing in financial assets
since the last 6 to 10 years and 26% are investing in physical assets since the last 16 to 20
years.
VIII. SUGGESTIONS
The following suggestions are offered.
Household sector comprising individual investors contribute a lion share to the gross capital
formation in India as they are committed towards the fulfillment of their family needs in the
future. They save out of their income and invest in those assets which promise them a regular
and steady return but less risk preferred as well. The investment avenues like financial and
physical assets which differ in respect of their attributes such size, maturity, safety, risk and
return, etc. are bought and sold in the markets. Therefore, the following suggestions may
enhance the share of household investment in the gross capital formation in India. They are:
i. Individuals are required to check the quality of assets before they take decision to invest
in financial assets and/or physical assets;
ii. Individual investors are to be educated with regard to advantages of investments in
various assets and the role of such investments in the economic development of the
country;
iii. There shall be easy accessibility of assets to all types of individual investors and
procedures shall be hassle free;
iv. Information about various assets shall be disseminated in timely manner;

v. Assets shall be provided with stringent statutory protection and
vi. Delivery of quality service shall be the main motto for attracting more individual
investors.
IX. CONCLUSION
Indians are more cautious than western community of their future life when they will grow old
and their earnings capacity will plunge and want to be independent from their near and dear ones
as the concept of micro family is fast approaching for one or the other reasons. The households
(Individual investors) prefer to save out of their income and invest in various assets of their
choice. Such assets promise periodical returns and appreciation in value over a period of time.
The financial and physical assets are the avenues of investment available for individual investors
belonging to poor class or middle class or rich class families. However, the investment in
financial assets or physical assets is influenced by various factors namely size of income,
assetwise preferences, investment drivers, length of investment, etc. Thus, the choice of
investment in financial assets or physical assets is of a paramount decision to be taken by the
individual investors keeping in mind their present and future needs and life style in the years to
come.
REFERENCES
1. Fischer. D. E. and Jordan. R. J. “Security Analysis and Portfolio Management” Pearson
Education Pvt. Ltd, New Delhi, 2003, p 2.
2. Economic Outlook dated 10-02-2014.
3. National Income Statistics, Center for Monitoring Indian Economy, January 2003.
4. Samuelson. P. “Lifetime Portfolio Selection by Dynamic Stochastic Programming”
Review of Financial Economics, 8. 1969. pp 239-246.
5. Lewellen. W. G. et al “Pattern of Investment Strategy and Behavior Among Individual
Investors” Journal of Business, 50, 1977. pp. 296-333.
6. Morin. et al. “Risk Aversion Revisited” Journal of Finance Vol. 38. September, 1983. pp
1201-1216.
7. Warren. W. E. et al “Using Demographic and Lifestyle Analysis to Segment Individual
Investors” Financial Analysts Journal, March/April, 1990. pp. 74-77.

8. Bandgar. P. K. “A Study of Middle Class Investor‟s Preferences for Financial
Instruments in Greater Bombay” Doctorial Thesis Submitted to Saurastra University
Rajkot, 1998.
9. Rajarajan. V. “Predictors of Expected Rate of Return by Individual Investors” The India
Journal of Commerce, Vol 53 no 4, October-December 2000. pp. 65-69.
10. Porta. R. L. et al “Investors Protection and Corporate Governance” Journal of Financial
Economics, 58, 2000. pp. 3-27.
11. Shollapur M. R. and Kuchanur A. B. (2008) “Identifying Perceptions and Perceptual
Gaps: A Study on Individual Investors in Selected Investment Avenues” The ICFAI
University Journal of Behavioural Finance, Vol. V, No: 2. Page 47-64.
12. Kuchanur A. B. (2010) “Individual Investors‟ Perceptions” Anveshan IMR’s
Management Research Journal, Vol: I, Issue: 1, January – June, Page 8-12.
APPENDIX
Table 4, Size and pattern of investment in both assets
Financial assets Physical assets
Size of
Sl Post Office
Investment Bank Government LI Corporate Agriculture Real
no Savings Total Gold Silver Others Total
(in rupee) deposits Securities Policies Securities land estate
Certificates
Below 2 12 2 25 0 13 40
1 3 (25.00) 0 (0.00) 0 (0.00) 7 (58.33) 0 (0.00)
7,500 (16.67) (100) (5.00) (62.50) (0.00) (32.50) (100)
7,501 - 26 74 15 33 1 20 69
2 2 (2.70) 22 (29.73) 21 (28.38) 3 (4.05) 0 (0.00)
15,000 (35.14) (100) (21.74) (47.83) (1.45) (28.98) (100)
15,001 - 12 36 124 21 38 1 27 88
3 24 (19.35) 45 (36.29) 7 (5.66) 1 (1.14)
22,500 (9.68) (29.03) (100) (23.86) (43.18) (1.14) (30.68) (100)
22,501 - 15 46 176 29 43 5 39 122
4 52 (29.55) 54 (30.68) 9 (5.11) 6 (4.92)
30,000 (8.52) (26.14) (100) (23.77) (35.25) (4.10) (31.96) (100)
30,001 - 10 15 41 151 29 14 20 62 138
5 43 (28.48) 42 (27.81) 13 (9.42)
37,500 (6.62) (9.94) (27.15) (100) (21.01) (10.15) (14.49) (44.93) (100)
37,501 - 161 100 92 450 104 19 116 113 54 406
6 46 (10.22) 51 (11.53)
75,000 (35.78) (22.22) (20.45) (100) (25.62) (4.68) (28.57) (27.83) (13.30) (100)
75,001 - 61 75 31 234 85 15 93 44 333
7 31 (13.25) 36 (15.38) 96 (28.83)
1,50,000 (26.07) (32.05) (13.25) (100) (25.52) (4.50) (27.93) (13.22) (100)
Above 37 91 279 14 2 16 8 53
8 79 (28.32) 51 (18.28) 21 (7.52) 17 (29.82)
1,50,000 (13.26) (32.62) (100) (24.56) (3.51) (28.07) (14.04) (100)

Table 5, Assetswise preferences
Financial assets Physical assets
Sl Preference Post Office

Bank Government LI Agriculture Real
no Numbers Savings Others Gold Silver Others
Deposits Securities Policies Land Estate
Certificates
128 144 216 98 2 108 92 0

a) 1 (43.66) 96 (32.00) 167 (55.67) (48.00) (72.00) (32.67) (0.67) (36.00) (30.66) (0.00)
42 40 58 76 6 121 13
b) 2 (14.00) 35 (11.67) 73 (24.33) (13.33) (19.33) (25.34) (2.00) 84 (28.00) (40.34) (4.33)
56 42 12 119 27 60 18
c) 3 (18.57) 61 (20.33) 36 (12.00) (14.00) (4.00) (39.66) (9.00) 76 (25.33) (20.00) (6.00)
60 108 74 14 5 195 17 64
d) 4 (20.00) (36.00) 24 (8.00) (24.67) (4.67) (1.66) (65.00) 19 (6.33) (5.67) (21.34)
14 0 2 70 10 205
e) 5 (4.67) 0 (0.00) 0 (0.00) 0 (0.00) (0.00) (0.67) (23.33) 13 (4.34) (3.33) (68.33)
300 300 300 300 300 300 300
Total (100) 300 (100) 300 (100) (100) (100) (100) (100) 300 (100) (100) (100)

Table 6, Investment driverswise preferences for assets
Sl Investment Preference numbers for financial assets Preference numbers for physical assets
no drivers* 1 2 3 4 5 Total 1 2 3 4 5 Total
69 63 60 59 49 300 66 112 75 47 0 300
1 a)
(23.00) (21.00) (20.00) (19.67) (16.33) (100) (22.00) (37.33) (25.00) (15.67) (0.00) (100)
87 75 70 68 0 300 89 60 104 44 3 300
2 b)
(29.00) (25.00) (23.33) (22.67) (0.00) (100) (29.67) (20.00) (34.66) (14.67) (1.00) (100)
102 102 96 0 0 300 79 90 84 47 0 300
3 c)
(34.00) (34.00) (32.00) (0.00) (0.00) (100) (26.33) (30.00) (28.00) (15.67) (0.00) (100)
104 80 61 55 0 300 66 38 37 153 6 300
4 d)
(34.67) (26.67) (20.33) (18.33) (0.00) (100) (22.00) (12.66) (12.34) (51.00) (2.00) (100)
92 91 56 41 20 300 0 0 0 9 291 300
5 e)
(30.67) (30.33) (18.67) (13.67) (6.66) (100) (0.00) (0.00) (0.00) (3.00) (97.00) (100)

*Note: Drivers of investment in financial assets include: a) Regular and steady income, b)
Liquidity of investment, c) Safety of investment, d) Tax benefits or statutory compulsions and e)
Others. Drivers of investment in physical assets include: a) Local accessibility, b) Easy
manageability, c) Procedural simplicity, d) More satisfying than financial assets and e) Others.
Table 7, Occupationwise length of investment in financial and physical assets
Sl Length of Financial assets Physical assets
no investment Agriculture Business Service Profession Others Total Agriculture Business Service Profession Others Total
Below 5 7 6 11 39 5 1 6 17
1 12 (30.77) 3 (7.69) 3 (17.65) 2 (11.76)
years (17.95) (15.38) (28.21) (100) (29.42) (5.88) (35.29) (100)
6 to 10 15 11 17 80 14 5 15 63
2 18 (22.50) 19 (23.75) 16 (25.40) 13 (20.63)
years (18.75) (13.75) (21.25) (100) (22.22) (7.94) (23.81) (100)
11 to 15 15 13 10 61 11 8 5 36
3 11 (18.03) 12 (19.57) 6 (16.67) 6 (16.67)
years (24.59) (21.31) (16.40) (100) (30.55) (22.22) (13.89) (100)
16 to 20 12 14 8 53 18 20 12 79
4 7 (13.21) 12 (22.62) 11 (13.92) 18 (22.78)
years (22.64) (26.42) (15.09) (100) (22.78) (25.33) (15.19) (100)
21 to 25 7 11 6 38 10 17 7 55
5 6 (15.79) 8 (21.05) 8 (14.54) 13 (23.64)
years (18.42) (28.95) (15.79) (100) (18.18) (30.91) (12.73) (100)
Above 25 4 5 8 29 9 15 50
6 6 (20.69) 6 (20.61) 16 (32.00) 2 (4.00) 8 (16.00)
years (13.79) (17.24) (27.59) (100) (18.00) (30.00) (100)

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International Journal of Research in Management, Economics & Commerce

Impact Factor: 5.662, ISSN 2250-057X, Volume 5 Issue 4, April 2015

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Sl Preference Post Office

128 144 216 98 2 108 92 0

Sources: Survey data

Sources: Survey data

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Sl Length of Financial assets Physical assets

Sources: Survey data

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