Chapter 4
Research Findings and Analysis
This part of the dissertation will present and analyzed the gathered information from the government employees and MNC employees. Herein, the result of the survey questionnaires and interview process given to the chosen respondents will be discussed. To ensure ethical considerations, the purpose, the significance, as well as the objectives of this dissertation relayed to the participants prior to the distribution of the survey questionnaire and interview. In addition, the respondents were also assured that all the information that they had given are solely for the purpose of the study while their identities would remain confidential. All questions asked in the survey questionnaire pertain only to the respondents’ insights regarding the employees’ asset allocation strategy.
For a comprehensible presentation, the findings from the survey are presented in graphs and tables. To provide an accurate flow of discussion, findings are also divided into sections. The first section will discuss the summary of the demographic profile of the respondents who participated in the study. The discussion of the perception of the employees (government and MNC employees) who took part in the study about their allocation strategy preferences will be discussed on the proceeding part of the research. The next part will discuss the perception of the respondents regarding their choice of an investment allocation strategy. The third and last part will discuss the factors that influence the government employees and MNC employees in choosing an investment allocations strategy and the analysis of the t-test to know the differences of the investment asset allocation approach of the employees.
Part 1: Demographic Profile
This part will discuss the demographic profile of 102 individuals who answered the survey questionnaire sent by the research. The description of the respondents includes their gender, age, educational background, occupation and monthly average income.
Frequency Table 1
Figure 1
The figure above presents the distribution and frequency in terms of the age of the participants. Herein, it shows that 35 (33%) of the total respondents are 51 above and 24% belongs to 31-35 and 16 (16%) belongs to 46 to 50. this means that most of the employees are adults who are more experienced when it comes to knowing where to allocate their assets.
Frequency Table 2
Figure 2
Figure 2 shows the distribution of the employees who participated in the study in terms of gender. Herein, it shows that 88(86%) were male and 14(14%) were female. This may indicate that males are more interested to participate in survey and researches than women.
Frequency Table 3
Figure 3
The figure above displays the educational attainment of the respondents of this study. The data gathered revealed that 66 (64%) out of 102 respondents are graduate and 19 (19%) are post graduate. Only 17% of the respondents have not been able to finish their studies. This could indicate that the respondents chosen in this research have a good education which may help them understand more the issue and objective of the study.
Frequency Table 4
Figure 4
The collated data from the 102 employees have revealed that 54 (52%) of them are working for above 15 years while 18 (18%) are working for 6.1 to 9 years. Some 10 (10%) of the total respondents are working for 3 years and below while other 10 (10%) are working for 9.1 to 12 years. This indicates that majority of the employees are working for a long time to presume that they have enough assets to allocate or used for investments.
Frequency table 5
Figure 5
The figure above presents the monthly income of the respondents, herein, it shows that 63 (61%) of the respondents are earning Rs 20000-Rs29999 and the 39% are earning more than that. This data could imply that most of the respondents have a high salary which made them have more assets to be allocated and invested.
Frequency Table 6
Figure 6
The figure above presents the types of employment/service where the participants belong. Herein, it shows that half of the respondents 52% are working at government agencies and department while the other 50% are working at MNC and private employment. Such result shows that each of the group has an equal representation for this study.
Part 2: Perception of the Respondents
This part of the paper will discuss and analyze the perception of 102 respondents who participated in this study. The discussion will focus on the asset allocation strategy used by the respondents and others factors.
A. Investment allocation used by the Respondents
Frequency Table 7
Figure 7
The table and figure above presents the asset allocation strategy used by the respondents. Analysis shows that 31% of the respondents are using fundamental or technical analysis and 26% preferred the strategic asset allocation approach. It is also revealed that 23% are using other asset allocation approach while some uses Tactical and core-satellite approach. Analysis also revealed that there are 6% of the total respondents who do not use any asset allocation approach.
B. Reasons why the respondents such investment asset allocation strategy
Frequency Table 8
Figure 8
The table and figure above presents the answers of the respondents when it comes to the reasons that they consider on choosing the investment strategy. it shows that most of the respondents (28%) did not provide any answers on their reasons for choosing the strategy they use. Furthermore, it shows that some of the respondents are relying on the safety of the measurement and safety of the assets with the allocation strategy they used. The result indicates that most of the respondents choose asset allocation approach that will safeguard their assets and that they have better insights and understandings.
C. Factors Influencing the Respondents to Choose Investment Strategy
Frequency Table 9
Figure 9
The table and figure above presents the distribution of the respondents in terms of the factors that influence them to choose their investment strategy. Among the top three influential factors are monthly income (31%), their savings (25%) and age and monthly income (16%). This indicates that respondents choose their investment strategy based on how much they earn and how much their savings are. Other factors are their occupation. There are respondents that consider the combination of these factors as the aspects the influence them in choosing their investment strategy.
D. main concern in having an investment asset allocation
Table 10
This dissertation also attempts to determine the main concern of the respondents in considering investment asset allocation. Based on the data collected, analysis shows that most of the respondents are uncertain on whether investment asset allocation enables them to plan for their future. They are also not certain on whether investment asset allocation helps them identify the risk and minimize it as soon as possible and they are also uncertain on whether in could be a key component in helping them achieves their financial goals and objectives. All in all, majority of the respondents are not certain on their main concern when choosing investment asset allocation.
E. How the respondents allocate their assets
Table 11
The researcher also attempts to determine how the employees allocate their assets. Herein, the data analysis revealed that most of the respondents are not certain on whether they allocate their assets on Indian stocks and through cash and they disagree that they allocate their assets through bonds. This result indicates that most of the respondents do not really know where they allocate their assets.
Part 3 RISK ANALYZER
This part of the paper intended to know the tolerance of the clients when it comes to risks. The perception of the clients about different statements and issues will be highlighted in this part.
E. The number of years the respondents has until retirement
Table 12
Figure 10
The research also aims on identifying the number of years that the respondents have until retirement. Based on the analysis 35% of 102 participants revealed that they have still 15 years or more before they retire. On the other hand, 53% revealed that they still have 5 to 15 years before they retire and other 13% mentioned that they still have 3 years or less to 5 years before they retire. Since most of the respondents are still young adults, their age affects the result of this issue.
F. Present Job Business of the Respondents
Table 13
Figure 11
The dissertation attempted to determine the present job business of the respondents. The researcher attempted to know the perception of the respondents about this to determine how secure and stable their present job is. Based on the analysis, the data revealed that 37% of the respondents believed that their present job is relatively secure. 34% of the respondents reveal that their present job is secure and 20% is not dependable. There are 2 respondents who mentioned that they already have enough wealth. The result indicates the majority of the respondents have a secure and stable job and some are ensure of having stable future.
G. Expectation on how the future earnings would be
Table 14
Figure 12
The table and figure above shows the perception of the respondents on their expected future earnings. Herein, it shows that 56% out of 102 respondents that their expectation on their future earnings is it would keep pace with inflation. On the other hand, 24% have mentioned that it would somewhat ahead inflation and 11% have indicated their earnings would not be able to keep pace with inflation. Based on the result, this implies that most of the respondents are earning more and that they are expecting increase of earnings in the future.
H. Describe yourself as a risk-taker
Table 15
Figure 13
The figure and table above presents the analysis of the data with regards to the perception of the respondents when describing themselves as a risk taker. In this analysis, it shows that 51% of the total respondents can take calculated risks while 26% of the respondents have a low risk taking capability. The distribution also shows that 15% of the respondents do not answer the queries and there are 5% who are extremely averse to risk while 4%admit that they are careless when it comes to risk taking. This indicates that majority of the respondents are risk takers and they are willing to take challenges.
I. Knowledge on Finance
Table 16
Figure 14
The researcher also intended to determine how good the knowledge of the respondents is when it comes to finance. Based on the gathered data, 58% admitted that they do not have enough knowledge about finance but they update themselves through media and news. 21% have mentioned that they have limited knowledge about stock market movement. The data also revealed that 9% of the respondents noted that they are proficient in financial and 4% mentioned that they are expert in the field of finance. In this study, 9% of the respondents revealed their ignorance when it comes to finance. This indicated that majority of the respondents are not knowledgeable enough to make decisions when it comes to financial matters.
J. If you lose your job or stop working today, how long do you think your savings can support you?
Table 17
Figure 15
Table 17 and Figure 15 presents the distribution of the respondents in terms of their perception with regards to the query on how long do they think that their savings can support them. Herein, it shows that 52% of the respondents believed that their savings can support them for 3 months to 6 months. 21% believed that they will be saved from a year to 3 years and 19% believed that their savings can only saved them for less than 3 months and only 1% believed that it can support him in more than 3 years. The result indicate that majority of the respondents can be considered to have inadequate savings that can support them if ever they will lose their job.
K. If you had Rs.50, 000 to invest, which of the following choices would you makes?
Table 18
Figure 16
Discussion Here
L. You have a market tip on the price appreciation of certain scrip, you:
Table 19
Figure 17
Discussion Here
M. You are on a TV game show and you win Rs.10, 000. You have a choice to keep the money or risk it to win a higher amount, you :
Table 20
Figure 18
Discussion Here
N. Which one of the following best describes your feeling immediately after making an investment, you:
Table 21
Figure 19
Discussion Here
O. the stock market has dropped 25% and a share that you own also dropped 25%, but the market expects the share to go up again. What would you do?
Table 22
Figure 20
Discussion Here
P. You have a substantial sum of money spare for about 6 months after which you need this sum to repay a loan, this sum is currently not invested anywhere. You would:
Table 23
Figure 21
Discussion Here
Q. You are financially responsible for (exclude dependants who can be supported by your spouse’s income)
Table 24
Figure 22
Discussion Here
R. You’re Perception of Risk Tolerance
Table 24
Figure 22
Discussion Here
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