Pacific B usiness R eview (International)

A Refereed Monthly International Journal of Management Indexed With Web of Science(ESCI)
ISSN: 0974-438X(P)
Impact factor (SJIF):8.603
RNI No.:RAJENG/2016/70346
Postal Reg. No.: RJ/UD/29-136/2017-2019
Editorial Board

Prof. B. P. Sharma
(Principal Editor in Chief)

Prof. Dipin Mathur
(Consultative Editor)

Dr. Khushbu Agarwal
(Editor in Chief)

A Refereed Monthly International Journal of Management

Relationship of Demographic Factors with Investment Behavior of Academicians of Haryana

 

Dr. Manoj Kumar

Assistant professor

Department of commerce

MDU, Rohtak

 

Annu

Research scholar

Department of commerce

MDU, Rohtak

Email: annurohilla789@gmail.com

 

Abstract

The importance of finance in today’s environment cannot be overemphasized as it is needed everywhere. The selection of investment alternatives and objectives of investment may vary according to investors’ need and circumstances. The purpose of this study is to find the association between demographic characteristics and selection of different investment avenues by the academicians and to study the factors affecting their investment decisions.  Data was collected from 600 academicians from different schools, colleges and universities of Haryana. The study found that gender, income and discipline of study associated with the investment choice of respondents and age does not. Majority of respondents have invested in fixed deposits and insurance & pension plan. Majority of respondents have invested for the education of family members. Four factors influencing investment decisions are extracted through factor analysis.

Keywords: Investment behavior, academicians, Investment alternatives.

Introduction

In today’s rapidly changing scenario, individuals are facing a problem that to get maximum return where they should put their money. Personal investment decisions have great importance in one’s life as they directly affect the quality of life. These decisions involve accumulating funds for purchasing home or vehicle, personal goals, education of child and retirement (Volpe et al; 1996). The major objective of every investment is to maximize the income and reduce their expenses (Singh and Rheja, 2019). Investment may not be profitable sometimes because investor do not have assurance whether their decisions are correct or not. It is generally considered that investment decisions depend on various factors like market characteristics, accounting information and individual risk profile (Jogango et al., 2014). Individual who wants to invest his funds, should study the market first and then make a choice of investment option which fits him best according to his need and circumstances (Bhushan and Medury, 2013). While investing individual have different investment behaviour as it depends upon the risk one is willing to take and expected return from this investment (Mukoba, 2015).

Investment behaviors are defined as “how the investors judge, predict, analyze and review the procedures for decision making, which includes investment psychology, information gathering, defining and understanding, research and analysis” (Slovic, 1972; Alfredo and Vicente, 2010). “Investment behaviour of individuals is concerned with choices about purchases of small amount of securities for their own account” (Nofsinger and Richard, 2002). Investment behavior is the relationship between the risk and return (Rizvi and Abrar, 2015). “Investment behavior is generally about activities like searching, evaluating, acquiring, reviewing various investment products and sometimes even disposing those products” (Singh and Rheja, 2019).This study aims to find the difference in investment behaviour of academicians in haryana due to demographic factors.

 

Review of literature

Singh and Raheja (2019) found eight factors to affect the investment behaviour of academicians in Jalander which were future prospects, complimentary benefits, information and government policy, conditions, inflation and growth rate, financial requirements, investment experience and knowledge of investors. Academicians were not found so aware about various investment avenues. The major objective of investment was tax planning in which they were found to take help of investment advisors. Gill (2018) examined that the economic expectation and over confidence bias were significantly related with investor decision making behavior and there existed a positive and significant relation between information searches and decision-making behavior. The study also found that information searches fully mediate the relationship between economic expectation and decision-making behavior while partially mediate the relationship between overconfidence bias and investment decision behavior. Seetharaman, Niranjan, Patwa and Kejriwal (2017) in their study discussed four major factors - investment objectives, risk profile, assets familiarity and investment behavior. Investment objectives are affected by income level, time horizon, and life cycle stage. Risk profile is affected by risk attitude, risk tolerance and expected return. Asset familiarity is influenced by investment products available, financial knowledge, patriotism & social identification and familiar investment products. Investment behavior is influenced by market sentiments, expected returns and past experience. Investment objectives and familiarity with asset have an impact on investors’ behavior and investors’ behavior have an influence on choice of a portfolio of the investors. Jogango et al., (2014) found nine factors influencing investment decisions which are firms’ position and performance, third party opinion, investment returns and economic conditions, environmental factors, diversification and loss minimization, perception towards the firm, goodwill of the firm and accounting information, firms feeling and risk minimization. Oteng (2019) examined some factors like: minimization of risk, expected dividends, expected losses in other local investment, diversification purpose, ease of obtaining loans and family member opinion and financial advisors and analysts’ recommendation which influencing the investment decisions. Chandra (2017) found the five psychological variables that drives Indian investors’ behaviour which are conservatism, informational asymmetry, prudence and precautious attitude, under confidence and financial addiction. According to Ahmad (2017) dividend paid, condition of financial statements, expected corporate earnings, current economic indicators, stock marketability, brokers’ recommendations, expected dividends, firm status in industry, past performance of the firm and get rich quick are the most influencing factors of the investment behaviour whereas environmental record, religious reasons, family member opinions, perceived ethics of the firm and political party affiliation are least influencing factors of investment behaviour.

Mittal and Subesingh (2019) found that most of investors preferred to invest in saving accounts than mutual funds and only 18% invest in post office. Maximum investors were found to have moderate risk capacity. The factors, which were considered during investment decision were independent from the age of investors and qualification of investors and knowledge about mutual fund were dependent of each other. Tax benefits and better return are major reasons to attract the investors towards mutual funds. Pallavi and Anuradha (2017) found that awareness level about health and life insurance scheme was more in respondents of science stream, about PPF (public provident fund)was high in faculty of commerce and respondents of arts and humanities were found to have no awareness level. The study found that 30% of total population was doing proper tax planning, by investing in tax saving schemes 63% were trying to avoid tax and remaining were not having any plan for tax saving. Most of them were less aware about financial securities like shares, debentures and mutual funds. Awareness of tax planning schemes have significant impact on investment preference. Deo and Jagtap (2017) in their research found that investment decisions are significantly influenced by the gender because in most of the families, males were found to have deep interest in investment alternatives in comparison to females. Because of the responsibilities of life, investors of different age groups were found to have different investment priorities. They also found that marital status does not significantly affects the investment decision in mutual funds. Venkateshraj (2015) found that majority of women have risk averse nature because they preferred to invests in provident funds, bank deposit, postal savings, insurance, gold or silver etc. which are less risky products. The results of study also revealed that demographic variables have significant influence on investment pattern. In comparison to respondents from Bangalore and Cochin, respondents from Chennai were found to be holding high risky investment & from Cochin were considered to have non – risky portfolio. According to Mukoba (2015) women prefer to adopt risk aversive strategy irrespective of their experience, occupation and expertise. They found to prefer certain but low return from their investment decisions as they are less willing to take risks. As compared to men they less prefer to invest in stocks and personal businesses and they choose to invest in certificate of deposit and homes. Mak et al., (2017) found that age, income level and investment experience influence the investment behaviour of investors in mainland chinese and hongkong.

Rizvi and abrar (2015) examined that accounting information and financial literacy are the variables which have maximum influence on attitude of the investors. Out of demographic variables age and level of income are most important in investment decision making and gender, family and friends’ advices and religious reasons have less influence on investment decision. The study also found that investors invest with the objective of earning high income instead of wealth maximization. Kulkarni and Rawal (2016) in their research found that the main objective of the both male and female for investing is marriage, tax concessions and education of children and they prefer the traditional avenues of investment like government securities, bank deposits and bullions. They were found risk averse because they select the investment avenue having safety and assured income and most of them were found even not to touched the stock market options. Kapoor (2016) found that bank deposits, real estates, gold and silver, life-insurance were equally used for investment by both rural and urban investors. Rural investors were found less aware about shares, bonds, derivative, PPF and mutual funds as compared to urban and found to give more importance to investing in post office saving scheme.

Aren and Aydemir (2015) also found that as compared to men, women invest more in bank deposit and people prefer small bank with weaker corporate data. Female prefer to invest in safe and secure financial instruments as compared to male (Zureck et al; 2018). Women were considered risk averse by some researchers (Kumar, tomar and verma, 2019; Mahdzan, Mohd-Any & Chan, 2017).Younger people invest in secure financial instruments and they accept low return because of low interest and their investment behaviour (Zureck et al; 2018).

Objective of the study

To find the association of demographic characteristics with selection of investment alternatives.

To study the factors affecting the investment decision of academicians in the Haryana.

Research methodology

Research design used for this study was Descriptive in nature. Data was collected from 600 academicians in Haryana working in various schools, colleges and universities from 6 districts. Both primary and secondary data were used. Primary data was collected through questionnaire and analyzed with the help of SPSS. Selection of investment alternatives, objectives of investment and reasons of not investing were asked from respondents through multiple response questions. Preferred source of information and variables influencing investment decisions were asked to rate on five-point Likert scale and four factors were identified using factor analysis. Descriptive statistics (like frequency, percentage analysis), multiple response analysis and chi-square test were used for data analysis.

Data analysis

Frequency distribution of respondents according to their decision to invest or not their saving

Table – 1

Summary of the Respondents Decision to Invest

 

 Number

%

Valid %

Cumulative %

 

No

96

16.0

16.0

16.0

Yes

504

84.0

84.0

100.0

Total

600

100.0

100.0

 

Source: Primary data

Table- 1 represents that from 600 responders, 96(16%) were found to be non - investors. The table-2 displays that most of respondents (45.8%) do not invest their saving due to overburden of expenses and 42.7% due to lack of knowledge about investment. According to 38.5% respondent investment seems very confusing, so they do not invest anywhere. 36.5% respondents do not invest because of fear of taking risk and 34.4% respondents prefer cash in hand that’s why they do not invest anywhere.  

Table – 2

Summary of Respondents for Reasons for Not Investing

 

Responses

Percent of Cases

N

Percent

 

Lack of knowledge about investment

41

21.6%

42.7%

Prefer cash in hand

33

17.4%

34.4%

Overburden by expenses

44

23.2%

45.8%

Fear of taking risk

35

18.4%

36.5%

Investment seems very confusing

37

19.5%

38.5%

Total

190

100.0%

197.9%

a. Dichotomy group tabulated at value 1.

Source: Primary data

Investment pattern of the respondents

Table –3 shows that summary of investment pattern of the respondents that out of 504 respondents most of respondents have invested their saving in insurance & pension plan and fixed deposit 237 (47%) and 232 (46%) respectively. 214 (42.5%) respondents have invested their saving in post office saving schemes and 178 (35.3%) respondents have invested in gold & silver (precious metals) and 177 (35.1%) have invested in mutual funds. 152 (30.2%) respondents have invested in real estate and only few have invested in shares, debentures and Crypto assets that is 92(18.3%), 18(3.6%) and 4(.8%) respectively. Majority of respondents prefer to invest in conventional investment options as found by previous researches Kapoor, 2016; Kulkarni and rawal, 2016; Rheja, 2018;

 

Table – 3

Frequency of investment alternatives

 

Responses

Percent of Cases

N

Percent

 

Shares

92

7.1%

18.3%

Debentures & Bonds

18

1.4%

3.6%

Mutual funds

177

13.6%

35.1%

Gold & Silver (precious metals)

178

13.7%

35.3%

Post office saving schemes

214

16.4%

42.5%

Real estate

152

11.7%

30.2%

Insurance and pension plan

237

18.2%

47.0%

Crypto Assets

4

0.3%

0.8%

Fixed deposit

232

17.8%

46.0%

Total

1304

100.0%

258.7%

a. Dichotomy group tabulated at value 1.

Source: Primary data

Table – 4

Crosstabulation of gender and investment alternatives

Investment alternatives

Gender

Value of

Chi-square

p-value

Null

hypothesis

Association

Male

Female

%

%

Shares

69.6

30.4

7.992

.005

Reject

Association

Debentures & bonds

50

50

0.306

0.580

Accept

No Association

Mutual funds

68.4

31.16

16.004

.000

Reject

Association

Gold & silver

48.9

51.1

6.248

0.012

Reject

Association

Post office saving schemes

57

43

0.066

0.797

Accept

No Association

Real estate

64.5

35.5

5.840

.016

Reject

Association

Insurance and pension plan

60.8

39.2

3.538

.060

Accept

No Association

Fixed deposit

48.7

51.3

10.207

.001

Reject

Association

Source: Primary data

Table - 4 represents the association between gender and selection of different investment alternatives. Male respondents were more prefer to invest in shares, mutual funds and real estate as compared to female respondents. The chi square test’s value for their association with gender is also significant at 5 % level of significance. Female respondents more prefer to invest in gold and silver and fixed deposit as compared to male and chi square test’s value is also significant for their association with gender. So, it can be said that selection of shares, mutual funds, gold and silver, real estate and fixed deposit as investment avenues are significantly associated with gender. Selection of debentures & bonds, post office saving schemes and insurance & pension plan as investment alternative are not significantly associated with gender as value of chi-square test is not significant for these. It can be concluded that women are prefer to invest in safe or risk-free investment as compare to men. Findings are consistent with the previous researches Mukoba, 2015; Venkateshraj, 2015; Deo and jagtap, 2017;Aren and Aydemir, 2015; Zureck et al; 2018.

Table – 5

Crosstabulation of age and investment alternatives          

Investment

alternatives

Age

Value of

Chi-square

p-value

Null

hypothesis

Association

24-30

30-40

40-50

 

50-60

 

%

%

%

%

 

 

 

 

Shares

18.5

42.4

30.4

8.7

2.785

.426

Accept

No Association

Debentures & bonds

11.1

38.9

50

00

7.122

.068

Accept

No Association

Mutual funds

16.9

45.2

31.6

6.2

6.928

.074

Accept

No Association

Gold & silver

20.8

49.4

24.2

5.6

1.835

.607

Accept

No Association

Post office saving schemes

15

53.7

25.7

5.6

5.923

.115

Accept

No Association

Real estate

13.8

50

28.9

7.2

4.267

.234

Accept

No Association

Insurance and pension plan

16.5

53.6

23.6

6.3

3.773

.287

Accept

No Association

Fixed deposit

18.1

50

24.1

7.8

.302

.960

Accept

No Association

Source: Primary data

Table - 5 shows the relationship of age and investment alternatives selected by respondents. It can be observed that all the values of chi square test are insignificant at 5% level so null hypothesis is accepted for all and concluded that age of respondents and selection of investment alternatives are independent (not associated).

Table – 6

Crosstabulation of discipline of the study and investment alternatives

Investment

alternatives

Discipline of the study

Value of

Chi-square

p-value

Null

hypothesis

Association

Commerce & Management

Art &

Humanities

Science & Technology

 

%

%

%

 

 

 

 

Shares

30.4

37.0

32.6

6.026

0.4

Reject

Association

Debentures & bonds

27.8

16.7

55.6

4.647

.098

Accept

No Association

Mutual funds

21.5

40.7

37.9

.035

.983

Accept

No Association

Gold & silver

23

43.8

33.1

2.670

.263

Accept

No Association

Post office saving schemes

19.6

44.9

35.5

2.206

.332

Accept

No Association

Real estate

23

44.7

32.2

2.963

.223

Accept

No Association

Insurance and pension plan

17.7

42.6

39.7

2.959

.228

Accept

No Association

Fixed deposit

25.0

31.0

44.0

17.941

.000

Reject

Association

Source: primary data

Table 6 represents the association between discipline of the study and different investment alternatives selected by respondents. Respondents from arts and humanities are found to more who have invested in shares as compared to others whereas fixed deposit is largely selected by respondents from science and technology as compared to respondents from other categories. The values of chi square tests and p values for association of selection of shares and fixed deposit (as investment alternatives) with discipline of the respondents are statistically significant. Selection of other investment alternative except these two are not significantly related with discipline of the study of respondents.

Table – 7

Crosstabulation of income and investment alternatives

Investment

alternatives

Income

Value of

Chi-square

p-value

Null

Hypothesis

Association

Upto50000

50000-

100000

100000-

150000

 

150000 &above

 

%

%

%

%

 

 

 

 

Shares

19.6

51.1

12.0

17.4

8.987

0.029

Reject

Association

Debentures & bonds

16.7

33.3

16.7

33.3

10.686

0.014

Reject

Association

Mutual funds

17.5

56.5

11.3

14.7

20.561

.000

Reject

Association

Gold & silver

30.9

48.9

8.4

11.8

2.923

0.404

Accept

No Association

Post office saving schemes

21.0

57.9

8.4

12.6

10.377

.016

Reject

Association

Real estate

28.3

44.7

8.6

18.4

8.087

.044

Reject

Association

Insurance and pension plan

25.7

51.1

8.9

14.3

4.410

.220

Accept

No Association

Fixed deposit

28.4

48.3

7.3

15.9

4.179

.243

Accept

No Association

Source: primary data

Table – 7 shows the relationship of income of respondents with selection of investment alternatives. Selection of shares, debentures & bonds, mutual funds, post office saving schemes and real estate as investment alternative is significantly related with income of the respondents as values of chi square tests and p-values is significant at 5% level of significance for these and null hypothesis is accepted. Selection of gold & silver, insurance and pension plan and fixed deposit as investment alternative is not significantly related with income of respondents as values of chi square tests and p-values for these are non - significant. In nutshell it can be said that selection of investment alternative is significantly related with income of respondent. Findings are in line with the researches Seetharaman, Niranjan, Patwa and Kejriwal, (2017);Mak et al., 2017; Rizvi and abrar, 2015.

Objectives of investments: Respondents are asked to select their objectives of investment through the multiple response questions and analysed with the help of multiple response analysis (frequency and crosstab) in SPSS.   

Table – 8.

  Frequencies of Investment objectives

 

Responses

Percent of Cases

N

Percent

 

Retirement planning

262

18.9%

52.0%

Tax planning

230

16.6%

45.6%

Marriage

125

9.0%

24.8%

Education of family members

326

23.6%

64.7%

To meet unexpected financial contingencies

280

20.2%

55.6%

Buying house

160

11.6%

31.7%

Total

1383

100.0%

274.4%

a. Dichotomy group tabulated at value 1.

Table - 8 shows the various objectives of investments selected by respondents. It can be seen that most 326(64.7%) of respondents invested for the education of family members. 280 (55.6%) respondents invested their saving to meet unexpected financial contingencies and 262 (52%) respondents have invested for retirement planning. 230 (45.6%) have invested for tax planning and 160 (31.7%) have invested for buying house whereas only 125 (24.8%) have invested for marriage.

Table – 9

Means score of various Source of information

 

N

Mean

Std. Deviation

Statistic

Statistic

Statistic

Family, friends and relatives

504

3.64

1.193

 Information from existing investors

504

3.31

1.154

Certified financial planner

504

3.31

1.148

Financial newspapers and electronic media

504

3.10

1.139

Brokers, advisors, agents and financial analyst’s recommendations

504

2.94

1.101

Published reports from research agencies

504

3.20

1.092

Conversation with professional colleagues

504

3.56

1.069

Valid N (listwise)

504

 

 

Source: Primary data

Most preferred source of information: Four most preferred sources of information were family, friend & relatives, conversation with profession colleagues, existing investors and certified financial planner having mean scores 3.64, 3.58. 3.31 and 3.31 respectively.

Least preferred source of information: Three least preferred sources of information were recommendations of brokers, advisors, agents & financial analysts, financial newspapers &electronic media, and reports of research agencies having mean scores 2.94, 3.10 and 3.20 respectively.

Table – 10

Description of variables influencing Investment decisions

 

N

Mean

Std. Deviation

Rank

Past performance of investment avenues

504

3.51

1.005

14

Past experience of investment

504

3.71

.977

5

Familiarity with investment avenues

504

3.62

.949

9

Expected rate of return on investment in near future

504

3.78

.875

3

Safety of investment

504

3.98

.906

1

Benefits of income tax deductions

504

3.82

.937

2

Inflation rate

504

3.53

.922

13

Purpose of diversification

504

3.39

.939

17

 Risk associated with investment avenues

504

3.50

1.011

15

Fluctuations in price of firm stock

504

3.56

.948

12

Opinion of family member

504

3.70

1.073

6

Opinion of friends and relatives

504

3.57

1.099

11

Discussion with professional colleagues

504

3.65

1.009

7

Liquidity of the investment

504

3.59

.961

10

Time horizon of investment

504

3.64

.952

8

Affordability (minimum amount requirement)

504

3.73

.985

4

Intention of getting rich quickly

504

3.16

1.081

19

Success stories of investors

504

3.33

1.128

18

Recommendations of brokers/advisors/agents

504

2.82

1.152

20

Discussion with existing investors

504

3.42

1.047

16

Valid N (listwise)

504

 

 

 

Four most influencing variables

It can be observed from the above table that safety of investment is highly influencing variable with mean score of 3.98 indicating that respondents have more concern for the safety of investment while investing. Benefits of income tax deductions, expected rate of return in near future and affordability are also most influencing variables with mean scores of 3.82, 3.78 and 3.73 respectively.

Four least influencing variables

The table represents that recommendation of brokers/ advisors/ agents, intention to getting rich quickly, success stories of investors and purpose of diversification are the variables which least influence the investment decisions of respondents having mean scores 2.82, 3.16, 3.33 and 3.39 respectively.

Factors influencing investment decisions

Factors influencing investment decisions are extracted on the basis of communalities, Eigen values, Rotated Components matrix used in Exploratory Factor Analysis. Before applying factor analysis, KMO Value and Bartlett’s Test of Spherecity has been used to know the sample adequacy. It can be observed from the results that KMO statistic is .907 and significance value of Bartlett test of sphericity is .000, so that factorability is assumed.

Table - 11

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy.

.907

Bartlett's Test of Sphericity

Approx. Chi-Square

4527.074

Df

190

Sig.

.000

Source: Primary data

Table – 12

                                                Factors extracted through factor analysis

Factors

Loadings

Eigen values

% of variance

Reliability

Cronbach alpha

Factor 1: Personal investment experience and future prospects

 

7.675

17.983

.849

Past experience of investment

.745

 

 

 

Past performance of investment avenues

.737

 

 

 

Expected rate of return on investment in near future

.662

 

 

 

Inflation rate

.578

 

 

 

Risk associated with investment avenues

.575

 

 

 

Familiarity with investment avenues

.534

 

 

 

Benefits of income tax deductions

.463

 

 

 

Purpose of diversification

.403

 

 

 

Factor 2: Personal financial need and requirement

 

1.676

16.995

.812

Liquidity of the investment

.797

 

 

 

Affordability (minimum amount requirement)

.754

 

 

 

Time horizon of investment

.706

 

 

 

Intention of getting rich quickly

.568

 

 

 

Fluctuations in price of firm stock

.552

 

 

 

Factor 3: Informal information and safety

 

1.348

13.106

.794

Opinion of family member

.815

 

 

 

Opinion of friends and relatives

.800

 

 

 

Safety of investment

.601

 

 

 

Discussion with professional colleagues

.552

 

 

 

Factor 4: formal information or advice

 

1.078

10.798

.672

Discussion with existing investors

.691

 

 

 

Success stories of investors

.658

 

 

 

Recommendations of brokers/advisors/ agents

.610

 

 

 

Source: Primary Data

Factor 1:this factor constitutes eight items which are past experience of investment (.745), past performance of investment avenues (.737), expected rate of return in near future (.662), inflation rate (.578),risk associated with investment avenues (.575), familiarity with investment avenues (.534), benefits of income tax deductions (.463) and purpose of diversification (.403). On the basis of items loaded, this factor is named as ‘personal investment experience and future prospects’ which explained 17.983 % variance of total variance explained and the value of reliability coefficient, Cronbach alpha is .849.

Factor 2:this factor constitutes five items which are liquidity of the investment (.797),affordability (.754), time horizon of investment (.706), intention to getting rich quickly (.568) and fluctuation in price of firm stock (.552). On the basis of items loaded this factor is named as ‘personal financial need and requirement’ which explained 16.995 % variance of total variance explained and the value of reliability coefficient, Cronbach alpha is .812.

Factor 3:this factor constitutes four items which are opinion of family members (.815), opinion of friends and relatives (.800), safety of investment (.601) and discussion with professional colleagues (.552). On the basis of items loaded this factor is named as ‘Informal information and safety’ which explained 13.106 % variance of total variance explained and the value of reliability coefficient, Cronbach alpha is .794.

Factor 4:this factor constitutes three items which are discussion with existing investors (.691), success stories of investors (.658) and recommendations of brokers/ advisors / agents (.610). on the basis of items loaded this factor is named asformal information or advice’which explained 10.798 % variance of total variance explained and the value of reliability coefficient, Cronbach alpha is .672.

Conclusion

The study concludes that majority of respondents have invested in risk free and conventional investment avenues. Gender, income and discipline of study are significantly associated with selection of investment alternatives whereas age does not. Majority of respondents have invested for education of family members, to meet unexpected financial contingencies and retirement planning. Most preferred source of information by academicians were family, friend & relatives, conversation with profession colleagues & existing investors. Safety of investment is major concern for the academicians in Haryana while investing. Benefits of income tax deductions, expected rate of return and affordability are most influencing variables to investment decisions of respondents. Four factors are identified with the help of factor analysis which are personal investment experience and future prospects, personal financial need and requirements, informal information and safety and formal information or advice.

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