Causes Influencing Variation in Investment Portfolio

Topics: Risk, Investment, Sampling Pages: 38 (7479 words) Published: April 16, 2013
Research Methodology Project

Causes influencing variation in investment portfolio with age

Table of Contents

Table of Contents- 1 -
Acknowledgement- 2 -
1. Introduction- 3 -
1.1 Objective- 3 -
1.2 Need for Study- 4 -
1.3 Research Question- 5 -
2. Literature Review- 6 -
2.1 Prologue- 6 -
2.2 Theoretical Modeling- 7 -
2.3 Variables and their Classification- 10 -
2.4 Concept Map- 11 -
3. Research Design- 12 -
3. 1 Components of the Research Design:- 12 -
3.2 Research Design for the project:- 13 -
3.2.1 Defining the information needed:- 13 -
3.2.2. Research Methodology:- 14 -
4. Sampling- 15 -
5. Pilot testing phase – Results & Modifications- 20 -
6. Data Analysis- 23 -
4.1 Introduction- 23 -
4.2 Tests (ANOVA and Chi-Square)- 24 -
Conclusion- 39 -
Recommendations- 41 -
Bibliography- 42 -
Appendix- 43 -
Questionnaire- 43 -


We are sincerely grateful to Dr Vidya Naik, for giving us this opportunity to engage in a real, hands-on market research, without which our understanding of the subject of Research Methodology would have been incomplete. Her guidance and constant support has helped us immensely in the completion of this project. She has always addressed any queries/doubts that we had and helped enrich this project with quality and innovation.

Shobhit Kapoor (126)
Sandeep John Mathew (134)
Suyash Mehrotra (136)

1. Introduction

1.1 Objective

The financial markets today are inundated with a multitude of investment avenues, ranging diversely in their returns to the investors, and also the risk associated with these investments with respect to fluctuations in return values. There exists a tradeoff between the risk and returns, usually following the criteria of higher the risk, higher the returns.

In deciding on the kind of investment portfolio that an investor has, there are a lot of factors that play an important role. Age, for instance is one of these factors, since the risk appetite that a person has/may be willing to bear varies with age. However, there are several factors that affect this risk-taking ability such as the financial obligations that a person may have, his current liabilities and payments that he has to incur, his awareness of the various investment options available, and so on.

The research studies investors across the following age bands: • Age group 25-35
• Age group 35-45
• Age group 45-55
• Age group 55+

The research objective of the study will be “Impact of age on the investment decisions of an individual”.

1.2 Need for Study

There is a growing need to study the impact of age on investment decisions as India is a growing economy, well substantiated with sensex figures sky-rocketing from 9000 to above 13000 in the last year alone. A bulk of India’s population is under the 35 year category and it has become a need of the hour to analyze if much of this investment decision is because of this growing population of this bracket, or whether there has been a sufficient contribution for people of other age groups as well, riding on the bull-wave of India’s growth story.

Analyzing the age-group from which there is maximum investment plays a big role in the manner of investment options that must be made available. For example, younger investors might only want to invest on short-term levels and might expect quicker returns. They also have a higher risk appetite and tend to take erratic decisions during investment. It because of various factors like this that the age group becomes highly important when it comes to investment decisions.

Such a study not only assists the investment options to be planned, but also gives an idea as to the study of behavioural patterns and an analysis on the types of decisions that the investors tend to make.

1.3 Research Question

What impact do current and...
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