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Study Of Investment Awareness: The Concluding – Part 3

Research Article written by:

Dr. Mukti Katariya: Assistant Professor, Trinity Institute of Management and Research, Kondhwa, Pune

The concluding part infers about the dominating investment options that the rural people opted for and why?

A Finding: Preferred Investment Avenues Of Individual Investors

Recommendations From The Study

1. Knowledge About Investment Avenues, Investment Returns And Tax Benefits:-

Investors should be aware about various investment avenues available to them as well as possible return and tax benefit from various investment avenues.

2. Comparison Of Return Risk Tolerance Level And Holding Power Of Different Investment Avenues:-

Investors should compare the returns of various investment avenues before making investment as well as they should judge their risk tolerance level and holding capacity for particular investment

3. Awareness Programme:-

Professional bodies like SEBI, LIC, NGOs, mutual fund agency, banks and rural development officers, brokers should take investment awareness programme by covering each and every tehsil places and other smaller regions at regular intervals to create awareness among investors about financial terms, mechanism and various aspects of investment. The study suggests that insurance companies should create effective communication mechanism to provide insurance cover to rural people. In addition, there is need of initiating awareness programme disseminating information about shares, debentures, bonds and mutual funds so, safer and healthier investment takes place.

4. Financial Assistance:-

The government of India and Reserve Bank have emphasized on providing financial services to unbanked areas in order to expand the outreach of banking services and products. The widespread publicity of Financial Inclusion Programme, Prime Minister’s Jan Dhan Yojana through electronic and print media have encouraged and motivated people from all strata of the society to get linked with financial market.

5. Mobilisation Of Savings & Capital Formation: NABARD sponsored Micro finance programme has good outreach in the rural areas. Self-help groups can be instrumental in small savings mobilisation and capital formation.


Through the study it is evident that most of the respondents from the district were aware of various investments avenues. There was significant difference in the importance investors attach to the investment avenues and the various objectives of investing. Investors prefer ‘low risk-low return trade off level’ that’s why they inclined towards bank’s fixed deposit as one of the most preferred mode of investment. Investors emphasize more on huge profit, safety and quick earning rather than periodic return and liquidity.

The present study has important implications for investment managers as it has come out with certain interesting facts of investors’ pattern of saving and preferences towards various investment avenues.

Risk Free Returns is what Investors in the said district preferred to invest in. In order to speed up the process of deposit mobilisation and capital formation in rural economy, financial literacy programme should be implemented with the help of NGOs, banks and rural development officers.

Study of Investment Awareness – Part-2

Research Article written by:

Dr. Mukti Katariya: Assistant Professor, Trinity Institute of Management and Research, Kondhwa, Pune

In this part we will see how sample size & data collection was carried out. The data interpretation methods will also be studied subsequently.

Research Methodology:

The research paper follows a descriptive research design methodology. Primary data for analysis has been gathered using a questionnaire survey and observation method. For research purpose researcher select the district as scope of study. The focus of the study was on understanding the preferences of the district investors with regard to investment avenues, their financial knowledge and investment preferences. Census 2011 data show that, 68.26 % population of the districts lives in rural areas of villages. The total the district population living in rural areas is 2,887,20668. In total, 2858882 people were literate as per census data 2011.

Scope of study:

Scope of study was limited to the district only. The district have population more than 4,224,442. There are 15 talukas in the district. The scope of study was limited to investors of the district only.

Sample size and data collection: – Structures questionnaire is designed for investors after conducting pilot study. Area sampling under random method was used while selecting 300 investors from the 15 talukas of the districts. 20 investors from each taluka place considered for study. Stratified random sampling method was also used for investors from different talukas. Investors belong to different strata, viz. professional, businessman, students, housewives and others in service and they were again stratified on the basis of different strata: viz. different age groups, genders, income levels. Both primary and secondary data used for the purpose of study. Secondary data on historical and current prices of stock was collected from the official websites: Bombay stock exchange (www.bseindia.com) and National Stock Exchange (www.nseindia.com).

Statistical test:

Freidman Chi square test is applied for testing the hypothesis Hypotheses of the study were:

H0: There is no difference in the importance investors attach to the various investment avenues.

H1: There is significant difference in the importance investors attach to the various investment avenues.

H0: There is no difference in the importance investors give to the various objectives of investment in the stock market.

H1: There is significant difference in the importance investors give to the various objectives of investment in the stock market.

Results Obtained:

  1. Saving pattern of respondents study interprets that 36.67% of the respondents save 0-10% of their income; 54% of the respondents save between 11-20% of their income; 9% of the respondents save 21-30% of their income; 0.3% of the respondents save 41-50% of their income. Hence, it is concluded that most of respondents save between ‘11-20% of their income.
  • The study to identify the awareness about various investment avenues interprets. The data shows that 82.3% of the respondents were aware of investment avenues while 17.3% were unaware of investment avenues. Hence, it is concluded that most of respondents from the district were ‘aware of various investment avenues.
  • The data obtained about savings invested in different avenues infers that there are lots of investment avenues available to investors viz. Stock market, public provident fund, bank fixed deposit, insurance schemes, mutual fund, real estate, gold, government bond etc. It can be seen that 57.58% of the respondents agree that they invest 0-10% of their savings in different avenues; 39.73% of the respondents invest 11-20% of their savings in different avenues and 2.69% of the respondents invest 21-30% of their savings in different avenues. Hence, it is concluded that most of the respondents invest small portion i.e. ‘0-10% of savings’ in different avenues.
  • The frequency distribution for preferences of investors for various risk-return trade-off levels as risk is associated with return. It can be seen that 2.01% of the respondents accounted for very low risk- very low return; 45.97% accounted for low risk-low return; 28.86% accounted for moderate risk –moderate return; 7.72% accounted for high risk- high return; 7.38% accounted for very high risk- very high return and 8.05% accounted for least risk- highest annual compounding return. Hence, the statistical hypothesis concludes that most investors prefer ‘low risk-low return trade off level.
  • The research also conducted in understanding the awareness of financial terms, mechanism and aspects of investment concludes that very few investors are aware of financial terms, mechanism, and the aspects of investment.
  • In the quest of researching about what they know about investment, it is identified that the 0.33% of the investors applied financial knowledge rarely while taking investment decisions; 34.11% of the investors applied investment knowledge sometimes; 6.69% of the investors applied investment knowledge often and 58.86% applied investment knowledge always. Hence, it is concluded that more than half of sample population of investors ‘always’ applied investment knowledge while taking investment decisions.
  • Most Preferred investment avenues:

Author tested the hypotheses by applying Friedman test. The result of the test showed the most preferred investment avenues…

a. Fixed deposit

b. Mutual fund

c. Gold

  • Investment objectives:

Author assessed the hypotheses by applying Friedman test. The result of the test showed top three investment objectives …

a. Huge profit

b. Safety

c. Quick earning

Eventually, it was understood that there is an agreement on financial literacy assistance in taking the decision about investing. It can be concluded that most of investors ‘agree’ on point that education and financial literacy help in investment decisions and risk-tolerance level.

In the concluding part i.e. Part – 3, Professor throw light on the preferred investment avenues of individual investors with the help of scientific method called Hypothesis Testing.


Study of Investment Awareness – Part 1

Faculty of Financial Management

Research Article written by: Dr. Mukti Katariya: Assistant Professor, Trinity Institute of Management and Research, Kondhwa, Pune

The nature of financial market has evolved drastically. Investing money has turned out to be a complex task because of the huge number of saving and investment companies that offer number of products to its prospects. Also, use of jargon statements (incomprehensible legal terms) mentioned in the terms and conditions are proving to be detrimental to choose a suitable product for investment. In spite of remarkable growth in economy, increased income levels, the pace of investing is still lower in India. Most of the investors, particularly rural investors are found unaware about investment avenues and their rules and regulations. Hence, this study is an endeavor to find out the savings pattern, investment awareness, and preferences of investors about various investments avenues. A sample of 300 respondents from 15 rural places were selected from one of the districts of Maharashtra. The study disclosed that there were significant differences in the investors’ to attach the investment avenues to the various objectives of investing. The district where the investor-study took place were financially illiterate. Majority of the investors showed their preferences towards secured investment attitude like bank fixed deposit, gold, real estate, & mutual fund. Further to improve financial literacy level of investors, literacy programs could be implemented with the help of NGOs, banks and rural development officers who can guide investors about how to save and invest money in profitable investment avenues that invites of low risk.


Besides spread of education and increased literacy level, the speed of financial literacy is much slower in villages. Financial exclusion is widespread. However, the efforts by the government with banks and NGOs through Financial Inclusion Programme and Prime Minister’s Jan Dhan Yojana are certainly going to enhance the financial literacy and investment awareness level of the rural people. Rural economy is growing impressively and it has led to the introduction of a various investment opportunities. Besides savings in banks and post offices, investors have the choice of a variety of instruments but most of the investors from the district were not aware of it or scared to invest in other than the traditional investment avenues due to lack of financial knowledge. The rural investor needs to be acquainted with investment principles, risks involved and the instruments yielding high returns. People invest their money in hope of getting good returns, enough liquidity and safety. Socioeconomic status of district investors are one of the significant factors in selecting and investing in particular financial product. The research article is an attempt to highlight on savings and investment patterns, objective of investment, and their perceptions regarding various investment avenues.

Literature Review

Capital formation process involves earnings, savings and investments. During 2005 to 2011 the percentage of total household savings in India was 33.7% of GDP (RBI, Working Group Report- Trends in Gross Domestic Savings, 2011). Bank deposits continued to account a dominant share (49.9%) followed by Life Insurance Policies (19.9%), Provident and Pension funds (10.3%) and share and debentures just 3.5%. This indicates the trend of individual savings in India. Indians have habits of savings but majority of them are averse to invest their funds and hold hard cash with them. In view of some earners, holding cash is a status symbol.

National council of Applied Economic Research (NCEAR) (2011) conducted a survey on “How household save and invest”: Evidence from NCAER Household survey. From the survey it is noticed that during times of high inflation, bonds are the preferred option by household. Married persons invest more in mutual funds as compared to unmarried persons.

Kabra, Mishra, and Dash (2010) emphasizes that risk averse peoples choose life insurance policies, fixed deposits with banks and post office, PPF and NSC instruments as investment avenues.

Mittal & Vyas (2007) finds that the salaried class prefer to invest their money in equities and mutual funds while business class have shown an inclination to invest their money in debenture/bonds and real estate or bullions.

Chaturvedi & Khare (2012), the research finds impact of age, education, occupation and income level of individual on investment. The paper finds most of investors give ‘bank deposits’ as their first priority and ‘safety of investment’ is the first objective in choosing investment alternatives

Rajeshwari Jain (2014) finds that working women have a preference towards fixed deposit in bank as a safe investment option & for tax saving purpose. Women also select gold as good investment alternative to bank deposit.

Study on Perception of Women Investors towards Investments Kanagaraj et al. (2014) concludes, occupation and educational level does not influence awareness of women investors in Coimbatore city.

Sellappan et al. (2013) further suggest that married women are highly interested in making investment than the unmarried. As well as the younger are significantly interested to invest in stock market, insurance and bank fixed deposits as the elder women. The middle age persons wish to invest in real estate source of investment.

Puneet Bhushan & Yajulu Medury (2013) indicated that women are more traditional and take less risk and significant gender differences occur in investment preferences for insurance, fixed deposits and market investments among employees.

Agrawal (2009) noted that there is no significant difference between male and female investors in the expected rate of return. According to Clark and Strauss, (2008) it has been observed that women are more risk averse than men; the young are more risk seeking than the old; wealthier individuals showcase a greater willingness to invest in equities and the poor are risk adverse securities.

Shobhana et al. (2006) have carried out a study on investor’s awareness and preferences. They examined the level of investor awareness regarding investment choice and investment risks. The study discovered that the investment in real estate is preferred by the respondents.

America Tahira and Cazilia (2006) found that women were more likely than men to have fixed income investments such as savings accounts, certificates of deposits, and life insurance with cash value. Women were also more likely than men to invest in government savings bonds or government savings bond, mutual funds.

Suman and Warne (2012), the paper throw light on the behaviour of investors affected by awareness level, duration of investment, benefits from investment, market movement, saving habits, safety, etc.

Soni (2013) attempts to explain investors do not possess enough knowledge about fundamental and technical analysis and investors don’t consider financial statement of company, its profiles and its existence.

They consider the advice from experts, brokers, and friends while making investment in different avenues. Be Money Aware Blog (2012) summarized that legal, demographic, environmental, technological, social or cultural factors, peer pressure, intuition or behavioral biases, broker’s advice, expert’s opinions telecast on television; friends/relatives’ advice, market trends etc. have impact on selecting investment avenues.

Research Objective

1. To know the savings pattern of respondent from the district

2. To understand the objective of investment within the district

3. To identify the preferred investment avenues of the individual investors

4. To examine the investors’ awareness level

5. To make some suggestions in order to enhance investment awareness among the district

Research Methodology

The paper follows a descriptive research design. Primary data for analysis has been gathered using a questionnaire survey and observation method. For research purpose researcher selected the district as the scope of study. The focus of the study was about understanding the preferences of the investors with regard to the investment avenues, their financial knowledge and investment preferences. Census 2011 data shows that, 68.26 % population of the district those reside in rural areas. The total district’s population living in rural areas is 2,887, 20668. In total, 28, 58, 882 people were literate as per census data 2011.

In the next part we will see how sample size & data collection was carried out. The data interpretation methods will also be studied subsequently.

To be continued…

Why You Should Not Do An MBA?

Article written by: Prof. Sonali Joshi, Trinity MBA, Kondhwa, Pune


Traditional understanding:-   Masters of Business Administration

The Millennial Understanding:-   Money Beguiling Academics

As a Faculty of MBA (Human Resources), the past few years have been a chapter to read and learn even for me, with respect to the above said perspectives. Let me explain this better.

When it was the decision making time for my generation, MBA was the most coveted degree to earn. Give it a branded institution, you were considered to be Tony Stark!! The concepts, theories, ideologies of the course were to broaden the horizons of the students, to make them ask questions and seek answers too. These students when they entered the world of work then made differences to the systems and the organizations. So we have stories of the Business Maharajas, the Toyota Way, Reliance, Tata and many more.

Learning was not limited to classrooms. Learning was experiential. Organizations shared their history, their systems and philosophies. This facilitated the students to understand the requirements of the markets and businesses while being in the center of the demand circle. Students “worked” to earn their MBA.

The course is still prevalent in our country, but its understanding is much diluted. I see people of all ages and streams of life “wanting” an MBA. Why? They are not sure, but they just want it. The understanding that has, unfortunately, engulfed the students’ society today is that an MBA degree would magically open gates to never-ending money supply for them. The focus and goal, both are either mislead and/or completely missing.

Here are a few reasons saying –


  • If you think MBA is just a degree required to earn money

MBA is a degree – yes. It helps to create opportunities to earn money – yes again! However, what you need to contemplate is that whether earning Rs 10000/- a month is good enough for you or not! If not, then what is the effort you are ready to put into your course to add that one extra zero to the above number to change the impact of the figure altogether?

  • If you are not interested in Business and/or Administration

Your home is your first example of business administration. How it runs smoothly, day in and day out with every member playing a defined and an important role. But, you have never noticed that. Accept it – MBA is not your cup of tea. Maybe you like coffee better! Today, the world is a land of many opportunities. It’s a better call to follow your passion and make a career out of it rather than half-heartedly trying to do something that you may not even complete.

  • If you cannot commit yourself to the course

We have had candidates who, at the time of admission enquiry, ask questions like, “how important is it to attend the classes/give exams/assignments?”

This is a proper, life defining professional course. It needs total surrender, commitment for lots of assignments, discussions, frustrations, understanding, imagination bounded in practicality. It needs your life – to help you grow better and be a happier and a more contented human asset to the organization as well as to the society.

  •  If you are indifferent to the status of the Institution/University offering the course

Iphone – the best. Levi’s – most popular.

Brandname matters.

Many institutions and colleges now a days offer MBA programmes. They even promise to customize the course to the students’ needs. What you need to remember is that a good course will always be supported by the eminence of its institution. Otherwise, you are just putting your money down the drain.

  • If you think you are a customer – a King

You are a student. We help you, mentor you and guide you to become a King. Your goal and aim is to learn and we are there with you at your each step. The day you tell us to bow our heads to you, you trip the equilibrium of the guru shishya ethos.

  • It is the undying duty of the College to provide you with an Eight figure Salary Package placement

Imagine a gift…wrapped up in a newspaper.

Imagine a gift…wrapped up in the shiny costly paper.

Many students when they come to enquire about admissions first want to know about “Placements”. The highest package the College ever received. Here is what needs to be understood. Management Institutions facilitate and work hard for your placements. But that is just the tip of the iceberg. You are the rest of the iceberg. The College spends a lot of money and time in arranging for Placement training sessions, which most of the students feel they have the freedom to attend or not to attend.

How you present yourself to the companies, how have you been as a student, your ideologies and your seriousness towards your life…all this decides the package. So, what you need to decide is whether you want your college to present you as a newspaper wrapped gift or as the shiny, expensive, ‘everyone-wants-and-desires’ gift. Also, it’s not always the salary that should be the ruling factor. If you have read about the company, about the talent management and growth prospects the company has to offer, that too should be given equal weightage.

As Funsuk Wangadu says in 3 Idiots – “kabil bano – kamyaabi jhak maarke peechche bhagegi”.

 “If you have the ability to study, work and rise on the basis of merit and not on the basis of who you are or how well-connected you are, that would make me very happy for our country”  –  Hon’ble Padmabhushan Shri Ratan Tata, Chairman of Tata Trusts.

20 Reasons Why You Should Do An MBA

Here are those life changing and the career transforming reasons you should ask:

  1. Is the current MBA pedagogy supportive enough to help me accomplish the higher industry exposure which was completely missing during my under-graduation studies?
  2. Will I possess the ability to confidently express, demonstrate, analyse, synthesise, and apply the knowledge of principles and frameworks of management?
  3. Will the MBA program help me get ready for the successful career pursuits covering a broad spectrum of the areas in corporate, non-profit organisations, public policy, entrepreneurial ventures, and engage in life-long learning?
  4. Will I be able to learn to identify the entrepreneurial opportunities and leverage managerial & leadership skills for founding, leading & managing startups as well as professionalising and growing family businesses
  5. Will I successfully be able to integrate core, cross-functional and inter-disciplinary aspects of management theories, models and frameworks with the real world practices?
  6. Will the MBA program help me improve my ability to conduct investigation of multidimensional business problems using research based knowledge and research methods to arrive at data driven decisions?
  7. Will the MBA program help me excel in understanding & managing the cross-functional, multi-disciplinary, multi-cultural teams, and have an appreciation for local, domestic and global contexts so as to manage continuity, change, risk, ambiguity and complexity?
  8. Will I successfully be able to learn to identify the real-world complex business nuances of the associated sectors and contemplate effective solutions?
  9. Will I successfully be able to learn to categorise the domain specific issues to provide solutions to the real world business, policy, and social issues in a vibrant and multifaceted world?
  10. Will the MBA program provide me the platform in my chosen field of work for my managerial competence, creativity & innovation, integrity & sensitivity to local and global issues of social relevance?
  11. Will the MBA program inculcate in me the significance of Indian ethos and values in managerial decision making and exhibit value centered leadership?
  12. Will the MBA program provide me an opportunity to learn and earn the trust & respect of others as inspiring, effective and ethical leaders, managers, entrepreneurs, intrapreneurs and change agents?
  13. Will an MBA program impact my overall personality in terms of communication skills, interpersonal relations, and the thinking process?
  14. Will the MBA program help me learn and improve my proficiency in Communication, Collaboration, Teamwork, and Leadership?
  15. Will the MBA program build my competence in Creativity and Innovation?
  16. Will the MBA program build my research Aptitude, Scholarship and Enquiry?
  17. Will the MBA program build my proficiency in ICT & Digital Literacy?
  18. Will the MBA program help me inculcate the professionalism, Ethical Values, and Socially Responsible behaviour?
  19. Will the MBA program help improve my ability to operate independently in new environment, acquire new knowledge and skills and assimilate them into the internalised knowledge and skills?
  20. Will MBA program provide me the Global Orientation?

The answer is a big YES for all the above reasons.

MBA program at Trinity MBA College (Affiliated to Savitribai Phule Pune University, Pune and approved by AICTE & DTE) offers a platform to students owning multiple skills like – be a team-player, better communication, problem solving, analytical thinking, self-management & discipline, and people networking. MBA is truly beneficial in increasing your exposure to the diverse perspectives of local & global business issues as well as of the social front. Students also get the platform to collaborate with the contemporary industry practices those are evident in addressing the business practices. #MBA program inculcates those qualities that make students to think out-of-the-box and contemplate multiple options to identify best solutions subsequently.

Click on the link to visit the college website: www.trinitymbapune.com.

For more info on admissions, contact: 98225 66915, 74989 36181

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