Impact of Psychological Influences on Investment Behaviour of Salaried Investors in India

RESEARCH QUESTIONNAIRE
Section 1: Demographic Profile
1. Name: …………………………….
2. Age: 1 = Less than 35 2 = 35 to 50 3 = More than 50
3. Gender: 1 = Male 2 = Female
4. Current Marital status:
1 = Married, 2 = Single (never married, divorced, separated, widowed)
5. Highest level of schooling / formal education completed?
1 = Intermediate (Std XII) or less
2 = Bachelors Degree/Diploma (Basic or Professional)
3 = Masters Degree/Diploma (Basic or Professional)
4 = Doctoral Degree / Fellowship
6. Employment Status:
1 = Employed in the Government / Semi Government / Public Sector undertakings
2 = Employed in the Private Sector
7. Current monthly income (Gross):
1 = less than or equal to 25,000/- pm
2 = between 25,001/- and 50,000/- pm
3 = between 50,001/- and 75,000/- pm
4 = between 75,001/- and 1,00,000/- pm
5 = more than or equal to 1,00,001/- pm
8. Geographical Zone of Origin:
1 = North India (including UP, UK, Bihar, Delhi, MP, J&K, Punjab, Haryana, etc)
2 = East India (West Bengal, Assam, Manipur, etc)
3 = West India (Maharashtra, Gujarat, Rajasthan)
4 = South India (Tamil Nadu, Kerela, AP, Karnataka)

Section 2: Psychographic Profile

9. Given below are a number of statements describing characteristics that may or may not
apply to you. Please specify your extent of agreement or disagreement with each
statement.
Strongly Disagree Neutral Agree Strongly
I see myself as someone who……. Disagree Agree
1) Is talkative 1 2 3 4 5
2) Tends to find fault with others 1 2 3 4 5
3) Does things carefully and completely 1 2 3 4 5
4) Is depressed, blue 1 2 3 4 5
5) Is original, comes up with new ideas 1 2 3 4 5
6) Is reserved; keeps thoughts &feelings to self 1 2 3 4 5
7) Is helpful and unselfish with others 1 2 3 4 5
8) Can be somewhat careless 1 2 3 4 5
9) Is relaxed, handles stress well 1 2 3 4 5
10) Is curious about many different things 1 2 3 4 5
11) Is full of energy 1 2 3 4 5
12) Starts quarrels with others 1 2 3 4 5
13) Is a reliable worker 1 2 3 4 5
14) Can be tense 1 2 3 4 5

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15) Is clever, thinks a lot 1 2 3 4 5

16) Generates a lot of enthusiasm 1 2 3 4 5
17) Has a forgiving nature 1 2 3 4 5
18) Tends to be disorganized 1 2 3 4 5
19) Worries a lot 1 2 3 4 5
20) Has an active imagination 1 2 3 4 5
21) Tends to be quiet 1 2 3 4 5
22) Is generally trusting 1 2 3 4 5
23) Tends to be lazy 1 2 3 4 5
24) Is emotionally stable, not easily upset 1 2 3 4 5
25) Is creative and inventive 1 2 3 4 5
26) Takes charge, has an assertive personality 1 2 3 4 5
27) Can be cold and distant with others 1 2 3 4 5
28) Keeps working until things are done 1 2 3 4 5
29) Can be moody 1 2 3 4 5
30) Likes artistic and creative experiences 1 2 3 4 5
31) Is sometimes shy, inhibited 1 2 3 4 5
32) Is considerate & kind to almost everyone 1 2 3 4 5
33) Does things efficiently (quickly&correctly) 1 2 3 4 5
34) Stays calm in tense situations 1 2 3 4 5
35) Prefers work that is routine 1 2 3 4 5
36) Is outgoing, sociable 1 2 3 4 5
37) Is sometimes rude to others 1 2 3 4 5
38) Makes plans and sticks to them 1 2 3 4 5
39) Gets nervous easily 1 2 3 4 5
40) Likes to think and play with ideas 1 2 3 4 5
41) Doesn’t like artistic things (plays, music) 1 2 3 4 5
42) Likes to cooperate; goes along with others 1 2 3 4 5
43) Easily distracted; trouble paying attention 1 2 3 4 5
44) Knows a lot about art, music, or books 1 2 3 4 5

Section 3: Aspects of Investment Behaviour

10. Do you own any of the following assets?
Asset Yes No
1) Self-Occupied Residential House 1 2
2) Gold, Silver, other precious metals, diamonds, etc 1 2
3) Art, Antiques, etc 1 2
4) Savings Account 1 2
5) Fixed Deposit (in Bank) 1 2
6) Equity Shares 1 2
7) Corporate Deposits / Bonds / Debentures 1 2
8) Government / PSU / Financial Institution Bonds 1 2
9) Employee Provident Fund Account 1 2
10) Pension Fund 1 2
11) NSC / PPF / Post Office Deposits / Other Small Savings 1 2
12) Equity Mutual Funds 1 2
13) Balanced Mutual Funds 1 2

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14) Debt / Liquid Funds 1 2

15) Commodity / Other types of Mutual Funds 1 2
16) Financial Derivatives 1 2

11. Do you have any of the following Insurance Policies?

Insurance Policy Yes No
1) Term Plan (Risk Cover only) 1 2
2) Endowment Plan (Assured Returns + Risk Cover) 1 2
3) Unit Linked Insurance Plan (Market Linked Returns + Risk Cover) 1 2
4) Child Plan (for education, marriage needs, etc) 1 2
5) Medical Insurance 1 2
12. What percentage of your monthly salary do you save?
1 = Less than 10%
2 = between 11-20%
3 = between 21-30%
4 = Over 30%
13. How do you save from your regular income?
1 = Save as per a planned schedule
2 = Save something every month
3 = Save whatever is left after meeting expenses
4 = Do not save regularly
14. You generally use your savings to:
1 = make planned investments in mutual funds
2 = buy fixed deposit schemes
3 = buy gold and ornaments
4 = buy durable items like TV, Cell Phone, etc
15. What are your major Financial Objectives?
Very Low Neutral High Very
Low Priority Priority High
Priority Priority
1) Ensure a comfortable retirement 1 2 3 4 5
2) Provide for children education costs 1 2 3 4 5
3) Buy a house 1 2 3 4 5
4) Provide for children’s marriage 1 2 3 4 5
5) Achieve high growth in investments 1 2 3 4 5
6) Protect income in case of death/disability 1 2 3 4 5
7) Ensure transfer of assets to dependents smoothly 1 2 3 4 5
8) Reduce income tax 1 2 3 4 5
16. What amount of money do you set aside for emergencies? (This includes funds that you
can withdraw in case of emergency-savings deposits &money market instruments)
1 = None
2 = Enough to cover upto 1 month of expenses
3 = Enough to cover upto 2-4 months of expenses
4 = Enough to cover more than 4 months of expenses
17. A promising long-term (more than one year) investment opportunity has come your way.
To participate in it you will have to borrow money. Would you take a loan?
1 = No, I am not comfortable with using borrowed funds to invest
2 = May Be, depending upon the opportunity
3 = Yes, I am totally comfortable with using borrowed funds to invest

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18. A promising short-term (less than one year) investment opportunity has come your way.
To participate in it you will have to borrow money. Would you take a loan?
1 = No, I am not comfortable with using borrowed funds to invest
2 = May Be, depending upon the opportunity
3 = Yes, I am totally comfortable with using borrowed funds to invest
19. As a prize winner in a game show, which option would you choose?
1 = Rs. 50,000/- in cash
2 = A 50% chance to get Rs. 1,25,000/-
3 = A 25% chance to get Rs. 3,00,000/-
20. Your company is planning to go public in three years & is offering shares to employees
today, which cannot be sold before three years. The investment has a potential of
multiplying 10 times. How much would you invest?
1 = I will not invest anything
2 = I will consult my financial advisor / overall investment plan, then decide
3 = I would invest as large an amount as possible
21. At the end of one year, you have to deposit Rs 1 lakh to go on a much-awaited foreign
trip. Where will you invest your money in order to reach your goal one year later?
1 = 100% in Equity/ Equity Mutual Funds and 0% in Fixed Income Securities
2 = 60% in Equity/ Equity Mutual Funds and 40% in Fixed Income Securities
3 = 40% in Equity/ Equity Mutual Funds and 60% in Fixed Income Securities
4 = 0% in Equity/ Equity Mutual Funds and 100% in Fixed Income Securities
22. At the end of three years, you have to deposit Rs 10 lakh as the first instalment of your
residential house. Where will you invest your money in order to reach your goal three
years later?
1 = 100% in Equity/ Equity Mutual Funds and 0% in Fixed Income Securities
2 = 60% in Equity/ Equity Mutual Funds and 40% in Fixed Income Securities
3 = 40% in Equity/ Equity Mutual Funds and 60% in Fixed Income Securities
4 = 0% in Equity/ Equity Mutual Funds and 100% in Fixed Income Securities
23. You will be retiring after 25 years and you are creating a pension fund for the same.
Where will you invest in order to fulfill your retirement goals?
1 = 100% in Equity/ Equity Mutual Funds and 0% in Fixed Income Securities
2 = 60% in Equity/ Equity Mutual Funds and 40% in Fixed Income Securities
3= 40% in Equity/ Equity Mutual Funds and 60% in Fixed Income Securities
4 = 0% in Equity/ Equity Mutual Funds and 100% in Fixed Income Securities
24. Before you make specific investment decisions, how often do you:
Never Seldom Someti Often Very
mes Often

1) review your overall investment goals? 1 2 3 4 5

2) assess your risk tolerance level? 1 2 3 4 5
3) determine your return objective for the investment? 1 2 3 4 5
4) consider variety of investment options? 1 2 3 4 5
5) check the current financial market condition 1 2 3 4 5
6) talk with family / friends who are knowledgeable? 1 2 3 4 5
7) consult with a financial advisor? 1 2 3 4 5
8) assess marketability / liquidity of the investment? 1 2 3 4 5
9) assess the tax implications of the investment 1 2 3 4 5
10)assess the convenience with which the investment 1 2 3 4 5
can be made, looked after and disposed

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25. When your investments do not produce the results that you hoped for, how often do you :
Never Seldom Someti Often Very
mes Often
1) make necessary changes to try to 1 2 3 4 5
improve investment performance,
using your own judgment.
2) wait it out, anticipating future 1 2 3 4 5
improvements over the long run?
3) consult with a financial advisor 1 2 3 4 5
before taking any further action?
4) indulge in panic selling 1 2 3 4 5

26. What are your sources of investment information?

Never Seldom Sometim Often Very
es Often
1) My financial advisor 1 2 3 4 5
(Individual/Institutional)
2) The Internet / Television 1 2 3 4 5
3) Newspapers, magazines, books 1 2 3 4 5
4) Friends / Colleagues 1 2 3 4 5
5) Family 1 2 3 4 5

27. How frequently & with what comfort level do you use computer-based investment tools?
Never Seldom Sometimes Often Very
Often
1) to get investment information over the 1 2 3 4 5
Internet?
2) buy/sell investments over the Internet? 1 2 3 4 5
(Internet trading)
3) use investment analysis/management 1 2 3 4 5
software?

28. Please read the following statements and give your agreement / disagreement:
Strongly Disagree Neutral Agree Strongly
Disagree Agree
1) I believe in actively managing my 1 2 3 4 5
investments through rigorous
sector rotation and active security
selection.
2) I believe in tried and tested 1 2 3 4 5
investment strategies, rather than
trying new and specialized
concepts.
3) I believe that no investor can earn 1 2 3 4 5
better returns than the market over
the long term, so Index Funds are
the best investment.
4) I believe that with an appropriate 1 2 3 4 5
amount of knowledge and effort,
people can become billionaires
through active portfolio churning
and management.

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Strongly Disagree Neutral Agree Strongly

Disagree Agree
5) Once I have made an investment 1 2 3 4 5
decision, I usually do not change it
for a long time.
6) I believe in investing regularly 1 2 3 4 5
even if it means I have to make
some sacrifices elsewhere in life.
7) I get irritated with people who 1 2 3 4 5
don’t plan ahead & invest for their
own future.
8) I would rather have someone else 1 2 3 4 5
manage my investments than deal
with it myself.
9) I can cope with the stress 1 2 3 4 5
associated with investments.
10) I enjoy learning new things about 1 2 3 4 5
investing.
11) It is important to set clear financial 1 2 3 4 5
goals with timelines & rupee
amounts.
12) I regularly review and compare my 1 2 3 4 5
investment performance with
market benchmarks.
13) I revise my investments to achieve 1 2 3 4 5
my goals.
14) I carefully review the financial 1 2 3 4 5
information I receive in the mail.
15) I want to know all the details in 1 2 3 4 5
fine print, before I make any
investment decision.
16) The complete information required 1 2 3 4 5
by investors for correct decision
making is generally provided by
financial advisors.
17) I would willingly pay a financial 1 2 3 4 5
advisor an adequate fee for his
expert advice, despite the fact that
he may be getting commission
from the company.
18) Instead of paying a financial 1 2 3 4 5
advisor, I expect a pay-back from
the commission they get from the
companies.
19) As financial advisors earn 1 2 3 4 5
commissions from companies,
there is no need to pay them
advisory fee.
20) Financial Advisors pressurize 1 2 3 4 5
people into making decisions they
are not ready to make.
Thanks a lot for your time. Have a nice day!

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