Identifying Factors influencing preference towards Post Office ...

IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563
Vol. 2, No.6, December 2012
policy. Rests 15.3 percent of the respondents are
interested to invest in post office in future period of
time. Table 04 highlights the study of investment
preference towards various schemes of Indian Post
Office. It reveals that 27.2 percent respondents are
interested to invest in 5-year post office RD
account. 13.5 percent prefer NSC investments. 13.1
percent finds good to invest in post-office saving
account. 12.2 percent prefer monthly income
account and 12.0 percent prefer KVP investment.
Only 11.4 percent prefer time deposit account as an
investment avenue option. Rest 6.8 percent and 3.7
percent prefer 15-year PPF account and senior
citizens savings schemes respectively. The analysis
on factors that motivates investors to invest in post
office saving account is pointed out in table 05. It
brings out that 39.8 percent prefer post office
savings because of safe, secure and risk-free
investment. 19.2 percent invest because of tax-free
interest on savings in post-office. To avail the tax
benefit under sec. 80(c) of Income Tax Act 13.6
percent prefer post office savings. 11.3 percent of
the respondents perceive post office schemes to
have attractive rate of interest. 6.9 percent
preference is because there is a facility of
nomination in post office. Remaining 1.2 percent
each prefer post office to save due to benefit of
changing nomination at any time and instruments
are transferable to any post office anywhere in
India. Pravin Narayan Mahamuni, Santosh
Kalabhau Apte and Dr. Anand Ganpatrao Jumle
(2011) found that most of the respondents invest
money for tax saving purpose. Mixed replies as laid
out in table 06 about sources of investment advice
shows that 41.4 percent are inclined more on their
relatives and colleagues. 12.6 percent of the
investors acquire knowledge from newspapers,
12.1 percent from financial advisors and 10.8
percent from media. The other 23.1 percent do not
take help of the above sources of investment
advice. These percentages of investors’ replies in
questionnaire shows that they invest as per their
self-acquainted knowledge or some invest under
the guidance of agents. Analysis on criteria of
selecting an agent in table 07 represents that 38.4
percent of the respondents select agent on the basis
of having personal relationship with the agent. 32.1
percent look at the facilities offered by the agent.
25.8 percent choose agent on his performance
basis. Remaining investors look at other factors
while selecting agent. Multiple response analysis
indicated in table 08 represents that 20.8 percent
respondents are investing their money for the
purpose of acquiring an asset. 23.0 percent invest
for child’s education. Next purpose is for
retirement and old age which occupies 25.7 percent
of the respondents. Child’s marriage accounts for
12.3 percent of the total respondents. 18.1 percent
reveals that respondents are investing for other
purposes like for future safety, saving, emergency,
business expansion, reduce tax burden, for
grandchildren. Works on the factors that discourage
investors to investing in postal schemes (shown in
table 09) disclose the following interpretation: Out
of total respondents, maximum of respondents
(20.3 percent) reported that they are not aware of
the schemes of post office. 14.3 percent of the
respondents say that less advertisement is the
reason for low awareness. 11.1 percent of the
respondents feel that the schemes are less
attractive. 11.5 percent face the problem of IT
related services. Respondents having a belief that
postal savings generate low returns comprise 9.0
percent of the total replies. 10.5 percent experience
that it provide late and improper services. Out of
total responses 7.0 percent do not find agents to be
relied upon. 6.5 percent find liquidity problem i.e.
they think that postal savings cannot be easily
converted into cash. Incompatible hospitality
produces a negative impact on postal savings;
however 8.3 percent respondents realize hospitality
of post office to be incompatible. 0.6 percent of the
replies believe no guarantee of money return. Very
few (0.8 percent) find that as capital appreciation is
low in postal savings; it demotivates them to save
in post office. In NCAER Report (2011) it was
found that inadequate financial resources is the
most import reason for not investing in secondary
markets by household followed by inadequate
information and no skills.
Null Hypothesis (H 01) : “An individual’s
preference towards post office saving schemes is
not related with educational qualification of the
investors.”
For 28 degree of freedom table value of chi-square
at 5 percent level of significance is 41.337. While
the calculated value (spot Table 10) is greater than
table value, therefore null hypothesis is rejected.
Thus, there is meaningful relationship between
preference towards post office saving schemes and
educational qualification of respondents.
Null Hypothesis (H 02) : “An individual’s
inclination in direction of post office saving
schemes is not associated by means of livelihood
of the investors.”
For 35 degree of freedom critical table value of chisquare
is 107.4185566. In view of the fact that
calculated value (table number 11) is less than table
value, thus, null hypothesis is accepted. So, it is
concluded that occupation and preference towards
post-office savings schemes are not related.
Null Hypothesis (H 03) : “Factors that motivate an
individual to invest in the saving products of
post office are not linked with educational
qualification of the savers.”
For 28 degree of freedom table value of Pearson’s
chi-square test is at 5 percent level of significance
is 41.337. As it can be seen from the table 12 that
calculated value is greater than table value,
consequently factors motivating investors to invest
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