Determinants of Investment Decisions in Post Office Savings Schemes Among Self-Financing College Faculty: Evidence from Tiruchirappalli

Abstract

The aspect of investment behaviour is very important in the attainment of financial security and long term economic stability of individuals. Post Office Savings Schemes are regarded as one of the safest government-assured investment schemes in India, and it is also the ideal choice of investors who are interested in safety and guaranteed returns. The reason is that the current research investigates the factors that affect investment choices in Post Office Savings Schemes with self-financing college faculty in Tiruchirappalli. Income level, financial literacy, perceived risk, and the expected returns are some of the factors that are studied as part of the research on investment behaviour. Primary data was gathered using a structured questionnaire that provided information about 384 faculty members employed in self-financing colleges. The statistical tools that included ANOVA, correlation, regression, and mediation were used to analyse the data that was collected. The findings have a positive impact on the level of income in relation to investment behaviour of faculty members. The correlation study shows that there is a strong positive relationship between the financial literacy and investment behaviour. Findings of regression indicate that, financial literacy and anticipated returns have a positive evaluation on investment choices, though perceived risk has a negative assortment on investment in Post Office Savings Scheme. Moreover, mediation analysis demonstrates that financial literacy does mediate the relationship between the income level and the investment behaviour. The research concludes that increased participation in Post Office Savings Schemes amongst the academic professionals can be improved by increasing their level of financial literacy and awareness. The study results give a valuable glimpse to the policymakers and financial institutions in encouraging small saving among the salaried individuals and enhancing financial security among them.