Vol. 3, Issue 3 (2016)
Saving and investment behavior of rural household (With special reference to Coimbatore District)
Author(s): T. Maheswari
Abstract: Rural India is two-third (67.63% of total population) of a country’s population is living in rural area and earn one-third of the national income. Household sector is one of the most important sectors which contribute more savings to the gross domestic savings. The study has been conducted to know the saving and investment behavior of rural household as it is influenced by many factors such as age, education, income, occupation etc. It has been analyzed by using the linear regression method. The study reveals that most of the respondents earning capacity is less, even if they earned more they distributed only minimum portion of their income to saving. Number of respondents invested in financial assets is high but amount invested in financial assets is less. Respondents in rural area are low income people, less educated and they contributed to bank deposit, post office and life insurance and not to mutual fund, shares, debenture, bonds and government securities it shows that rural households are not much aware of highly risk financial assets.