A Study on Impact of Socio Economic Profile on Investment Pattern of Salaried and Business People in Coimbatore City

Chitra Devi

doi:10.24297/ijmit.v2i1.1412

Abstract

In recent times, the investment companies have emerged as the most dynamic segment in the Indian financial system. Reforms in the Indian economic system and the opening up of the economy have been the reasons for the tremendous growth in the Indian capital market. This study analyzes the impact of socio economic variables on the attitude of investors towards investments. Apart from this, it also focuses on the benefits delivered by savings to investors. To achieve, 100 respondents of Coimbatore city, having different socio economic profiles were surveyed. The results also highlight that certain factors like education level, awareness about the financial system, age of invertors etc make significant impact while deciding on the investment pattern for investment. Further, it is observed that the level of income also influences the investment decisions. Higher income group shows relatively high preference towards investment in share market, conversely lower and average income group shows keen preference towards insurance and banks as the most preferred investment avenues

Highlights

Until the decade of the 90’s, most of the middle class Indians were paying little attention to managing personal finance during their working life span and only at the time of retirement they would consult their well wishers or advisors about some deposit schemes with banks or post office or companies which would ensure them regular monthly or quarterly returns
This paper studied about retail investor’s investment patterns behavior and attitudes that they hold about stock investing in the context is of small emerging market of Jammu
The studies especially relevant for the salaried and business people the inside of how and investment pattern get affect by the Socio-Economic variables helps the targeted respondents to make out the investment pattern

Summary

Introduction

Until the decade of the 90’s, most of the middle class Indians were paying little attention to managing personal finance during their working life span and only at the time of retirement they would consult their well wishers or advisors about some deposit schemes with banks or post office or companies which would ensure them regular monthly or quarterly returns. A very small percentage of the rich and daring or adventurous Indians would experiment in stock markets or UTI schemes with the advent of the new millennium, needs have multiplied and changed and so have the solutions. The importance of correct advice at the right time is being appreciated and an average Indian is trying to remain a best of the development in finance markets so as to manage his “Personal Finance” efficiently. Behavioral finance seeks to identify market conditions in which investors are likely to overreact or under react to new information. Investors have to work out with their investment profile to determine which investments are right for them and should consider important factors such as personal status, plans and constraints.

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Conclusion