Abstract
Purpose: The economic liberalization and globalization have brought a fervent environment for the common and small investors who are willing to participate in the various investment avenues available in India. There are large number of small investors, who have the ability to save and make an investment in share market, gold, real estate, insurance and post office. In recent years, numerous researches have been conducted on investors’ perception towards various investment from various perspectives. From a survey on investment literatures of equity, insurance, and mutual fund perspective, there are some studies based on the investment on various avenues made by researchers. However, the investors’ perception towards various investment avenues in Vellore city, Tamil Nadu and India is yet to be explored. This article is therefore timely and fills the gap in investment avenues literature. Furthermore, by pooling small amounts of money into a single investment value, individual investors are able to participate in investment strategies that would have otherwise been financially unfeasible. The Indian investment industry is witnessing a rapid growth as a result of infrastructural development, manufacturing and service sector, in personal financial assets and rise in foreign participation. With the growing risk appetite, rising income, and increasing awareness. Mutual funds and shares are becoming a preferred investment vehicles like bank fixed deposits and post office savings that are considered safe. The present empirical study is an attempt to examine the investors’ perception towards various investment avenues in Vellore city, Tamil Nadu, India. Design/Methodology/Approach: Primary data using convenient sampling through questionnaire and interview method as well as secondary data from wide range of literature from various journal publications had been utilized. Frequency distribution, percentage analysis, Mann Whitney and Kruskal-Wallis Test were used to test the objectives of the study. In order to test the reliability of the scale, the researchers applied Cronbach’s Alpha (CFA) to measure the internal consistency of the variables. Findings: The findings of the study on investors’ perception towards various investment avenues emphasized that the aged and high income investors prefer to invest only in post office and bank deposits for safety investment reason. Originality/Value: An Empirical Analysis on Investors’ perception towards various investment avenues in Vellore city, Tamil Nadu and India is the original work of the authors. DOI: 10.5901/mjss.2015.v6n4p427
Highlights
Financial markets play a vital role in the economic development of a country
The order of preference on investment towards real estate and insurance are same across the age group though it varies with regard to stock market, gold, bank savings and post office
The present study has revealed that the order of preferencce towards various investment aveunes are same across the gender except gold and post office
Summary
Financial markets play a vital role in the economic development of a country. They facilitate the allocation of scarce resources by transferring them from savers to borrowers, thereby accelerating investment activities in the country (Deepak Chawla, 2014). Traditional finance theory believes on the principle that investors rational and they process all the available information and take rational decisions. Behavioural finance is a new field emerged in the last 25 years that studies how finance is affected by psychology. It combines behavioural and cognitive psychology theory with conventional economics and finance to provide explanations for people’s behaviour in financial settings and their economic decisions (Nisha Shankar, 2014)
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