The study explores investment preferences and influencing factors among individuals residing in Dadra and Nagar Haveli, a Union Territory (UT) of India. The research aims to bridge the knowledge gap regarding investor behaviour in UTs, which often differ from larger states, by surveying 142 respondents. The study investigates: Investor demographics, Investment awareness and practice, Investment preferences, and Factors influencing investment decisions. The findings reveal a mix of risk preferences amongst the respondents wherein a significant portion favours traditional, secure options like bank deposits and insurance. Many are interested in mutual funds and the stock market, indicating a willingness to embrace some risk for potentially higher returns. Gold and Post Office schemes also find favour, reflecting a conservative streak. Safety emerges as the most influential factor, followed by return on investment and risk tolerance. The study also finds that younger investors (21-30) are more likely to invest in the stock market and mutual funds compared to older age groups. This research provides valuable insights for: Policymakers so as to design targeted financial products and infrastructure to enhance UTs’ economic growth, financial institutions so that they can tailor their investment offerings and improve investor education in the region, and residents to make informed investment decisions aligned with their financial goals and risk tolerance.
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