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VOL. 9, ISSUE 5 (2023)
An introduction to correlation between investment choice and risk factor
Authors
Rajesh G Walode
Abstract
Today’s investor has a variety of options to choose from while making
his/her investment decision. Saving and investment behaviour has always been an
area of interest to the researcher. The economic cycles of boom, recession,
depression and recovery not only effect the level of GDP but also the income of
the households and hence the saving ratio and investment behavior. Keeping pace
with the changing times and under the liberalized financial sector regime, the financial
institutions are also decorated with innovative instruments to meet the growing
demand of modern investors. But this innovative and diversified financial
system could not lost the appeal of traditional means of investment. The rationale
behind choosing this study topic is the premise that the middle class in India
has gained attention of the economists, policy makers and the marketers, as still
there remains a considerable untapped potential in this income class of India. The
study has been conducted to answer few important questions on the preference of
the investment instruments and investment pattern of the middle class households,
to know the various objectives of investment of the middle income class
households and to know whether there has been any increase in their savings and
the reasons for the same. Investment is one of the major issues of the middle
class families as their small savings of today are to meet the expenses of tomorrow.
This study also examines the risk tolerance capacity and investment horizon
along with factors governing investment decisions. It is further observed that
all age groups marked highest preference towards bank deposits and insurance
investment so as to provide the benefit of safety and security of their life
and investment. Similar feeling of preference towards investment in Bank
deposits and insurance is also observed by all the respondents with different income
slabs. It was found that majority of the respondents said that they look for tax
advantage and high returns while investing in any instrument. Slight variations
are also observed when respondents are classified on age and income groups.
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Pages:42-46
How to cite this article:
Rajesh G Walode "An introduction to correlation between investment choice and risk factor". International Journal of Commerce and Management Research, Vol 9, Issue 5, 2023, Pages 42-46
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