Preference Towards Modes of Investment: An Empirical Analysis

Abstract

Households do not spend all their income but save some for various purposes, one being investment. An investment refers to the commitment of funds at present, in anticipation to generate some positive return in future, with safety and security of the principal (assets) as well as interest (return) based on systematic analysis. This article analyses the modes of investment adopted by retail investors while investing their money based on demographic variables. Regular and haphazard (random) mode of investment has been considered for the study. The results show that male respondents prefer regular mode of investment than females; it is also observed that majority of the respondents belong to the age group of 60 years and above, follow random mode of investment because of uncertainty in income. Large portion of the respondents were self-employed and retired group who prefer haphazard mode of investment.