Investment Preference Of Indians

Title:  Investment Preference Of Indians

Authors: Anshuman Singh

                     Nilesh Choudhary

                    Ashoutosh  Chourasia

Introduction: In the dynamic landscape of global finance, understanding the investment preferences of individuals is crucial for shaping economic policies and guiding financial institutions. This research study aims to delve into the intricate fabric of investment choices among the Indian populace, offering insights into the factors influencing their decisions and the evolving trends within this diverse and rapidly growing market.

Objectives: To understand the Preferance of Indians while investing

Literature review:

The literature on investment preferences among Indians reveals a dynamic and multifaceted landscape. The interplay of cultural, socio-economic, and technological factors, alongside the regulatory environment, provides a rich tapestry for further exploration. As India continues its trajectory as a key player in the global economy, ongoing research in this domain remains essential for informed policymaking and financial planning.

Testing of Hypothesis:

Ho: μ=3

H1: µ≠3

 

Data collection:

1. Young Investors prefer equity over debt.
2. Mutual Funds dominate Individual Stock ownership.
3. Gold remains the top choice for risk-averse Investors.
4. Real estate dominates overall investment landscape.
5. Mostly demat accounts are held by high-income earners

 

These 5 questions are asked in google form to students and for every question standard deviation, standard error, mean and t-stat was calculated.

 

 

Data analysis:

1. Young Investors prefer equity over debt.

S.D.= 0.96      S.E.= 0.09          Mean= 2.06           t-stat= 9.78

 

2. Mutual Funds dominate Individual Stock ownership.

S.D.= 1.32       S.E.= 0.13          Mean= 2.56            t-stat= 3.34

 

3. Gold remains the top choice for risk-averse Investors.

S.D.= 1.23      S.E.= 0.12           Mean= 2.45            t-stat= 4.5

 

4. Real estate dominates overall investment landscape.

S.D.= 1.38      S.E.= 0.14        Mean= 3.32          t-stat= 2.40

 

5. Mostly demat accounts are held by high-income earners.

S.D.= 0.84      S.E.= 0.08         Mean= 4.15          t-stat= 13.78

 

 

Conclusion:

1. Young Investors prefer equity over debt.

• t-stat is 9.78 which means we accept the hypothesis and t is positive more than 1.96. It means Young Investors prefer investing in equity market over debt market.

 

2. Mutual Funds dominate Individual Stock ownership.

• t-stat is 3.34 which means we accept the hypothesis and t is Positive more than 1.96. It means Mutual Funds dominate Individual Stock ownership in Indian market.

 

3. Gold remains the top choice for risk-averse Investors.

• t-stat is 4.5 which means we accept the hypothesis and its positive more than 1.96. It means Gold remains the top choice for risk-averse Investors.

 

4. Real estate dominates overall investment landscape.

• T-stat is 2.40 which means we accept the hypothesis and its positive more than 1.96. It means now Real estate is not in the top choice of investors .

 

5. Mostly demat accounts are held by high-income earners.

• T-stat is 13.78 which means we accept the hypothesis and its positive more than 1.96. It means most of the demat accounts are not hold by high income earners .

 

References:

https://www.statista.com (Investment preference among Indians)

papers.ssrn.com