A Study of Pattern of Investment Strategy and Preferences of Investment Avenues Among Salaried Individuals

Abstract

Investment is the basis for planning a safe and secure future. Any income newlineearned by an individual is either spent or saved for future use. The part of the newlineincome that is saved or the savings of an individual can be translated into newlineinvestments when it is converted into a monetary asset or a claim on future newlineincome for a return. Portfolio management plays an important role in the investment life cycle of any investor. A portfolio of investments is simply a collection of different newlineinvestments that are made by an individual investor in order to diversify risks and newlinemaximize returns. The purpose of this research was to identify whether salaried individuals are aware of the different investment avenues available to them and also the investment strategy they follow. The researcher also wanted to understand the preferred investment avenue and whether these differ with the change in demographics. Not only that, it was important to assess the types of behavioural biases impacting individuals and their impact on investment decision making. For this study, the researcher conducted primary research with the help of structured questionnaires in Delhi NCR area. Out of the 330 responses received, 30 were discarded due to incomplete information. The data from the remaining questionnaires was analysed using multiple statistical techniques such as Cronbachand#8223;s Alpha, Chi-Square, Friedman Test and Factor Analysis. The researcher concluded that there is an association investment preferences and several demographic variables. The researcher also concluded that behavioural biases impact investment decision making process newline newline