Study on Investment Pattern and Preference of Retail Investors

Abstract

The key objective of the project is to define the preference of investors towards different investment avenues, public awareness & preference of mutual funds, and find out the intent and objectives of the investment. As most investors want to make investments that will yield high returns in a short period of time while minimising the risk of losing money. This is why many people are always on the lookout for high-yielding investment opportunities that will allow them to double their money in a short period of time with little or no risk. In fact, risk and return are inextricably linked, i.e., the higher the risk, the higher the return, and vice versa. When choosing an investment strategy, it's important to match one's risk profile to the product's risks. Some investments have a high-risk profile but have the ability to deliver higher returns over time than other asset groups, while others have a low risk profile but have lower returns. Information pertaining to the factors affecting the choice of mutual funds and the most preferred mutual funds schemes, life insurance and health insurance, purpose of investment etc was studied by going through real life examples by dealing with clients of different type with different financial background. The protection of the principal sum, liquidity, income stability, and appreciation are the most important aspects of an investment. Fixed deposits, government securities, corporate bonds, insurance plans, real estate, commodities, shares and mutual funds, gold, and post office schemes such as KVP and NSC are only some of the investment options available. Depending on their risk tolerance, both investors invest their excess funds in the aforementioned avenues. The golden rule of investment management is "no benefit without pain." More risks result in higher income. Investors cannot eliminate risk, but they can reduce it by investing their capital in a variety of secure investments in order to earn a fair profit. Investors invest their excess cash in the aforementioned routes, depending on their risk tolerance. The importance of investing in one's life cannot be overstated. Despite the fact that India's youth make up the majority of the population, there is a lack of understanding of investment opportunities and their value. In addition, India was afflicted by the COVID 19 epidemic in March 2020. It had an influence all around the world, and every industry was affected. Most investors seek to make investments that will yield large returns in a short period of time while minimising the danger of losing money.