CHANGES IN FINANCIAL SYSTEMS IN INDIA: A STUDY OF CHANGES IN

INVESTMENT PATTERN OF DOCTORS IN SOUTH INDIA

INTRODUCTION

The financial system in India is in a process of rapid transformation, particularly after the
introduction of reforms in the financial sector and the development of technology. An
efficient, competitive and diversified financial system is very essential to raise the
allocative efficiency of available savings, increase the return on investment and thus to
promote the accelerated growth of the economy as a whole. As a result we have recently
seen phenomenal changes in the money market, securities market, capital market, debt
market and the foreign exchange market.

At present, numerous new financial intermediaries have started functioning with a view
to extending multifarious services to the investing public in the area of financial services.
The emergence of various financial institutions and regulatory bodies has transformed the
financial services sector from being a conservative industry to a very dynamic one. The
communication technology has become so advanced that even world’s issuers can be
linked with the investors in the global financial market without any difficulty by means of
offering so many options and opportunities.

With a growing awareness amongst the investing public, there has been a distinct shift
from investing the savings in physical assets like gold, silver, land etc., to financial assets
like shares, debentures, mutual funds etc. Within the financial assets they go from ‘risk
free’ bank deposits to risky investments in shares, mutual funds etc., with the intention of
more return. Thus, there has been remarkable change in the expectation and attitude of
investors.
In the light of these facts prevailing in the present scenario, it is proposed to undertake a
detailed study of the attitude, attitude changes and experience of small investor group
about the available options of investment and the type of investment which might give
them the maximum return.

OBJECTIVE

The present study includes the analysis of attitude changes of investors and changes in
investment pattern as well as level of achievement of expectations of small investors.

For conducting the study, a sample group of investors among the professional of medical
sciences is selected. To present a broad spectrum of analyses the main group is divided
into subgroups comprising of doctors in metropolitan cities, urban areas, semi urban area
and rural areas of South India.

METHODOLOGY

Primary data collection will be done through questionnaire and personal interview of the
investors

Secondary data collection will be from the statistics available with financial institutions
and other agencies and articles, Journals and books in the related field.

USER GROUP

The present study might help in selecting the best of the available options of investments
for small investor group. As the study will throw some light on the interests of small scale
investors, the financial service organizations are also benefited as they can plan their
future products according to the taste of the investor.