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R. Lakshmi Dr. Mari Muthu
Assistant Professor Associate Professor
Department of Commerce(Sf-W) Department of commerce(Aided)
Jamal Mohamed college Jamal Mohamed college
Tiruchirappalli-20 Tiruchirappalli-20


The study implies in analyzing the investors state of mind to invest their funds in selected
investment avenue taken for study. The total number of respondents taken 50 as sample size
and adopted convenient sampling technique is adopted. The study reveals the investors
preference of investment avenue is based on analysis of risk, return, terms of holding,
knowledge about selected investment to the investors. The study has taken around
Tiruchirappalli district and its surrounding rural areas. The investment in securities is very
poor in rural area because of lack of knowledge. So necessary measures are suggested to
make rural peoples to aware of investment schemes as they are depending on outdated
investment sources like bank deposits, chit funds, which provide lowest return. The investor
requires stable return from their investment as it is in the way of balancing risk and return.
For this Purpose, the investors are advised to diversified Portfolio management as it balance
the risk of an investment by profit earned in others which did not affect their stable return.
Key words: Investors, investment avenues, Preference

India is facing inflation as continuous problem the government is decided to make a forecasting
plan to decrease or to maintain rise in increasing plan. Investments are both important and useful
in the context of the present-day conditions. Some factors that have made investment decisions
increasingly important are: Longer life expectancy or planning for retirement, increasing rates
of taxation, high interest rate of inflation, larger incomes and availability of a complex number
of investment outlets. Investment decisions are significant to the retired people between age of
60-65 as for long life expectancy. Investment is a planned method of safety putting ones
savings into different outlets to get a good return. The financial industry has two concepts on
transactional activities. One is savings and the other is investments. There is a huge overlap
between the two concepts though it terms of execution. Investment means any money that is
spent today in the hope of financial benefits that may be reaped in a future time frame. An
investment is the act of buying or creating assets with an expectation that the same would yield
interest earnings or dividend or capital appreciation or any other return that is profitable as
compared to the money put in initially. Almost all investments are differentiated from other
kinds of transactions based on the aim of the money spent. Money spent on making investments
is primarily with the aim of obtaining some sort of return in a specific period. A lot of times
people confuse savings with investments. Savings and investment are different from each other
in their approach of utilizing the money involved. While saving may be understood as a passive
way of accumulating wealth, investment be a more aggressive way of securing returns. Mostly,
under savings, customers avail a savings account and stash away cash in that account. This cash
can be used as and when required by the account holder. Savings form an important part of the
economy of any nation. With the savings invested in diverse options available to the people,
the money acts as the driver for growth of the country. Indian financial scenario presents a
Plethora of avenues to the investors. Though certainly not the best or deepest of markets in the
world, it has reasonable options for an ordinary man to invest his savings. One needs to invest
and earn return on their idle resources and generate a specified sum of money for a specific goal
in life and make a provision for an uncertain future. One of the important reasons why one
needs to invest wisely is to meet the cost of inflation. Inflation is the rate at which the cost of
living increases. The cost of living is simply what it cost to buy the goods and services you need
to live. Inflation causes money to lose value because it will not buy the same amount of a good
or service in the future as it does now or did in the past. The sooner one starts investing the
better. By investing early, you allow your investments more time to grow, whereby the concept
of compounding increases your income, by accumulating the principal and the interest or
dividend earned on it, year after year. However, investment pattern and investment decision
varies from everyone.


The risk and returns available from each of these investment avenues differ from one avenue to
another. Even if the individual does not select specific assets such as stock, investments are still
made through participation in pension plan, and employee saving program me or through
purchase of life insurance or a home. In India, many investment avenues are available where
some are marketable and liquid while others are non-marketable and some of them are highly
risky while others are almost riskless. The investor must choose Proper Avenue depending upon
his specific need, risk preference, and returns expected. The Different investment avenues are:
Savings Account, Bank Fixed Deposits, Public Provident fund, Government Securities,
etc. Mutual Funds, Life Insurance, Debentures, Bonds, Equity Share Market, Commodity
Market, FOREX Market, Real Estate, Gold, Silver, Chit Funds. The individual investor
should not always follow the majority. They should try to search about his investments before
investing. The investors should focus on safe investment avenues. The people should develop
the habit of making investment at any stage of life. Saving money is an old method so the people
should invest their money to get maximum returns.
The investors should have full knowledge of the investment options to avoid any loss in future.
The investor should be alert what, where, why, when and how to make investment in different
investment options.

Why an individual goes for investment?
How much amount is to be investment?
What is role of investment in life of investor?
How investor can choose the right pattern of investment?
What should an individual investor do after their investment?


Preparing for future is one of the most important aspects of financial strategizing and lack of
involvement often leads to exposed to financial hardships. In todays world, the cost of living
is unpredictable and it is highly volatile. In India, the post demonetization brings tremendous
changes in financial and investment sector. In addition to the implementation of GST brings
lots of changes in standard of living. Ideally it would take time to acknowledge and explore this it is necessary to plan for stable income and returns on investment to sustain.


1. To understand in depth about different investment avenues available in India.
2. To know investor awareness towards their investment.
3. To know the various sources where an investor gain knowledge.
4. To know the risk tolerance level of the individual investor and suggest
a suitable Portfolio
5. To find out the factors to be analyzed before investing


Though a variety of investment options are available, majority of them still depend on the
banking system to invest their savings using the surplus liquidity on the banking system, banks
have steadily reduced the interest payable on deposits. After the Post demonetization, there is
a steady decline in interest rates offered by banks despite the huge cry raised by retired people
and depositors. Hence it would be more useful to study the various other options available for
getting better returns on ones hard-earned savings from the organized system.

Uma Maheshwari and Ashok Kumar (2014), suggested that majority of investors preferred
to invest in Fixed deposit with banks followed by gold, units of UTI, fixed deposit of non-
government companies, mutual funds, equity shares and debenture for safety and liquidity. The
above literature shows the important contribution on investors perception towards various
investment avenues. It is also evident from the above literature that majority of the investors
prefer fist safety and security for the investment and secondly, they interested to get maximum
benefits for their investments.

Palanivel and Chandra Kumar (2013), identified the low and middle-income group of
investors and irrespective of them give preference to invest in insurance and bank deposit.

R Sreepriya& P Gurusamy (2013) studied the investment pattern of salaries people in the
district of Coimbatore with a sample of 150 respondents and concluded that majority of the
respondents are educated up to college level and they are aware of the investment avenues. It
was also concluded that most of the respondents prefers long term investment and bank deposits
was the most preferred investment. They have not faced any problem on their investments. The
study also emphasized that the there was a significant relationship between education
qualification and fulfilment level of the respondents.
B.N. Panda&J.K. Panda (2013) carried out a comparative study on the relevance of
demographic factors in investment decisions with respondents from education sector. A
convenient sample of 175 respondents from Bhubaneshwar was selected. The study revealed
that demographic variable such as age, gender; education and occupation have no significant
relations with the period of investments made by the investor. It also disclosed that there is
significant relationship exist between the demographic factors such as gender, education,
occupation, annual income and savings with the sources of awareness with the analysis of
investment avenues. Investors choice was equally distributed between physical assets and
financial assets. It also conveyed that no significant relation exists with the demographic
variables of age and family size.

Brahma Bhatt, P.S. Raghu Kumari & Sharmira Malekar (2012) has conducted a study on
the investor behaviour on investment avenues in Mumbai with a sample of 100 respondents.
The study revealed that people invest in stock market as compared to any other avenues, even
though they face huge losses. It was also evident from the study that investor prefers savings
and safety but at the same time they want higher interest at low risk in shorter span. They study
also concluded that most of the respondents possess higher educational qualification and opt
for two or more sources of information to make investment decision. It also stated that most of
the respondents discuss with their family and friend before making investment and the
respondents decisions are based on their own initiative. Female respondents are attracted
towards gold than any other avenues.

VarshaVirani (ISSN 2277-1166, Volume No.2 Issue No.4) undertook a study on saving and
investment pattern of school teacher in Rajkot city, Gujarat with a sample of 100 school teachers
and concluded that most of the teachers prefer Bank Fixed deposit and government securities
as their investment option. High interest rates as well as safety have been considered as the
main criteria for investment. It also revealed that high rate of return and tax benefit has
influenced the investment decision of the respondents. There was a lack of awareness about
equity and mutual fund as avenues of investment. It also revealed that most of the teachers are
saving their money for childrens education, marriage and to fulfill the other goals of life.

Murithi Suriya, Narayanan and Arivazhagan (2012), in their study reveal that female
investors dominate the investment market in India. According to their survey, majority of the
investors are found to be considering two or more sources of information to make investment
decisions. Most of the investors discuss with their family and friends before making an
investment decision.

Yogesh and Charily (2012), analyzed that due to low returns the conventional investment
options like Post Office Saving Schemes, Public Provident Funds are not preferred by the
investors. However, investment on gold is preferred by female investors.

Kaushal and Kinjal (2012), discussed that due to less risk all income group and category of
investor prefer to invest in bank deposits as well as post office deposits. Whereas investment in
equity shares, mutual funds, insurance, commodities and real estate are preferred by higher
income group with higher education.

1. There is significant relationship between investors salary and proportion allocated for
2. There is significant relationship between purpose of investment and investment

RESEARCH DESIGN: The research study is Empirical in nature.
DATA COLLECTION: Both the primary and secondary data collection methods were
considered. The primary data was collected through a questionnaire designed and data
collected from 50 respondents for the study Secondary data was taken from Research papers,
Journals, Magazines and Websites.


The data and information collected is classified, tabulated and processed and its findings are
presented in a systematic manner. Henry Garetts ranking analysis is used analysis
preference of the respondents. correlation and chi-square table is used to analyze the
framed hypothesis.
Annual Household Income:
Annual Household No.of. Percentage
Income Respondents (%)
3-5 lakhs 25 50
5-9 lakhs 10 20
9-12 lakhs 5 10
>12 lakhs 10 20
50 100

Proportion of Income Allocated for Savings

No. of. Percentage

respondents (%)
5000-25000 15 30
25000-40000 20 40
40000-50000 10 20
>50000 5 10
50 100

Interest to Invest in Stock Market
Response No. of. respondents Percentage (%)
Yes 15 30
No 20 40
Fear of Loss 15 30
50 100
Preference given for source of information
S. No Information Source Rank
1 News Paper, Magazines 3
2 Social media 2
3 Tv, Radio, Advertisements 4
4 Official sources 5
5 Institutional agents 1

Proportion of Income Allocated for Investments
Proportion No.of. respondents Percentage (%)
500-2000 15 30
5000-10000 20 40
15000-30000 10 20
>50000 5 10
50 100

Elements Considered Before Investment
No.of. Percentage
Respondents (%)
Safety of Principal 20 40
Minimal risk 10 20
Higher returns 15 30
Maturity Period 5 10
50 100
Factors That Hold You to Invest in Stock
No. of. Percentage
respondents (%)
Lack of knowledge 15 30
Poor experience 10 20
Enormous risk involved 15 30
Lack of time 5 10
Excessive cost of investment 5 10
50 100


Henry Garrett Ranking Method
Ranking of Investments
1 GOLD 2756 55.12 5
2 PPF 2905 58.08 3
4 BANK DEPOSITS 2915 58.3 2
5 SECURITIES 2846 56.92 4
6 MF 3014 60.28 1
7 REAL ESTATE 2728 54.56 6
*Garett score are based on the percentage and their respective scores


HO: Null Hypothesis: There is significant relationship between purpose and
investment preference.
H1: Alternative Hypothesis There is no significant relationship between purpose and
investment preference.

Table value @ 5% result

Degree of freedom Calculated value
level of significance
8 15.5 14.4

The null hypothesis is accepted. There is significant relationship between purpose and
investment preference


HO: Null Hypothesis: There is significant relationship between investors salary and
proportion allocated for investments.
H1: Alternative Hypothesis: There is no meaningful relationship between investors
salary and proportion allocated for investments.

X Y X2 Y2 XY
50 50 850 750 675

r= =0.29


1. 38% of the respondents are male and only 12% of the respondents are female.
2. The majority 50% of the respondents Annual income is up to 3-5 lakhs and only 10%
of the respondent anal income are up to 1200000.
3. The majority of 30% of the respondents are graduated. 20% of respondents are not
interested and aware of equity investment pattern.
4. 15% of the respondents are aware trading in diverse investment avenues and other
respondents are quite aware of Equity and securities available for investment but do not
participate as they hesitate to the fear of loss.
5. 35% of the respondents are tax payers. They prefer diverse investment patterns to avail
the tax benefit.
6. The major objective of respondents for investment only for the safety of Principal and
capital appreciation.
7. The respondents hesitation to invest is due to lack of knowledge and enormous risk
involved as the stock market is highly volatile according to economic conditions.
8. The investors give priority for mutual fund investment and its ranked 1 followed by
bank deposits as the reduce the rates but some investors are still holding fixed deposits
in bank as they consider for safety of principal.
9. The respondents have sufficient knowledge in trading securities and mutual funds are
investing their funds by dividing the available funds in to diversified portfolio.
10. Majority of 30% of investors chose mutual fund for investing in current scenario as it
offers multi schemes like ELSS; SIP; which provides minimal risk and higher returns.
11. The hypothesis framed to know the relationship between investment Preference and
purpose of highly significant. therefore; the null hypothesis is accepted
Which depicts that purpose or objective of investment is related to investment
12. The Hypothesis frame to know the significant relationship between annual income
and allocation of saving is correlated which depicts that individual investor income
has relationship between funds allocated for investment.

1. In todays world men and women are equally employed. But only 12% of the
respondents are women investors. The women respondents somehow till using the fixed
deposits, post office savings, chit funds, insurance scheme which are already
exhaustive. The fear of loss is the prior reason that working women are not ready to
invest in stock market.

2. Systematic investment plan (SIP); Monthly income plans(MIP); ELSS; Balanced

mutual fund is reason for increasing investors to invest in mutual funds which gives
minimal risk. Most of the Retail investors are interested in investing SIP which is a
current trend in capital. market as Rs.500/- is enough to invest in SIP. Large caps funds
are highly suitable for long term investments.

3. The study is to find out the investors preference towards various investment avenues
like fixed deposits, post-office schemes, bonds / debentures, share market, mutual funds
and insurance.

4. The study revealed that mutual fund ranks as the most popular avenue for investment
followed by life insurance and fixed deposits about the risk appetite of the investors; it
is found that the investors perceive that investments in mutual funds carry moderate

5. The study also reveals that a better and steady return is the main reason for investing
investment in mutual funds. The study in dictated that the majorities of the investors
are satisfied with their investments in mutual fund. Investments in insurance and
housing are found to be the popular avenues for saving tax in addition to mutual funds
suggestions have been made to improve investments in mutual funds minimal risk
schemes in mutual funds.


The study revealed that mutual fund ranks as the most popular avenue for investment
followed by life insurance and fixed deposits about the risk appetite of the investors; it is
found that the investors perceive that investments in mutual funds carry moderate risk. The
study also reveals that a better and steady return is the main reason for investment in mutual
funds. The study in dictated that the majorities of the investors are satisfied with their
investments in mutual fund. Investments in insurance and housing are found to be the
popular avenues for saving tax in addition to mutual funds suggestions have been made to
improve investments in mutual funds minimal risk schemes in mutual funds. The
investment in shares, mutual fund is popular in urban and metro cities as they are aware of
those investment schemes. According to the SEBI, not even 1% of the rural investors are
aware of mutual funds and securities market, they are highly maintaining their investment
in banks, insurance schemes, Post office savings which are provide less return and capital
appreciation and they are already exhaustive among other investors.

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