A Study on Investment Pattern and the Factors Influencing Investment Decisions of an Individual

Rigorous financial investment is the need of the hour. For the Indian economy to grow at the desired rapid pace, more capital formation and hence rigorous capital mobilization by the investors is required. Like institutional investors, retails investors too need to have an organised portfolio in modern investments instead on relying on traditional methods of investment. Many a times these traditional investment overlap with what is also called as unorganised investments. In this paper we have tried to understand the factors that leads to an investment in a particular investment avenue (modern investment and traditional investment avenue along with unorganised investment options) based on factors like AGE, INCOME and EDUCTATION. The study is based on primary data collected from 157 respondents in Mumbai district. Karl Pearson's Co efficient of correlation was calculated using SPSS. And a strong positive correlation was found among “income and mutual fund investment” and “income and equity shares investment”. A strong negative correlation was found between “Age and Equity Share Investment”. Findings of the paper clearly indicate that Age, Income and Education are primary factors that affects the decision of investment of a particular individual

Key Words : Modern investment, Traditional investment, Education, Age, Income, Investors education