Investment Decision and Preferences: An Exploratory Study among Indian Youth

Abstract: Investments are commitments to money that are made with the hope of earning favourable returns, such as interest, revenue, or a rise in the worth of the asset that was purchased. The present paper investigates whether the investment decisions and preferences of the Indian youth differ based on their perception about factors, such as, market movement, risk, ROI, and possibility of loss of capital; and whether the investment knowledge of Indian youth differs based on certain demographic factors. The findings indicate that, though respondents’ investment knowledge does not differ based on age, education and occupation, they make different investment decision consciously. Respondents’ perception about market movement, possibility of loss of capital, risk factor, and ROI, is responsible for such decisions. In addition, perception about the liquidity factor, lock-in period, and risk factor, is responsible for difference investment preference of Indian youth.

Keywords: Investment Decision, Investment Preference, Investment Knowledge

JEL Classification Number: E20, E22, D14, G51