AN EMPIRICAL STUDY ON INVESTOR PERCEPTION TOWARDS VARIOUS INVESTMENT AVENUES IN GUJARAT

Abstract

Investments play a crucial role in economic growth and personal financial security. For individual investors, choosing the right investment avenue is essential for wealth creation, retirement planning, and achieving long-term financial goals. Understanding investor perception is of paramount importance as it provides insights into how investors assess risk, returns, and other investment characteristics like liquidity and tax benefits. In the context of Gujarat, a state with a diverse economy and growing financial markets, analysing investor behaviour helps to identify the most favoured investment options and the factors that influence these preferences. This study aims to evaluate the perceptions of investors in Gujarat towards different investment options and to explore the association between their demographic profiles and investment preferences. Investment avenues such as equities, mutual funds, real estate, fixed deposits, and government schemes are analysed to understand investors' priorities regarding risk, returns, liquidity, and tax benefits. A total of 150 investors were surveyed, and data was collected using structured questionnaires. The findings reveal that liquidity, tax benefits, and guaranteed returns are significant factors influencing investment decisions. Furthermore, a strong association between demographic variables—such as age, income, and occupation—and investors’ preferences was observed. This study offers valuable insights for financial institutions and policymakers to better align their offerings with investor needs, thereby promoting more informed investment decisions.