A Study of Preferred Avenues of Investment of Investors and Their Exposure to Equity Market

Abstract

In this modern era, money plays an important role in one’s life. In order to overcome the problems in future, People have to invest their money. Investment is the commitment of funds which have been saved from current consumption with the hope that some benefits will be received in future. Savings are invested in assets depending on person’s knowledge of different investment options, risk taking ability and demand of return. Investment of hard earned money is a crucial activity of every human being. Investors have a lot of investment avenues to park their savings. The risk and returns available from each of these investment avenues differ from one avenue to another. The investors expect more returns with relatively lesser risks. In this regard, the financial advisors and consultants offer various suggestions to the investors. However, the construction of a correct portfolio is a great task in front of every investor. The investment avenues include both financial instruments and other assets. The attitude of investors would vary from time to time and person to person. The objective of investment of investors will also be different.

Keywords: Investment avenues Risk and Return