An Evaluation of Investor Behaviour towards Traditional Investment Avenues in Didwana

DRA ANNUAL INTERNATIONAL CONFERENCE 2024 ON “SOCIO-ECONOMIC TRANSFORMATION: OPPORTUNITIES AND CHALLENGES” Int. Jr. of Contemp. Res. in Multi. PEER-REVIEWED JOURNAL Volume 4 [Special Issue 1] Year 2025 49 © 2025 Anurag Jhanwar, Dr. Chetan Swaroop Saini. This is an open-access article distributed under the terms of the Creative Commons Attribution 4.0 International License (CC BY NC ND).https://creativecommons.org/licenses/by/4.0/ Conference Paper An Evaluation of Investor Behaviour towards Traditional Investment Avenues in Didwana Anurag Jhanwar1*, Dr. Chetan Swaroop Saini2 1Research Scholar, Department of Commerce, Shri Khushal Das University, Hanumangarh, Rajasthan, India 2Assistant Professor, Department of Commerce, Shri Khushal Das University, Hanumangarh, Rajasthan, India Corresponding Author: *Anurag Jhanwar DOI: https://doi.org/10.5281/zenodo.17883037 Abstract Manuscript Information There has been a significant move towards economic prosperity globally, highlighting impressive growth rates observed worldwide. Increasing level of income and stock markets have shown in a growing number of participants, resulting in a larger amount of money available for investment. Because of their conventional Indian outlook, these participant are more prone to explore familiar investment choices for diversifying their collection of stocks. As a consequence, investors have a variety of choices to select from debt markets, stocks, equities, mutual funds, insurance, real estate, and bank fixed deposits. The primary aim of this study is to evaluate the different selection investors can make and examine their behaviour towards different financial assets. The main investigation is the focus of the study, which took place in the city of Didwana in Rajasthan. It reveals that participant normally faith that buying property, keeping in mind of long-term view, is more beneficial for creating wealth. Moreover, this research also discovered that demographic factors are crucial in choosing an investment option. This research helps new investors learn from past mistakes and make better decisions to avoid making the same errors in the future, ultimately benefiting them. ▪ ISSN No: 2583-7397 ▪ Received: 13-12-2024 ▪ Accepted: 20-02-2025 ▪ Published: 14-03-2025 ▪ IJCRM:4(SP1); 2025: 49-52 ▪ ©2025, All Rights Reserved ▪ Plagiarism Checked: Yes ▪ Peer Review Process: Yes How to Cite this Article Jhanwar A, Saini CS. An evaluation of investor behaviour towards traditional investment avenues in Didwana. Int J Contemp Res Multidiscip. 2025;4(6):49-52. Access this Article Online www.multiarticlesjournal.com KEYWORDS: Savings, Investment Avenues, Investors' Behaviour, Awareness of Investment Options DRA ANNUAL INTERNATIONAL CONFERENCE 2024 ON “SOCIO-ECONOMIC TRANSFORMATION: OPPORTUNITIES AND CHALLENGES” Int. Jr. of Contemp. Res. in Multi. PEER-REVIEWED JOURNAL Volume 4 [Special Issue 1] Year 2025 50 © 2025 Anurag Jhanwar, Dr. Chetan Swaroop Saini. This is an open-access article distributed under the terms of the Creative Commons Attribution 4.0 International License (CC BY NC ND).https://creativecommons.org/licenses/by/4.0/ 1. INTRODUCTION In the ongoing global economic landscape, there has been a significant increase in wealth worldwide, with a lot of dialogue surrounding the brisk growth of economies. Investors are fascinated by booming stock markets and higher income levels, leading to a glut of available investment funds. Investors are willing to take on minimal risk and seek stability in investment options to avert uncertainties in their portfolios. Due to this trend, new alternatives alike to existing asset classes have appeared, offering more diverse investment options in sectors like real estate, PPF, mutual funds, stocks, debt markets, and bank deposits, increasing overall product confidence. Investors generally believe it's best to avoid long-term investments. They wish to delay their investment choices until the market is steady. This research aims to illuminate the trends and behaviours of investors in the financial markets. It acknowledges that market dynamics are ultimately shaped by individuals, and that investors' decisions mirror their collective actions and judgments. Traditional Investment Option Available To Indian Investors Investors may make a decision to invest in the finest investment selection based on various factors such as income, age, and dependents. Due to the fact that investments with low risk typically result in minimal or no return, all investments involve some level of risk. Engaging in popular investments to achieve growth in value, earnings, and returns is the conventional method in the financial sector. Classic investments are those with a long history and are relied upon by investors. • Gold: Gold is considered a top favourite investment option and a faithful investment of all ages in India, contributing to the country's status as the world's largest consumer of gold. • Fixed Deposits: This scheme is designed for investors who do not have an immediate requirement for money. Customary banks and post offices offer fixed returns over a specified period of time, typically between 4% to 8% annually. These schemes are trusted by many Indians and offer decent returns. • Equity: Buying securities from secondary markets like stock exchanges or participating in initial public offerings (IPOs), known as the primary market, are the two ways to participate directly in stocks. Depending on the kind of company, stocks carry a high-risk profile, but they can also yield significant profits. • Mutual Funds: This type of investment instrument is created with gathered money from multiple participants having the same nature of objective and is professionally managed by a fund manager. They invest in various assets such as equity, debt, gold, and foreign equity, offering investors a diversified portfolio. • Bonds/Debenture: The bonds given by the State or Central government are considered one of the secure and high-credit-worth investment options in India due to their backing by the Government of India, offering minimal credit risk. Where a Debenture issue by a corporate with fixed terms and coupon payments to raise funds. Although riskier than government bonds, these debentures offer higher returns. • Real Estate: Investing in real estate is highly admired in India, following gold, due to its historical performance and social status. • Public Provident Fund (PPF): A PPF is a long-term savings and investment option that offers interest rates which normally high and provide tax benefits. 2. RESEARCH METHODOLOGY For data analysis, primary data have been used. Primary data collected by field visit from 126 participants. In this study, the information was gathered with the aid of a well-designed questionnaire. The participants were residents of Didwana who belonged to various fields of occupation, including women and men. 3. RESEARCH OBJECTIVES The main objective of this research is to evaluate Didwana residents' investment behaviour patterns. The current study addresses the degree of knowledge regarding different investment options, variables impacting decision-making, and investment portfolios. • To understand how investors behave towards the different traditional investment options available in the market. • To discover the influence of demographic aspects that investors consider before investment. 4. LITERATURE REVIEW (Makwana & Ayre, 2020) [5] In this study researcher tried to find out the investor behavior towards various investment opportunities available in the Bardoli Region of Gujarat. The study's findings show how different age groups of investors choose different investment opportunities that offer high returns with low risk while giving importance to growth. (Subathra & Regi, 2019) [4] Highlight that several aspects of a salaried person have crucial implications for financial management. The person nevertheless favours investing in several financial schemes that pledge secure returns without taking on any risk. This study further demonstrates that persons belonging to the high class, having vast income and high qualification, were self-reliant yet cautious to be protected. (Bhavani & Shetty, 2017) [3] Evaluated the impact of perceptions and demographical factor on investment decisions. The study points out how perceptions and demographic factors impact investing decisions. The researcher used Mann Mann-Whitney U test and the Kruskal-Wallis test to examine the hypothesis considering DRA ANNUAL INTERNATIONAL CONFERENCE 2024 ON “SOCIO-ECONOMIC TRANSFORMATION: OPPORTUNITIES AND CHALLENGES” Int. Jr. of Contemp. Res. in Multi. PEER-REVIEWED JOURNAL Volume 4 [Special Issue 1] Year 2025 51 © 2025 Anurag Jhanwar, Dr. Chetan Swaroop Saini. This is an open-access article distributed under the terms of the Creative Commons Attribution 4.0 International License (CC BY NC ND).https://creativecommons.org/licenses/by/4.0/ qualification, age, sex, and occupation factors and found that these factors substantially influence the choice of investment alternatives. (Kothari, 2012) [1] point out clearly that people's savings were distributed to assets based on a variety of factors, including their measurement for risk and return measurement, financial stability, liquidity, and the availability of investment options and financial institutions. Using a sample size of 100, a descriptive study approach was used to characterise the phenomenon. Data were gathered from the respondents in Indore City using a practical judgmental sample technique. The researcher found out that younger generations were able to save money for the future if they began putting money continues at a young age. (Jain & Mandot, 2012) [2] According to this study, the market has converted itself to dynamic from being static, which continuously modifies risk elements. A large amount of money was being ploughed among various demographics as the risk profile increases. This study examined the connection between risk and Rajasthani investor various demographics. The money invested in shares, real estate, mutual funds, bank deposits, various bonds, gold, etc., is going high based on the investor's level of risk. (Jhanwar, 2024) [6] Since there were many investment options available in the economy, researchers found that investors struggle with the selection problem and are consistently searching for newer ways to increase their investment amount. Having a low-cost, straightforward, transparent, and more controllable investment option is what investors desire. Analysis and Interpretation Demographic Factors Item Frequency Percentage Gender Male 95 75.40 Female 31 24.60 Age Group Below 30 24 19.05 31-45 41 32.54 46-60 52 41.26 Above 60 9 7.15 Marital Status Married 88 69.84 Unmarried 29 23.00 Widow/Divorced 9 7.14 Qualification Schooling 11 8.73 Diploma 7 5.55 Graduate 53 42.07 Post Graduate 39 30.95 Professional 16 12.70 Most of the participants, 75.40% were male, and 24.6% were female. Besides majority of the participants were between the ages of 46-60 years and were married. Among the participants, 42.02% have having graduation degree, followed by postgraduation 30.95% which indicates a good education level among respondents. Period of Investment Short Term 22 17.46 Medium Term 36 28.57 Long Term 68 53.97 The study indicates that the fact that majority of the participant, 53.97% favour long-term tenure of investments, backed by 28.57% medium period investment, due to their traditional mindset and giving preference to safety over quick return. Income Level Frequency Percentage Below 2.5 Lakhs 18 14.29 2.5-5 Lakhs 49 38.89 5-10 Lakhs 37 29.36 10-20 Lakhs 14 11.11 20 Lakhs and above 8 6.35 More than half of the participants have a yearly income of less than 5 lakh. Nearly all investors' backing of investment is residual income, and a combined part of the investment is done from borrowings of their own. The evaluation points out the information that the saving habit is considerably good among the participants. Most of the participants' investment is longterm oriented. The investment choice of the participant is primarily dependent on their traditional thought, as their risk exposure is low, and they prefer safety over risk. Most of the participants anticipate a higher rate of return than the ongoing market rate. Investment Avenue Gold 43 34.12 Fixed Deposit 28 22.23 Equity 9 7.14 Mutual Fund 16 12.71 Bonds 4 3.17 Real Estate 11 8.73 P.P.F. 15 11.90 Respondent were asked to select their first preference from the available traditional investment choices. The majority of the respondents, 34.12% like to invest in gold, followed by 22.23% in a fixed deposit. It is also found that a very small percentage, 3.17% invest in bonds due to a lack of knowledge. It is worth noting that respondents are willing to invest in real estate and P.P.F., but very less, 8.73% in real estate and 11.9% invest in P.P.F. Because they have a very small amount of investment and same time, they go for a liquid investment option. Investment Amount Up to 50000 55 43.65 50000-100000 28 22.22 100001-200000 21 16.67 200001-500000 18 14.29 500001 and Above 4 3.17 Respondent Investment decisions depend on their income and savings level. Most investor have few amount to invest because of their low level of income. Nearly 43.65% participated up to 50000, and 3.17% were capable of investing more than 5 lakh yearly. It highlights the requirement of upliftment of their income level for their better future. DRA ANNUAL INTERNATIONAL CONFERENCE 2024 ON “SOCIO-ECONOMIC TRANSFORMATION: OPPORTUNITIES AND CHALLENGES” Int. Jr. of Contemp. Res. in Multi. PEER-REVIEWED JOURNAL Volume 4 [Special Issue 1] Year 2025 52 © 2025 Anurag Jhanwar, Dr. Chetan Swaroop Saini. This is an open-access article distributed under the terms of the Creative Commons Attribution 4.0 International License (CC BY NC ND).https://creativecommons.org/licenses/by/4.0/ Limitations of the Study • The sample size is very thin considering the inhabitants of Didwana. • Time and place restraint. • This study is conducted assuming that the responses of the investors are right. • ThiThe study expresses the opinion of respondents, which changes rapidly. • This study is limited to traditional investment options only. 5. FINDING AND CONCLUSION Depending on the result of this paper, "An evaluation of investor behaviour towards traditional investment avenues in Didwana", a large number of participants invest a reserved amount of money. They are giving an advantage to gold and fixed deposits, followed by real estate. The research indicates the fact that about half of the respondents like moderate risk with average return from their investment. 1. Participants have good ideal knowledge about various alternative options, especially for bank deposits and gold. 2. Participants' investment thought has gone high in recent years as they have developed an understanding of the importance of investment. 3. Participants' risk attitude on the equity option is high, whereas down for the bank deposits option. 4. Participants anticipate a handsome return from equity with a mutual fund, where they are happy with low returns from bank and post office investments. The investment's long-term objective is wealth appreciation with the safety and security of money. More than half of the participants say that they are giving priority to long-term investments with a medium amount of risk. One of the main factors that impacts investment decisions is age. As investors get older, they are going to invest in the safest investment choice. While major of the participants are fine with the ongoing yield, many were hoping for a good return. The researcher collected information from different sources, and almost every investor likes to invest in gold due to its continuous return and social identity. REFERENCES 1. Kothari H. Investors' behaviour towards investment avenues: A study with reference to Indore city. Altius Shodh Journal of Management & Commerce. 2012;6(2):56-68. 2. Jain D, Mandot N. Impact of demographic factors on investment decision of investors in Rajasthan. Journal of Arts, Science and Commerce. 2012;2(3). 3. Bhavani G, Shetty K. Impact of demographics and perceptions of investors on investment avenues. Accounting and Finance Research. 2017;6(2):198-205. 4. Subathra MR, Regi SB. A study on preferred investment avenues among salaried people with reference to Thoothukudi. Think India Journal. 2019;22(10):7955-7965. 5. Makwana V, Ayre V. A study on investors’ preference towards different investment avenues, specifically in Bardoli region. International Journal of Management and Commerce Innovations. 2020;8(1):16-22. 6. Jhanwar A. Smallcase: A new way of investing in India. Inspira – Journal of Modern Management & Entrepreneurship. 2024;14(1):76-78. Creative Commons (CC) License This article is an open-access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY 4.0) license. This license permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited. 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