A Study of Investment Behavior of Middle Income Group towards Different Kinds of Investment Avenues

Abstract

Indian economy is one of the rapidly growing economies of the world where more than 50% people belong to middle class and lower class, their annual income fall up to rupees 10 lacs (acc to NCAER's definition). Middle class population is the key element for economic development of India. They influence demand and supply of need and comfort products at a great extent. Their saving and investment pattern gets influenced by their future needs, have wide scope for researchers due to greater impact on the investment market. In this paper, researchers want to discuss about investment behavior adopted by middle class as seeker, included both groups engaged in either service or business, whose income exist between Rs.2,00,000 to Rs.5,00,000 per annum. The reason behind selecting the particular income group is to find that how to manage their investment with small income after spend their hug expenses. The study has conducted to answer few important questions about preferences of the investment instrument as real estate, bullion, precious stones, money market and capital market etc., investment pattern adopted in a specific manner and objectives behind opting a particular investment instrument. Investment is one of the major issues of the class families as their small saving today is to meet the expenses of tomorrow. So this study also examines the risk bearing capacity, management between expenses and saving and other factors which influence their investment decision.