An elucidation of investment preferences and investment objectives of individual stock investors of punjab
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Abstract
The present paper is an attempt to have an insight into the influence of five key attributes that is Safety of principal, Liquidity, Stability of Income, Capital Growth and inflation resistance on the investment decisions of individual stock investors of Punjab while choosing a particular investment and also identifies their major investment objectives. Additionally, the study gauges if there is any significant difference in the investment objectives of investors across their age groups. A pre-tested, well structured questionnaire was administered personally to 200 individual stock investors in Punjab and their responses were sought in terms of frequencies, percentages and weighted average scores. Chi-square test has been applied to test the difference between investment objectives across age groups. Gold is found as the highly preferred investment among individual investors in Punjab for four attributes that is safety of principal, liquidity, capital growth and inflation resistance revealing that they consider gold as most effective investment which is better on each of the above mentioned attributes than all the other potential investments. However, securities market is second highly preferred investment for three attributes that is liquidity, capital growth and inflation resistance but as far as attributes such as safety of principal and stability of income are concerned, bank fixed deposits is the second most preferred investment by individual stock investors for these attributes. Retirement planning is found as the major objective of individual stock investors of Punjab for making investments. The above findings will be helpful for the financial service providers in offering more effective advice to the investors by understanding their current stated investment objectives and the importance of key attributes to them while choosing among various investment options.
References
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