Preference Towards Motives of Investment: Behavioral Analysis

Abstract: Households don’t spend all of their income but save some of them for various purposes, one of the purposes is to invest. An investment refers to the commitment of funds at present, in anticipation to generate some positive return in future for you, with safety and security of principal (assets) as well as interest (return) based on systematic analysis. Present paper analyzes motives of investment preferred by retail investors while investing their money based on demographic variables. Income generation, capital appreciation, safety and liquidity various motives of investment taken in to account for the present study. The results show that male respondents prefer income generation as most preferred motives of investment while most of the female respondents prefer safety as motive of investment. It is observed that irrespective of the occupation, safety motive is most preferred motives of investment followed by income generation. It is realized that most of the respondents from lower income class preferred income generation as most important motive of investment while respondents belong to higher income class preferred safety as most favored motive of investment. It also found that motives of investment and personal factors of respondents are dependent of one to another