A STUDY ON THE INVESTMENT PATTERN OF RURAL AND URBAN INVESTORS TOWARDS VARIOUS INVESTMENT AVENUES

Research in behavioural finance is relatively new. Within behavioural finance it is assumed that information structure and the characteristics of market participants systematically influence individuals’ investment decisions as well as market outcomes. There are lots of investment alternatives where investor can invest such as Gold, silver, real estate, bank deposits, PPF, shares, derivatives, etc. For studying the savings and investment patterns of an individual it is very importer for the researchers to figure out the settlement area of the individual because the area where he resides determines the social and economic surroundings. Urban settlement is characterised by better opportunities for employment with potential in growth of income, enhanced saving capacities, better access to quality and higher education and more access to information which exposes the individuals to better investments options while rural settlement is characterised by limited employment opportunities with limited chances in growth of income thereby decreasing saving potential not only this comparatively lower level of education and limited access to information restrict their approach to selective investment alternatives. The present paper tries to find out the investment pattern of rural and urban investors regarding various investment alternatives. The paper tries to study the attitude of rural and urban investors towards different investment avenues. The researchers have selected 50 rural investors and 50 urban investors from Moradabad region. The study uses ANOVA and mean scores to test the hypothesis. The paper concludes that investors whether belonging to rural areas or urban areas should look in all avenues while investing their funds. Some investments are risky and some are not, so as per the age of investors they should decide about risky or less risky investments.