A STUDY ON INVESTMENT DECISION OF INDIAN RETAIL INVESTOR

This study aims to explore the investment preferences and decision-making behavior of retail investors in India. With the increasing diversity of investment avenues, understanding how individual investors make choices is crucial for both market efficiency and investor awareness. The study specifically focuses on evaluating the preferences of retail investors across various financial instruments such as equities, mutual funds, fixed deposits, gold, and real estate, as well as examining the influence of demographic variables—including age, gender, income, education, and occupation—on their investment decisions. A total of 191 retail investors were selected as the sample using the Random Sampling Technique to ensure representation and reliability of the findings. Data collected through structured questionnaires were analyzed using statistical tools including one-sample t-tests to determine the significance of responses regarding investment behavior and preferences. The findings reveal that Indian retail investors prioritize expected returns, consider tax-saving benefits, and actively participate in market-linked instruments while balancing risk and safety. Moreover, demographic factors significantly influence investment patterns, indicating the need for tailored financial advisory services and investor education programs. The study provides insights for financial institutions and policymakers to design products and strategies that align with the preferences and behavior of retail investors in India.