Does the level of awareness among salaried employees lead to improved investment portfolio? : A study of government and non-government employees of Nagpur District of India.

Abstract

Investors invest in several financial products which give them returns in order to meet future contingencies. Financial products are helpful in providing financial security to the individual especially when the awareness about the risk return profile of the investment is known in advance. However most of the investors are generally left unaware when talk about the knowledge of their investment. Investment preferences of an individual vary from individual to individual based on one’s risk taking capacity, knowledge, profile, income. Investment behaviour of an investor is dependent upon many sets of circumstances. With a hope of getting high returns over a period of time via investment, an individual always tries to invest in different financial products based on his knowledge. The research focuses on the preferences of salaried employees which they give while investing. This research has considered 150 salaried employees across Nagpur cities including government and non-government employees catering to different region and work profile. The research concluded that gender, income and nature of employment have been the pivotal factors responsible for influencing the investors’ behaviour and preferences regarding various securities offered within the market. Also due to the low financial literacy level, investors invest their money in traditional investment and they are not able to get the advantages of other modes of investment which may give them higher returns.