A study on Perception of Retail Investors towards Diversified Investment Avenues

Abstract

The objective of this study is to determine the association between the demographic profile of respondents and various factors influencing the diversified investment and to know the significant relationship among the factors Investor’s perception towards diversified investment. The absence of diversification in an individual investor's investments one of the most crucial elements. An investor has a wide variety of options when it comes to making investments in the financial market. These many investing options are not equally effective and differ from one another. Based on the motivation for the investment, the anticipated period of withdrawal, and the investor's capacity for risk, the pattern of investments varies from investor to investor. A well-articulated strategy to assess and deal with the critical problems throughout the entire spectrum of investment risk management is required for successful execution. The analytical model chosen may have large data requirements, but setting implementation priorities will prevent stagnation on this front. The type of services provided and the rewards provided in the financial market influence an individual's decision to invest. The decision-making process for financial investments is influenced by financial expertise and knowledge. Investment diversification is the process of choosing several asset classes with a view to reducing risk and maximizing returns and profits. This study tries to identify and analyse many aspects that influence how individual investors decide what investments to make and how to assess the risk in their investment.