The Investor Dynamics in the Avenues Offered By the Indian Financial System

Abstract

The Indian financial services industry has taken a major leap with the gradual opening up of the economy. The growth in this industry is predicted by the width and depth of the products offered by it. The industry has brought out numerous innovative products. However the extent to which these products are successful depends on the investors/customers. Hence the providers of financial products have to be extremely careful in marketing their products. The expectations of the investors, their perception towards various products/ investment avenues, their current pattern of investment have to be understood to serve them well and also to offer better products.Hence this study has been done with an objective to find out the investment pattern of investors in various investment avenues offered in the Indian financial system. The findings of the study are that the investors are aware of different modes of investment but the prime motive for investment is tax benefit. The study shows that the investor's current preference of investments is in the order of life insurance policy, bank deposits, investments in shares and national savings certificates. The future investments are in areas of mutual funds schemes.