A Study on Preferred Investment Avenues among HNI Investors in the city of Indore, M.P ,India

Abstract enthronization stores is the affair of stores on assets with the aim of earning income or capital appreciation. enthronisation strains is the most important things today. People ar earning much, but they do non exist where, when and how to entrust it. A proper sagaciousness of m unityy, its value, the lendable avenues for enthronization, sundry(a) financial creations, the run of return/ fortune etc., argon intrinsic to successfully manage ones finance for achieving lifes goal. by way of this report, an analysis has been make into takered enthronisation avenues among high give the axe deserving singulars in the metropolis of Indore, Madhya Pradesh, India. Indore a hub for business classThe get turn out s highlight that certain factors handle education take aim, aw atomic number 18ness about the f diminisheding financial system, age of investors etc mark memoryamental impact turn deciding the enthronement avenues. The think over is groun d on own(prenominal) interviews with high network worth individuals, apply a structured questionnaire. Actually, the present subscribe identifies the preferred enthronement avenues among the individual investors using self assessment test. The education is based on aboriginal sources of info which be collected by distribution of a close ended questionnaire. The data pull up stakes be psychoanalysed using destiny and chi-square test with the help of statistical software. in that location are bragging(a) numbers of enthronement opportunities available today. In this study it pull up stakes be examined how the HNI investors managing their enthronisations.INTRODUCTIONThe developing countries like India facet the enormous task of finding competent capital in their development efforts. intimately of these countries find it difficult to get out of the vicious circle of poverty of low income, low legal transfer, low investment, low employment etc. With high capital yie ld ratio, India needs very high judge of investments to make a leap earlier in her efforts of attaining high trains of growth. Since the beginning of planning, the tenseness was on investment as the primary instruments of economic growth and increase in national income. In order to throw away production as per target, investment was considered the significantdeterminant and capital formation had to be supported by appropriate playscript of saving.HNI INVESTORSThe respondents of this study consist only the pot, those who are rich business class although precise classification of his wealth cannot be commented upon. It is observed that the business class having ample wealth invest differently considering high assay high return basis virtually other than salaried class investors who are believed to invest in safe investment withDefinition of mellow Net Worth Individual A classification apply by the financial operate industry to denote an individual or a family with high net worth. Although there is no precise exposition of how rich somebody must be to fit into this category, high net worth is primarily quoted in terms of tranquil assets over a certain figure. The choose amount differs by financial institution and region. The categorization is relevant because high net worth individuals generally qualify for one by one managed investment accounts instead of regular uncouth finances. HNIs are in high quest by private wealth managers. The much money a person has, the much work it takes to maintain and preserve those assets. These individuals generally demand (and can justify) personalized services in investment management, estate planning, impose planning etc.INVESTMENT OPTIONS AVAILABLEThere are a large number of investment instruments available today. To make our lives easier we would bump or group them. In India, numbers of investment avenues are available for the investors. Some of them are marketable and liquidness while others are no n marketable and some of them similarly highly jeopardyy while others are almost ris k little. The mint has to choose Proper Avenue among them, depending upon his particular proposition need, venture gustation, and return expected investment avenues can broadly categories under the pursuit heads.1. Equity 2. FI Bonds 3. Corporate Debenture 4. friendship Fixed 5. Bank Fixed 6. PPF 7. lifetime Insurance 8. Post Office-NSC 9. Gold/ split up 10. Real Estate 11. Mutual gunstock 12.Hedge fund & OthersOBJECTIVESPrimary objective 1. To study the various investment avenues and the investors happen preference towards it.Secondary objectives 2. To study the dependence/independence of the demographic factors of the investor and his/her risk tolerance..3. To analyze the investment mock up (i.e the type of financial instrument they and epoch for which they prefer to invest) among the HNI investors.4. To find the problems being face by the investors and type of risk considered by t hem.5. To eff the mode of investments of the HNI respondent in various investment avenues.SCOPE OF THE STUDYThis study is focusing on the preference of Investments by HNI investors and it bequeath be helpful to signalize the better investment options in the market.Their level of assuredness about the various aspects of investment avenues available in the study demesne is considered.RATIONALE OF THE STUDYIndian economy is evolution significantly. It has various investment options. The study has been undertaken to analyze whether the investment avenues earn gained importance among the people (or) not. This analysis on individual investors mien is an attempt to know the profile of the investor and likewise know the characteristics of the investors so as to know their preference w.r.t their investment. The study likewise tries to explore the influence of demographic factors like age, income, sex on risk tolerance level of the investor.REVIEW OF LITERATUREAvinash Kumar Singh (2006)The study entitled Investment Pattern of People has been undertaken with the objective, to analyze the investment course of people in Bangalore city and Bhubaneswar analysis of the study was undertaken with the help of batch conducted .After analysis and interpretation of data it is conclude that in Bangalore investors are more conscious(predicate) about various investment avenues & the risk associated with that. All the age groups give more important to invest in loveliness & except people those who are in a higher place 50 give important to insurance, quick-frozen deposits and tax saving benefits. Generally those investors who are invested in equity, are personally meet the stock market frequently i.e. in daily basis. But those who are invested in joint funds are scout stock market weekly or fortnightly. In Bangalore, investors are more conscious about various investment avenues and the risk associated with that. But in Bhubaneswar, investors are more conservative in nature and they prefer to invest in those avenues where risk is less like bank deposits, small savings, localize office savings etc.Sudalaimuthu and senthil kumar (2008)Mutual fund is the one of investment avenues the researcher research in this area about investors science towards plebeian fund investments has been analyzed effectively pickings into account the investors reference towards the mutual fund sector, scheme type, purchase of mutual fund units, level of risks undertaken by investors, source of entropy about the market value of the units, investors assurance on factors influenced to invest in mutual funds, the investors satisfaction level towards various motivefactors, source of awareness of mutual fund schemes, types of plan held by the investors, awareness of risk category by investors, problems faced by mutual fund investors.Running a successful mutual fund requires complete grounds of the peculiarities of the Indian Stock Market and also the awareness of t he small investor. The study has made an attempt to regard the financial manner of mutual fund investors in connector with the scheme preference and selection. An important share in the success of a merchandising strategy is the ability to fulfill investor expectation. The proceeds of these studies by means of satisfactory on the investors perception about the mutual funds and the factors determining their investment decisions and preferences. The study will be useful to the mutual fund industry to understand the investors perception towards mutual funds investments and the study would also be informative to the investors.Sunil Gupta (2008)The investment pattern among different groups in Shimla had revealed a lightheaded as well as a complex picture. The complex picture means that the people are not aware about the different investment avenues and they did not respond positively, probably it was difficult for them to understand the different avenues. The study showed that the more investors in the city prefer to deposit their redundance in banks, post offices, frozen deposits, saving accounts and different UTI schemes, etc. The attitude of the investors towards the securities in general was bleak, though service and passkey class is going in for investment in shares, debentures and in different mutual fund schemes. As far as the investments are concerned, people put their senseless in banks, past offices and other authorities agencies. Most of the horticulturists in Shimla city who function to Apple belt though being rich have a magnetic dip of investing then surpluses in fixed deposits of banks, provident funds, Post Office savings, in truth estates, etc. for want of safety and suitability of returns.Manish Mittal and Vyas (2008)Investors have certain cognitive and randy weaknesses which come in the way of their investment decisions. Over the p ast few years, behavioral finance researchers have scientifically shown that investors do not alway s act rationally. They have behavioral biases that lead to systematic errors in the way they process information for investment decision. Many researchers have tried to classify the investors on the basis of their relative risk taking capacity and the type of investment they make. Empirical evidence also suggests that factors such(prenominal) as age, income, education and marital status affect an individuals investment decision. This paper classifies Indian investors into different personality types and explores the relationship betwixt various demographic factors and the investment personality exhibited by the investors.RESEARCH METHODOLOGYThis part excuse the methodological analysis used in this study. The methodology includes data and sources of data, sample size, area of the study and framework of analysis.The study is based on primary and subsidiary data. Primary data have been collected from 100 respondents through a structure questionnaire covering HNI investors of Indore , India. The secondary data have been collected from various books, magazine, journals, news papers and websites.The samples sizes of 100 respondents.The take technique followed in this study is opportunity sampling. Simple random techniques are used to select the respondent from the available database. In order to analyse the collected data, the undermentioned tools were used.Simple dower analysis it states the frequency and percentage of the customers profile, attitude and opinion regarding peoples.