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

Abstract investiture is the employment of blood lines on assets with the aim of earning income or jacket crown appreciation. Investment is the most important things today. People be earning much, save they do not know where, when and how to invest it. A proper sagacity of money, its care for, the for sale avenues for investing, motley pecuniary institutions, the rate of return/ take a chance etc., argon essential to successfully manage ones finance for achieving feels goal. Through this athletic field, an psychoanalysis has been made into preferred enthronement avenues among exalted net worth individuals in the city of Indore, Madhya Pradesh, India. Indore a hub for business circleThe import s loftylight that authoritative factors like education direct, aw areness somewhat the current financial system, age of investors etc make significant impact bit deciding the enthronisation avenues. The examine is based on personal interviews with superior net worth indi viduals, using a anatomical structured questionnaire. Actually, the present moot identifies the preferred investment avenues among the individual investors using self assessment test. The engage is based on primary sources of data which are collected by distribution of a close ended questionnaire. The data will be analyzed using percentage and chi-square test with the help of statistical software. on that point are large numbers of investment opportunities purchasable today. In this take apart it will be examined how the HNI investors managing their investments.INTRODUCTIONThe developing countries like India face the enormous projection of pick uping sufficient capital in their development efforts. Most of these countries find it difficult to get out of the vicious circle of poverty of gloomy income, low miserliness, low investment, low employment etc. With naughty capital output ratio, India needs very extravagantly rates of investments to make a leap forward in her eff orts of attaining high levels of growth. Since the beginning of inventionning, the emphasis was on investment as the primary instrumental roles of economic growth and increase in national income. In order to engage production as per target, investment was considered the crucialdeterminant and capital formation had to be supported by appropriate volume of saving.HNI INVESTORSThe respondents of this study consist only the tribe, those who are healthy-off business class although precise classification of his wealth cannot be commented upon. It is ascertained that the business class having ample wealth invest differently considering high risk high return basis other than salaried class investors who are believed to invest in safe investment withDefinition of High take in Worth Individual A classification used by the financial services industry to denote an individual or a family with high net worth. Although there is no precise definition of how rich soul must be to fit into thi s category, high net worth is slackly quoted in terms of liquid assets over a certain figure. The charter amount differs by financial institution and region. The categorization is relevant because high net worth individuals popularly qualify for separately managed investment grudges or else of regular mutual bloodlines. HNIs are in high demand by private wealth managers. The much money a person has, the more work it takes to maintain and preserve those assets. These individuals generally demand (and can justify) personalise services in investment management, estate planning, tax planning etc.INVESTMENT OPTIONS AVAILABLEThere are a large number of investment instruments available today. To make our lives easier we would carve up or group them. In India, numbers of investment avenues are available for the investors. Some of them are merchantable and liquid while others are non marketable and some of them also highly risky while others are nigh ris k little. The concours e has to choose Proper Avenue among them, depending upon his specific need, risk preference, and return expected Investment avenues can broadly categories under the hobby heads.1. Equity 2. FI Bonds 3. Corporate Debenture 4. Company touch on 5. Bank Fixed 6. PPF 7. Life Insurance 8. Post positioning-NSC 9. Gold/Sliver 10. Real country 11. Mutual Fund 12.Hedge fund & OthersOBJECTIVES capital objective 1. To study the motley investment avenues and the investors risk 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 pattern (i.e the persona of financial instrument they and duration for which they prefer to invest) among the HNI investors.4. To find the problems being faced by the investors and type of risk considered by them.5. To know the mode of investments of the HNI respondent in unhomogeneous investment avenues.SCOPE OF THE STUDYThis study is focusing on the preference of Investments by HNI investors and it will be helpful to identify the better investment options in the market.Their level of awareness intimately the variant aspects of investment avenues available in the study area is considered.RATIONALE OF THE STUDYIndian economy is growing significantly. It has various investment options. The study has been undertaken to analyze whether the investment avenues have gained importance among the people (or) not. This analysis on individual investors behavior is an attempt to know the indite of the investor and also know the characteristics of the investors so as to know their preference w.r.t their investment. The study also tries to explore the influence of demographic factors like age, income, gender 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 pattern of people in Bangalore city and Bhubaneswar analysis of the study was undertaken with the help of survey conducted .After analysis and rendering of data it is concluded that in Bangalore investors are more aware more or less various investment avenues & the risk associated with that. All the age groups give more important to invest in equity & except people those who are above 50 give important to insurance, fixed deposits and tax saving benefits. Generally those investors who are invested in equity, are personally follow the persuade market frequently i.e. in daily basis. But those who are invested in mutual funds are watch stock market periodical or fortnightly. In Bangalore, investors are more aware most various investment avenues and the risk associated with that. But in Bhubaneswar, investors are more traditionalist in nature and they prefer to invest in those avenues where risk is less like bank deposits, low-pitched savings, behave office savings etc.Sudalaimuthu and senthil kuma r (2008)Mutual fund is the one of investment avenues the researcher research in this area about investors sensing towards mutual fund investments has been analyzed effectively fetching 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 information about the market value of the units, investors opinion on factors influenced to invest in mutual funds, the investors satisfaction level towards various motivatingfactors, 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 pinpoint understanding of the peculiarities of the Indian Stock Market and also the awareness of the small investor. The study has made an attempt to understand the financial behavior of mutual fund investors in connection with the scheme preference and sele ction. An important grammatical constituent in the success of a marketing strategy is the ability to encounter investor expectation. The result of these studies through 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 clear 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 surplus in banks, post offices, fixed deposits, saving accounts and different UTI schemes, etc. The at titude of the investors towards the securities in general was bleak, though service and professional class is going in for investment in shares, debentures and in different mutual fund schemes. As utmost as the investments are concerned, people put their surplus in banks, by offices and other government agencies. Most of the horticulturists in Shimla city who belong to apple belt though being rich have a temperament of investing then surpluses in fixed deposits of banks, provident funds, Post Office savings, real estates, etc. for want of safety and suitability of returns.Manish Mittal and Vyas (2008)Investors have certain cognitive and emotional weaknesses which come in the way of their investment decisions. everywhere the p ast few years, behavioral finance researchers have scientifically shown that investors do not always act rationally. They have behavioral biases that lead to domineering 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 as age, income, education and marital status affect an individuals investment decision. This idea classifies Indian investors into different personality types and explores the relationship between various demographic factors and the investment personality exhibited by the investors.RESEARCH METHODOLOGYThis part explain the methodology 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 secondary 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 sampling technique followe d in this study is prospect sampling. Simple random techniques are used to select the respondent from the available database. In order to analyse the collected data, the following tools were used.Simple percentage analysis it states the frequency and percentage of the customers profile, attitude and opinion regarding peoples.