An Empirical Analysis of Investor Behavior and Influencing Factors in Investment Preferences: A Study in Hyderabad City

Abstract

Investment options have evolved significantly, offering a wide range of choices to investors with varying financial goals. In a developing economy like India, where a large segment of the population depends on salaried income, understanding the factors that drive investment behavior is essential. This study investigates the preferences of investors in Hyderabad City across different investment alternatives and examines the influence of factors such as gender, age, educational qualification, income level, and employment nature on their decision-making processes. The research adopts a descriptive design, utilizing both primary data from 113 respondents and secondary data from relevant literature. The findings reveal that demographic factors like gender, age, and income levels significantly influence investment choices in shares, valuable metals, and real estate, while factors like educational background and employment nature have varying degrees of impact. Additionally, economic and political factors also play a significant role in shaping investment preferences. These insights contribute to a better understanding of investor behavior, assisting financial institutions and policymakers in designing investment products that cater to the diverse needs of investors in India.