CHANGING PATTERNS OF SAVINGS AND INVESTMENTS - Study of Individuals

Investment culture among the people of a country is an essential prerequisite for capital formation and the faster growth of an economy. Investment culture refers to the attitudes, perceptions, and willingness of the individuals and institutions in placing their savings in various financial assets.It is extremely important for the policy makers and regulatory authorities to understand the investors’ perceptions, preferences and their concerns about the financial markets and specifically on the stock market. Studies have not been undertaken exclusively to study the perceptions, preferences, and behaviour of the small and household investors and the patterns in savings and investment, a very crucial area in the formulation of policies and procedures for the orderly growth and development of securities markets in any nation. . Especially in the context of decline in the participation of small and household investors in the primary market operations, withdrawal of investors from the capital market, diversion of household savings into safer investment avenues like bank deposits, real estate, and unproductive assets like gold and silver.