Influence of Various Aspects on the Choice of Investment Instruments by the Households

Households are that sector of the economy, which is always the net saver. In India, the savings of the household sector form the base for the economic activities,which are undertaken by the other sectors of the economy. The household investors are uncertain while deciding whether they should invest in safe instruments and settle for lesser returns or try to invest in risky securities to earn increased return. The present study is an attempt to identify the aspects, which influence the choice of the instruments. It was found that the area and occupation has a major influence of the choice of the investment option, followed by district and education. Age and residence type significantly influenced only the decisions of investing in Bank Instruments, Provident fund and Bullion. Family type had the least influence on the choice of investment instrument. The advice of agent had a major influence in the choice of investment instrument followed by safety and advice of family and friends. The least influential aspect was returns that the investment options generate