A Study on Investment Behaviour and Preferences of Rural Households in Udumalpet

Abstract

Investment behaviour and preferences of rural households play a crucial role in promoting financial inclusion and economic development. This study examines the investment behaviour and preferences of rural households in Udumalpet, focusing on their awareness, attitudes, and choice of investment avenues. The research aims to identify the factors influencing investment decisions, such as income level, education, risk perception, and access to financial institutions. The data has been collected through structured questionnaire and analysed. The research methodology employed in this study includes the percentage analysis and chi-square test. The study revealed that a majority of rural households prefer traditional and low-risk investment options such as bank deposits, post office savings schemes, gold, and insurance, while participation in market-linked investments like mutual funds and shares remains limited due to lack of awareness and fear of risk. The findings also indicate that financial literacy significantly influences investment choices and long-term planning. The study concludes that improving financial awareness and accessibility to formal financial services can encourage rural households to diversify their investment portfolios.