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Comparative Studies | Business and Finance | India | Volume 14 Issue 2, February 2025 | Popularity: 5.2 / 10
Investment Preferences among Emerging Adults: A Comparative Analysis of Fixed Deposits, SIPS, and Stocks Using Anova
S. Thasneem Banu, Dronadula Divya
Abstract: This research paper explores the investment preferences of emerging adults, specifically comparing fixed deposits, systematic investment plans (SIPs), and stocks. Emerging adults, typically between the ages of 18 to 24, represent a key demographic in shaping future financial behaviours. As this group begins to make critical decisions about savings and investments, understanding their preferences can provide valuable insights into the factors influencing their financial choices. The study uses qualitative data collected through surveys, targeting a diverse group of emerging adults. The open-ended survey questions aimed to uncover the motivations, beliefs, and perceptions of participants regarding the three investment options. Participants were asked to reflect on their knowledge, experiences, and the factors that most strongly influenced their investment preferences, such as risk tolerance, financial goals, and social or family influences. The qualitative nature of the data allows for a deeper understanding of how emerging adults perceive each investment vehicle and the reasoning behind their choices. Findings indicate a significant preference for fixed deposits, particularly among those with limited financial knowledge or a stronger aversion to risk. SIPs, on the other hand, are favoured by individuals who seek a balance of risk and return, especially those who are familiar with the concept of regular investment. Stocks, while appealing to some for their potential returns, were often avoided by those with less experience in the market or concerns about volatility. By taking these factors into account, financial service providers can better understand how to effectively cater to their needs.
Keywords: Investment, income, savings, financial products, Anova
Edition: Volume 14 Issue 2, February 2025
Pages: 1416 - 1421
DOI: https://www.doi.org/10.21275/SR25223193117
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