Author(s)
Dr Joseph James V
- ISSN (P): 3139-8464
- Manuscript ID: 141276
- Volume: 2
- Issue: 11
- Pages: 84–98
Subject Area: Commerce and Management, MBA
Abstract
Indian household investments are nowadays increasingly complex with a wider array of investment avenues. These range from traditional options like fixed deposits and gold, the interest of household investors is now greatly extended to modern instruments such as mutual funds, ETFs, equities, and digital assets. The availability of modern investment avenues usually presents complications for the average household investor—often operating with limited and lower levels of funds for investment, financial literacy, risk tolerance and infrastructure for investment practice—in navigating this spectrum of opportunities in a rational manner leading to proper investment management.
Another major gap in the investment decision-making process is the absence of a systematic benchmarking mechanism that caters specifically to the needs and profiles of household investors. The difficulties are usually with respect to assessment of performance, risk, and suitability. Household investors in India often make decisions based on fragmented advice, cultural biases, or historical trends rather than empirical evidence or comparative evaluation. Decisions based on rational judgements with the support of quantitative and also processed qualitative information are usually found inaccessible to household investors who remain usually naive. Therefore, suggesting a systematic and empirically supported guideline of analysis and evaluation of investment avenues is expected to reduce complexities and impediments of investments.
This research aims to address these gaps by developing a household investor-centred benchmarking framework that evaluates pertinent investment pathways available in the Indian financial ecosystem