Investment Pattern and Behaviour of Rural Households on Investment Avenues with Special Reference to Ernakulam District

Abstract

Two-thirds (67.63% of the total population) of the people in rural India live there and contribute one-third of the country's GDP1. One of the most significant areas that increases gross domestic savings is the household sector. The main objective of the study is to understand rural household savings and investment behaviour that is influenced by a number of factors including years of age, schooling, financial status, and occupation. According to the study, the majority of respondents have lower earning potential, and even those who did earn more only set aside a little fraction of their income for savings. In India, there are numerous investment opportunities and there are advantages and disadvantages to any investment strategy. Making the best investment decisions will meet the various demands of different people requires having a thorough understanding of these investing options. This paper projects various investment options and the level of household awareness in rural areas areas. The study utilized a meticulously designed questionnaire to explore the investment preferences and awareness levels of rural investors. The primary aim was to gain insights into their preferred investment avenues and their level of understanding regarding various investment options. For data analysis, simple percentages were employed to summarize the findings, and the chi-square test was used to assess relationships between categorical variables. 300 rural households selected as sample size from Ernakulam District through convenience sampling method.