This paper is published in Volume-10, Issue-6, 2024
Area
Finance
Author
Sanaa Mashruwala
Org/Univ
H.R. College of Commerce and Economics, Mumbai, India
Keywords
Traditional Investment, Alternative Investment, Financial Markets
Citations
IEEE
Sanaa Mashruwala. To Understand the Consumer Preference between Traditional Investment vs. Alternative Investment, International Journal of Advance Research, Ideas and Innovations in Technology, www.IJARIIT.com.
APA
Sanaa Mashruwala (2024). To Understand the Consumer Preference between Traditional Investment vs. Alternative Investment. International Journal of Advance Research, Ideas and Innovations in Technology, 10(6) www.IJARIIT.com.
MLA
Sanaa Mashruwala. "To Understand the Consumer Preference between Traditional Investment vs. Alternative Investment." International Journal of Advance Research, Ideas and Innovations in Technology 10.6 (2024). www.IJARIIT.com.
Sanaa Mashruwala. To Understand the Consumer Preference between Traditional Investment vs. Alternative Investment, International Journal of Advance Research, Ideas and Innovations in Technology, www.IJARIIT.com.
APA
Sanaa Mashruwala (2024). To Understand the Consumer Preference between Traditional Investment vs. Alternative Investment. International Journal of Advance Research, Ideas and Innovations in Technology, 10(6) www.IJARIIT.com.
MLA
Sanaa Mashruwala. "To Understand the Consumer Preference between Traditional Investment vs. Alternative Investment." International Journal of Advance Research, Ideas and Innovations in Technology 10.6 (2024). www.IJARIIT.com.
Abstract
The COVID-19 pandemic has significantly impacted traditional and alternative investments, with traditional investments experiencing the most impact. Liquidity, stability, diversification, regulation, and reduced costs are some benefits of traditional investments. However, they have drawbacks, such as passive investing, market volatility, and low returns. Commodities, real estate, hedge funds, and private stocks are examples of alternative investments that provide flexibility and capital growth possibilities. Alternative investments are riskier since they frequently produce better returns and have more intricate structures, even with higher fees and costs. A study surveyed 61 individuals aged 0 to 65+, with the largest age group being 18-25. The majority of respondents had invested in Traditional Investments, with 78.7% investing to increase income and capital appreciation. The most important factor for investment decisions was return, with 34 people valuing the safety of principal, 22 diversifying, and 1 seeking an adrenaline rush. The primary investment goals were growth of capital, income generation, capital preservation, and adrenaline rush. The majority of respondents invested in stocks, bonds, mutual funds, real estate, and fixed deposits, with a preference for traditional investments for 1- to 4-year periods. 63.9% of investors felt return was the most important factor for their investment decision.