Awareness of investment funds:

Investment funds have emerged in the Indian market only a few years ago. The market gained momentum only after the private insurers came in with a variety of innovative market investment plans. The popularity of investment funds is lower as compared to other investment avenues. With the softening of interest rates, traditional investment products have become less popular and more investors are being attracted toward securities, fixed deposits, insurance, and Mutual Funds. Almost all the respondents across categories have taken term mutual funds, insurance and fixed deposit. This may be attributed to lower awareness level. Many respondents specifically indicated that they  have little awareness about a investment.

As far as insurance in concerned, most of the respondents were tilted in their opinions towards the Life Insurance Corporation’s policies. In life insurance business, more than 75 % of the market is acquired by the LIC. As it is a Public Sector Enterprise, people have more faith in it. But slowly, the psyche of people is changing as more and more private players are coming up with innovative and affordable plans. Last year, Bajaj Allianz had the maximum market share among the private life insurers in terms of new premiums paid.

Although LIC have also come up with its ULIP policy but people are more interested in buying ULIPs from private players because of their higher and steady returns. The Bajaj Allianz Unit Gain- Equity Gain Plan has given the highest Compounded Annual Growth Rate of return of 64.03 % since inception.

In the 18-25 age groups, people were less aggressive in their investment pattern. Awareness level for investment fund was found to be minimal in this group. People in the age group 50-Above were found to be having a greater awareness level. people in the age group 26-35 have moderate risk tolerance.

The first priority of most of the people in the age group 18-25 and 26-35 is mutual funds and the second priority is fixed deposits and these age group people little aware about the investment funds. Corporate world need to increase the knowledge level of person by people get more aware about these investment and start investing more money in these funds.

As come to part of reason of making investment of people are much of answered future contingency which mean convert there investment in cash when they required or matching there investment to the future need time. Another term level risk tolerance of people usually said moderate level of risk or low level of risk, very less people want to take high risk because of lack of knowledge and same expect moderate return from there investment.

People put there saving in both private saving as well as public sector by private services people whereas govt. employees prefer secured investment having less risker.