Investment Behaviour of Retail Investors in Paper Gold

Abstract

This study examines what drives people, especially regular retail investors, to make certain investment decisions, specifically when it comes to paper gold. It focuses on how factors like age, income, and exposure to advertising influence those choices. To explore this, the researchers gathered data from investors and tested three key ideas using Pearson’s correlation and Chi-Square analysis. The results showed some clear patterns. For example, older investors are slightly more likely to invest their money to meet essential financial needs, suggesting that they prioritise stability and security. Income level also plays a role—those with higher earnings tend to invest more in long-term financial products like insurance or retirement plans. Advertising has a strong influence too. People who regularly view investment-related advertisements are more likely to invest, indicating that marketing efforts can have a real impact on financial behaviour. Overall, the findings show that both personal background and exposure to promotions shape how people choose to invest in mutual funds. These insights could be especially useful for financial advisors, marketers, and policymakers looking to better understand what motivates investors and how to help them make informed decisions. Future research could explore regional differences in paper gold investment across India and long-term behavioral shifts post-pandemic, while comparing it with other assets like stocks or real estate. This paper focuses investors in Tamil Nadus state only and cornered Paper Gold only.