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Original Article

A Study on Investment Preference of Retail Investors in Tirupur City

Dr. S. Mohanapriya1R. Nandhini2

¹ Assistant Professor, Department of Commerce, A.V.P College of Arts and Science, Tirupur, Tamil Nadu, India. ² II-M.Com, Department of Commerce, A.V.P College of Arts and Science, Tirupur, Tamil Nadu, India.

Published Online: March-April 2026

Pages: 156-165

Abstract

Investment plays an important role in the financial planning of individuals as it helps in wealth creation, financial security, and future stability. Retail investors form a significant segment of the financial market as they invest their personal savings in various investment avenues such as bank deposits, mutual funds, shares, insurance, real estate, and gold. The investment decision of retail investors is influenced by several factors such as income level, risk perception, return expectation, safety, liquidity, and financial awareness. Understanding the investment preferences of retail investors is therefore essential for analyzing their behavior and identifying the factors that influence their investment decisions. The present study focuses on analyzing the investment preferences of retail investors in Tirupur City. The main objective of the study is to examine the demographic profile of investors, identify the most preferred investment avenues, and analyze the factors influencing their investment decisions. The study also attempts to understand the relationship between demographic variables such as age, gender, and educational qualification with the risk perception of investors. Primary data were collected through a structured questionnaire from retail investors in Tirupur City, and appropriate statistical tools such as percentage analysis, ranking method, and chi-square test were used for analyzing the data. The findings of the study reveal that most retail investors prefer safe and low-risk investment options and generally invest a moderate portion of their income for medium-term financial goals. The study also indicates that factors such as safety of investment, stable returns, and liquidity play a significant role in shaping the investment preferences of retail investors. The research provides useful insights into the investment behavior of retail investors and offers suggestions that may help investors make more informed financial decisions and encourage better investment planning in the future.

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