A REVIEW OF COMMERCIAL FINANCIAL INSTITUTIONS' PRIORITIES FOR SEVERAL INVESTMENT OPPORTUNITIES

Investment contributes to a country's economic prosperity. Many people in India come from middle-class households and invest their money in a variety of investment options. These options are picked based on their requirements and preferences. The goal of this study is to assess retail investors' preferences on various investment possibilities as well as to explore the selection criteria used by retail investors, as well as to analyse risk and return perceptions and formulate ideas for establishing new channels. In this study, data was obtained by a structured questionnaire, with 240 responses received. According to the report, many investors invest for a consistent return, while others prefer hazardous investment options for wealth appreciation


Introduction:
Investors are people who make investments in order to earn profits.They choose among different types of investments, depending upon their needs and goals.Investments are made in stocks, bonds, mutual funds, commodities, property, and other things.In general, investors seek to achieve two objectives -one is to earn a profit, and the second is to reduce risks.Risk is the possibility of losing money.Investors take risks in order to earn higher returns.For example, if an investor buys shares in a company, she may lose her entire investment if the company goes bankrupt.On the other hand, if she invests in government bonds, she will not lose her entire investment if interest rates rise.
INVESTOR PREFERENCES: Investor preferences refer to the type of investments preferred by investors.These include equity, debt, real estate, and others.Equity refers to ownership interests in businesses.Debt refers to loans taken out against future earnings.Real estate refers to properties owned by individuals or corporations.Other investments include precious metals, art, collectibles, and private placements.INVESTOR MOTIVES: Investor motives are the reasons why investors decide to invest in certain securities.Motives are classified into three categories: economic, psychological, and social.Economic motives include the desire to increase wealth, avoid losses, and gain control over

FACTOR OF RETURN:
True investors are those who always try to find a balance between risk and return.How do investors evaluate the return on securities?What return is expected on average.It is the expected value of the return, which is the sum of each possible return multiplied by the probability of its occurrence.

LIQUIDITY RISK:
A security must have the attribute of liquidity to be attractive as an investment to ordinary investors.
Liquidity means easy exchangeability without loss.The liquidity of an investment is measured by the speed and ease with which the investment can be converted into cash whenever the investor wishes.
Liquid investments give the investor a sense of security because they allow them to change their minds and correct their mistakes.

RISK FACTOR:
The words risk and uncertainty are used interchangeably.But technically their meanings are different.
Risk indicates that the decision maker knows the possible consequences of the decision and their probability at the time the decision is made.On the other hand, it is undoubtedly a situation where the probability of possible outcomes is unknown.Based on the degree of risk perception, investors can be divided into risk takers, risk averse and risk neutral.

INVESTMENT HORIZON:
A speculation skyline is the all-out time span a financial backer hopes to hold a security or portfolio.
The venture skyline is utilized to decide a financial backer's pay needs and wanted risk openness, which is then used to aid security determination.

TAX EXPOSURE:
Investors in higher tax brackets prefer investments where the return is tax-free.Others will not have such preferences.

TRENDS:
Before you start planning your finances, you need to understand how different asset classes have performed in the past.

INVESTMENT NEEDS:
How much money do you need at maturity?The purpose of the investment also affects the investment and the investment decision of the investor.Some people invest their funds in ways where they can get tax benefits.

INVESTMENT AVENUES IN INDIA:
Saving implies not consuming your entire current income.Choosing which assets to retain, on the other hand, is what investing entails.We can choose to invest in safe assets, hazardous assets, or a mix of the two.In popular parlance, however, the phrase saves frequently refers to investing in a secure asset, such as an insured bank account.It's easy to mix up saving with wise investment.The portfolio of an investor is essentially his collection of investing assets.Once upon a time, a portfolio was just a collection of investment assets.Once upon a time, a portfolio was just a collection of investment assets.A portfolio is updated or rebalanced after it has been formed by selling current assets and using the profits to acquire new securities, as well as investing more cash to raise the total size of the portfolio.
Investment is the giving up of some present worth in exchange for an unknown future payoff.It entails making several decisions on the kind, mix, amount, timing, and degree of investment and disinvestment.Furthermore, such decision-making must be both continuous and reasonable.A choice to invest is a trade-off between risk and reward.All investing decisions are made in the heat of the moment, with personal investment goals in mind and an uncertain future in mind.Because investments in securities are revocable, investment aims are ephemeral, and the investing environment is variable, the foundation for reasonable expectations grows increasingly hazy as the future approaches.Uncertainty investors, as a result, examine and reassess their numerous investment commitments on a regular basis, taking into account new knowledge, altered expectations, and ends.

 Savings Account
 Bank Fixed Deposits

PROBLEM STATEMENT:
This project attempts to know the preferences and analyse the importance of demographic factors that influence the investor's decision to invest.This study attempts to find our significance of population demographic factors such as gender, age, education, occupation, income, savings and family size in several elements of investment decision making such as priorities based on characteristics of investment period of investment, reach of information source., investment frequency and analytical skills.
Hypotheses were developed considering their relevance to the research objectives.Investment decisionmaking behaviour in a risky situation was taken as a dependent variable.Demographic factors (age and gender) are considered as independent variables.Risk perception considered as a mediator.Individuals' risk preferences are taken as an intervening variable between demographic factors and risk perception.
The data were classified; tabulated and tested statistical conclusions were drawn using hypothesis, Pearson's Chi-squared technique and Garrett's classification test for evaluating investment options.

NEED FOR THE STUDY
The growth of any economy is dependent on healthy savings and the right allocation of money for a country's development efforts.Savings will be helped by a decrease in disposable income or an increase in per capita income.Investors' investment strategies and perspectives vary according to their preferences.Investment selections are heavily influenced by liquidity and security; tax breaks and other aspects are also taken into account.Aside from the aforementioned variables, demographic factors also impact investment decisions.This article explores the elements that impact people's investing decisions.

OBJECTIVES OF THE STUDY:
The purpose of the analysis is to determine the investment behavior of investors and investment preferences.

 To evaluate retail investors' risk and return views in Western Maharashtra
 To recognise the needs and suggest the guidelines for developing new investment avenues.
 To explore the selection criteria adopted by retail investors through demographic profiles  To study retail investors' preferences for different investment alternatives.

SCOPE OF THE STUDY:
The current look at is a first step closer to achieving this goal, and it aims to decide, in addition to the person's opinion of the characteristics of various saving instruments, their level of cognizance and attitude towards making an investment in one of a kind monetary instrument.Additionally, an effort was made to signify to the authorities a green mechanism for the entire delight of man or woman in savings in the financial tool, in addition to for the more powerful implementation of those schemes.The study is based

Area of Study
The present look at is restrained to the investors of the Western Maharashtra Region (i.e., Pune, Solapur, Mumbai and Kolhapur Districts).

Research and Sample Design
This study follows descriptive research method.By adopting convenient sampling, 240 responses were collected.

Garrett's Ranking Technique
Garrett's ranking approach turned into used to rank the desire indicated by the respondents on different factors.As per this approach, respondents had been requested to assign the rank for all factors and the effects of such ranking were transformed into rating cost with the assist of the subsequent formula.

Rij = Rank given for the ith variable by its ith respondents Nj = Number of variable ranked by jth respondents
With the assist of Garrett's Table, the percentage function predicted is converted into ratings.Then for each issue, the scores of every person are introduced after which overall fee of ratings and mean values of rating is calculated.The elements having maximum mean value is considered to be the With the assist of Garrett's Table, the percentage function predicted is converted into ratings.Then for each issue, the scores of every person are introduced after which overall fee of ratings and mean values of rating is calculated.The elements having maximum mean value is considered to be the maximum critical thing.

Confirmatory Factor Analysis
Confirmatory issue evaluation is a multivariate statistical procedure that is used to check how properly the measured variables represent the variety of constructs.Confirmatory element analysis (CFA) and exploratory factor analysis (EFA) are comparable strategies, but in exploratory factor evaluation, facts are truly explored and given records about the range of things required to symbolize the facts.In exploratory element analysis, all measured variables are related to every latent variable.But in confirmatory issue evaluation (CFA), researchers can specify the range of factors required inside the information which measured variable is associated with which latent variable.Confirmatory element evaluation is a tool that is used to verify or reject the dimension theory.

Chi-Square Test
Pearson's Chi-square exams, often mentioned without a doubt as Chi-rectangular checks, are many of the most common nonparametric exams.Nonparametric checks are used for facts that don't observe the assumptions of parametric assessments, especially the belief of a ordinary distribution.
If you want to check a speculation approximately the distribution of a categorial variable, you'll want to use a chi-rectangular check or any other nonparametric take a look at.Categorical variables may be nominal or ordinal and represent groupings including species or nationalities.Because they could best have some unique values, they couldn't have a regular distribution

Limitations of the study:
• The scope of the investigation was restricted to retail traders only.
• The statistics gathered for the study are primarily focused on rural areas of Western Maharashtra.
• Data was collected for the analysis from 01/02/2016 to 05/05/2017, implying that retail buyer preferences may change over time.
Despite of these limitations the current study makes a first attempt towards examining the retail

Interpretation:
The above table and chart show that majority of investors think forex market is the most riskiest investment option (57%) followed by commodity market (32.5%)

Interpretation:
The above data suggests that out of 240 samples, ninety seven are desired low hazard, ninety eight are desired moderate danger, and 45 are desired excessive threat.We can also look at the age range of 46 to 60, with 61 and up being preferred for low and slight risk.Pearson's Chi-square significance price is .Half, which is much less than the crucial fee, then we receive the alternative hypothesis.Hence, it's been proved that there is an association between age and chance tolerance stage.

Hypothesis Testing
Ho: There is no association between wealth and risk tolerance level H1: There is an association between wealth and risk tolerance Table showing the Least Risky Investments The extraction of age is .785and the extraction of marital status is .775,residenceextraction is .591,domicileextraction is .693andwealth extraction is .330. which indicates the level of impact.Age element loading is .886whichindicates excessive impact on variables.Marital reputation element loading is .850whichindicates excessive impact on variables, residence issue loading is .829showsexcessive effect on variables and domicile thing load is .718 it suggests high impact on the variable.Wealth aspect load is less than .5 which suggests slight or low effect on variables.
The 1 st component's percentage of variance is 42.144, 2 nd components of variance is 21.321, the 3 rd component of variance is 16.466, 4 th component of variance is 12.788, 5 th component percentage of variance is 7.28.The component loading of greater than .70can have a excessive impact on the Turkish Journal of Computer and Mathematics Education Vol.09 No.03 (2018),886-900 895 Research Article variables.a. 1 cells (8.3%) have expected count less than 5.The minimum expected count is 4.13.