PERSONAL FINANCE CHOICES: A COMPARATIVE STUDY OF SAVING AND INVESTMENT OPTIONS

Authors:

Rosshanna Angeline J,

Research Scholar, CMS Business School,

Jain (Deemed-to-be University), Bengaluru Karnataka, India.

Dr Tejaswini S,

Assistant Professor, Faculty of Management Studies,

CMS Business School, Jain (Deemed-to-be University),

Bengaluru, Karnataka, India.

ABSTRACT

In today’s fast-changing financial environment, individuals are faced with a wide range of choices when it comes to managing their money. From traditional saving options like fixed deposits and gold to modern financial instruments such as mutual funds and equities, selecting the right investment has become both important and challenging. This study focuses on comparing these investment avenues based on three key factors: risk, return, and liquidity, while also understanding how people actually make financial decisions.

The research is based on both primary and secondary data. A structured questionnaire was used to collect responses from 150 retail investors, and statistical tools like percentage analysis, chi-square tests, correlation, and ANOVA were applied to interpret the data. The findings show that most investors prefer a combination of both traditional and market-based investments, indicating a balanced approach toward safety and growth. While financial market instruments are generally seen as offering higher returns, traditional options continue to be widely preferred due to their perceived security and reliability.

The study also highlights that factors such as financial literacy, income level, and liquidity needs play a significant role in shaping investment choices. Even though many investors are aware of better return opportunities, risk perception and lack of complete knowledge often influence them to make more conservative decisions. Overall, the research provides valuable insights into how individuals balance risk, return, and accessibility while making financial choices, and emphasizes the importance of improving financial awareness for better investment decisions.

KEYWORDS:

Personal Finance, Investment Behavior, Risk-Return Trade-off, Liquidity, Financial Literacy, Retail Investors, Traditional Savings, Financial Markets