The The Influence of Demographic Factors on Investment Behavior: A study of Middle-Class Investors in Lucknow

Abstract

This study explores the investment behavior of middle-class investors in Lucknow, focusing on the impact of demographic factors—age, gender, and occupation—on the importance assigned to various investment objectives and fund allocation decisions. Using a descriptive research design, data was collected from 115 respondents through a structured questionnaire. The questionnaire captured demographic information and assessed the significance placed on different investment goals, such as high returns, child education, tax saving, and retirement planning, as well as the respondents' preferences for fund allocation across various investment options, including shares, mutual funds, fixed deposits, and real estate.

The collected data was analyzed using SPSS software, employing non-parametric tests, including the Kruskal-Wallis Test and Mann-Whitney U Test, to assess whether significant differences existed in the investment behavior based on age, gender, and occupation. The results revealed that while age, gender, and occupation did not significantly influence overall fund allocation, these factors played a crucial role in shaping the priorities of the investors. Age significantly influenced the importance placed on child education and hedging against inflation, with younger and older groups showing differing preferences. Gender played a significant role in determining priorities related to family income, child-related goals, and retirement planning, with males prioritizing retirement and females emphasizing child-related objectives. Occupation had a significant impact on the prioritization of high returns and child marriage, with business owners assigning more importance to these objectives compared to salaried and professional investors.

The findings of this research provide valuable insights into the investment preferences of middle-class investors in Lucknow, highlighting the need for financial products and services that are tailored to the specific priorities of different demographic groups. This study offers practical implications for financial advisors and institutions looking to better serve the diverse needs of middle-class investors based on their demographic profiles.