1Faculty, Dos in Business Administration (BIMS), Manasa Gangothri, University of Mysore, Mysuru, Karnataka, India
2Professor, Maharani’s Women’s Commerce and Management College, Valmiki Road, Mysuru, Karnataka, India
Online Published on 28 April, 2025.
The main objective of this paper is to understand the demographic and socio-economic prole of the millennials in select cities of Karnataka. Further, to identify and analyze the factors affecting the savings and investment decisions of the millennials in select cities of Karnataka and also to study the impact of factors affecting the preference of investment avenues of the millennials in select cities of Karnataka.
The present study is exploratory in nature. The study is based on primary data. A survey was conducted for the study among the millennials in select cities, namely, Mysuru, Bengaluru, Mangaluru, Hubli- Dharwad from Karnataka state. 400 respondents were selected by using stratid random sampling technique. Various statistical tools and techniques have been applied in the study such as ANOVA, contingency coefficient, P value, Pearson correlation, factor analysis, chi-square, and Structural Equation Model (SEM) hypotheses set for the study are tested. SPSS version 20 and Stata 12 were used for data analysis to draw meaningful conclusion.
The study found that the millennials of selected cities prefer to invest in Bank Deposits, Gold, Insurance policies, provident fund, equity shares and mutual funds. They are less interested to invest in real estate, bonds and debentures and derivatives instruments (Futures, options etc.) due to lack of awareness. It was also found that majority of the respondents considered return, safety and security factors while making investment decisions. Further, all macro-economic factors jointly influenced investment decisions and the majority of the respondents considered ination and global uctuation as major macro-economic factors which influenced their decisions on investment.
The value of this study is the analysing the factors affecting the savings and investment decisions by millennials and also study the impact of factors affecting their preference of investment avenues. A Structural Equation Model was built from primary data.Beta coefficient between Investment Attributes and selected investment avenues has been established. It showed the investors’ preferences over the various investment avenues with respect to investment attributes.Investors can reduce their risk by diversiation of their investments over the volatility in the capital market as it was found that majority of the respondents considered return, safety and security factors while making investment decisions and also this model identid the ination and global uctuation as major macro-economic factors which influenced their decisions on investment.
Gross Domestic Savings, Awareness, Financial Decision, Millennials, Savings and Investment
