Changes In Financial Systems In India

CHANGES IN FINANCIAL SYSTEMS IN INDIA: A STUDY OF CHANGES IN INVESTMENT PATTERN OF DOCTORS IN SOUTH INDIA

INTRODUCTION

The financial system in India is in a process of rapid transformation, particularly after the introduction of reforms in the financial sector and the development of technology. An efficient, competitive and diversified financial system is very essential to raise the allocative efficiency of available savings, increase the return on investment and thus to promote the accelerated growth of the economy as a whole. As a result we have recently seen phenomenal changes in the money market, securities market, capital market, debt market and the foreign exchange market. At present, numerous new financial intermediaries have started functioning with a view to extending multifarious services to the investing public in the area of financial services. The emergence of various financial institutions and regulatory bodies has transformed the financial services sector from being a conservative industry to a very dynamic one. The communication technology has become so advanced that even world’s issuers can be linked with the investors in the global financial market without any difficulty by means of offering so many options and opportunities. With a growing awareness amongst the investing public, there has been a distinct shift from investing the savings in physical assets like gold, silver, land etc., to financial assets like shares, debentures, mutual funds etc. Within the financial assets they go from ‘risk free’ bank deposits to risky investments in shares, mutual funds etc., with the intention of more return. Thus, there has been remarkable change in the expectation and attitude of investors.

In the light of these facts prevailing in the present scenario, it is proposed to undertake a detailed study of the attitude, attitude changes and experience of small investor group about the available options of investment and the type of investment which might give them the maximum return. OBJECTIVE The present study includes the analysis of attitude changes of investors and changes in investment pattern as well as level of achievement of expectations of small investors. For conducting the study, a sample group of investors among the professional of medical sciences is selected. To present a broad spectrum of analyses the main group is divided into subgroups comprising of doctors in metropolitan cities, urban areas, semi urban area and rural areas of South India. METHODOLOGY Primary data collection will be done through questionnaire and personal interview of the investors Secondary data collection will be from the statistics available with financial institutions and other agencies and articles, Journals and books in the related field. USER GROUP The present study might help in selecting the best of the available options of investments for small investor group. As the study will throw some light on the interests of small scale investors, the financial service organizations are also benefited as they can plan their future products according to the taste of the investor.