Study to Find out Young Individual Perception about Various Asset Classes

Abstract

This survey was carried out to study the perception of the young people about four asset classes viz. Equity, Gold, Debt and Real estate. These asset classes were to be evaluated based on three parameters namely Risk, Return and Liquidity. Structured questionnaire which was converted to Likert scale was used to evaluate the responses. Statistical tests such as, Independent group two sample two tailed t- test and Single- Factor ANOVA with 95% confidence level along with mean, median, mode were used to infer from the results. Contrary to popular belief that equity should be the most preferred asset class for young people, most respondents felt it will fetch lesser returns as compared to real estate but will be the most risky amongst all asset classes. Debt was perceived to be the least risky in the times to come. Gold was considered to be the most liquid. These findings were consistent for both male and female respondents. The possible reasons could be that 73% of respondents were not having their own demat account. Also lackluster performance by majority of the companies listed in Indian capital markets between 2008 to 2013 would have had its influence on the results.