Investment Options and Preferences of Small Investors from Salaried Class

Abstract

Investment is the commitment of funds to one or more assets in order to gain
future benefits. Many people in Pakistan join workforce, therefore, there is a
potential for salaried employees for investment in different options. Unluckily,
this phenomenon is less investigated in Pakistani context. The objective of this
study is to investigate the impact of investment knowledge and risk perception
on investment decisions. In this study, we approached 250 salaried people
working in different organizations and 184 responses were received. Results
reveal that salaried people prefer real estate assets to invest and they perceive
investing in marketable securities as a risky option. It is also found that risk
perception and knowledge about investment are positively related to investment
decisions.