Equity Linked Savings Scheme: A Study onthe Effect of Demographic Factors ofGender andAge onInvestment Decisionswith Special Reference toKottayam District.

Abstract

An average Indian investor is risk averse and not willing to think beyond the traditional investments avenues such as fixed deposits, property, gold etc. Thefinancial markets in the country has grown by leaps and bounds in the last few yearsand has witnessed the introduction of a large number of innovative investment options with varied risk and return profilesto suit the requirement of different classes of investors. Prominent among them is the Equity Linked Savings Schemethat offers to the investor among other things tax savings under Section 80C of the Income Tax Act. Despite the numerous advantages and benefits of investing in ELSS, the volume of investment seems low. This study was carried out to find out investor perception towards ELSS and whether investment in ELSS was influenced by demographic factors such as gender and age. The study concluded that males are more open to investing in ELSS than females and youngsters invest more in ELSS than elders. .The study has also come up with a conclusion regarding the reason forthe above which are as follows: Majority of the females were found to be risk averse while the males were risk lovers and youngsters were more aware of the benefits of ELSS than elders.