Investor Insights: Risk Perception and Attitudes Towards Precious Metals in Chennai's Commodity Market

Abstract

The investment culture of a country is a crucial for the accumulation of capital and the rapid development of its economy. Investment culture encompasses the beliefs, understandings, and readiness of individuals and institutions to allocate their savings/earnings into different financial assets, popularly referred to as securities. India offers a wide range of investment options to investors. The financial instruments include shares, derivatives, debentures, bonds, commodities, and other similar assets. Each financial product carries inherent risk. The commodities market is a crucial component of the financial market and commodity futures trading is a significant investing option. However, investors still tend to favour traditional investing options such as gold, real estate and other tangible assets. Thus, it is important to analyse the perception and preferences of investors in relation to the commodities market.