Demand for Gold in a Changing Investment Scenario – A Study in Ernakulam District

Abstract

The Household investment pattern of Kerala has been witnessing significant changes in the past two decades. Various avenues of investment are available for a person with surplus fund. Traditionally, the people of Kerala had an affinity towards gold; and their investment in gold has gradually increased over the years. Gold has emerged as the second most preferred investment after bank deposits. Gold, displays an extremely positive feature of low correlation with most of the other asset classes. Investors need to weigh the risk‐return ratios of various asset classes carefully to construct a judicious mix of investment portfolio, which meet their specific needs depending on their risk profile, expectations of returns and need for liquidity. The study attempts to assess the changing investment trend in gold with the emergence of various online and offline platforms and products. A sustainable mode of investment is the need of the hour for an industry‐starving state like Kerala. . This study attempts to assess the changing investment trend in gold with the emergence of various online and offline platforms and products.

Keywords

Investment, Gold, Assets, Portfolio

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