Kochi: Though real estate sector has been considered as one of the safest investment options in Kerala, a recent study shows that more people in Kochi prefer gold as a better and safer investment option. In the last three years, 70 per cent of Kochi residents opted for gold against nine per cent who chose real estate.
According to a study by the city-based think-tank Centre for Public Policy Research (CPPR) on ‘Gold and consumer behaviour – A comparative study of Kochi and Delhi,’ only 38 per cent of Delhiites chose gold as a major investment option. As per the study, most people prefer to invest in gold due to their reluctance to take risk.
The objective of the study was to understand the investment patterns of gold to know consumers’ behaviour towards the yellow metal and also to identify how the fluctuations in the gold market affect consumers.
Responding to the survey, city residents remarked that they prefer gold because of its stable nature and high returns. The study was conducted among diversified groups such as trade and commerce, especially from spice, jewellery and shipping trade, and also IT professionals.
In Delhi, 20 per cent preferred Public Provident Fund (PPF). They consider PPF useful for post-retirement life and also remarked that it gives safer and better returns with high interest rate. Stocks, government and oil bonds, post- office savings and insurance are the other major investment preferences in Delhi.
While 80 per cent of consumers in Delhi go for a planned gold purchase, only 65 per cent of Kochiites plan it in advance which shows that Kochi consumers are more impulsive.
