An Empirical Study of Investment Pattern of Government Employees of Mumbai and Integrating Green Stocks in Investment
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Abstract
Mumbai, the capital of Maharashtra and India's financial epicenter, ranks among the world's top ten global commerce centers (Sita K, 2012). This dynamic metropolis is the heart of India's financial services and capital markets. As a major transportation hub, Mumbai's port handles a substantial portion of the nation's foreign trade. Its strategic location has cemented Mumbai's role as a vital center for regional trade and commerce. Bombay Stock Exchange (BSE), the National Stock Exchange of India (NSE), and numerous other significant financial institutions, together constitute a key hub for banking and finance in the financial capital, Mumbai, India. Additionally, the paper examined the potential for investing in green stocks, which are shares of companies committed to environmental sustainability. This aligns with the principles of socially responsible investing, a key aspect of the ESG (environmental, social, and governance) movement in Mumbai.
According to a recent SEBI survey, as of December 2021, about 27 % of Indians were financially literate. An empirical study is undertaken, focused on the Central, State and PSU Employees, in the lower cadre, who are staying in Mumbai for over a decade .The study, further examined the Investment pattern of these employees. Investments and Financial Markets are becoming very risk prone and hence the study also focused on the choices made of different financial products, which these employees invested in, and this would give us further insights regarding their financial behaviors and risk appetite.
The study identifies the preferred investment avenues among Central, State, and PSU employees. The analysis and interpretation of the empirical data suggest that government employees prioritize the safety of the principal amount and the potential for good returns when considering investments. They are financially prudent and well-informed about various investment options.