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Professionals in state prefer real estate for investment: ASSOCHAM

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BS Reporter Mumbai/ Ahmedabad
Last Updated : Jan 20 2013 | 9:33 PM IST

Unlike young professionals in other states who prefer a blend of investment portfolios, their counterparts in Gujarat prefer to park their hard earned funds in the real estate sector, stated a survey by the Associated Chamber of Commerce and Industry of India (ASSOCHAM).

The random survey conducted by ASSOCHAM under the aegis of ASSOCHAM Social Development Foundation (ASDF) on 'Current investment trends amongst young professionals' covered over 7,000 young professionals in non-metro cities like Ahmedabad, Jaipur, Lucknow, Surat, Patna, Ranchi, and Bhopal. Figures in Gujarat were in complete contrast of those in rest of cities as majority of respondents in other cities approved of investing in real estate, considering realty has huge prospects in sectors like commercial, housing, hospitality, retail, manufacturing and healthcare.

Professionals in other states prefer a a blend of investment including bullion, stock/equity market, realty sector, life insurance and safe securities.

"Investment options like bullion, stocks, mutual funds, and realty sector find favour amongst young professionals in Gujarat. Besides, young investors today are also focusing on having a diversified investment portfolio involving a mixture of investment avenues that help minimise risk and maximise returns," said DS Rawat, secretary general, ASSOCHAM while releasing the findings of the survey.

Respondents in the survey included the likes of directors, officers, executives, teachers, professionals employed in Public Sector Undertakings (PSUs), multi-national corporations (MNCs) including self-employed lawyers, doctors, and financial experts.

Around 35 per cent of respondents together in Ahmedabad and Surat said that they prefer to invest their excess money in stocks/equity market as a source of extra income which provides high returns as against gold which preserves the capital but does nothing to grow it, besides, storage and safekeeping against theft and transporting it is risky.Of the remaining, 30 per cent said that they prefer to invest in bullion (gold and silver), considering that as an asset class it has much lesser volatility as compared to other options.

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First Published: May 13 2011 | 12:47 AM IST

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