Investment Avenues and Sustainability: Awareness and Financial Behaviour

Abstract

Environmental components have taken the center stage in the form of sustainable investment on a global level since the 1960s. Sustainable investment encompasses three main areas of focus, also called ESG - Environment, Social and Governance. It has given birth to socially responsible sustainable investment avenues like stocks of environmentally friendly companies, green bonds, Exchange-Traded Funds (ETFs), sustainable mutual funds, green real estate and infrastructure projects, and impact investing in community development or social enterprises. The present study is an attempt to understand the awareness and preference of individuals on various investment avenues, to analyze their financial investment behavior based on demographic factors like age and gender and analyze the awareness and perception of individuals on sustainable investing and its avenues. The data required for the study was collected from primary sources using a structured questionnaire with 116 responses collected through convenience sampling techniques. ANOVA, Correlation and heatmap was used to test the association and degree of relation between age and gender with awareness and preference. Mean, Standard Deviation and Weighted average of means was used to analyze the perception on sustainable investments. The findings illustrate the complex interplay between age, gender, and investment behaviour. There is a positive perception on sustainable investments providing better financial returns than traditional investments and also a positive impact on society through sustainable investments. CZU: 330.322.5:316.346; JEL: G10, G11, G24, G38