The development of an economy is largely influenced by the competitiveness of the financial markets. In other words, financial markets have become one of the very important barometers to measure the growth of an economy. The financial markets in India have undergone a seesaw change in the past two decades. The markets are flooded with innovative financial instruments like never before. Gone are the days where an Indian investor invested in traditional investment avenues like gold, real estate, fixed deposits. Today’s investor is very well informed and has a variety of investment choice. Mutual funds, equities, derivatives are the options the investors are looking at. There seems to be a shift in the preferences of the investors from the traditional avenues to the innovative ones. This research paper attempts to study the investment preferences of teachers working in junior colleges in the city of Mumbai. Selected financial products are taken for the purpose of the study.