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The document discusses the behavior of individual investors in the Indian stock market. It notes that investors come from different income levels and occupations, including more women now investing. Behavioral finance research helps explain why investors do not always make rational decisions as assumed by traditional theories. The study aims to understand the factors influencing individual investors' decisions. It also outlines various investment avenues available in India, grouping them as safe/low risk, moderate risk, high risk, traditional, and emerging options.
The document discusses the behavior of individual investors in the Indian stock market. It notes that investors come from different income levels and occupations, including more women now investing. Behavioral finance research helps explain why investors do not always make rational decisions as assumed by traditional theories. The study aims to understand the factors influencing individual investors' decisions. It also outlines various investment avenues available in India, grouping them as safe/low risk, moderate risk, high risk, traditional, and emerging options.
The document discusses the behavior of individual investors in the Indian stock market. It notes that investors come from different income levels and occupations, including more women now investing. Behavioral finance research helps explain why investors do not always make rational decisions as assumed by traditional theories. The study aims to understand the factors influencing individual investors' decisions. It also outlines various investment avenues available in India, grouping them as safe/low risk, moderate risk, high risk, traditional, and emerging options.
Behaviour of an individual investor in stock market in India have created
impressive signs , as they belong to different occupations an income levels i.e. from upper class to middle class income group. Nowadays even women are interested in stock markets. Some of them have knowledge of stocks. Most financial theories are based on the idea that everyone takes careful account of all the available information before making investment decisions. But there is much evidence that this is not the case. Behavioural finance, a study of the markets that draws on psychology, is throwing light on why they do not buy stocks at all. This research on investors behaviour helps to explain the various market anomalies that challenge standard theory. It is emerging from the academic world and beginning to be used in money market. Therefore our study is to find out the behaviour of individual investor and the factors influencing their investment decision. Savings forms an important part of the economy of any nation. With the savings invested in various options available to the people, the money acts as the driver for the growth of the country. The Indian financial scene to present investors avenues. Though certainly not the best or the deepest market in the world. , it has reasonable option for an ordinary man to invest his savings. One needs to invest and earn return on their idle resources and generate a specified amount of money for a specific goal in life and make provision for uncertain future one of the important reasons why one need s to invest wisely is to meet the cost of inflation. Inflation is the rate at which cost of living increases. The cost of living is simply what it cost to buy the goods and services you need to live. inflation cause need to lose value because it will not buy the same amount of goods or service in future as it does now or did in past . The sooner one starts investing is the better. By early investments you allow them more time to grow, whereby the concept of compounding increases your income, by accumulating the principle and the interest or dividend earned on it year by year.
Three golden rules for investors: Invest early Invest regularly Invest for long term and not for short term.
Various investment avenues available in India:
Safe/low risk avenues: Savings account Bank fixed deposits Public provident fund National savings certificate Post office savings Government securities
Moderate risk avenues: Mutual funds Life insurance Debentures Bonds
High risk avenues: Equity share market Commodity market FOREX market
Traditional avenues: Real estate (property) Gold/silver Chit fund
Emerging avenues: Virtual real estate Hedge funds and private equity investment Art and passion