1.

REVIEW OF LITERATURE:

Rakesh H.M (2014), A Study On Individual Investors Behavior In Stock Markets Of India,
IJMSS (Vol.02, Issue-02), ISSN:2321-1784: The paper proposes to study the behavior of
individual investors in the stock markets and the factors that influence their investment decisions,
which include awareness level, investment duration etc. The research was based on the primary
data collected from the city of Mysore of 150 respondents, being stock market investors. The
research paper observes that only 10 % of the respondents intended to stay invested into the
stock market for a period of more than 5 years. In other words, the research paper observed that
people do not want to stay committed for longer period of time into the stock market despite it
giving better returns. The paper analyses that annual income and annual savings are given
importance by investors, but the level of savings are decided by their level of income. He states
that “investors are fully aware about the stock market and they feel that market movements also
affect the investment pattern of investors in the stock market.”

The paper however remains silent on its observation about the uneducated investors who are not
aware of the market conditions, with market trends and the stock price movements. It focuses on
the factors influencing savings and sources of information for decision making. The income level
of an individual, also decide the investment pattern of the investor. The investor’s income level
does determine the type of investment avenues the investor prefers.

Reena Rai (2014), Factors Affecting Investors’ Decision Making Behavior In The Stock
Market: An Analytical Review, Indian Journal of Applied Research (Vol.4, Issue-9), ISSN -
2249-555X: The paper under study aims to study the factors influencing an investors decision
making behavior on basis of related studies. It states that the various factors that influence
include various demographic factors such as gender, age, education. It is known that men are
more overconfident than women. Age plays a role on the mindset of the individual and the
propensity to take risk. It also explains sometimes, the precautious attitude and conservatism. On
the firm level the decision of the investors depend on capital structure average pricing, political
and media exposure, trend analysis, past performance of company’s stocks, expected dividend
and EPS etc. Finally, it concludes that out of the various factors affecting behavior of investors
some factors have a slight role while some majorly impact investor behavior. The general factors
being gender, age, confidence levels, cognitive bias, risk factors, company’s performance.

Bing Zhu (2012), The Effects Of Macroeconomic Factors On Stock Return Of Energy
Sector In Shanghai Stock Market, International Journal of Scientific and Research
Publications (Vol. 2, Issue-11), ISSN 2250-3153: The study aims at understanding the
performance of arbitrage pricing theory (APT) in the Shanghai Stock Exchange. In
finance, arbitrage pricing theory (APT) is a general theory of asset pricing that holds that
the expected return of a financial asset. The research points out the fact that factors such as
foreign reserve, exports, exchange rates, and unemployment rate have an impact on the returns of
energy sector. As the foreign reserve increases by 1 point, the stock return of energy sector
increases by 2.142004. This shows that foreign reserves have a positive direct impact on the
returns of energy sector.

Domenico Celenza and Fabrizio Rossi (2012), The Relationship Between Intellectual
Capital And Stock Market Performance: Emprical Evidence From Italy, Journal of
Modern Accounting and Auditing (Vol. 8, Issue-11), ISSN 1548-6583:.This study aims at
providing a relation between the intellectual capital (IC) and returns of a company. It also aims at
evaluating the value of IC.
 The accounting records are still incomplete inspite of the regulatory accounting standard.
It is limited in transmitting information that is slowly reflected in the prices of securities
of listed companies to the stock market.
 As the information arrives into the market, it becomes old. Compared to the degree of
circulation of information in the market, the financial indicators appear to be static.
 The beta factor does not explain the market value of firms and changes in stock prices.

The conclusions stand true as, the financial statements, made at the end of the year; fail to inform
the value of the firm. The speculation in the market also affects the investor’s sentiment. The
beta index indicates the systematic risks associated with the stocks and fails to elaborate the
reason for changes in stock prices and market value of firms.
Kaushal A. Bhatt (2013), Investment and Trading Pattern of Individuals Dealing in Stock
Market, The SIJ Transactions on Industrial, Financial & Business Management (IFBM)
(Vol.1, Issue-02), ISSN: 2321 – 242X: The paper aims at studying the literacy and awarenss of
capital markets among investors regarding various investment avenues. To find and identify
segments preferred more by the people and the influencing force behind the decision making,
while investing in currently available options including stock markets. It concludes that investors
are moving to new investment avenues such as equity market, mutual funds, bonds, and others
like gold, land etc. This is due to the decreasing trend of bank rates. This also increases the scope
of business for the investment companies. The investors are also risk sensitive. They want more
safety and security. The stock markets have become very popular due to high rate of return but
due to uncertainty and risk many people do not invest in equity markets. This stands true due to
the lack of stability in the current market scenarios. The risk related to investment also defines
the amount invested by people in the particular stock. The factors like age, occupation and
income level are key factors in investment decision making of people. The other major factors
being considered were market scenario, risk involved and other investment opportunities.

Geetika Batra (2013), Study Of Investment Advice To Retirement Plan Partakers In India,
Journal of Business Management & Social Sciences Research (JBM&SSR) (Vol.2, Issue-
08), ISSN No: 2319-5614: Investor need to think apart from public institution to private sector
players. As they don’t have any other source of income so if the investment plans fails, it would
be disastrous on the savings front and logically, on the financial planning front. However, if one
starts investment early, then the risk to reward ratio would be very high. Hence one should
remain substantially committed to stock during this earning period.

Daniel Agyapong, The Foreign Exchange Rate - Capital Market Returns Nexus, Asian
Journal of Business and Management Sciences (Vol.2, Issue-01), ISSN: 2047-2528: This
study paper aims at understanding the relationship between the stock markets and the foreign
exchange markets. The different methods adopted till date have produced varying results. The
empirical world, though, is able to explain the reasons for the differing results in the various
methods. The various results of empirical investigations have no relation, negative or positive
relation and weak or strong relations inter se. It also points that the degree of relation depends on
the degree of globalization of the country, economic stability, trade volumes, mobility etc.

Sanjeet Sharma (2011), Determinants Of Equity Share Prices In India, Journal of Arts,
Science & Commerce (Vol.1, Issue-4), ISSN 2231-4172: This study aims at studying the
relation between the equity share prices and related variables such as book value of shares,
earnings per share (EPS), dividend per share (DPS) and dividend payout etc.

The study reveals that EPS and DPS are the strongest determinants of market price, and therefore
the study suggests a liberal dividend policy as a good measure of attracting the investors, gaining
their confidence and thereby, increasing the valuations of the company. These factors possess a
strong explanation to provide future forecasts of stock prices. They also have suggested that the
company data and indices be taken care of. The conclusion is statistically explained but in the
current scenario, where prices are volatile EPS does not stand to be a major indicator. Moreover,
this analysis is possible on the basis of past data as the data for current years are received at the
end. The dividend payout shall still be a relevant factor. But in cases where there are sudden
crisis and price shocks, this analysis fails to be accurate. The paper also observes that in the case
of a strong book value per share and a good dividend declaration policy the investors perceive
lesser risk and are more comfortably placed in investing into the equity shares of those
companies.

Nachiket Bhate and Alok Bansal, Personal Financial Planning: A Review, Altius Shodh
Journal of Management & Commerce, ISSN 2348 - 8891: states that personal investing helps
to achieve major emergency funds, buying a real estate later on and better cash management,
personal finance and investment alternatives and retirement plans. One needs to appoint a better
fund manager to ensure stability while managing risk. People don't consider Insurance and other
secured schemes as asset. Hence they end up investing into such products with are not able to
beat the inflation. It was concluded that disciplined way of investing and diversification of funds
including Insurance products boost their personal financial planning.
Gurinder Singh And Navleen Kaur (2015), Investigation of the Determinants to Augment
Investment in the Indian Stock Market, International Journal of Scientific and Research
Publications (Vol.5, Issue-03), ISSN 2250-3153: states about the perception of investors and
non investors towards Indian Stock Market. Those who are non investors always calculate the
insecurity of loss of money in the market and the risk of investing. There are other categories of
people who are ready to invest but they want investor friendly schemes, which are not only
simplified but also have an easy exit option. So government and fund houses need to spread
awareness about investor on a large scale. Initial tax incentive provided by government for first
time investor will also encourage many people to get invested roping in celebrity to advertise as
it affects the mass population. A proper clarity must be given to people through various means
between Trading and Investment. However a SIP (Systematic Investment Plan) thing would be
a great option for low income group.

Kajal Gandhi (2015), Retail Investors Participation in Indian Stock Market- A Survey,
GJRA - Global Journal For Research Analysis (Vol.4, Issue-02), ISSN No 2277 - 8160 :
paper findings were based on the survey which has beeen carried out among five cities-Mumbai,
Delhi, Kolkata, Chennai and Ahmedabad. The respondents of the metro cities are more inclined
towards investing in stock market as they consider it as financial tool but they don't have
expertise knowledge or don't prefer to hire a professional to manage their portfolio due to which
they fall prey of losses. However, people at Tier-II cities like Ahmedabad still consider the
traditional investment like gold, property, gold and bank deposits are their favorite option this is
due to narrow minded as their is low saving habits, low awareness of investment opportunities.

Anju Bala (2013), Indian Stock Market - Review Of Literature, TRANS Asian Journal of
Marketing & Management Research (Vol.2, Issue-7), ISSN 2279-0667: The paper has
explained the logistics involved into the working of the stock market and the investors
preferences of selecting stock market as a tool of investment.
The paper studies the different asset class and other financial alternative available to investors
covering all age groups depending on their requirements such as :
- NON MARKETABLE FINANCIAL ASSETS (Bank Deposits, Company Deposits)
- EQUITY SHARES (Blue Chips shares, Growth shares)
 - BONDS (Government Securities, PSU Bonds)
- MONEY MARKET INSTRUMENTS (Treasury Bills, Certificates of Deposit)
- MUTUAL FUNDS (Balanced Schemes, Debt Schemes)
- LIFE INSURANCE (Money back policy, Whole Back policy)
- REAL ESTATE (Agricultural Land, Commercial Property)
- PRECIOUS OBJECT (Gold & Silver)
- FINANCIAL DERIVATIVES (Future & Option warrants)
It has recommended a list of measures for the improvement of investor participation into the
stock market. It has recommended the listing of stock prices on multiple stock exchanges to
improve liquidity and gain investor confidence. It has also observed that speculation is
widespread into the Indian stock market system and thereby it cause volatility into the prices of
shares. This volatility creates insecurity. It has further observed that investors use technical
analysis and fundamental analysis for selecting their investment into the stock market and the
low cost of operations into the derivatives market has made it a preferred choice of investment

RAVI KANT (2011), Testing Of Relationship Between Stock Return And Trading Volume
In India, International Journal of Multidisciplinary Research (Vol.1, Issue-06), ISSN 2249-
2496 : The paper draws attention towards the sensitive relationship that exist between stock
returns and trading volume in India. The paper observed that, at times the volumes do not play a
crucial role. In case of Futures & Options, the volumes matters during the short term news
favouring a particular company. However it is not easy to predict the behavior of trading
volume and stock return.

Krunal K Bhuva and Vijay H Vyas (2015), A review of Article on “Dividend Policy and
Stock Price Behaviour in Indian Corporate Sector: A panel data approach”, PARIPEX -
Indian Journal Of Research (Vol.4, Issue-2), ISSN - 2250-1991: states that if long term
investment are made into the market then the dividends on stock would be good source of
income. The relationship in terms of dividend varies with respect to return on market for
different industries. However there are some sectors which give a good or robust returns in
terms of growth and dividend. The result also shows that dividend paying companies are large
but more debt in such companies will affect to stock return. Similarly there are mutual funds
houses which banks on dividend oriented schemes which help an investor to re-invest their
dividend into units thus strengthen their holdings. A wise decision would help to earn a dual
advantage of growth and dividend income.

Zhou, Peng (2003). Stochastic modeling of post-retirement financial planning, ProQuest,

UMI Dissertations Publishing 3095850, ISSN 1042-7279: He conducted a study on Post-
Retirement Financial Planning. The finding were optimal allocation strategies vary in different
situations and are not trivial or intuitive, The buy annuity- reinvest strategy has potential to
accumulate more estate than a pure investment strategy, catastrophic illness coverage is a
necessary piece of any optimal asset allocation strategy, a life annuity is always an important
component in optimal strategies. Berstein (2003) concluded three essays as many employees are
spending far more and saving far less than they should, while others are under-spending and
over-saving. Overton (2007) identified foundational theories of financial planning and the
theories’ applications and disciplines of origin. In this sequential exploratory mixed methods
were used. Gounaris (2004) concludes with a model for a financial therapy seminar with couples.
Outcomes were Financial Planning services will be most effective if couples have a thorough
understanding of their psychological relationship with money, the role money plays in their
marriage, and the psychological forces that operate on actual financial decision making. He
conducted a qualitative phenomenological study using focus group interviews to explore the
lived experiences of 61 baby boomers regarding their financial planning for anticipated health
needs in retirement. Findings include seven core themes: (a) influence of family experiences, (b)
delayed retirement, (c) influence of physical or cognitive health, (d) uncertain future of
government programs, (e) procrastination of financial planning, (f) uncertain future of health
care, and (g) distrust of government involvement. Jagolinzer (Apr 1995) used a 3-fund approach
is used. This approach of income allocation should assist those entering into, or already
committed to, a marriage or partnership-living arrangement, in thinking about, discussing and
planning for their financial priorities. The accountant can help by introducing the system,
assisting the partners in developing the fund categories, providing input to the necessary
allocation of monies to each, and possibly acting as an ongoing facilitator for the whole process.
Cutler (Mar 2003) dealt with the “traditional” image of retirement financial security as it is a
three legged stool: Social Security, employer pensions, and personal savings/investments. Some
analysts have identified a fourth leg, that of post-retirement wages. There is also discussion about
a fifth leg: the costs of health care and long-term care. Using reverse mortgages to take
advantage of home equity is discussed.

Potts, Tom L; Schoen, John E; Margery Engel Loeb; Hulme, Fred S. (Jul 2001). Effective
retirement for family business owner-managers: Perspectives of financial planners.
ProQuest, part II, Journal of Financial Planning, (ISSN: 1052-3073) took the primary
objective of this study as to gain useful insights about conditions that will lead to successful
retirement for family business owner-managers. The blend of financial and nonfinancial issues
suggests that financial planners have a real awareness of the unique context in which they are
operating. The unraveling of the complex issues surrounding the retirement of family business
owner-managers represents a real challenge for the CEOs, financial planners and academicians.
Klapper and Panos (2011), did the examination of the relationship between financial literacy and
retirement planning in Russia. It was found that only 36% of respondents in our sample
understand interest compounding and only half can answer a simple question about inflation. In a
country with widespread public pension provisions, findings were that financial literacy is
significantly and positively related to retirement planning involving private pension funds.

Todd, Kelly J; DeVaney, Sharon A. Financial Planning For Retirement by Parents of

College Students, (1997). ProQuest, Journal of Financial Counseling and Planning, (ISSN:
1052-3073) concluded that Parents of college students that were surveyed about satisfaction with
retirement planning and the use of retirement savings for children’s college expenses. Parent
with two children in college were more likely to have used retirement savings to pay for college
costs. When the first child contributed less to college, parents were more likely to use retirement
savings. Upper income parents were less likely to use retirement savings for college expenses.
Cutler (2001) found out the retirement planning implications of an important study conducted by
the National Council on the Aging. Details concerning the following tends are supplied:

1.Retirement does not necessarily imply that clients stop working.

2. Accumulated savings and health concerns are the 2 major factors that consumers consider
when deciding when to retire.
3.Responsibility for wealth accumulation has moved away from the employer and the
government has begun to rest with the client.

4. Financial counseling for retirement is necessary now more than ever.

Lusardi and Mitchell (2011) reports on a purpose-built survey module on plnning and Financial
literacy for the Health and Retirement Study which measures how people make financial plans,
collect the information needed to make these plans, and implement the plans. Results show that
financial illiteracy is widespread among older Americans, particularly women, minorities, and
the least educated. He also found that the financially savvy are more likely to plan and to succeed
in their planning, and they rely on formal methods such as retirement calculators, retirement
seminars, and financial experts, instead of family /relatives or co-workers. These results have
implications for targeted financial education efforts.

Owen, Ann L; Wu, Stephen. (2007). Financial shocks and worry about the future,
ProQuest, Empirical Economics, ISSN: 0377-7332 Used data from the Health and Retirement
Study and the Survey of Consumer Finances. It showed that households that experience adverse
financial shocks, worry more about the adequacy of their financial resources in retirement, even
after controlling for the effects of these shocks on overall wealth. The paper finds supporting
evidences that suggests that at least a part of the increased worry about retirement, is due to
general pessimism rather than changes in an individual’s own circumstances. Specifically,
experiencing idiosyncratic financial shocks is also associated with greater pessimism about the
general future of the economy. Bakshi and Chen (1994) tested the life cycle Risk aversion
hypothesis that an investors relative risk aversion increases with age. However, this analysis was
based on the assumption that aggregate changes in risk premium for equity assets were due to
changes in risk aversion. A paper about Personal Financial Planning using current income tax
savings to pay for Estate Planning emphasizes that in many situations good estate planning is
also good income tax planning. In such cases, an income tax benefit may be achieved which is
significant enough to encourage taxpayers to take current steps necessary to implement their
estate plan. Payne et al (2010) did a survey whose results suggest that getting personal with
clients is unavoidable. The survey found that 25% of a financial planner’s time is spent on
clients’ nonfinancial issues, such as family strife, drugs, religion, mental health, physical health,
and even thoughts of suicide. The paper mainly discusses the importance of counselling skills in
advising clients.

Trahan, Emery A et al (2003). Corporate market for PFP services benefits. Financial
Services Review Journal, ISSN: 1363-0539 surveyed chief HR officers of Fortune 500
companies. They came to a conclusion that there is a viable corporate market for PFP.
Warschauer & Sciglimpaglia (2012) found out how the 20 component services a financial
planner must provide which are actually relatively valued by consumers. Results showed that
potential planners do not understand all the benefits that planning holds. With the help of this
research PF planners can increase their client base.

Neidermeyer, Adolph A;Neidermeyer, Presha E. (2010). The missing curriculum link:

Personal Financial Planning, American Journal of Business Education, ISSN 1942-2504
found only 3 out of 131 four-year institutions reviewed have a required PFP course in
curriculum. They suggested 10 steps for a required PFP course for all students majoring in
Business Administration. These steps are-

1. Establish your direction.

2. Begin to manage your intellectual capital.
3. Document your current financial situation.
4. Develop a written working budget.
5. Protect what you have.
6. Put your dollars to work for you.
7. Make “Informed” Big acquisitions.
8. Always remember the tax collector.
9. Get some gold for your Silver-Hair years.
10. Anticipate Life’s Bumps.

Edwards, Dirk L. (2013), The proposed statement on standards in personal financial

planning: What does it mean for you?, The Tax Advisor Journal, ISSN: 0039-9957 The
Tax Adviser proposed a statement on standards in PFP which begins with its scope and nature,
followed by application material to further describe and interpret it and it is accompanied by a
list of frequently asked questions to provide greater quality. Hanna and Lindamood (2010)
addressed 3 types of benefits that planners provide to estimate the monetary value of ideal
financial planning advice. The benefits are - increasing wealth, preventing loss and smoothing
consumption.

Murphy et al (2010), Personal financial planning attitudes: a preliminary study of graduate

students, Management Research Review(Vol. 33, Issue-8), ISSN : 2040-8269 surveyed about
the PFP attitudes of MBA students in USA. Most respondents felt that PFP is important but very
few had skill and knowledge for that. Point of difference between interest and capability of an
MBA student is discussed in this paper. Cowen et al (2006) discussed the historical background
and relevant regulatory environment. This is followed by descriptive analysis of availability of
dedicated financial planning courses currently available in Australian Universities. Miller (1993)
wrote a research paper about Employee assisted PFP. As per miller, employers have changed
their traditional paternistic role. Now the employers use many methods to inform, educate and
motivate individuals to engage in effective PFP. Basso (2010) said that CPA’s should be more
proactive to insure that their clients have comprehensive PFP that supports their goals, manages
their risk tolerance and align their goals with their time horizons.

Thomas et al (2003), Personal financial planning attitudes: A preliminary study of

graduate students, Management Research Review (Vol. 33, Issue-8), ISSN : 2040-8269
conducted a study at one of several plants owned by a Southeastern chemical production
company to investigate the effectiveness of workplace financial education. The group offered the
education. Differences and similarities between participants and nonparticipants in the financial
workshops were explored. Most workshop participants took positive actions to improve their
financial well being. This study found strong evidence that workplace financial education is
effective because it resulted in better financial wellness for workers. Danes et al. (1999) assessed
the impact of a high school financial planning curriculum on the financial knowledge, behavior,
and self-efficacy of 4,107 teens nationally. Statistically significant changes were found in
financial knowledge, behavior, and self-efficacy both immediately after studying the curriculum
and three months after completing the curriculum. About half the teens had gains in knowledge,
a third had gains in behavior, and 40% increased their confidence in managing their money.

Robb, Cliff A. and Sharpe, Deanna L. (2009), Effect of Personal Financial Knowledge on
College Students' Credit Card Behavior, Association for Financial Counseling and
Planning Education, (ISSN: 1052-3073) collected survey data from 6,520 students at a large
Midwestern University which affirmed that financial knowledge is a significant factor in the
credit card decisions of college students but not entirely in expected ways. Results of a double
hurdle analysis indicated that students with relatively higher levels of financial knowledge were
not significantly different from students with relatively lower levels in terms of the probability of
having a credit card balance. Contrary to expectations, those with higher levels of financial
knowledge had significantly higher credit card balances. Overall, the present findings highlight
the complex nature of the relationship between financial knowledge and credit card behavior.

Lusardi, Annamaria and Mitchell (2011). Implications for Retirement Well being of
Financial Literacy and Planning, ProQuest, SSRN Working Paper Series, ISSN (2226-
8235) Economics found out that planning patterns and financial literacy may influence
household saving outcomes. Several explanations might account for the empirical observation
that planning is associated with higher retirement wealth.

Lin, CY Chiang; Lin, CC (2008), Personal financial planning based on fuzzy multiple
objective programming, Expert Systems with applications (Vol.35, Issues 1-2), ISSN:0594-
4174 : Personal financial planning involves managing all the money activities during a planner’s
lifetime. Traditional personal financial planning procedures begin with the planner’s financial
status, goals, and expectations for the future before future cash flows of different time. Article
written by Prochaska-Cue (1993) explores the initial exploratory development of a model of
personal financial management style drawing from the work of McKenney and Keen (1974);
Deacon and Firebaugh (1988); Gross, Crandall, and Knoll (1980); and Rettig (1987).

Hershey et al (2007), Fumiaki Psychological Foundations of Financial Planning for

Retirement, Journal of Adult Development (Vol.14, Issue 1-2), ISSN: 1573-3440 said a little
is known about the psychological mechanisms that underlie financial planning for retirement.
Most studies of financial planning and investing have used demographic indicators (e.g., age,
gender, income) to predict individual differences in saving. In the present study, a model of
planning is tested in which psychological indicators (future time perspective, retirement goal
clarity, and self-rated financial knowledge) are posited to mediate the relationship between
demographic indicators and saving behaviors. Path-analytic techniques were used to test the
model, based on data from 265 middle-aged working adults. Analyses revealed substantial
support for the role of psychological factors in the retirement planning process. Findings have
theoretical implications for the development of psychologically based models of planning, as
well as applied implications for those who seek to understand the psycho motivational forces that
underlie tendencies to plan and save.

Mandell, Lewis ;Klein, Linda Schmid (2009), The Impact of Financial Literacy Education
on Subsequent Financial Behavior, Association for Financial Counseling and Planning
Education, ISSN: 1052-3073 examined the differential impact on 79 high school students of a
personal financial management course completed 1 to 4 years earlier. This study used a matched
sample design based on a school system’s records to identify students who had and had not taken
a course in personal financial management. The findings indicated that those who took the
course were no more financially literate than those who had not. In addition, those who took the
course did not evaluate themselves to be more savings-oriented and did not appear to have better
financial behavior than those who had not taken the course. The study raises serious questions
about the longer term effectiveness of high school financial literacy courses.

Macewen et al (1995), Predicting Retirement Anxiety: The Roles of Parental Socialization

and Personal Planning, The Journal of Social Psychology (Vol.135, Issue 2), ISSN: 0022-
4545 , proposed that anxiety about retirement begins long before retirement, and that perceptions
of one’s parents’ socialization into retirement and one’s own planning for retirement are
associated with retirement anxiety. Data from 213 Canadian respondents (mean age = 44 years)
were analyzed. Path analysis indicated that both parental socialization and own plan fullness
affect retirement anxiety.

Elankumaran and A. Aananth, Impacting factors on individuals investors behavior

towards commodities market in India, Research Journal of Social Studies and
Management, ISSN: 2251-1571 A study on behavioral finance has been done presuming
information structure and characteristics of capital market. Participants influence their own
decisions and also on market outcomes. The above studies have been conducted by using survey
method. The questionnaire with 5 Point Likert Scale designed with 15 components for measuring
behavior and respondents were selected from Trichy District and the total number respondents
were 525. The influence of resulting factor analysis and descriptive statistics has concluded that
multiple factors have greater influence on behavior of commodity market investors in India. The
main factor was information asymmetry, objective knowledge, high sector and low risk.

K Ravichandran, A Study on Investors preferences towards various investment avenues in

capital market with special reference to derivatives, Journal of Contemporary Research in
Management (Vol.3, Issue-03), ISSN :2348-4764 The research study was intended to find
preference level of investors on various capital market instruments and type of risk considered by
investors. The sample was collected from 100 investors in derivative markets from Chennai from
a structured questionnaire. Descriptive research type is used and convenience sampling method
was adopted to gather data. Various parametric and non-parametric techniques have been used
for analyzing data. The findings reveal that friends and relatives followed by brokers who pull
the investors into capital market. Respondents preferred short term investments. It has been
suggested by the author to develop more number of products which it can attract more number of
investors

Sikidar, S. and Singh, A.,(1996), Financial services: Investment in equity and mutual funds
– A behavioral study, In: Bhatia, B. and Batra, G., (Eds), Management of Financial
Services, ISSN: 1741-8062 carried out a survey with an objective to understand the behavioral
aspects of the investors of the north eastern region towards mutual funds investment portfolio.
The survey revealed that the salaried and self-employed formed the major investors in mutual
fund primarily due to tax concessions.

AjmiJy. A., (2008), “Risk Tolerance of Individual Investors in an Emerging Markets”,

International Research Journal of Finance and Economics, (Issue 17), ISSN, 1450-2887
used a questionnaire to know determinants of risk tolerance of individual investors and collected
responses from 1500 respondents. He concluded that the men are less risk averse than women,
less educated investors are less likely to take risk and age factor is also important in risk
tolerance and also investors are more risk tolerance than the less wealthy investors.

Tamimi, H. A. H., Factors influencing individual investor behavior: an empirical study of

the UAE financial markets, The Business Review (Vol.5, Issue-02), ISSN 1553-5827
indentified the factors influencing the UAE investor Behavior. Using questionnaire found six
factors were most influencing factors on the UAE investor behavior namely expected corporate
earnings, get rich quick, stock marketability past performance of the firm’s stock, government
holdings and the creation of the organized financial markets.

Odean (1998), Boys Will Be Boys: Gender, Overconfidence, And Common Stock
Investment, The Quarterly Journal of Economics, ISSN 1531-4650 develops models in which
overconfident investors overestimate the precision of their knowledge about the value of a
financial security. They overestimate the probability that their personal assessments of the
security’s value are more accurate than the assessments of others. Thus, overconfident investors
believe more strongly in their own valuations, and concern themselves less about the beliefs of
others.

Kabra et al. (2010), Patidar (2010), “Factors influencing investment decision of generations
in India: An econometric study”, Asian Journal of Management Research ISSN 2229 –
3795 concluded that investors’ age and gender predominantly decides the risk taking capacity of
investors. This factor decides the amount of risk an investor is ready to take. Men are more risk
averse whereas, age affects the propensity to take risk, of an individual investor. But there is
variety of good reasons to belief the ratio of future labor income to other assets is large when
investors are young, and eventually it decreases as they approach retirement.

Khanifar et al (2012) , Studying Affecting Factors on Analysts' Decisions Regarding Share

Analysis in Tehran Stock Exchange: A Fundamental Analysis Approach, European
Journal of Economics, Finance & Administrative Sciences (Issue 44), ISSN 1450-2887 :This
paper studies affecting factors on analysts' decisions in Tehran Stock Exchange. Principally,
analysts use two types of fundamental and technical analyses in their decisions. In present
research, we study affecting factors on analysts' decisions in the format of fundamental analysis.
Such analysis is studied in three sectors: (1) economy/market, (2) industry, (3) firm. This paper
uses analytical approach to study affecting factors on analysts' decisions. Its statistical population
contains analysts in brokering companies at Tehran Stock Exchange. The tool to collect data was
questionnaire and SPSS software was used to analyze data. Based on the results, it was
determined that firm - related factors such as actual EPS, estimated EPS, profit margin, P/E ratio
and sale rate have the highest importance in analysts' decisions followed by economy/market
related factors and industry - related factors.

Rajeev Jain (2012), Investor’s Attitude towards Secondary Market Equity Investments
and Influence of Behavioral Finance, International Journal on Emerging Technologies
(Vol.3, Issue 2) ISSN (Online): 2249-3255 : It’s a fact that only few investors create immense
wealth from a stock market and also manage to keep it for decades. These investors take the right
decisions and for doing this one needs experience. But experience comes from bad decisions too.
Investors who create wealth from equity markets and keep it for decades, at times for
generations, do not panic when a market falls.

Bailey, W. “Canada’s Dual Class Shares: Further Evidence on the Market Value of
Cash Dividends,” Journal of Finance, 1988, v43 (5), ISSN 1143-1160. The Canada Income
Tax Act of 1971 permitted Canadian corporations to create two classes of equity, one paying
ordinary cash income and the other paying capital gains income. Cash-paying shares have often
sold at a premium. Empirical results indicate that the premium is largely explained by the
relative value of the dividends paid and by costs imposed on investors by stock dividend
payment and share conversion procedures. Premiums for a few firms also reflect the relative
liquidity of the two classes of shares. No evidence exists that investors prefer cash income to
equal amounts of capital gains.

Eugene F. Fama, Efficient Capital Markets: A Review of Theory and Empirical Work, The
Journal of Finance (Vol. 25, Issue. 2), ISSN: 1540-6261: Corporate insiders and specialists are
the only two groups whose monopolistic access to information has been documented. There is no
evidence that deviations from the strong form of the efficient markets model permeate down any
further through the investment community. For the purposes of most investors the efficient
investors the efficient market model seems good at first approximation to reality.