BEHAVIOUR OF INVESTORS IN INDIAN EQUITY MARKETS

DISSERTATION PROJECT REPORT SUBMITTED IN THE PARTIAL FULFILMENT

OF THE REQUIREMENTS OF ARKA JAIN UNIVERSITY

for the award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION

for the session 2018-21.

SUBMITTED BY:

RICHA VERMA

Roll No:181

AJU/180/716

2018-21

FACULTY MENTOR:

Name-Mr. CHANCHAL MANDAL

Designation-ASSISTANT PROFESSOR

University-ARKA JAIN UNIVERSITY

1
 CERTIFICATE OF APPROVAL

This Dissertation project of “RICHA VERMA” titled “BEHAVIOUR OF INVESTORS IN INDIAN EQUITY
MARKET” is approved in quality and form and has found to be fit for the partial fulfillment of the
requirements of ARKA JAIN UNIVERSITY FOR THE AWARD OF DEGREE OF Bachelor of Business
Administration.

Approval of the Program coordinator, Approval of the Dean,

Department of BBA, School of commerce and

School of commerce and management, management,

ARKA JAIN UNIVERSITY. ARKA JAIN UNIVERSITY.

Approval of External examiner.

2
 CERTIFICATE FROM FACULTY MENTOR

This is tocertify that RICHA VERMA, University Enrollment No.AJU/180/716, a student of BBA (2018-21),has
undertaken the Dissertation Project titled “BEHAVIOUR OF INVESTORS IN INDIAN EQUITY MARKET”,for the partial
fulfillment of the requirements of ARKA JAIN UNIVERSITY for the award of the degree of Bachelor of Business
Administration under my supervision.

To the best of my knowledge,this project is the record of authentic work carried out during the academic year
(2018-21) and has not been submitted anywhere else for the award of any Certificate/Degree/Diploma etc.

Signature

Mr. Chanchal Mandal

ARKA JAIN UNIVERSITY

3
 DECLARATION
I, RICHA VERMA, hereby declare that the project title is, BEHAVIOUR OF INVESTORS IN INDIAN EQUITY
MARKET”, has been carried out by me during my DISSERTATION and is hereby submitted in the partial
fulfillment of the requirements of ARKA JAIN UNIVERSITY for the award of the degree of Bachelor of
Business Administration.

To the best of my knowledge, the project undertaken, has been carried out by me and is my own work.
The contents of this report are original and this report has been submitted to ARKA JAIN
UNIVERSITY,Jamshedpur.

Signature of the Student

Name of the Student- RICHA VERMA

University Enrollment No.AJU/180/716

BBA-(Finance)

2018-21

4
 ACKNOWLEDGEMENT
I take this opportunity to thank my faculty mentor Mr. Chanchal Mandal, Assistant Professor, ARKA JAIN
UNIVERSITY for his valuable guidance, closely supervising this work over with helpful suggestions, which
helped me to complete the report properly.

More importantly, his valuable advice and support helped me to put some creative efforts on my
project. He has really been an inspiration and driving force for me and has constantly enriched my raw
ideas with his vast experience and knowledge.

Name of the Student: RICHA VERMA Signature of Faculty Mentor

University Enrollment No.AJU/180/716 Mr.CHANCHAL MANDAL

BBA(Finance)

2018-21

5
 TABLE OF CONTENT

Number Title Page no

1 EXECUTIVE SUMMARY 7
2 INTRODUCTION 8
3 REVIEW OF LITERATURE 9
4 PROJECT OBJECTIVES 10
5 RESEARCH METHODOLOGY 11
6 WHAT IS EQUITY MARKET 12-13
7 DATA ANALYSIS AND INTREPRETATION 14-21
8 FINDINGS 22
9 RECOMMENDATIONS 23
10 CONCLUSION 24
11 BIBLIOGRAPHY 25

6
 EXECUTIVE SUMMARY
The financial market in India has become organized. Now a day’s investor use to trade in various equity
markets in all over India. At that time, it becomes necessary to know behavior of investors in equity
market. The objective of this study was to develop a broader understanding towards behaviors of
investors to identify patterns of their investing and considering investments. Study was done by using
various tools such as factor analysis, one way ANOVA and chi-square test. Most of the investors consider
time period before investing and they mostly invest for medium term. Chi-square further enhances that
percentage of income invested in equity market is dependent on monthly family income, behavior in
bearish market is dependent on investment experience and equity market. Prediction is dependent on
education qualification. When there is bullish trend in the market maximum people invest in alternative
that gives them stable but lower expected result, Even the business or professional investors prefer to
invest in same alternative. ANOVA test shows that consideration of factor of return does not varies from
person to person with different education level and marital status does have significant relationship
between risk attribute.

The globalization of financial markets has been increasing the size of the community of retail investors
over the past two decades by providing a wide variety of market and investment options. Hence, it
makes their investment decisions process more complex. The factors influencing investor’s behavior are
return on investment, market trend or risk, short term profitability, price of the share, dividend policy,
past financial performance, company reputation, reputation of the board, current earnings of the
company and expert opinion. This study focuses the main factors influencing investor’s behavior.

Equity market has become an attractive investment avenue for most of the investors, and equity market
has enormously grown over the years. But lot of investors fear to invest in equity market due to the
volatility often seen in share market. The risk often undertaken by the investors in share market huge
and there exist fear among the investors of losing their hard-earned income. Even though the return,
the investors receive in equity market is high, the investors need to bear an equal amount of risk as well
as moreover the investors must sure of which investment avenue, they are selecting in order to ensure
high returns. This study was undertaken to understand the different personal factors affecting their
investment decision and the different factors influencing various categories of investment. The was also
conducted to know the source of investors awareness regarding equity market. Questionnaire and
personal interview of the investors was conducted to understand the view point, behavior and attitude
of the investors as well as their level of awareness. Chi square test was used as a tool to arrive at a
decision regarding the association between the two variables. It was that there are many factors
influencing the investor’s decision such as risk return, tax benefits, maturity period, capital appreciation
and safety of principal. But majority of the investors believed returns is the most important factor
influencing their decision. The highest number of investors preferred to invest in stocks, when
compared to mutual funds and derivatives. The study also revealed that majority of the investors took
their own decision to invest, whereas some of the investors were influenced by Workshops, Seminars,
Advertisements and newspapers. Thus, study attempted to learn the behavior of the investors towards
equity mark

7
 INTRODUCTION
Investors act as major key players in Indian equity market. Since they constitute a greater share of
investments and income, the behavior of individual investor cannot be ignored by the regulators of the
equity market. The above study is undertaken to understand and to be aware of the factors that bears
an impact on behavior and attitude of the retail investor. Basic concentration lies on investors‟ quality
of decisions and their viewpoints towards investing in equity market. Maximization of income and
minimization of expenses proves to be main motive of the investors engaged in investment. The rational
behavior of the investors routes them to spare their income between expenditure and savings. Decision-
making becomes tough for the investors in the investment process, when probability of profit and loss is
taken into consideration. Well- framed and structured questionnaire is a technique adopted to know the
perspective of investors in the equity market. The personality traits of investors and their stock
preference are a factor that widely affects the investment decisions so utmost care is taken up to study
these psychological traits of the investors. In this volatile market, the behavior and attitude of the
investors towards equity market changes from time to time, taking into consideration of this aspect, this
study was undertaken to understand the behavior of the investors and to know the awareness, taste
and preferences of the investors regarding the various investment avenues.

Today the investor has various options available to have investment of their saving. When an investor is
investing his money in equity market, he may seek equity market. There are total 24 equity markets in
India which are located in different cities of India. Investing in equities in a market like India is
speculative and involves risk that may be greater than other types of investment strategies. Investor
behavior is one of the three “golden rules”. Investor behavior is essential and an excellent chance for
success with investment plan. A better understanding of behavioral process and outcomes is important
for financial planners because an understanding of how investors generally respond to market
movements should help investment advisors devise appropriate asset allocation strategies for their
clients.For companies, identifying the most influencing factors on their investors’ behavior would affect
their future policies and strategies. For government, identifying the most influencing factors on
investors’ behavior would affect the required legislations and the additional procedures needed in order
to satisfy investors’ desires and also to give more support to market efficiency.Efficient Market
Hypothesis believes that an investor takes decisions rationally, based entirely on economic
fundamentals of stock. These fundamentals are generally the EPS, Book value, PE ration along with the
projected future cash flows of the firm and overall scope for growth in the sector.

8
 REVIEW OF LITERATURE
A study was carried by Syed Tabassum Sultana on titled “An Empirical Study of Indian Investors’
Behavior” and found that this paper while discussing the characteristics of the Indian investors along
makes an attempt to discover the relationship between dependent variable i.e., Risk Tolerance level and
independent variables such as Age, Gender of an investor on the basis of the survey.Indian investors are
high income, well educated, salaried and independent in making investment decisions and conservative
investors. From the empiricalstudy it was found that irrespective of gender, most of the investors (41%)
are found have low risk tolerance level and many others (34%) have high risk tolerance level rather than
moderate risk tolerance level. It is also found that there is strong negative correlation between Age and
Risk tolerance level of the investor. Television is the media that is largely influencing the investor’s
decisions. Hence, this study can facilitate the investment product designer’s to design products which
can cater to the investors who are low risk tolerant.

Petter (1970) - “Motivating Factors Guiding the Common Stock Investor” identified those factors which
motivated and guided the investment decisions of the investors. The factors include Income from
dividends, Rapid growth, Purposeful investment as a protective outlet of savings and Professional
investment management.

Shanmugham (1990) “A Study on Investors’ Awareness of Investment”, examined the factors affecting
investment decision and found that the investors are high risk takers. The investors possessed adequate
knowledge of government regulations, monetary and fiscal policy.

Kannadhasan (2006) – “Risk Appetite and Attitudes of Retail Investors with Special Reference to Capital
Market”. The author examines about the factors that influence the retail investors‟ decision in investing.
The decision of the retail investors is based on various dependent variables viz., gender, age, marital
status, educational level, income level, awareness, preference and risk bearing capacity.

Hussein A Hassan (2006) - “Factors influencing Individual Investor Behaviour: An empirical study of the
UAE Financial Markets” identified the factors influencing the UAE investor behavior. Six factors were
found the most influential factors on the UAE investor behavior. The most influencing factors were
expected corporate earnings, get rich quick attitude and past performance of the stocks.

Geetha N, & Ramesh M. (2012) – “A Study on Relevance of Demographic Factors in Investment

Decisions” studied the Relevance of Demographic Factors in Investment Decision and reveals that there
is significant relationship between the demographic factors such as gender, age, education, occupation,
annual income and annual savings with the sources of awareness obtained by the investors.

9
 PROJECT OBJECTIVE
 To study about investor behavior
 Factors affecting investment decision
 Income group level matters while taking decision
 Time period for investment

10
 RESEARCH METHODOLOGY
Main objective of study was to develop a broader understanding towards behaviors of investors to
identify patterns of their investing and considering investments. Sub objectives of study were to identify
the most investment alternatives in which investor invests most, to identify the investors’ objective
behind the investments, to know time period of their investment and terms of their investment, to
know the factors investors consider before investing and to measure the behavior and pattern of
investor in bearish equity market.

Data collection techniques

Primary Data

Primary research involves the collection of original primary data by researchers. It often undertaken
after researchers have gained some insight into an issue by reviewing secondary research or by
analyzing previously collected primary data. It can be accomplished through various methods, including
questionnaires and telephone interview in market research.

Method of Data Collection

The data collection component of research is common to all fields of study help us to collect the main
points as gathered information. Data collection method for impact evaluation vary along a continuum.
At the end of his continuum are quantitative methods at the other end of the continuum are qualitative
methods for data collection.

A questionnaire is a question format that limits respondents with a list of answer choices from which
they must choose to answer the question. Commonly these types of questions are in the form of
multiple choices, either with one answer or with check-all-that-apply, but also can be in scale format,
where respondent should decide to rate the situation on scale.

Drafting a Questionnaire

A questionnaire is a research instrument consisting of a series of questions and other prompts for the
purpose of gathering information from respondents. Although they are often designed for statistical
analysis of the responses, Questionnaires have advantages over some other types of surveys in that they
are cheap, do not require as much effort from the questionnaire as verbal or telephone surveys, and
often have standardized answers that make it simple to compile data.

Sample Design

The sample Design encompasses all aspects of how to group units on the frame, determine the sample
size, allocate the sample to the various classifications of frame units, and finally, select the sample.
There are two types of sampling uses subjective method of selecting units from a population, and is
generally fast, easy and inexpensive. Therefore, it’s sometimes useful to perform things like preliminary
studies, focus groups or follow-up studies.

The whole number of people or inhabitants in a country or region

The total of individuals occupying an area or making up a whole.

11
QUESTION: What do you mean by Equity market?

Answer: An equity market is a market in which shares of companies are issued and traded, either
through exchanges or over-the-counter markets. Also known as stock market, it is one of the most vital
areas of market economy. It gives companies access to capital to grow their business, and investors a
piece of ownership in a company with the potential to realize gains in their investment based on the
company’s future performance.

Equity markets are the meeting point for buyers and sellers of stocks. The securities traded in the equity
market can either be public stocks, which are those listed on the stock exchange, or privately traded
stocks. Often, private stocks are traded through dealers, which is the definition of an over-the counter-
market. When companies are born, they are private companies, and after a certain time, they go
through an initial public offering (IPO), which is a process that turns them into public companies traded
on a stock exchange. Private stocks operate slightly differently as they are only offered to employees
and certain investors.

Some of the largest equity markets, or stock markets, in the world are the New York Stock Exchange,
Nasdaq, Tokyo Stock Exchange, Shanghai Stock Exchange and Euronext Europe.

Companies list their stocks on an exchange as a way to obtain capital to grow their business. An equity
market is a form of equity financing, in which a company gives up a certain percentage of ownership in
exchange for capital. That capital is then used for a variety of business needs. Equity financing is the
opposite of debt financing, which utilizes loans and other forms of borrowing to obtain capital.

Types of Investors

Because the market’s behavior is impacted and determined by how individuals perceive that behavior,
investor psychology and sentiment are fundamental to whether the market will rise or fall.

Stock market performance and investor psychology are mutually dependent.

Bull Investor

Bear Investor

Savers

Speculators

Specialists

Bull Investor: An investor who expects prices to rise and so buys now for resale later. It is a prolonged
period where the investment prices rise faster than their historical average.

Bear Investor: An investor who expects prices to fall and so sells now in order to buy later at a lower
price. The chances of losses are greater here as prices are continuously falling and the end is not in sight.

Savers: Savers are those people who spend the majority of their life slowly growing their “nest egg” in
order to ensure a comfortable retirement. Their primary investing strategy is to hedge each of their
investments with other “non-correlated” investments, and ultimately generate a consistent annual
return in the range of 3-8%.

12
 Speculators: Unlike, Savers Speculators choose to take control of their investment, and not rely solely
on “time”. Speculators are happy to forgo the relatively low returns of a diversified portfolio in order to
try to achieve the much higher returns of targeted investments.

Specialists: Specialists believes that the key to successful investing isn’t luck but it’s education and
experience. The specialist generally picks a single investing area, and becomes an expert in that area.
Some Specialists deal in paper assets, some deal in real estate, and some start business.

Understanding Investor Behavior

When it comes to money and investing, we are not always as rational as we think we are which is why
there’s a whole field of study that explains our sometimes-strange behavior. When do you, as an
investor, fit in? Psychological factors can actually explain why different investors behave in different
ways which affect their investment decisions. Investors might actually overreact towards some
information that they gained and under react towards others. One of the most common investor
behaviors is overconfidence towards the market. This actually works when they actually underestimate
the risk of the investment. The major mistake of all is when they are overconfidence towards the
market, they tend to trade too much which will lead them to high transaction costs. The transaction
costs might even exceed the returns that they gained.

The second behavior is the investor tends to have biased self-attribution which means that they will take
all the credit for the returns that they received and they will blame others for their losses that they
encountered. This kind of investors usually support the information that are against them. They see the
failure to get return as the result of the factors that are beyond their control.

The third behavior is known as loss aversion. This behavior often happens to the investors that dislike
the losses much more than the gains. For example, when a person loss $200, the loss that he experience
will have a higher impact on him compare with when he is gaining $200. The investor will usually hang
on to the losing stock hoping the price of the stock will bounce back. They will sell the gaining stock
rather than the losing stock.

The fourth behavior will be representativeness. The investor will usually make strong conclusion from a
very small sample. This means that they actually ignore or underestimate the effects of random chance.
One of the example is when a stock broker helps the investors to gain from the market for consecutive
three months, the investor will assume that the stock broker will maintain his performance and continue
to help him to earn the return. But actually, the investor overlooks a few matters in this case. Firstly, the
investment period is only three months which is a very short time period. Secondly, the results of the
stock broker might just be driven by random chance. The investor should analyze the investment results
for a longer time period before making the judgment that they choose the right stock broker and they
are investing at the right investment.

Another behavior that most investor might have is the belief perseverance. This actually means that the
investor will just simply ignore the information that is against their existing belief. They will even
avoiding themselves from finding any new information because they afraid that the new information is
against initial opinion. Once the investor has decided that they make the right choice, they will behave it
even though there is evidence proving that their choice is wrong.

Basically, these are the few of the investor behaviors that explain their actions when dealing with the
investment. Some investors might posses one of the behaviors but some of them might posses few of
these behaviors at one time. Understand these behaviors will help the investors to react in the market
efficiently.

13
 DATA ANALYSIS AND INTERPRETATION
Q1. Occupation of the respondent

Table-1: Shows count of occupation

S.N Count of
Row Labels
O occupation %
1 Others 4 4
2 Self employed 37 37
3 Service 55 55
4 Student 4 4

Count of occupation
60

50

40
Count of occupation
30

20

10

0
Others Self employed Service Student

Figure-1

INTERPRETATION-In this question, service people are most interested in investing equity market rather
than any other occupation and second is self-employed are investing in equity market.

Q2.Age of respondents.

Table-2: Shows number of respondent in age

S.N Count of
Row labels
O respondent %
1 26-30 52 52
2 31-30 6 6
3 Below 25 14 14
4 More than 36 8 8

14
 Age of respondents.
8%

14%

6%
52%

1 26-30 2 31-30 3 Below 25 4 More than 36

Figure-2

INTREPRETATION-In this context, between the age of 26-30. Groups people are more interesting in
investing, it means youth are more concerned for extra benefits rather than any age of respondents.

Q3. Gender of respondents.

Table-3:Shows count of gender

S.N Count of
Row labels PERCENTAGE
O gender
1 Male 59 59
2 Female 41 41

GENDER

41%

59%

1 Male 2 Female

Figure-3

15
INTREPRETATION- In this context, male people are more investing in equity market rather than female
people. Male are more opportunities to invest in the equity market because it requires a regular watch
in the market structure.

Q4. Annual income of respondents.

Table-4:Shows count of annual income of respondent

Count of annual
Row labels income of
S.NO respondent %

1 1 lakh-3 lakhs 2 2

2 3 lakhs-5 lakhs 45 45

3 Less than 1 lakhs 3 3

More than 5
50
4 lakhs 50

Annual income
2%

50% 45%

3%

1 1 lakh-3 lakh 2 3 lakh-5 lakh 3 Less than 1 lakh 4 More than 5 lakh

Figure-4

INTREPRETATION-In this question, people who are earned more than 5 lakh rupees they are investing
more in the market, they are more concerned for equity market rather than any other annual income of
the respondents.

16
Q5.Duration of investment in no of years.

Table-5:Shows duration of investment

S.N Duration of
Row labels
O investment %
1 1-2 year 41 41
2 2-5year 32 32
3 Less than 1 year 20 20
4 More than 5 year 7 7

Annual income of the respondents

7%

20%

41%

32%

1 1-2 year 2 2-5year 3 Less than 1 year 4 More than 5 year

Figure-5

INTERPRETATION: In this context, people are more interested in investing for a period of 2-5 years
rather than any other time spam period it shows people go for more than 1 year investment decision
rather than for a short time period and second is go for a 2-5 years decision.

Q6. Source of information about investment.

Table-6: Shows source of information about market

Source of information about

Row labels
S.NO market %
1 Brokers 66 66
2 Internet ads 13 13
3 Newspapers 16 16
4 Others 5 5

17
 Source of information about market
70

60

50
Source of information
40 about market
30

20

10

0
Brokers Internet ads Newspapers Others

Figure-6

INTREPRETATION- In this question, it shows people are more interesting to get advice or getting
information from brokers other than any other mode of source, it shows people are interested in getting
financial/professional advice for investment decision.

Q7. Awareness about investment options available in the market.

Table-7:Shows awareness about equity market

Awareness about equity

Row labels
S.NO market %
1 No 51 51
2 Yes 49 49

Awareness about stock market

No Yes

49% 51%

Figure-7

18
INTREPRETATION-In this context, it shows how many people are aware about investment plans and
investment products available in the market. In our data, people are more aware related to investment
option in the market.

Q8. Factors affecting investment decision.

Table-8:Shows factors affecting investment decisions

Factors affecting your

Row labels
S.NO investment decision %
1 Family members 17 17
2 Financial consultants 49 49
3 Friends 30 30
4 Others 4 4

Factors affecting investment decision

4%
17%

30%

49%

1 Family members 2 Financial consultants 3 Friends 4 Others

Figure-8

INTREPRETATION- In this question, it shows what are the factors affecting to investors while choosing
investment decision. In our data financial consultants are more effective to choose investment decision,
as they are professional in nature they know market better than the people.

Q9. Investment options available in market.

Table-9:Shows investment options available in the market

Investment options you

Row labels
S.NO prefer the most %
1 Commodity market 25 25
2 Monetary market 16 16
3 Others 7 7
4 Stock market 52 52

19
 Investment options available in market

25%

52%

16%

7%

1 Commodity market 2 Monetary market 3 Others 4 Stock market

Figure-9

INTREPRETATION- In this context, it shows options available in the market for investors in our data,
people are more interesting in stock market rather than any other options people are willing to take risk
with investment as stock market gives more benefits with pertaining risk also.

Q10.Type of trading prefer the most in the market.

Table-10:Shows type of trading prefer in stock market

Type of trading prefer in the

Row labels
S.NO stock market %
1 Online trading 27 27
2 Offline trading 73 73

Type of trading prefer in the stock

market

27% Online trading

Offline trading

73%

Figure-10
20
INTREPRETATION-In this question it shows people are more interesting in doing trading online than the
offline. It shows how people are doing trading, people are more educated more computer based, they
know how to trading and what options should be opt.

Q11.Brokerage charged by dealers in the Equity market.

Table-11:Brokerage charged by dealers in equity market

Brokerage charged by
Row labels
S.NO investors in equity market %
1 10-20 paisa 28 28
2 20-30 paisa 67 67
3 More than 30 paisa 5 5

Brokerage charged by investors in

equity market

10-20 paisa
20-30 paisa
More than 30 paisa

Figure-11

INTREPRETATION-In this context, brokerage charged by dealers in the equity market, in our data
brokers charged their brokerage between 20-30 paisa per transaction and second is charged between
10-20 paisa per transaction.

Q12. Is it good option to investment in the market.

Table-12: Shows is it a good option to invest in equity market

Is it a good option to invest

Row labels
S.NO in equity market %
1 1 20 20
2 2 58 58
3 3 16 16
4 4 6 6

21
 Is it a good option to invest in equity
market
70
60
50 Is it a good option to invest
in equity market
40
30
20
10
0
1 2 3 4

Figure-12

INTREPRETATION- In this context people views about equity market, is it a good option available for
them, in our data most of the people are agree that it is a good option for investing money in the equity
market.

22
 FINDINGS
 People who are doing jobs are more concerned towards stock market, they invest more than any
other occupation.
In our data 55% people are investing in equity market are from service and self employed people
are 37% who are investing in a equity market.
 Age of the respondents in our data, who are more active in investing in equity market.
Youth are more concerned for benefits and investment decisions.
People are mostly from (26-30) years.
Second is people from (31-36) years.
 Most of the people are males over women.
Males are more concerned for investment point of view.
In our data 51% male are doing investment.
 People who are investing in stock market are from bracket of earnings, in our data most of the
people are from(more than 5 lakh).
It constitutes almost 50% data who are investing having a bracket of more than 5 lakh rupees.
 People are investing for more than a period of (1-2) years , it means that people gave a time
spam to their investment to give them return.
Second is people investing more in a (2-3) years time spam.
 People are getting more information from brokers.
As now, people are thinking more practically they consult form the experts who have access
knowledge about equity market, they advice in a better way than any other professionals.
 Now a days, people are more aware towards equity market. They are more concerned for their
investment plans, almost 51% people are more aware in our data who have awareness towards
equity market.
 Most of the factors are affected by financial consultants as they have market knowledge they
advice in a better way to investors for investments, which particular security choose for getting
higher returns.
Second factor affecting the friends, as friends advice when they personally feel or have a
knowledge for market.
 Equity market is the most preferred option choose by the investors, as it gives higher returns
than any other market. And second is commodity market, which is preferred by the investors.
 People prefer trading the most in the market is “online trading” almost 73% people prefer online
trading as people are educated they understand the context of market and they know how to
trade online because when the things in hand people are more concerned.
 Brokerage charged by the dealers is 20 -30 paisa per transaction. In our data almost 67% brokers
charged this paisa it depends upon the transaction also (size and lot) of the securities matters a
lot.
 It is a good option available for the investors to invest their money in a better way and getting
higher returns.

23
 RECOMMENDATIONS
 Youth are more concerned for their future and benefits but they should also take care of risk
pertaining to particular security on which they invest as it is a matter of money which he invests
in a market.
 People are from higher group of income they invest more in stock market rather than any other
income group, in my view people are from lower segment or earning low should also invest their
money in their market there are many options available it gives a returns or help them in case of
emergency.
 People are investing more in a (1-2) year spam they should take care that investment in
securities is a risk pertaining activity so they should invest less than 1 year in a particular security.
 People invest more in equity market there are many other options available in a market which
gives higher return.
 Brokerage charged by dealers per transaction it is a negotiable term mean people who has good
knowledge about this they can negotiate with the broker.
 Recommendation by anyone given only when he/she has a positive approach towards equity
market.
 Strategies must be employed to encourage women investors. Awareness programmes has to
conduct in all places.
 Investors are the hub of the equity market. Their satisfaction is the most important. So it should
be done by providing safety, return and liquidity for their investments.
 Innovative technologies like integration of stock exchanges, demat, online trading, creation of
development of web pages must be brought in equity markets for its growth and to attract the
educated investors.
 Regarding equity market more journals, newspapers and TV media have to reach the investors.
 Companies should provide information/education to investors at large with detailed data
including the role of stock market to make them smart.


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 CONCLUSION
The objective of every investor is to get high return on investment where the investor must bear high
risk. Their attitude towards equity market and market condition helps them to achieve a good return on
the investment and their good decision-making skill would enable them to be successful investor. This
study contains understanding the investor’s behavior, level of awareness and their investment decision
in the equity market. The views and behavior relating to investment often differ from person to person.
The various factors that can influence an individual to invest in equity market is the ability to bear risk,
the present future financial goals, return expected, the requirements and needs of the investors etc. The
study revealed that majority of the investors considers return as the motivating factor that influences
their investment decision. Most of the investors decided to invest on their own and few of them were
influenced by newspapers, advertisements, seminars, family, friends and workshops. Thus, it can be
concluded that, investors who expect high return will be ready to undertake high risk though few of
them avoid investing in equity market due to fear of losing their hard-earned money.

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 Bibliography
WEBSITE:GOOGLE

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