Analysis of the Factors Influencing the Perception and Behaviour of Indian Investors

Abstract

India is a nation of savers but the Investment Avenues available and preferred by the Indians are mainly the traditional optional as Banks deposits. The other options available for investments are not quite popular among the masses. This can be attributed to a number of factors such as gender, age, education, profession etc. This study aims at addressing at depth as to why the average Indian Investor is hesitant to invest in the stock market even today. The study compares the data acquired and worked upon with the results of SEBI Survey 2015 to establish that the data collected is in sync in spite of the limited number of investors who were surveyed in comparison to the SEBI survey which was nationwide. The verified data has thereafter been used to determine the factors that have a significant impact on household perception of risk involved in the stock market. The results confirm that the Investment purpose has the most significant impact on the risk perception among the investors. Especially in case of investors with the investment purpose of a regular income, the risk perception was found to be particularly high.