A STUDY ON INVESTORS BEHAVIOR IN SELECTING THEIR INVESTMENT AVENUES

BY, VINOTHINI.V

INTRODUCTION

Investment is the commitment of funds at present, in anticipation of some positive rate of return in future. Today the spectrum of investment is indeed wide A Portfolio is a combination of different investment assets mixed and matched for the purpose of achieving an investor's goal. The two key aspects of investment are preferences and pattern. This particular study is discussing the various investment avenues available in India, the preferences of the investors and investors decisions in choosing the avenues.

STATEMENT OF THE PROBLEM

In current scenario, after liberalization investments towards various avenues has gradually been increased. Indian government is taking various measures to create awareness about available investment avenues to inculcate the habit of investing and saving. The attitude, behaviour, preference towards an avenue differs from investor to investor.

This study has been undertaken to find out the preference, expectations, attitude and behaviour of the investors against various investment avenues
The problem of the study is mainly focused on finding out the investors preference, attitude and rationality in choosing their investment avenue.

OBJECTIVES OF THE STUDY

To understand the demographic profile of the investors To know the level and pattern of investment. To study the attitude of the respondents towards different investment choices. To find the preference of investors in selecting their investment avenues To study the factor that influence investment behaviour of the people

HYPOTHESES OF THE STUDY

There is no significant difference exist between Age, Sex, Marital status, Education, Employment and opinion of the respondents about their dependency on their investment. There is no statistically significant correlation between monthly income and annual savings of the investors Null hypothesis Ho = 60% investors are Rational. Null hypothesis Ho: 60% investors are affected by Disposition Effect Null hypothesis Ho: 60% investors are conservative Null hypothesis Ho: 60% investors are affected by Cognitive Dissonance. Null hypothesis Ho: 60% investors are Regret Investors

METHODOLOGY
S.NO 1 2 3 4 5 6 7 8 METHODOLOGY Research Design Area of the study Period of the study Sampling design Sampling Method Sample size Sources of data Tools used DESCRIPTION Descriptive KARVY stock broking limited July 5th to august 20th. Non probability Convenience sampling 75 primary data- by the method of survey using questionnaire Percentage analysis, Factor analysis, ANOVA, Correlation, Garrett ranking, Z- Test.

LIMITATIONS

This sample refers only to a set of population i.e. a set of investors at Karvy stock broking limited.

Reluctance of the people to provide complete information about themselves can affect the validity of responses.
Since analyzes has been made from the information given by the respondents, the accuracy of the findings are depended on the quality of the respondents. The sample size of 75 is only a small percentage of total investing public in Kanchipuram, therefore it is only a representation report based on the sample study. This study has been limited by time and cost factors. The information can be biased due to use of questionnaires.

FINDINGS
FINDINGS FROM PERCENTAGE ANALYSIS

28% of the investors are from the age group of less than 30 years. 75% of the investors are male. 88% of the investors are married. 41% of the investors are below Graduates. 72% of the investors are employed in private sector. 30% of the investors are business man and industrialist/ executives. 45% of the investors are investing in their surplus between 3 to 5 years. 49% of the investors are having tendency of saving monthly. 50 % of the investors are investing from their existing savings. 38% of the investors are investing in Equity less than 3 years 75% of the investors have not invested in debentures 44% of the investors have invested in mutual funds less than 3 years 31% of investors have invested in insurance between 6-10 years 67% of the investors have not invested in commodities. 40% of the investors have invested in gold less than 3 years 28% of the investors are investing in fixed deposits less than 3 years 73% of the investors consider market value before purchasing a share.

FINDINGS FROM ANALYSIS OF VARIANCE

There is no significant difference exist among the respondents on opinion about their dependency on investment based on age.
There is a significant difference exist among the respondents opinion about their dependency on investment based on gender. There is no significant difference exist among the respondents opinion about their dependency on investment based on marital status. There is no significant difference exist among the respondents opinion about their dependency on investment based on education. There is a significant difference exist among the respondents opinion about their dependency on investment based on employment.

FINDINGS FROM CORRELATION

Correlation between monthly income and annual savings of the respondents is statistically significant.

FINDINGS FROM Z-Test:

60% of the investors are irrational. 60% of the respondents are affected by disposition effect. 40% of the investors are conservative. 60% of the investors are affected by cognitive dissonance. 60% of the investors are no regret investors.

FINDINGS FROM GARRETT RANKING

Broker/Agents are preferred 1st while choosing Mutual Fund scheme by the investors. Equity and stock are ranked 1st in the investment avenues. Investors seeks growth aspect while investing in an avenue. Investors see the Image of the company while investing in primary market. Movement of indices induces/ makes the investors to invest in secondary market. Safety ranks 1st in choosing bonds/debentures by the investors.

FINDINGS FROM