Investment Behaviour of Investors with Respect to Various Investment Alternatives In Haryana

Abstract

Traditional theories stated that investors act in a rational manner so that they can maximize their returns. But, researches have shown that human does not behave rationally every time. Some uncertainties and expectations acts as hurdles while making investment decisions. Behavioural finance arose as a radical concept that integrated psychological and behavioural components in investment decision-making to strengthen traditional financial theories. Behavioural finance examines the cognitive abilities and psychological phenomena of investors in making investment decisions, challenging the efficient market approach. This study focused on investment behaviour of individual investors with respect of various investment alternatives in Haryana. Individual investors play a crucial role in a flourishing country like India due to their large percentage of savings. A plethora of investment opportunities have been made available to Indian investors. A range of financial products are available but awareness and analysis skills are limited among individual investors. India is a country of diverse culture, language and demographics. To understand the behaviour, it is necessary to study their personality and demographics. In the present study, researcher has focused on the influence of demographic and psychological traits on investment behaviour of individual investors. Extensive literature is available on behavioural finance but very few studies have focused on both demographic and psychological traits of individual investor. This research was primarily based on a primary survey that was done using a structured questionnaire. The objective of the study was to examine the present status of investment of individual investors, awareness of investment alternatives, perception and preferences of investors with regard to various investment alternatives. The target population of the study was individual investors in Haryana. Statistical software IBM SPSS 20.0 was used for analysis of collected data. newline