Behavioral Finance An Empirical Study on Attitude of Investors of Middle Class towards Investment in Northern and Western Region of India

Abstract

newline Saving and Investment are the two concepts that are being discussed by the individuals in their everyday life as, by doing saving and investing in various investment option they can earn returns and capital growth. These two notions also need to be understand in order to study the behavior, preferences, factors considered by the Investors as their decisions are based on these factors only. But, many of the individuals are still not much aware about the importance of doing investments. Therefore, it is required to create awareness of investment and its importance to each and every individual. To fulfill the objective of investment, it is necessary to understand and have knowledge about the market and different avenues available in the market for investment purpose and also, risk linked with each avenue so, that investor can take proper investment decision. Without the proper knowledge, investor cannot select the best avenue for achieving its investment objective which can even result in loss for the investor. Thus, it has become an immediate need to carefully understand the attitude of the investors mainly of middle class. The present study covers the role and importance of Behavioral Finance as, it is important to know about the Behavioral Finance in order to analyze the biases, factors that impact the investor s decisions and behavior pattern exhibit by the investors in order to understand the attitude of the middle class investors in India. The study is conducted on Middle-class investors of cities of Northern and Western Region of India. The study is conducted through survey method by using online Questionnaire from total 1000 middle-class households which includes 500 from selected cities of Northern Region and 500 from selected cities of Western Region. Age, Annual income, Occupation are taken as criteria for drawing the samples and analyzing their investment pattern. The present study reveals that there is difference in the preference towards the investment schemes for both the regions and als