Abstract
An Analytical Study on the Key Determinants of Investor Behaviour in the Stock Market – Individual investments behavior is concerned with choices about purchases of small amounts of securities for his or her own account. Investment decisions are often supported by decision tools. It is assumed that information structure and the factors in the market systematically influence individuals’ investment decisions as well as market outcomes. The objective of the research was to establish the factors influencing investment decisions at the Stock Exchange.
This study is an attempt to research about perception of investors about various factors affecting stock market. It also focuses on preferences of investors about various sectors and variables related to investment in stock market. For the research we have applied descriptive research design, used convenience sampling method to select respondents and collected data through structured questionnaire using personal survey method. The collected data were then analyzed with a number of statistical techniques including Analysis of variance (ANOVA), Chi-square. The research identified eight most influencing factors on investment decisions: past performance of the company’s stock, company stability, firm’s goodwill, firm’s reputation in the industry, dividend paid, expected corporate earnings and expected dividend. Further results highlighted six least influencing factors on investment decisions: Other investors’ decisions of buying and selling stocks, they put their past trends of stocks under their consideration, Market information, After a prior gain, they are more risk seeking than usual, they buy ‘hot’ stocks and avoid stocks that have performed poorly in the recent past, they forecast the changes in stock prices in the future based on the recent stock prices. The research disclosed that the socio-economic characteristics of investors (age, gender, marital status, educational qualifications and their financial statement) have a statistically significant impact on the investment decisions of individual investors.
Need for the Study
There are a variety of factors that can influence an investors behavior towards stock market; some of these factors include-
- 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
The stock market is an asset to the country as it is an important factor which indicates the financial growth and stability of the nation.
Scope of the Study
- This research will cover mainly the study on the behavior of investors towards stock market.
- This research measures the important factors that influence individual investment decisions and also it will analyze the investors preference while investing in stock market.
Limitations of the Study
Following are the limitations of the study:
- The analysis of the present study has been carried out based on the information collected through questionnaire. The responds from the respondents may not be accurate.
- The study is an opinion survey; caution may have to be exercised while extending the result to other areas.
- Due to time constrict only 79 numbers of respondents were considered.
- The result fully depends on the information given by the respondents which may be based.
Components of a Project Report
A project report varies according to the MBA final year project course at top colleges, depending on the consequences and the requirements of the concerned project. But broadly, a project covers the following components:
- Title page
- Table of contents
- Introduction
- Background of the project
- Project objectives
- Methodology
- Results
- Discussion and Analysis
- Conclusion
- Bibliography or references
- Appendices
Project Report Pages : 80
Can be used in : Finance Final Year Project
Delivery Time : Within 2 hours.
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