issn: 2278-6236 small investor's behaviour on stock ... - Garph.co.uk
issn: 2278-6236 small investor's behaviour on stock ... - Garph.co.uk
issn: 2278-6236 small investor's behaviour on stock ... - Garph.co.uk
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Internati<strong>on</strong>al Journal of Advanced Research in<br />
Management and Social Sciences ISSN: <str<strong>on</strong>g>2278</str<strong>on</strong>g>-<str<strong>on</strong>g>6236</str<strong>on</strong>g><br />
the risk attached with them is low and high risk products are selected if risk premium<br />
associate with risk level is offered to investors. Investors will invest in those products which<br />
offer the return suitable with the risk level of those products.<br />
With this percepti<strong>on</strong> about the individual investors, majority of trading strategies and <strong>stock</strong><br />
market policies are designed and focused to their instituti<strong>on</strong>al <strong>co</strong>unterparts, thereby<br />
ignoring the individual <str<strong>on</strong>g>investor's</str<strong>on</strong>g> interests to some extent. The purpose of this paper study is<br />
to analyse the attitudes and percepti<strong>on</strong>s of <str<strong>on</strong>g>small</str<strong>on</strong>g> investor’s and their <str<strong>on</strong>g>behaviour</str<strong>on</strong>g> in <strong>stock</strong><br />
selecti<strong>on</strong>.<br />
I. STATEMENT OF THE PROBLEM<br />
The research in Behavioural Finance is <strong>co</strong>mparatively less in India, when <strong>co</strong>mpared to other<br />
developed <strong>co</strong>untries. Within Behavioural Finance, it is assumed that informati<strong>on</strong> structure<br />
and the characteristics of market participants systematically influence individual’s<br />
investment decisi<strong>on</strong>s as well as market out<strong>co</strong>mes. The globalizati<strong>on</strong> of financial markets has<br />
been increasing the number of <str<strong>on</strong>g>small</str<strong>on</strong>g> investors over the past two decades by providing a<br />
wide variety of market and investment opti<strong>on</strong>s. However, it makes the investment decisi<strong>on</strong>s<br />
process much more <strong>co</strong>mplex. The <str<strong>on</strong>g>small</str<strong>on</strong>g> investors generally c<strong>on</strong>sider their investment needs,<br />
goals, objectives and c<strong>on</strong>straints while making investment decisi<strong>on</strong>s. But it is not possible<br />
for them to make a successful investment decisi<strong>on</strong> at all times. Their attitude is influenced<br />
by a variety of factors such as dividend, get rich quickly strategy, stories of successful<br />
investors, <strong>on</strong>line trading, investor awareness programme, etc. A better understanding of<br />
<str<strong>on</strong>g>behaviour</str<strong>on</strong>g>al processes and out<strong>co</strong>mes are important for financial planners because an<br />
understanding of how investors generally resp<strong>on</strong>d to market movements would help them<br />
in devising appropriate asset allocati<strong>on</strong> strategies for clients (Al-Tamimi, 2006). The <str<strong>on</strong>g>small</str<strong>on</strong>g><br />
investors c<strong>on</strong>sider their investment needs, goals, objectives and c<strong>on</strong>straints in making<br />
investment decisi<strong>on</strong>s, but it is not possible to make a successful investment decisi<strong>on</strong> at all<br />
times. It to be noted that there are many studies c<strong>on</strong>ducted in different <strong>co</strong>untries including<br />
India, but to the best of the researcher’s knowledge, a <strong>co</strong>mprehensive study <strong>co</strong>vering Assam<br />
has not been made. Further a study of this nature should be c<strong>on</strong>ducted at periodical interval<br />
as the attitude of investors’ keep changing. Hence, this study attempts to find out the<br />
factors influencing the <strong>stock</strong> selecti<strong>on</strong> decisi<strong>on</strong> of <str<strong>on</strong>g>small</str<strong>on</strong>g> investors of Assam and to study the<br />
attitude and percepti<strong>on</strong> of <str<strong>on</strong>g>small</str<strong>on</strong>g> investor’s of Assam.<br />
Vol. 1 | No. 2 | August 2012 www.garph.<strong>co</strong>.<strong>uk</strong> IJARMSS | 61