ABSTRACT This paper aims to study the behavior of individual investors of Ananddistrict towards investments preferences. There are many investment instrumentsare available such as investment in Bank deposit, Equity share, Post officesaving, Bonds, Mutual funds, Life insurance policy etc. All the investorsinvest their excess money in the above mentioned avenues depending on theirrisk taking opinion. In this research paperat attempt has been made to study on investors preference’s in investment: astudy of investors of Anand district.
The concluded that investors haveawareness about the investments instruments available in market and they preferto investing in growing fund and high return investment instruments. Key words: Behavior Finance,Anand District, Investors Preferences INTRODUCTION Behavioral finance is a famous field of the finance that suggeststhe theories based on psychology (psychology finance or behavioral economics)in order to explain the concept of stock market anomalies which includesextreme rise and fall in the prices of stock market. The behavioral financesuggests that the structure of the information and characteristics ofparticipants of the market plays an important role in the decision making ofthe investors as we as the overall outcome of the market. BEHAVIORAL FINANCEAND INVESTORSBehavioral finance is more inclined towards the investors and theirdecision making for the following reasons:v An individual whois capable of identifying the flaws in his behavior is capable of optimizinghis decision and is wise enough to learn from his mistakes.
v Anomalies are extremely important part of the active management.Individuals, who believe in the fact that the markets are rational and theprices are inclusive of all type of information available, are capable ofrelying on the passive management. REVIEW OFLITERATURE K. Parimalakanthiand Dr.M. Ashok Kumar(2015) This paper aims to find the behavior ofindividual investors of Coimbatore city vis-a-vis available investment avenuesin the Indian financial markets.
The major factors behind an investment are thesafety of principal amount, liquidity, income stability, and appreciation. Avariety of investment avenues are available such as Savings a/c, FD a/c,Government Securities, Corporate Bonds, Insurance policies, Real estates,Commodities, Shares and MFs, Chit Funds and Gold and Silver. All the investorsinvest their surplus money in the above mentioned avenues depending on theirrisk taking attitude.
“No pain, no gain” it is the golden principle ofinvestment management. In the developing economic one can earn more and moremoney. „More risks? lead to more profits. Investors cannot avoid risks but theycan minimize the risk by investing their money in various forms of safeinvestments so that they can get a moderate profit. This study has led theresearcher to conclude that most of the investors of Coimbatore city preferbank deposits followed by investments in gold and silver.Dr. Kaushal A. Bhatt (2013) Investors tendto look at the Return – the potential return possible from investment; Risk-the variability in returns from an investment in avenues due to value going upand down or market fluctuations; Liquidity – the ease with which the investmentcan be converted into cash.
Based on the preferred risk, return and liquidityeach individual selects investment avenues that match with his investmentobjectives. An individual investor has to confront his/her demographics,lifestyle and investment psychology whether the investor’s age or occupation orannual income plays a significant role while making preference for investmentavenues. This Study tried to explore the Investment and Trading Pattern ofIndividual Investor who resides in Jamnagar City. The Primary objective of thestudy is to check the investment pattern of people those who are dealing instock market. Other objectives may include checking the tendency viz.,Intraday, Positional, Long Term etc of investors regarding investment; identifythe segment in which people are investing more, etc. The scope of this study isgeographically limited to Jamnagar city, it include all class of people thosewho are dealing in stock market. Here, two variables are tested i.
e. occupationand investment patter, age and risk taking ability, etc. So, ANOVA is theproper tool to test the hypothesis. It is found during the study that,occupation, age, education does affect the investment decision of individualsdealing in stock market. It was also found that new generation investors (whoseage is less than 35) prefer online trading rather than off line.Suman and Warne.D.P.
(2012) the marketmovements affect the investment pattern of investors in the stock market.Though various authors have made several attempts on the above areasconsidering some are all the observed parameters, still it needs to befrequently studied. This necessity various from time to time as well as therole of the money has also increased tremendously.M. Gurusamy. (Aug 2011) Mutual Funds arefinancial intermediaries concerned with mobilizing savings of those who havesurplus income and channelization of these savings in those avenues where thereis demand of funds. Objectives of the study are to study the risk appetite ofthe investors; to identify the reasons for investments in Mutual fund; toestimate the investors’ satisfaction with investment in mutual fund; to studythe choice of investment for tax benefits. The simple random sampling techniquewas employed in the selection of the sample.
The study covers the customers inSalem City. Weighted average, simple percentage analyses are used for analyzingthe data collected. Findings of the study are maximum of the respondents arebelong to 21-30 years; maximum of the investors are earned Rs.1 lakh to 2 lakhper annum; maximum of the investors are invested their money through mutualfunds between 1-3 years; The study revealed that mutual fund ranks as the mostpopular avenue for investment followed by life insurance and fixed depositswith regard to the risk appetite of the investors; it is found that theinvestors perceive that investments in mutual funds carry moderate risk. Thestudy also reveals that a better and steady return is the main reason forinvestment in mutual fund.Manish Sitlani,Geeta Sharma & Bhoomi Sitlani (2011) observed that there is no association between demographic variables andinvestment choice of occupants of financial services industry.
They alsohighlight that the level of investment awareness that an individual carriesalso stands as an important factor. This changing economic paradigm hasaffected the occupants of financial services industry in a better way, as theyare additionally equipped with financial knowledge. OBJECTIVE OF THESTUDY v To study oninvestors’ preference towards various investment instrument of Anand district RESEARCHMETHODOLOGY Thestudy is analytical in nature undertaken to investor’s preferences ininvestment: a study of investors of Anand district. This study based on primarydata collected through structured questionnaire. For this study data collectedfrom 100 respondents of different categories like students, salaried employee,business man and professional on the basis of purposive sampling.DEMOGRAPHICINFORMATION OF RESPONDENTS This study is devoted to the work done on theresearch problem about the demographic information thatare Age group, Qualification and Profession. Table- 1: Demographic DescriptiveStatistics Category Variable Frequency (%) Age Group Up to 20 Years 1 1.
0 Between 20 to 30 57 57.0 Between 30 to 40 22 22.0 40 above 20 20.
0 Total 100 100.0 Education Qualification Under Graduate 4 4.0 Graduate 20 20.
0 Post Graduate 68 68.0 Other Specify 8 8.0 Total 100 100.0 Profession Student 13 13.0 Salaried 46 46.0 Business 26 26.
0 Professional 14 14.0 Other Specify 1 1.0 Total 100 100.0 From the above table we find that mostof the respondents belong to the age group of above 20 to 30 and 30 to 40 years (79%).
In case of educationqualification 68% respondents were Post Graduate, whereas 4% only Under Graduate means majority of respondents areeducated and give proper respondents to this study. By profession ofrespondents 46% respondents were Salaried, 26% were Business whereas only 1% respondentfrom other profession.TABLE NO: 2 DO YOU KNOW ABOUT INVESTMENT INSTRUMENT Particular Frequency Percent( %) Yes 79 79.0 No 21 21.0 Total 100 100.0 Theabove table shows that respondents awareness about investment instrument. It isfinding that 79% respondents have awareness about instruments. While only 21%respondents don’t have awareness about investment instrument.
TABLE:3 PREFERENCES IN INVESTMENT AVENUES Terms Yes No Total Invest in Bank Deposit Frequency 66 34 100 Percent (%) 66.0 34.0 100.
0 Invest in Equity Shares Frequency 35 65 100 Percent (%) 35.0 65.0 100.0 Invest in Post office Frequency 38 62 100 Percent (%) 38.0 62.0 100.0 Invest in Bonds Frequency 10 90 100 Percent (%) 10.0 90.
0 100.0 Investment in Mutual funds Frequency 29 71 100 Percent (%) 29.0 71.0 100.0 Investment In LIC Frequency 65 35 100 Percent (%) 65.0 35.0 100.0 Percent (%) 51.
0 49.0 100.0 The above table indicates that different investing preferenceof respondents. Majority of the respondents are invest their excess money inbank deposit and life insurance, where only few respondents investing theirmoney in other instruments like shares, mutual fund and bonds.TABLE:4 SOURCE OF INFORMATION FOR INVESTMENT Source of Information Yes No Total News Paper Frequency 20 80 100 Percent (%) 20.0 80.
0 100.0 News Channel Frequency 7 93 100 Percent (%) 7.0 93.0 100.0 Adviser Frequency 37 63 100 Percent (%) 37.
0 63.0 100.0 Internet Frequency 30 70 100 Percent (%) 30.
0 70.0 100.0 Friend or relative Frequency 54 46 100 Percent (%) 54.0 46.0 100.
0 Fromthe above table we can say that most of the respondents are getting informationabout the investments instruments from friend or relative. Where 37 %respondents get information from adviser and other respondents sources ofinformation are media. TABLE: 5 MOTIVESBEHIND INVESTING IN VARIOUS INSTRUMENTS Motives of investing Rank 1 2 3 4 5 Total Motives Dividends Frequency 21 20 25 18 16 100 % 21.
0 20.0 25.0 18.0 16.0 100.0 Motives Safety Frequency 57 30 8 3 2 100 % 57.0 30.
0 8.0 3.0 2.0 100.0 Motives Liquidity Frequency 6 19 37 32 6 100 % 6.0 19.0 37.0 32.
0 6.0 100.0 Motives Capital appreciation Frequency 6 10 9 22 53 100 % 6.0 10.
0 9.0 22.0 53.0 100.0 Motives Tax Benefits Frequency 11 21 20 25 23 100 % 11.
0 21.0 20.0 25.0 23.0 100.0 Table5 indicates motives behind investingin various instruments, 57% respondents give first rank of their motives ofsafety. 21% respondents give priority receives dividend second rank. When 11%respondents motive get tax benefits third rank and other respondents are motivescapital appreciation and liquidity.
TABLE: 6 PREFERRED KINDS OF SECURITY Preferred Kinds Of Security Yes No Total High risk/high return Frequency 45 55 100 Percent (%) 45.0 55.0 100.
0 Low risk/low return Frequency 19 81 100 Percent (%) 19.0 81.0 100.0 Traditional investment Frequency 25 75 100 Percent (%) 25.0 75.0 100.0 Growing investment Frequency 47 53 100 Percent (%) 47.
0 53.0 100.0 Other specify Frequency 4 96 100 Percent (%) 4.
0 96.0 100.0 Theabove mention table discloses the data of preferred kinds of security. Most ofthe respondents prefer to invest in growing funds and high return instrument.Where other respondents prefer to low risk and Traditional investment. TABLE: 7 PREFERREDSECTOR OF INVESTMENT Preferred Yes No Total Public sector Frequency 28 72 100 Percent (%) 28.
0 72.0 100.0 Private sector Frequency 18 82 100 Percent (%) 18.0 82.0 100.0 Government Frequency 65 35 100 Percent (%) 65.0 35.
0 100.0 Foreign sector Frequency 2 98 100 Percent (%) 2.0 98.0 100.0 Mixed Frequency 22 78 100 Percent (%) 22.0 78.
0 100.0 It is clear fromthe table that 65% respondents preferred to invest their saving in governmentsector. 28% investment in public sector and where only 22% and 2% investmentpreferred in mixed and foreign sector respectively. We can conclude thatmajority of investor wish to government sector because of safety and securedreturn.TABLE: 8 AWARENES ABOUT INVESTMENT RIGHTS Particular Frequency Percent (%) Yes 78 78.0 No 22 22.
0 Total 100 100.0 The above mention table discloses the data of awareness investmentrights.78% respondents are aware about the investment rights whereas only 22%respondents are against the statement.
So we can conclude that majority ofrespondents are awareness about the above statement.TABLE: 9 OPINION ON INDIA SEBI AND OTHER ACTSARE PROTECTING THE INTEREST OF INVESTORS Particular Frequency Percent (%) Yes 67 67.0 No 17 17.0 Not Aware 16 16.0 Total 100 100.
0 Fromthe above table we can find that 67% respondents view on opinion on India SEBIand other acts are protecting the interest of investors about it. Where 17%respondents are opinion are not protecting the interest investors. So we cansay that majority of respondents are opinion on India SEBI and other acts areprotecting the interest of investors about it.TABLE: 10 OBSERVED ANY FRAUD FOR THEIR MONEY Particular Frequency Percent (%) Yes 17 17.0 No 83 83.0 Total 100 100.
0 The above tableindicates possibilities of anyfraud for their money. It was found that out of 100 respondents, 83%respondents said that there is not any possibility for any fraud for theirmoney and only 17% respondents said that there is chance of fraud for theirmoney. So we can conclude.MAJOR FINDINGSAND SUGGESTIONS v It was found that most of the respondents belong to the age group ofabove 20 to 30 and 30 to 40 years (79%).
That means majority of respondents are young investor.v It was found majority of the respondents education qualification 68%respondents were Post Graduate. v It was found that majority of the respondents in case of profession46% respondents were Salaried employees invest saving money various instrument.
v It was found that 79%respondents have awareness about investment instruments.v It was found that Majority of the respondents are invest theirsurplus money in bank deposit and life insurance policy.v It was found that most of the respondents are getting information aboutthe investments instruments from friend or relative.
v It was found that majority of the respondents prefer to invest ingrowing funds and high return instrument.v It was found that majority of investor wish to government sectorbecause of safety and secured return.v It was found that 78% respondents are aware about the investmentrights.v It was found 67% respondents are opinion on India SEBI and otheracts are protecting the interest of investors about it.v It was found 83% respondents said that there is not any possibilityfor any fraud for their money.SUGGESTIONS v It is suggested to investors to invest their saving money in primarymarket like equity share and Bonds.v It is suggest that in capital appreciation and liquidity of funds v It is also suggested investors have to invest their money in theprivate and public sectors.
CONCLUSION Itis concluded that from this study the respondents are aware with financialinstrument available and investment right. They prefer to put money ingovernment organisation because they wants safety first for that they dependson financial adviser and friend and relatives. Respondents are believing thatSEBI protecting them.