AN ANALYSIS OF FACTORS AFFECTING INVESTMENT DECISION MAKING OF INDIVIDUAL INVESTORS IN EQUITY SHARES IN INDIA

The investments made by individual investors are influenced by a variety of factors depending upon their experience and knowledge of the financial markets and the financial system. This study is an attempt to understand the driving factors of investors’ decisions, the reach of the ‘investor awareness and education programmes’ and to gain an insight of their mindset while investing in the equity markets. It is based on the quantitative analysis of the investor’s responses and attempts to develop a conceptual framework that assesses how much of their investment behaviour is based on analysis and attempts to understand the role their experience span plays. It was found that the investors depended more on shortcuts like taking advice from friends and relatives than doing their own analysis through annual reports of the companies. The most common factors studied for investment in IPOs is company’s background and for trading is EPS and the popularity of its products.

 

Keywords: Investments, IPOs, EPS, Investor Awareness, Education Programmes.


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