Factors Influencing Retail Investors’ Trading Behavior in Indian Stock Market

Abstract

retail investor is an individual who invest small amounts in the different investment options that too unprofessionally and also with the influence of the others in order to get sustainable return by taking moderate or low risk. Investment behaviour is guided by various underlying factors and it may be demographic, economic, psychological factors. Awareness and investment may not be perfectly positively correlated but yes awareness and investment are somewhere positively related, as an individual who is aware of some investment avenues has more chances of investing in it to a person who is not even aware of. In view of .above, this paper studies the behaviour of the retail investors and how they choose the different investment options with respect to their income level. For this purpose the data has been collected through the 73 retail investors and data has been collected through the structured questionnaire. For checking the reliability of the data reliability test is also applied and the value of the Cronbach's Alpha shows that the data is reliable. The objective of the study is to know the association between income and different investment options and through the analysis of data with the help of chi-square test we can conclude that there is sufficient evidence that there is association between income and various investment options