Investment and Trading Pattern of Individuals Dealing in Stock Market

Abstract

Investors tend to look at the Return – the potential return possible from investment; Risk- the variability in returns from an investment in avenues due to value going up and down or market fluctuations; Liquidity – the ease with which the investment can be converted into cash. Based on the preferred risk, return and liquidity each individual selects investment avenues that match with his investment objectives. An individual investor has to confront his/her demographics, lifestyle and investment psychology whether the investor's age or occupation or annual income plays a significant role while making preference for investment avenues. This Study tried to explore the Investment and Trading Pattern of Individual Investor who resides in Jamnagar City. The Primary objective of the study is to check the investment pattern of people those who are dealing in stock market. Other objectives may include checking the tendency viz., Intraday, Positional, Long Term etc of investors regarding investment; identify the segment in which people are investing more, etc. The scope of this study is geographically limited to Jamnagar city, it include all class of people those who are dealing in stock market. Here, two variables are tested i.e. occupation and investment patter, age and risk taking ability, etc. So, ANOVA is the proper tool to test the hypothesis. It is found during the study that, occupation, age, education does affect the investment decision of individuals dealing in stock market. It was also found that new generation investors (whose age is less than 35) prefer online trading rather than off line.