A Study on Factors that Shapes the Investment criteria of Indian Investors

Abstract

An investor is always a risk-avert. The tendency of an investor would always be to reduce unsystematic risk to the possible margin or to maximize returns at a given level of risk. In order to achieve their desired objectives investor designs investment policies based on the way they perceive the risk factors and rate of return they expect. Perception of risk and expectation of returns are psychological factors and that may vary significantly in a given set of investors. These factors are also the key determinants that shape the investment policy. Thus it is interesting to know the various factors that the investors hold relatively more significant to set their investment criteria. The criterion framed by the investors might diverge from the traditional theoretical connotations as the investors will not always behave rationally. The behavior of investors to a large extent is risk perception and expectation driven. Thus the study will help to reveal the factors that the investors give due weightage to take investment decision.