A study on investment strategy and behavior of individual investors belonging to software it ites profession in Chennai city

Abstract

In developing country like India individual investments play a major role in the economy for growth and development of the country Traditionally India appreciates a very high saving rate It was roughly 34 percentage in financial year of 2011 of which household savings in financial assets were around 12 percentage As per the survey conducted in 2008 by NCAER National Council of Applied Economic Research it was found that although Indians have a positive attitude towards increased savings around 65 percentage of savings are invested in banks or post office deposits and cash at home 23 percentage are invested in real estate and gold and only 12 percentage is invested in financial Instruments This depicts that the individual investments in India is majorly with traditional investment avenues Unfortunately in India it is a fact that most of the investors are not much interested in other avenues offered by financial markets There is a limited participation towards these offerings This may be because of lack of awareness existence of biases and negative perception on other modern instrument or avenues Therefore there is a need to conduct a detailed study on investment awareness motive to save or invest behavior and perception of investors A review of extant literature also revealed that there are some prevailing gaps which require a detailed study on this area Hence there is an attempt made to study on the investment strategy and behavior newline newlineInvestment is defined as accumulating money into an asset with the expectation of capital appreciation dividends and or interest earnings Investors invest in direct or indirect investment financial products or instruments Every individual investor is bound to differ in terms of preference of investment and weighing its characteristics by virtue of the demographic determinants like Age Gender Education Financial knowledge Experience Marital status Social status Commitments and Planned Age of Retirement Various desirable aspects of Investment avenues like