Investors Risk Rperceptions Towards Risk Assessment and Investment Intentions in Indian Commodity Market_An Empirical Analysis

Abstract

A commodity market is a physical or virtual marketplace for buying, selling and trading raw or primary products, and there are currently about 50 major commodity markets worldwide that facilitate investment trade in approximately 100 primary newlinecommodities. Commodities are split into two types: hard and soft commodities. Hard newlinecommodities are typically natural resources that must be mined or extracted (such as newlinegold, rubber and oil), whereas soft commodities are agricultural products or livestock (such as corn, wheat, coffee, sugar, soybeans and pork). According to the statistics of National Securities Depository Limited (2018), there are 1,85,99,864 investor newlineaccounts in the country with 30,898 depository participants service centres. The newlinewhole DEMAT custody value is found to be Rs 188.46 lakh Crores in the country. newlineBy nature, the commodity market is highly volatile because there are many risks newlineinvolved with the commodity trading process. Usually the risks are classified in to two newlinetypes as specific risks and the common risks. However, the investor should have newlineorientation over the occurred risks in the commodity market. Hence, the present study newlineemphasised to understand the risk perceptions of the investors towards the commodity newlinemarket to determine the risk assessment. The study is focused on specific types of newlinerisks such as, market risk, price risk, quantity risk and the regulatory risk. newlineFurthermore, the researcher also attempted to understand the role of risk assessment newlineon investment intentions and finally, the researcher examined the direct impact of newlinerisks associated with commodity market such as market risk, price risk, quantity risk newlineand the regulatory risk over the investment intentions through risk assessment. newlineResearcher approached fifteen different stock broking companies located in Guntur newlineand Krishna districts of Andhra Pradesh, India. Using mall intercept survey technique,researcher approached directly and gathered the required information from the investors.