A study of retail investors behaviour towards equity investment in stock market A case study of Mumbai region

Abstract

Advancement in education has resulted in people becoming employable thus improving their standard of living. This has led them to plan their finances effectively and has boosted investment in different avenues. The world economic conditions are such that it becomes indispensable for an individual to not have financial knowledge. Because judicious financial decisions can be taken only when financial knowledge is put to use in managing money. newlineThe statistics from the survey conducted by Standard and Poor in the year 2015 revealed that India s financial literacy was a mere 24% in comparison to other countries which had almost 65% adults who were financially literate. This meant that the rest of the population in India lacked the basic knowledge about the financial concepts. This appalling number draws attention to the requirement of financial literacy programs in the country as lack of financial knowledge can in turn harm the economy. Thus before the awareness about the financial options it is vital to first know the importance of saving and managing funds in a constructive way. newlineSaving helps in bridging the gap between earning and spending. Investment is a broader perspective and is not just bound by traditional investment. People in earlier times did not save for their future. Of late this scenario has been changing. People have started saving and investing their funds as they have realized the importance of doing so. These not only are required to meet unpredicted financial emergencies and contingencies but they also help in making a person financially independent. newlineWith the world turning digital financial literacy can be accelerated with the help of technology, as it promotes independent learning. To improve newlineii newlinethe financial situation it becomes imperative to save as well as invest. Financial worries can only diminish when these savings are put to correct use for growing wealth. People have now learnt the art of multiplying their saving by investing them and making their money work for them. newlineFor the purpose of financ