Awareness And Perception Of Investors Towards Investment In Equity Fund In Indian Corporate Sector An Empirical Study

Abstract

For economic development of a nation, an efficient and effective financial system is essential. After 1990, there is a huge and eye-catching change in the structure of Indian Financial System. 1991, economic reform process modified the Indian economy and took it towards development. As a result, now-a-days Indian economy and financial system can be said as sound and stable economy comparatively to other Asian countries. The main objective of the economic reform was to plunge Indian economy into the arena of globalization and to give it a new thrust on market orientation. It was also intended to bring down the rate of inflation and move towards higher economic growth rate by achieving economic stabilization. It focused on allowing the flow of goods, services, capital, human resources and technology internationally, without any restrictions and obstacles. Another objective of the policy was the increased participation of private players in each and every sector of the economy. Hence, we can imagine the stock market scenario, how it was being affected by before 1991. newlineIn the stock market the strategies of investors are continuously changing for the purpose of earning profits. It also motivates the decision making feature. Every investor needs profit from his investment. If one is a profit maker the other one should be a looser. So the investors should take the investment decision very carefully after looking over all the aspects. newlineviii newlineTaking a decision on relaying completely on other one s opinion may not result well. The risk appetite of the investor should be taken into consideration while taking a decision. So the awareness of investors towards investment in various avenues is a mandatory need. Protection of investor is possible through investor awareness and the best possible way to achieve that is through financial literacy. Therefore, the investors are need to be very knowledgeable, cautious and adoptable to changing conditions of market scenario well before making any types of investment. newlineThe most important quality of equity fund is, it can be diversified instantly. Investing in equity funds is always very easy process and less expensive in nature than to buy the stock in the fund s portfolio. These funds are usually very cheap as compared to others. The burden higher transaction costs and the lower liquidity problem attached to the individual stock trading are avoidable in case of equity fund investment. These funds also offer the services of a professional who watches and acts on the market on behalf of the investor, handle the trading decision and determine the asset allocation. The investors are said to be aware of the investment in equity fund only if they know all the pros and cons, positive and negative effects and impact of equity investment, its usability, procedure and process of investment and moreover about the analysis to reach at a decision. There is a need for confidence building among the mass investors in capital market. Regular investing in equity funds is the best way to make money. newlineix newlineInvesting through mutual fund route is the best idea of the investor is having sufficient time and expertise regarding. newlineThe Indian corporate finance and equity fund in Indian corporate sector both play a very sensitive role in developing the economy directly and indirectly at their level best by giving back to back performances. The history of equity fund shows that from the year 1963 to till today these funds are seen increasing their demand and popularity by the return and trust worthy habits. The categories of equity fund available in market give opportunities to various investors to invest as per their choices and risk appetite. Moreover the advantages of equity fund investment always encourage investors for investment where as certain issues are also associated to this which show its demerits to certain extent. Role of Securities and Exchange Board of India is also very phenomenal here. With active support and protecting investor s investment it plays a dignified role and increases the growth and sustainability of stock market. Hence overall growth of equity funds sector is increasing and if it will result in this way regularly then its demand will be more and people will not hesitate to invest here in future.