A COMPARATIVE STUDY ON THE PERCEPTION OF INVESTOR TOWARDS DERIVATIVES AND EQUITY

In India most of the investment avenues are termed to be risky by the investors. The major feature of investment as perceived by the investors is income stability, principal amount, liquidity, easy transferability and approval. there are a number of investment avenues available in India such as share, silver, real estate, gold, Life Insurance, Bank, postal savings, etc. The desired level of Return and the tolerance for risk help in deciding the choice of the investor. The investment may differ from provident fund, national saving certificate, chit funds, insurance schemes, company fixed deposits, government securities, bonds, equity, mutual fund schemes and derivatives. It can be concluded that every investor want to save extra, be added risk directs to more profit. This is the major reason why the perception of the investor changes when it comes to the investment in equity and derivatives. There is lot confusion in the investment patterns and the investment avenues to be decided between equity and derivatives. The present research study aims to compare the perception of investors towards derivatives and equity.