RETAIL INVESTORS AWARENESS TOWARDS EQUITY INVESTMENT - WITH REFERENCE TO BHOPAL CITY

An Economy progresses further when its citizens in any capacity add to the capital formation in terms of savings and investments. This is done with the help of mutual fund investors or through the retail investors. The retail Investors in India are very few as compared to the other investors who are investing through other financial services. This paper works on the behavior pattern of the retail investors with special reference to Bhopal. The investment by these investors at time is overshadowed by the level of understanding they have about financial securities and their experiences with the stock market. The retail investors have some apprehensions regarding the working of stock market and the feeling lurks in their mind, that whatever theory says, the stock market may not work as per the fundamental analysis or even on the basis of technical analysis, which though is very explicit, yet may not reflect the true picture. The general perception by the retail investors is the market works on random events or there are certain stock giants who make the market. Keeping this in mind the research is conducted by taking into consideration five factors, which include retail investors' predictive skills, purchase price of the stock as a reference point for trading, experiences with National Stock Exchange, preference of short term investment and sticking on to looser stock and selling the winners. The study supports the given factors which reflect the behavior of these investors.