A STUDY ON PRE-INVESTMENT DUE DILIGENCE BY CAPITAL MARKET INVESTORS OF MUMBAI SUBURBAN AREA

Due diligence is a process of verification and investigation of an investment (such as shares, mutual funds etc.) to confirm the facts and financial information about a company. The present study is an attempt to find out the due diligence of investors before investing into capital market. For the purpose of this study, data is collected from 73 respondents of Mumbai Suburban area who invest in capital market. The data makes it clear that most of the capital market investors invest in equity and mutual funds. Their motive/purpose of investment is to earn higher returns followed by second income. Before investing into capital market, the investors collect information (due diligence) from Annual reports of company, followed by Publications in newspaper/ electronic media and published report from research agencies. Key Words: Investment, Capital Market, Due Diligence, Retail investors