Strategic model for analysing risk and return to the average investors

Abstract

The economic liberalization in India leads to the development of financial market newlineboth in size and value. The economic development of the nation depends upon the newlinesavings and investment pattern of households. The economy also transited from savings newlineeconomy to investment economy. The investment opportunities available in India have newlinebeen growing in the recent past. After reviewed the existing literature clearly it indicates newlinethat the previous studies focused only awareness about investment avenues, perception newlineabout various forms of investment, the choice of investment avenues and factors newlineinfluencing investment. Only a very few research studies focus on investors attitude newlinetowards risk and their perception about risk and return, classification of investor as risk newlineaverse and risk takers as well as strategies for analyzing risk and return. The objectives newlineof the study includes to study the socio-economic, investment profile of the respondents, newlineto study average investor s awareness on various investment opportunities, to study newlineaverage investor s attitude towards risk on investment and classify them into risk averse newlineor risk takers, to examine the average investor s preference for making an investment, to newlineanalyses the factors that influences the perception of average investors towards risk and newlinereturn. The study area covered the four taluks of Kanyakumari district.Sample size for newlinethe study is 600 average investors. Data has been collected by using both primary and newlinesecondary data. Two major sampling techniques, probability sampling and non newlineprobability sampling is used in this study. Inferences were drawn based on descriptive newlinestatistical analysis and inferential statistical analysis using the statistical techniques such newlineas chi-square test, one way ANOVA, discriminant analysis and multiple regression newlineanalysis were used and Structural Equation Modeling (SEM) using AMOS were framed newlineto suggest a model on the factors influencing the behaviour of investor. The thesis newlinecomprises of six chapters,the first chapter deals with introductio