Investor
Summary
Investor behavior analysis is a study made on the demographics and psychographics of the investor considering the parameters like age, gender and income groups and also some psychological parameters that will attract the investor towards that particular investment. This analysis describes why an investor will opt a particular investment and the motive behind the investment and other objectives of investment.
Investment markets are becoming more risky and each and every passing day makes investors behave differently upon different market dynamics. The basic methods of market analysis (Fundamental, Technical and Quantitative) though are playing an important role in investment decisions, the behavior of the investors has become more important and hence the study “Behavioral Finance” emerging and becoming the topic of various researches and studies.
In extension to the same, this study reviews the literature on one of the most meaningful concepts in behavioural finance, the decision factors which are influenced by market movements and examines the perceptions, preferences and various investment strategies adopted by investors in the Indian stock market on the basis of a survey of 50 respondents based in across the country .The study analyses the rationality of the investors across the country during different market expectations, dividend and bonus announcements, the impact of age, income levels and other market related information on investment decisions of investors from across the country.
Keyword : investor behavior, financial decision making, behavioral finance, cognitive modeling, agent based artificial financial markets.
Introduction
There are several parameters that an investor will think before investing like return, flexibility , etc but the markets will face a question mark in knowing the pulse of an investor. So a study must be made on the demographics and psychographics of the investor such that the market can know the pulse
Investor behavior analysis is a study made on the demographics and psychographics of the investor considering the parameters like age, gender and income groups and also some psychological parameters that will attract the investor towards that particular investment. This analysis describes why an investor will opt a particular investment and the motive behind the investment and other objectives of investment.
Investment markets are becoming more risky and each and every passing day makes investors behave differently upon different market dynamics. The basic methods of market analysis (Fundamental, Technical and Quantitative) though are playing an important role in investment decisions, the behavior of the investors has become more important and hence the study “Behavioral Finance” emerging and becoming the topic of various researches and studies.
In extension to the same, this study reviews the literature on one of the most meaningful concepts in behavioural finance, the decision factors which are influenced by market movements and examines the perceptions, preferences and various investment strategies adopted by investors in the Indian stock market on the basis of a survey of 50 respondents based in across the country .The study analyses the rationality of the investors across the country during different market expectations, dividend and bonus announcements, the impact of age, income levels and other market related information on investment decisions of investors from across the country.
Keyword : investor behavior, financial decision making, behavioral finance, cognitive modeling, agent based artificial financial markets.
Introduction
There are several parameters that an investor will think before investing like return, flexibility , etc but the markets will face a question mark in knowing the pulse of an investor. So a study must be made on the demographics and psychographics of the investor such that the market can know the pulse
Bibliography: [1] Beaver, W.H. (1968). “The information content of annual earnings announcements”. Journal of Accounting Research Vol [2] Petit, R.(1972), ‘‘Dividend announcements, security performance and capital market efficiency ‘Journal of Finance, Vol. 27, pp. 993-1007 [3] Fischhoff B., Koriat A., Lichtenstein S [4] Bamber, L. S. (1986). “The information content of annual earnings releases”: “A trading volume approach”