A study on Investors Preferences towards various investment avenues in Capital Market with special reference to Derivatives

Abstract

In India, generally all capital market investment avenues are perceived to be risky by the investors. But the younger generation investors are willing to invest in capital market instruments and that too very highly in Derivatives segment. Even though the knowledge to the investors in the Derivative segment is not adequate, they tend to take decisions with the help of the brokers or through their friends and were trying to invest in this market. This study was undertaken to find out the awareness level of various capital market instruments and also to find out their risk preference in various segments. This Study Intends 1) to find our the preference level of investors on various Capital Market instruments 2) to find out the type of risk which are considered by the investors 3) to find out the ways through which the investors on various minimizes their risk 40 to find out the preferences of Investors in derivatives market. About 100 samples were collected from Chennai city from various investors  through a structured questionnaire and awareness about derivatives and the investor risk preference in an elaborate way.