EXECUTIVE SUMMARYBehaviour of an individual investor in stock market in India have created

impressive signs , as they belong to different occupations an income levels i.e.

from upper class to middle class income group. Nowadays even women are

interested in stock markets. Some of them have knowledge of stocks. Most

financial theories are based on the idea that everyone takes careful account of

all the available information before making investment decisions. But there is

much evidence that this is not the case.

Behavioural finance, a study of the markets that draws on psychology, is

throwing light on why they do not buy stocks at all. This research on investor’s

behaviour helps to explain the various ‘market anomalies’ that challenge

standard theory. It is emerging from the academic world and beginning to be

used in money market.

Therefore our study is to find out the behaviour of individual investor and the

factors influencing their investment decision.

Savings forms an important part of the economy of any nation. With the savings

invested in various options available to the people, the money acts as the driver

for the growth of the country. The Indian financial scene to present investor’s

avenues. Though certainly not the best or the deepest market in the world. , it

has reasonable option for an ordinary man to invest his savings.

One needs to invest and earn return on their idle resources and generate a

specified amount of money for a specific goal in life and make provision for

uncertain future one of the important reasons why one need s to invest wisely is

to meet the cost of inflation. Inflation is the rate at which cost of living

increases. The cost of living is simply what it cost to buy the goods and services

you need to live. inflation cause need to lose value because it will not buy the

same amount of goods or service in future as it does now or did in past . The

sooner one starts investing is the better. By early investments you allow them

more time to grow, whereby the concept of compounding increases your

income, by accumulating the principle and the interest or dividend earned on it

year by year.

Three golden rules for investors:

Invest early

Invest regularly

Invest for long term and not for short term.

Various investment avenues available in India:

Safe/low risk avenues:

Savings account

Bank fixed deposits

Public provident fund

National savings certificate

Post office savings

Government securities

Moderate risk avenues:

Mutual funds

Life insurance

Debentures

Bonds

High risk avenues:

Equity share market

Commodity market

FOREX market

Traditional avenues:

Real estate (property)

Gold/silver

Chit fund

Emerging avenues:

Virtual real estate

Hedge funds and private equity investment

Art and passion