EXAMINATION OF FACTORS AFFECTING INVESTORS DECISIONS IN INDIA WHILEINVESTING IN STOCKS AND MUTUAL FUNDS

Abstract

This study investigates the variable influencing the investment decisions of Indian investors .The aim is to examine the factors that affect their choices when purchasing stocks and mutual funds.Apart from a single dependent variable—the investor's decision—six independent factors were taken into account: risk factor, return factor, flexibility, awareness, financial literacy, and protection of investor's interests. Previous studies were also analysed. On the basis of the conceptual framework, hypotheses were developed.primary data were employed in the study's analysis. A well-structured questionnaire was created for the primarydata analysis. On each independent and dependent variable, three Likert scale questions were asked, and a few extra questions were constructed for general discussion. A total of 110 people took part in the survey. Cronbach Alpha and Regression analysis were the two statistical methods employed in’ this investigation. Microsoft excel software was used’ to do the computations for these tools. The Cronbach alpha test was used to determine the questionnaire's reliability.. With a Cronbach alpha of 0.866, the questionnaire was found to be quite reliable. Out of the four hypotheses, only three were found to be true. It was found that the rejection of the variables of attitude, flexibility, and investor interest protection had occurred. There was a time and sample constraint on this investigation's core data collection. This research will aid investors in making investing decisions in the future. Future researchers can use this work as a reference and collect additional samples for their research.