To Study The Awareness And Preference Of Retail Investor With Regard To Instrument And Industries/Sectors In Indian Stock Market.

Abstract

Introduction,

The selection of different type of investment among the various avenues depends upon the financial goals of the investors. After the introduction of reforms in Indian market after 1991 interest rate on risk free asset has declined significantly and hence risk free investment is just to maintain the nominal value of investment not real investment. This has promoted the investor to think different or choose other form of investment like trading in stock exchange. However, since investment in stock market is associated with uncertainty therefore optimum allocation of available funds is most important thing while selecting risky asset as a source of investment. The best allocation of asset will be when no other asset or portfolio of asset is giving that amount of returns at that level of risk or in other word; an asset/security is efficient if it has either higher rate of return or less risk. The investment in stock market  demand a very complicated process that require skills and knowledge to time the market .but if the goal of investor is to earn higher return investor has to invest in risky asset or security .to earn more return every investor has to take more risk there is no way out. Higher the risk higher the reward. To minimize the risk and to achieve the goal so that it reflect investor preference there are series of step that investor has to take.