Investors’ Behavior of Equity Investment: An Empirical study of Individual Investors

Abstract

Expected utility theory views individual investment decision as a trade-off between immediate consumption and future one. Individuals maximise their utility based on classic wealth criteria making a choice between consumption and investment though time. Individuals do not always follow the classical theory of economics. Recent theories of Investment behavior show that investors do not behave rationally, rather several factors influences the investment decision. The study is based on the responses of equity investors selected by convenience sampling method in the cities of Vadodara and Ahmedabad. This study considers the theory of irrationality and of individual investors and investigates the factors that influence the Investment Behavior for Equity investment. Various statistical tools were used for data analysis purpose. The analysis showed that the investors are very conscious about their investment. The stagnant mode of share market in current time period affected a lot to the investment decisions of individual investors.