A COMPREHENSIVE STUDY ON RETAIL INVESTORS' PREFERENCES TOWARDS EQUITY INVESTMENTS: FACTORS INFLUENCING DECISION-MAKING-INDIAINFOLINE LTD.

Abstract

Retail investors play a significant role in the growth and development of capital markets by providing liquidity and contributing to market efficiency. Equity investment has emerged as one of the most preferred investment avenues among retail investors due to its potential to generate higher returns and facilitate long-term wealth creation. However, investment decisions are influenced by various factors such as risk perception, return expectations, financial literacy, market information, economic conditions, and individual behavioral biases. Understanding these factors is essential for financial institutions, policymakers, and market participants to promote informed investment practices. This study aims to examine the preferences of retail investors towards equity investments and identify the key factors influencing their investment decision-making process. The research analyzes investor behavior concerning investment objectives, risk tolerance, investment horizon, sources of information, and awareness of stock market operations. It also explores the impact of demographic variables such as age, income, education, occupation, and investment experience on equity investment preferences. The study is based on both primary and secondary data collected through structured questionnaires, financial reports, research articles, and market publications. Statistical tools are employed to analyze investor preferences and evaluate the relationship between influencing factors and investment decisions. The findings reveal that expected returns, company performance, market trends, risk appetite, and financial knowledge significantly affect equity investment choices. Furthermore, technological advancements and the availability of online trading platforms have enhanced retail participation in equity markets