ABSTRACT

Investment in stock market has become a common phenomenon for all the individuals.  The growth of stock market contributes to national economic growth only when this growth translates into increased mobilization of resources, return from investment, and minimizing the risk attached to stock market investment.  This survey has been conducted to find out the stock market investment pattern and risk diversification of retail equity investors.  A well structured questionnaire which is pilot tested is utilized to collect the data from investors.  The study is restricted to Chennai city alone.  The investors are selected randomly with the aid of stock broking firms.  The analysis is divided into two parts.  The profiles of the investors are examined through percentage analysis and in the second part their perception towards the reason for investment in stock market.  The scrutiny of the perception exhibits the main reason for investment in stock market is Return on Investment, liquidity and tax benefits.  The technological development, the ease of marketing and trading are not under the main purview of their decisions.  The strategy adopted to eliminate or minimize their stock market investment risks are risk diversification, avoiding investment in risk area and portfolio investment. The policy makers and the corporate should give importance for the findings of the study and consider the priority of the investors before taking any major decision.

Key words:  Sensitivity, Investors, Stock Market, Investment, Reason for Investment