The Investment Journey of Individual Investor in the Capital Market: A Qualitative Study

Abstract

This study explores the investment journey  of individual investors in the Indian capital market.  investment decision-making in the uncertainty of  the Indian capital market is a complex process. for  example, investors need to choose scripts based on  stock price movements, fundamental and technical  charts, future outcomes, current stage of the market,  etc. using immediate information. The returns from  investments are based on these complexities in the  market. The main aspects of this paper are what  prompt investors to invest in the capital market, type  and source of investment advice, investors selection  criteria, investors experience, presence of behavioural  biases, and investors’ understanding about the capital  market. Methodology: The researcher has used a  semi-structured approach of qualitative research for data collection. The sample size of this study is eleven investors with at least one year of investment experience in the capital market. The data has been  analysed using the thematic analysis approach to  find the themes. However, the research has used the  manual approach of data collection to generate codes  and themes. Findings: The results of this shows the  presence of behavioural biases in investment decision making. It also shows an understanding of the Indian  capital market, selection criteria of the investors, type,  and source of advice investors seek before investment.  Limitation: i) this study has taken the small size of  eleven investors (n=11). ii) the geographic area is restricted to Delhi only. Future Implications: the study  can be conducted with a large sample size taken from  the different geographic areas. The adoption of different  cultures across different countries can be studied to  find more generalizations of the results. Implications:  i) This study provides guidelines to new investors’ in  designing their investment portfolio.

ii) This study provides a framework of investments in the capital  market.

iii) It conveys the policymaker to improve the  investment habits of Indian investors in the Indian  capital market.