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