Investment Awareness in Financial Assets and Preference of Financial Intermediaries in Equities Trading

Description:

Introduction

Investment awareness in financial assets and preference of financial intermediaries in equities trading explain how investors understand different financial products and how they choose intermediaries for equity trading. People save money to meet future needs and improve financial security. Earlier, options were limited to real estate, post office schemes, and bank deposits. Today, investors can select from many financial assets based on expected returns and risk tolerance.

Financial assets include equities, bonds, debentures, derivatives, and mutual funds. Equities offer high return potential but involve higher risk. Shareholders bear profit or loss because they are owners of the company. Even though markets are volatile, equity investment supports economic growth and GDP development. Many investors remain cautious due to fear of losing their principal amount.

Financial securities are divided into negotiable and non-negotiable instruments. Negotiable securities like shares and bonds are transferable and may provide fixed or variable returns. Non-negotiable options include bank deposits, post office schemes, and tax-saving plans such as PPF and NSC. Mutual funds provide diversification and professional management. Real assets like gold and property also attract investors.

With globalization and market growth, investors now have many choices. They select financial intermediaries based on brokerage fees, service quality, technology support, convenience, and brand reputation. Understanding investor awareness and preferences helps improve participation in equity markets.

Objectives of the Study

• To assess investor awareness of financial assets such as equities, mutual funds, bonds, and derivatives.
• To analyze awareness differences across demographic segments.
• To identify factors influencing the choice of financial intermediaries.
• To compare perceptions of risk, liquidity, and returns among investors.
• To suggest improvements in investor education and intermediary services.

Research Methodology

The study follows an exploratory research design. Primary data is collected through surveys, and secondary data is gathered from reliable sources.