Behavioural Finance- Investment Pattern Among the Small Investors with Reference to Tamilnadu State

Abstract

Investment is a way for commitment of funds for future periods against a return which is adequate to induce to part with money, which is in a wide variety of contexts namely, investment in 'house' or investment in mutual funds or investments in securities and in other forms. This individually visualise a pay-off by putting their money in productive avenues. Thus is a form of postponed consumption. For example, an employee who contributes a part of his salary to buy shares, or in any others, his current consumption is curtailed and the return on shares/securities realised in future time periods would be available for future consumption. Here it is known, a person postpones his current consumption to future. Individuals are guided by "time preference theory". An investor would not invest his money if it does not yield a positive rate of return. Thus to him "turn over off' will offer larger quantity of money. The present paper find out the Behavioural finance: investment pattern among the small investors with reference to the Tamil Nadu State of selected districts. A sample of 500 respondents in Tamil Nadu State selected one hundred from each district namely, Cuddalore, Trichy, Coimbatore, Chennai, Tirunelveli on the basis of convenient sampling technique. Their investment pattern, attitude, behaviour, perception and mode of investment issues are taken as prime and necessary data colleted by direct structured interview using questionnaire. Then descriptive statistics, differential, correlation and regression analysis were applied. The results revealed that the majority of the investors are more aware of high return as well as they also give more priority for low risk.