THE STUDY OF INVESTOR’S PERCEPTION TOWARDS DERIVATIVES

THE STUDY OF INVESTOR’S PERCEPTION TOWARDS DERIVATIVES

Authors: Aditi Kumari1, Dr. Anurag Saxena2

1MBA(Financial Management) Student, Galgotias School of Finance and Commerce,

adikashyap77@gmail.com

2H.O.D., School of Finance and Commerce, Galgotias University,

dean.sfc@galgotiasuniversity.edu.in

ABSTRACT

Derivatives, have an  revolutionary impact on the global financial industry, are now held in the highest regard among all other financial products. The use of derivatives in multi-party risk management is becoming increasingly common. Through the use of derivatives, risk can be shifted from those who are unwilling to bear it to those who are prepared to do so. India’s new equity derivatives market has been met with an outpouring of support and enthusiasm. The derivatives market on the NSE now handles more volume than the equity market. Investors' views on derivatives are investigated in the present research. The study relies heavily on survey responses from individual investors as its primary data source. The current study demonstrates that when deciding whether or not to invest in derivatives, investors consider various factors, including the recommendations of financial advisors and brokers, risk management, product familiarity, and stock market volatility.

Keywords: Financial Wall Street,  Stock Exchange, Derivatives, Forwards, Investor Discretion.