Your SlideShare is downloading. ×
17vol2no2
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Introducing the official SlideShare app

Stunning, full-screen experience for iPhone and Android

Text the download link to your phone

Standard text messaging rates apply

17vol2no2

133
views

Published on

Published in: Economy & Finance

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
133
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563 Vol. 2 No.2, April 2012 A Study on the Individual Investor Behavior with Special Referance to Geojit BNP Paribas Financial Service Ltd, Coimbatore. Gnani Dharmaja .V, Mechanical Engineering Psg College of Technology, Coimbatore, India Ganesh .J, Electrical and Electronics Engineering, PSG College of Technology, Coimbatore, India Dr. Santhi .V Department Of Humanities Psg College of Technology Coimbatore, IndiaABSTRACTResearch in behavioral finance is relatively new. Within Most financial theory is based on the idea that everyonebehavioral finance it is assumed that information takes careful account of all available information beforestructure and the characteristics of market participants making investment decisions. But there is much evidencesystematically influence individuals’ investment decisions that is not the case. Behavioral finance, a study of theas well as market outcomes. According to behavioral markets that draws on psychology, is throwing more lightfinance, investor market behavior derives from on why people buy or sell the stocks they do - and evenpsychological principles of decision making to explain why they do not buy stocks at all. This research onwhy people buy or sell stocks. The research we have investor behavior helps to explain the various marketdone was on the topic “Factors Influencing the anomalies that challenge standard theory. It is emergingIndividual Investor Behavior”. The study aims at from the academic world and beginning to be used inidentifying the most and the least influencing factors of money management.the individual investor behavior. The project is based ondescriptive research design. The data was collected with OBJECTIVES OF THE STUDYthe help of a questionnaire. The questionnaire includedthirty items that belong to five categories: self- Primary Objectiveimage/firm-image co-incidence, accounting information, To study the various factors influencing theneutral information, advocate recommendations and investment behavior of individual investors.personal financial needs. The sample size considered for Secondary Objectivethe study was 200 wherein all the samples were investors To study the impact of the self-image/firm image co-of GEOJIT BNP PARIBAS FINANCIAL SERVICE LTD, incidence on the investor behavior.COIMBATORE. The tools used for the analysis include To identify the influence of the accountingChi-Square Test. The analysis was divided into 2 phases information on the investor behavior.which are Personal Factors and Behavioral Factors. The To find out the effect of the factors related to neutralstudy revealed that accounting information is the most information on the investor behavior.influencing group of the individual investor behavior and To analyze the impact of the advocateneutral information is the least influencing group of the recommendation on the investor behavior.individual investor behavior. It was found that there are To interpret the effect of the factors related toalso some behavioral factors like the investor’s financial personal financial needs on the investor behavior.tolerance, emotional risk tolerance and financial literacy To study the investment pattern of the investors basedwhich influence the investor’s behavior. Based on the on their risk taking abilities.analysis Suggestions for improvement are provided. To study the investment time horizon of the investorsINTRODUCTION based on their personal profile.Factors influencing investor behavior: SCOPE OF THE STUDY Research in behavioral finance has important applications. A better understanding of behavioral processes and outcomes is important for financial planners because an understanding of how investors generally respond to 243
  • 2. IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563 Vol. 2 No.2, April 2012market movements should help investment advisors devise Data were collected through both primaryappropriate asset allocation strategies for their clients. and secondary data sources. Primary data was For companies, identifying the most collected through questionnaires.influencing factors on their investors’ behavior would Questionnaire Designaffect their future policies and strategies would affect their Proper care has been taken to ensurefuture financial plans. that the information needed match the objectives, whichFor government, identifying the most influencing factors in turn match the data collected through theon investors’ behavior would affect the required questionnaire. The basic cardinal rules of Questionnairelegislations and the additional procedures needed in order design like using simple and clear words, the logical andto satisfy investors’ desires and also to give more support sequential arrangement of questions has been taken careto market efficiency. of. The research can help guide portfolio allocation Secondary Datadecisions, both by helping us to understand the kinds of Secondary data consist oferrors that investors tend to make in managing their information that already exists somewhere, have beenportfolios, and also by allowing us to understand better collected. Secondary data is collected from companyhow to locate profit opportunities for investment websites, other websites, company fact sheets, magazinesmanagers. Beyond this, understanding the psychological and brochures.foundation of human behavior in financial marketsfacilitates the formulation of macroeconomic policy and Statistical Tools The statistical tools used for thisthe devising of new financial institutions. analysis are:RESEARCH DESIGN Mean Score Values Mean score values has been calculated forThe research design that is adopted in this study is the different scales used to find the perception anddescriptive design. Descriptive research is used to obtain satisfaction level of investors.information concerning the current status of the Mean score value Analysis is calculatedphenomena to describe, "What exists" with respect tovariables or conditions in a situation. The focus of this bystudy was on revealing the various factors influencing theindividual investor behavior. No. of Respondents Thus it involves Statement of the problem, x Score value (1)Identification of information needed to solve the Total No. of Respondentsproblem, Selection or development of instruments for Chi – Square Testgathering the information, Identification of target Chi – Square test is a non-parametric testpopulation and determination of sampling procedure, of statistical significance for bi-variant tabularDesign of procedure for information collection, analysis. A non-parametric test, like chi square, is aCollection of information, Analysis of information andGeneralizations and/or predictions. rough estimate of confidence.SAMPLING DESIGN Chi-square is used most frequently to test the statistical significance of results reported in bi-Population variant tables and interpreting bi-variant tables is The population for this study is investors of integral to interpreting the results of a chi-squareGeojit bnp paribas financial services limited in test.Coimbatore city. Null Hypothesis ( H0 ) The hypothesis, or assumption, about aSampling Technique population parameter we wish to test, usually an The sampling technique used is nonprobability convenience sampling. The sample frame for assumption of the status quo.this study is the company’s database of Coimbatore city Alternative Hypothesis (H1)(finite universe) The conclusion we accept when the data Survey Method fail to support the null hypothesis. Research design includes selectingappropriate data collection method. It can be Statistical Testobtained by primary data or secondary data. The Chi-Square test:-primary data is the Questionnaire collected through (2)Direct Personal Interview. Sample Size Degrees of freedom = (R-1) (C-1) The sample size for this study is 200investors of Geojit bnp paribas financial services Where, O = Observed Frequencylimited of Coimbatore city out of entire population E = Expected Frequency2048 which consists of 10% of the population. R = Number of rows Sample Unit C = Number of columns The individual investors of Geojit bnp paribas To find Efinancial services limited were the target respondent Expected Frequency = (Row Total ×groups from which the data were collected. Column Total) / Grand Total (3) Sources of Data 244
  • 3. IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563 Vol. 2 No.2, April 2012Level of Significance A value indicating the percentage ofsample values that is outside certain limits,assuming the null hypothesis is correct, that is, theprobability of rejecting the null hypothesis iscorrect, that is, the probability of rejecting the null TABLE 2hypothesis when it is true. Educational Qualification Standard of InvestorsANALYSIS AND INTERPRETATION S.NO NO OFThe factors are analyzed under the following broad QUALIFICATION RESPONDENTS PERCENTAGEphases: 1 School level 32 16 2 Under Graduate 84 42PHASE I : Personal Factors 3 Post Graduate 64 32PHASE II: Behavioral Factors 4 Others 20 10 Total 200 100PHASE IPersonal Factors Source: Primary Data This phase includes the personal details of The table2 shows that out of the 200 respondents,the investors. The factors considered are gender, nearly 16% of the investors have school levelqualification, work status, income and life stage. education whereas 42% are under graduates, 32% are postgraduates and 10% of them have completedPHASE II other level of education like diploma and chartedBehavioral Factors accountancy. In this particular phase the responses for CHART 2the various behavioral factors of the investors that QUALIFICATION STANDARD OF THEhave been considered in the questionnaire have INVESTORSbeen analysed. The investors’ financial resources,emotional risk tolerance, financial literacy leveland various other factors have been analyzed in thisphase.PHASE I: PERSONAL FACTORSGENDER DISTRIBUTION OF THEINVESTORS TABLE I WORK STATUS OF THE INVESTORSS.N GENDER NO OF INVESTORS PERCENTAGE TABLE 3 O WORK NO OF 1 S.NO STATUS RESPONDENTS PERCENTAGE Male 180 90 2 1 Own Business 76 38 Female 20 10 2 Pvt company employee 28 14 Total 200 100 3 Govt Servant 16 8 4 Student 10 5 5 Retired 56 28Source: Primary Data 6 Others 14 7 The table1 indicates that out of the total Total 200 100respondents, 90% were male and 10 % werefemale. Majority of the investors are male. Source: Primary Data The table 3 shows that out of the 200 CHART 1 respondents, nearly 38% of the investors are doing their own business whereas 14% are private GENDER DISTRIBUTION OF THE INVESTORS company employees, 8% are government servants, 5% are students, 28% are retired persons and 7% of the investors where included in others category which comprises house wives and full time investors. 245
  • 4. IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563 Vol. 2 No.2, April 2012 CHART 3 WORK STATUS OF THE INVESTORS INVESTMENT TIME HORIZON OF THE INVESTORS TABLE 5S.NO INVESTMENT TIME Source: Primary Data HORIZON NO OF PERCENTAGE From the table5 it is found that 22.5% of the RESPONDENTS 1 Less than 1/2 year 45 22.5 investors are very short term investors with the 2 Between ½ to 1 years 54 27 3 Between 1 to 2 years 39 19.5 investment time horizon less than 1 year, 27% 4 Between 2 to 3 years 40 20 of the investors are investing for the time 5 More than 3 years 22 11 period between 1 to 2 years, 19.5% of the Total 200 100 respondents invest between 2 to 5 years, 20% of them invest between 5 to 10 years and only 11% of them are investing for more than 10 years. CHART 5 INVESTMENT TIME HORIZON OF THE LIFE STAGE OF THE INVESTORS INVESTORS TABLE 4 NO OF S.NO STAGES OF LIFE RESPONDENTS PERCENTAGE 1 Below 25yrs 20 10 2 Early adulthood(25- 34yrs) 44 22 3 Middle adulthood(35- 49yrs) 60 30 4 Empty Nesters (50+yrs) 76 38 Total 200 100 Source: Primary Data From the table4 it is found that 10% of the investors are single, 20% are under early adulthood, another 20% of the respondents are INCOME OF THE INVESTORS under middle adulthood and 22% are empty nesters in 50+ years and 28% are retired persons. It shows TABLE 6 that the majority of the respondents are retired S.NO NO OF persons. INCOME RESPONDENTS PERCENTAGE 1 < Rs.10000 80 40 CHART 4 2 Rs.10000 – Rs.20000 80 40 LIFE STAGE OF THE INVESTORS 3 >Rs.20000 40 20 Total 200 100 246
  • 5. IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563 Vol. 2 No.2, April 2012 TABLE 8 EMOTIONAL RISK NO OF Source: Primary Data S.NO TOLERANCE RESPONDENTS PERCENTAGEFrom the table6 it is understood that 40% of 1 Very conservative 36 18investor’s have income < Rs 10000 per month, 2 Moderately conservative 78 3940% of investor’s have a income between Rs.10000 3 Moderate 48 24– Rs.20000 per month, 20% have a income of 4 Moderately Aggressive 38 19above 20000 per month. 5 Very aggressive 0 0 CHART 6 Total 200 100 INCOME OF THE INVESTORS Source: Primary Data 18% of investor’s are very conservative in their investments, 39% of the respondents are moderately conservative, 24% of the respondents are moderate risk takers, 19% are moderately aggressive and no respondents are very aggressive towards their investments.FINANCIAL TOLERANCE LEVEL OF CHART 8THE INVESTORS EMOTIONAL TOLERANCE LEVEL OF THE TABLE 7 INVESTORS FINANCIAL NO OFS.NO TOLERANCE RESPONDENTS PERCENTAGE 1 Pessimist 36 18 2 Neutral 120 60 3 Optimist 44 22 Total 200 100Source: Primary Data 18% of investor’s are pessimist intheir attitude towards their financial resource,60% are neutral and 22% are optimist in their RANKING OF THE RISKS OR EVENTSattitude. THAT THE INVESTOR FEAR OR REGRET THE MOST CHART 7 TABLE 9FINANCIAL TOLERANCE LEVEL OFTHE INVESTORS S.NO RISKS OR EVENTS MSV RANK 1 A loss of principal over a period of 1 year or less 2.56 IV 2 A rate of inflation that exceeds the rate of return over the long term 2.64 V 3 Portfolio performance that is insufficient to meet the goals 3.64 I 4 Portfolio performance that is consistently less than industry benchmarks 3.36 II 5 A missed investment opportunity that could have yielded higher returns over the long term 2.8 III Source: Primary DataEMOTIONAL TOLERANCE LEVEL OF The risks or events that the investor fear or regretTHE INVESTORS the most is for the Portfolio performance that is insufficient to meet their goals. The other risks or 247
  • 6. IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563 Vol. 2 No.2, April 2012 events includes portfolio performance that is NEUTRAL INFORMATION MSV RANK consistently less than industry benchmarks, a Recent price movement in a missed investment opportunity that could have 3.98 1 firm’s stock yielded higher returns over the long term, a loss of Current economic indicators 3.7 2 principal over a period of 1 year or less, a rate Fluctuation/developments in the of inflation that exceeds the rate of return over 3.68 3 stock index the long term. Statements from government CHART 9 3.36 4 officials RANKING OF THE RISKS OR EVENTS Information obtained from the THAT THE INVESTOR FEAR OR REGRET 3.34 5 internet THE MOST Coverage in the press 3.14 6 A missed investment opportunity that could have yielded higher returns over the long term 2.8 Government holdings 3.12 7 Portfolio performance that is consistently less OVERALL MSV = 3.474 than industry benchmarks 3.36 Risks or Events Portfolio performance that is insufficient to meet the goals 3.64 Source: Primary Data The most influencing factors under neutral A rate of inflation that exceeds the rate of return over the long term 2.64 information is the recent price movement in a A loss of principal over a period of 1 year or firm’s stock (MSV 3.98) whereas the least 2.56 less influencing factors include Coverage in the press (MSV 3.14) and Government holdings (MSV 3.12) in the company. 0 1 2 3 4 MSV FINANCIAL LITERACY LEVEL OF THE CHART 11 INVESTORS ANALYSIS OF FACTORS UNDER NEUTRAL TABLE 10 INFORMATION FINANCIAL NO OFS.NO LITERACY LEVEL RESPONDENTS PERCENTAGE1 Low 19 9.52 Medium 122 613 High 59 29.5 Total 200 100 Source: Primary Data 9.5% of investor’s are low in their financial literacy score, 61% of the respondents are under medium literacy level and 29.5% of the respondents are having high financial literacy score. CHART 10 FINANCIAL LITERACY LEVEL OF THE INVESTORS ANALYSIS OF FACTORS UNDER ADVOCATE RECOMMENDATION TABLE 12 ADVOCATE RECOMMENDATION MSV RANK Friend or coworker recommendations 3 1 Opinions of the firm’s majority stockholders 2.96 2 Broker recommendation 2.92 3 Family member opinions 2.88 4 Source: Primary Data OVERALL MSV = 2.94 ANALYSIS OF FACTORS UNDER NEUTRAL INFORMATION The most influencing factor under TABLE 11 advocate recommendation is the Friend or 248
  • 7. IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563 Vol. 2 No.2, April 2012coworker recommendations (MSV 3) whereas ANALYSIS OF FACTORS UNDER SELF-broker recommendation (MSV 2.92) and IMAGE/FIRM-IMAGE COINCIDENCEfamily member opinions (MSV 2.88) are theleast influencing factors. CHART 12 ANALYSIS OF FACTORS UNDER ADVOCATE RECOMMENDATION ANALYSIS OF FACTORS UNDERANALYSIS OF FACTORS WITHIN THE ACCOUNTING INFORMATIONGROUPS TABLE 14ANALYSIS OF FACTORS UNDER SELF-IMAGE/FIRM-IMAGE COINCIDENCE ACCOUNTING INFORMATION MSV RANKTABLE 13SELF-IMAGE/FIRM- Condition of financial statements 4.1 1 MSV RANKIMAGE COINCIDENCE Dividends paid 4.08 2Organized financial markets 3.98 1Perceived ethics of firm 3.98 2 Past performance of the firm’s stock 4.06 3Reputation of the firm 3.84 3 Expected Dividends 3.98 4Feelings for a firm’s 3.7 4products and services Expected corporate earnings 3.88 5Gut feeling on the economy 3.68 5Firm status in industry 3.58 6 Stock Marketability 3.65 6Reputation of the firm’s Affordable share price 3.62 7 3.32 7shareholders“Get rich quick” 3.08 8 Source: Primary DataIncrease of the firm’sinvolvement in solving 2.92 9 OVERALL MSV = 3.912community problemsReligious reasons 2.26 10 Condition of financial statements (MSVSource: Primary Data 4.1) is being considered as the most influencingOVERALL MSV = 3.43 attribute under the factor accounting information whereas Stock Marketability (MSV 3.65) and Organized financial markets (MSV 3.98) Affordable share price (MSV 3.62) are the leastis being considered as the most influencing factors influencing factors.on the investor behavior under the factor self- Source: Primary Dataimage/firm-image coincidence whereas Increase ofthe firm’s involvement in solving community OVERALL MSV = 3.912problems (MSV 2.92)and Religious reasons (MSV2.26) are the least influencing factors. Condition of financial statements (MSV 4.1) is being considered as the most influencingCHART 13 attribute under the factor accounting information 249
  • 8. IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563 Vol. 2 No.2, April 2012whereas Stock Marketability (MSV 3.65) andAffordable share price (MSV 3.62) are the leastinfluencing factors.CHART 14ANALYSIS OF FACTORS UNDERACCOUNTING INFORMATION Source: Primary Data Calculated value = 13.186 Table value = 16.919 Therefore by using the chi-square for the above given table, it is found that the calculated value is less than the tabulated value. So, Ho is accepted. 1.Chi- square calculation for education and relation between employee and management. FINDINGS Majority of the investors (39%) are moderately conservative and 18% of investor’s are very conservative in their investment, and no respondents are very aggressive towards their investments. Majority of the investors (27%) are short term investors with the investment time horizon between 1 to 2 years. There is no significant relationship between Emotional Risk Tolerance and Gender of the investor. There is a significant relationship between Emotional Risk Tolerance and Work Status of the investor.Source: Primary Data There is a significant relationship between Emotional Risk Tolerance and Life stage of the investor.Ho : there is no relationship between the job There is no significant relationship betweensatisfaction and age. Emotional Risk Tolerance and Income of the investors.H1 : there is a relationship between the job There is no significant relationship betweensatisfaction and age. Emotional Risk Tolerance and Financial resource tolerance of the investors. There is no significant relationship between ( Oi – Ei ) Financial Literacy Level and Emotional risk tolerance Chi-square ∑ = of the investors. Ei There is no significant relationship betweenLevel of significant = 5% Investment Time Horizon and Gender of the investor.Degree of freedom = (r-1) (c-1) = 9 There is a significant relationship between Investment Time Horizon and Qualification of the investor. There is a significant relationship between 250
  • 9. IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563 Vol. 2 No.2, April 2012Investment Time Horizon and Work Status of the clients.investor. They can provide specific industry reports There is a significant relationship between which gives comprehensive information onInvestment Time Horizon and Life stage of the investor. various industries. There is no significant relationship between They should devise appropriate asset allocationInvestment Time Horizon and Income of the investors. strategies for successful portfolio management There is a significant relationship between of their clients based on their life stage,Investment Time Horizon and Financial resource financial and emotional risk tolerance and theirtolerance of the investors. financial literacy level. There is no significant relationship between They have to provide customized advisoryInvestment Time Horizon and Financial Literacy Level services to help investors make the rightof the investors. financial moves that are specifically suited to their portfolio.The other findings of the study include the following: The most influencing factors were belong to The respondents belong to different socio-economic the accounting information group so the background in terms of age, sex marital status, market are required to give more attention to occupation, literacy and annual income. these factors in order to satisfy the desires of Majority of the investors (90%) are male. their investors and also to attract more Majority of the investors (42%) are under graduates. investors to deal with their stocks. Majority of the investors (38%) are doing their own The listed companies should provide proper business. accounting information to the public since it is The respondents are under different stages of life and the most influencing factor and they have to the majority are under retired (28%) life stage. maintain good financial position. From the study it was revealed that 40% of the The companies have to declare expected investors have income of <10000 per month and dividends to their stakeholders since it is one another 40% of the investors have the income of among the most influencing attribute. Rs.10000 – Rs.20000 per month. To increase their stock marketability, they From the study it was found that majority of the need to review the relationship between the investors (60%) are neutral in their financial tolerance price and demand on their stocks frequently. and 18% are pessimist in their attitude towards their If the stock price is too high, this might make it financial resource and 22% are optimist in their difficult to sell, and one of the policies that can attitude. be adopted by companies to make it more It was found that the risks or events that the investor marketable is a stock split. fear or regret the most is for the Portfolio The companies have to build brand image and performance that is insufficient to meet their goals should maintain their status in the industry to followed by portfolio performance that is consistently get good reputation from its stakeholders. less than industry benchmarks, a missed investment They have to follow business ethics which is opportunity that could have yielded higher returns also an important influencing factor. over the long term. CONCLUSION Majority of the investors (61%) are having medium The study entitled “Factors Influencing literacy score and 9.5% are low in their financial the Individual Investor Behavior” would help the literacy score, and 29.5% of the respondents are share brokerage firms to take care of the factors having high financial literacy score. influencing their investors and can give proper SUGGESTIONS asset allocation strategy to their investors. The After analyzing the various factors listed companies can also look at the mostinfluencing the individual investor behaviour the influencing factors and can focus much on thesefollowing suggestions are made for better factors to attract the investors to invest in them.understanding of the investor behavior. The study was conducted for a Since the brokers’ recommendation is one period of 50 days. The study aimed at identifying among the least influencing factors, the the most and the least influencing factors of the company should go for in-depth research to individual investors. Convenience sampling find out the reasons for it. method was used in the study and a sample size of They should get constant feedback from the 200 investors was taken for the study. The primary investors and have to provide sound advisory data was collected through structured facilities to make the brokers recommendation questionnaire. The questionnaire included thirty- as the most influencing factor. four items that belong to five categories, namely They should give analysis about the latest self-image/firm-image coincidence, accounting stock market trends and have to take a close information, neutral information, advocate look at the various investment options, and recommendation and personal financial needs. The products available in the market to their research design that is adopted in this study is 251
  • 10. IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563 Vol. 2 No.2, April 2012descriptive design. The data collected through questionnairehas been analyzed using mean score value and chi-square test. Pie charts and bar diagrams were usedin the study for better understanding. Through this, the researcher helped thecompany to know more about the factorsinfluencing their investors and also helped to focuson those factors to provide better customer Service.Majority of the respondents are influenced by theaccounting information of the companies andadvocate recommendation is the least influencinggroup. Suggestions were also made for furtherunderstanding of the investor behavior.BIBILIOGRAPHY1. Nagy,R.A.and Obenberger,R.W., “Factorsinfluencing investor behavior”, Financial AnalystsJournal, Vol.50, 1994, pp.63-68.2. Shanthikumar,D. and Malmendier, Are smallinvestors naive?, Stanford University WorkingPaper, 2003.3. Shleifer, A, Inefficient Markets: AnIntroduction to Behavioral Finance (OxfordUniversity Press, 1999).4. Taffler,R.J., “What can we learn frombehavioral finance?”, Credit Control, Vol.23,2002,5. Blume, M.E., and I. Friend. “The ChangingRole of the Individual Investor”, John Wiley &Sons, New York, New York, 19786. LeBaron, D., G. Farrelly and S. Gula,“Facilitating a Dialogue on Risk: A QuestionnaireApproach,” Financial Analysts Journal, Vol. 45,No. 3, pp. 19-24, 1989.7. Baker, H.K., and J.A. Haslem, “Toward theDevelopment of Client-Specified ValuationModels,” Journal of Finance, Vol. 29, No. 4, pp.1255-1263, 1974.8. Benartzi, Shlomo and Richard H. Thaler(2001), “Naïve Diversification Strategies inDefined Contribution Saving Plans”, AmericanEconomic Review, Vol. 91, No. 1, March.9. Sehgal, S. (2002), “Survey Study of InvestorsBehaviour in The Indian Capital Market”, Reviewof Commerce Studies, Vol. 20-21, No. 1, January-June, p. 123. 252