Investors commonly perform investment decision by making use of fundamental analysis technical analysis and judgment. It is assumed that information structure and the factors in the market systematically influence individuals investment decisions as well as market outcomes. Individual Equity Investor makes market behavior derives from psychological principles of decision making to explain why people buy or sell stocks. These factors will focus upon how investors interpret and act on information to make investment decisions.

1. A PERCEPTION OF AN
INDIVIDUAL EQUTIY INVESTOR

2. Introduction on Perception of
Individual equity investor
 Investors commonly perform investment
decision by making use of fundamental analysis
technical analysis and judgment.
 It is assumed that information structure and the
factors in the market systematically influence
individuals investment decisions as well as
market outcomes.
 Individual Equity Investor makes market
behavior derives from psychological principles
of decision making to explain why people buy or
sell stocks. These factors will focus upon how
investors interpret and act on information to
make investment decisions.

3. Attributes of Investment
 Anticipation of return: Return is the reward from
investment. It is awarded in future by bearing some level of
risk.
 Involvement of Risk: Risk exists in every investment
alternatives. Investment made at present and it’s obviously
certain, however, return is expected at future and it is
uncertain.
 Time Dimension: Time is another important factor for
investment. It is inseparable attributes of investment . Time
factor is utilized by investor using buy-and-hold.

4. Investment Environment
 The investment environment refers to
all internal and external factors affecting
investment decisions of investors.
 It includes all kinds of marketable
securities that they are bought and sold
through the brokers and financial
intermediaries.
 For examples; securities, security
markets, financial intermediaries

5. Factors To Be Considered
While Making An Investment
Decision The major factor that should be considered in making investment decisions
includes the following.
 Investment objective: Clear idea of investment objective facilities the
investor to select appropriate securities for investment.
 Rate of return: When selecting investment alternatives, an investor
should always estimate the expected rate of return of the alternatives
under consideration.
 Risk: Risk can be defined as the variability of possible returns around the
expected return on investment.
 Taxes: The government taxes most source of income received by
individuals, the tax consequences must be considered . Investor should
always considered the tax provisions before choosing the alternatives for
investment.

6. Factors To Be Considered
While Making An Investment
Decision
 Investment Horizon: The nature and types of investment
alternatives to be selected depend on the investment
horizon.
 Investment Strategies: An investor always needs to
consider strategies dealing with selection, timing and
diversification.

8. Objective:
 To find out the profit out of investment
 To minimize the risk
 To make the correct decision for investment
 To find out the possibilities of outcome after the
investment

9. Scope:
 Opportunity to get more returns on investment.
 Potential for great investment return.
 Helps to take decision on making investment smaller or large
sums of money.
 Investment managers can monitor the markets to avoid
dramatic losses .
 It makes easy to specify the type of company in which you
wish to invest.

10. Limitation:
 No guarantee of returns
 Potential loss of capital.
 long-term investment prevents early withdrawals.
 Reliance on aptitude of investment manager to make profit.
 Hidden costs and work involved, e.g. when purchasing a
property.
 Economic crises or market problems may reduce value of
investment.

12. Reference: google.com