A study of impact of recession on individual investors’ behaviour

Recession is situation of adverse effect on every aspect of the economies. It was started in US in December 2007 and affected the whole economies of the world. Our Indian economy has also faced the various problems due to recession. Indian Stock Market plummet down in very appalling manner due to the upshot of recession. Keeping this thing in mind we make an attempt to study the changes in individual investor's behaviour due the changes in the situation of Indian Stock Market. Our purpose is to describe and conduct a research on what factors, investing characteristics, and decision-making processes affected individual investors during the recession period and the following period of volatile trend. This paper is divided into three parts. Part one represents introduction, review of literature, research methodology and objectives of the study. Part two reviews various facets of changes in individual investor behaviour due to effect of recession. The analysis in this paper is qualitative as well as quantitative. This study is based on information obtained from primary as well as secondary sources. This study has also focused the aspect of that whether the Indian Stock Market will be able to recover if same downfall happens again. Finally third part includes findings and conclusion of the study.