Investors invest in shares with the objective of attaining financial benefits. This study discusses the number of merger-based investments made by investors and the number of times such investments have resulted in a loss for them. This study analyses the association between frequency of merger-based investment decisions of investors and their demographic profile. This study also tries to measure the influence of investor's awareness about mergers on their frequency of merger-based investments. This study is based on primary data. Data have been collected from equity investors in Puducherry and Chennai. The statistical tools of frequency analysis, chi-square analysis, correspondence analysis and structural equation modeling (SEM) have been applied to analyze the collected data. This study finds that investors have meagerly sustained loss due to merger announcements. This study also finds that there is a strong association between frequency of merger-based investment decisions of investors and their demographic profile. Finally, this study reveals that investor's level of awareness about mergers is strongly influencing their frequency of merger-based investments.
