Risk perception of investors on stock market investment

The success of every country to a great extend is depends upon savings and investment. Investment decisions involve certain sacrifices for uncertain rewards. All investment opportunities may not have equal appeal to all investors. They may fail to understand and specify the objectives prior to the commitment of funds to an investment. Often, the investor perceives only the rewards associated with an investment and ignores the risks involved in it. This study is attempted to assess the risk perception of investors towards security investmet and also to identify the relationship of volume of investment and income level of investors. For this study, data are collected from 100 investors from Tirurangadi Taluk. Chi squere test and scaling techniques are used for analysis of the study. The result of the study indicate that respondents are ready to take low level of risk only.and Investment volume and income level of respondent are dependent. They are variable income instruments, fixed income instruments, derivative instruments and add on products. Variable income instruments are equity shares, preference shares, no voting right shares, cumulative convertible preference shares. So the loss from one security can be set off with the profit of another security. It may arise due to labour union problem, lack of research and development, ineffective management etc. These are controllable in nature.