A Study on retail investors behavior

Because of the economic liberalization there is angrowth in number of investment avenues available for retail investors. They can choose investment avenues based on their risk appetite, it includes bank deposits, government or private bonds, shares and stocks, exchange traded funds (ETF), mutual funds, insurance, derivatives, gold, silver, currencies, real estate, etc. Many of the retail investors’ primary objectives of investment is to earn regular income, expected rate of return etc. The objectives differ fromindividual to individual based on their level of market knowledge and risk taking ability. The present paper studies the behavior of retail investors in Mysore city, Karnataka. The above study reveals that knowledge level significantly influences the returns on the investments and there is no correlation between the occupation of retail investor and the level of risk.