Investor Awareness towards the Stock Market: Awareness Levels, Information Sources, and Investment Decisions

Author(s): Rahul Kumar

Abstract:

The stock market plays a pivotal role in mobilising household savings towards productive investment and in supporting the overall growth of an economy. Despite the rapid expansion of the Indian securities market, the growing reach of discount broking platforms, and aggressive investor-education campaigns run by regulators and exchanges, a large section of the population continues to remain outside the ambit of the stock market or participates with only a limited understanding of how it functions. This study, titled “Investor Awareness towards the Stock Market,” attempts to examine the extent to which individual investors are aware of stock market instruments, the sources from which they gather investment-related information, the factors that influence their investment decisions, and the challenges that deter wider participation. Primary data was collected from 100 respondents through a structured questionnaire, and the results were analysed using simple statistical tools such as percentage analysis. The study finds that while awareness of basic concepts such as shares and mutual funds is fairly widespread, awareness of derivatives, IPOs, and regulatory safeguards remains comparatively low, particularly among first-time and younger investors. The paper concludes with practical suggestions for investors, intermediaries, and regulators to strengthen financial literacy and encourage informed participation in the stock market.

keywords:
Awareness Levels, Investment Decisions, Stock Market

Pages: 55-58     |    20 View     |    3 Download