Factors Influencing the Investment Decision of Investors in Hanumakonda District OPEN ACCESS

Investment behaviour refers to the attitude, perception and willingness of the individuals and institutions while placing their savings in various types of financial assets. Personal disposable income of the household is divided between consumption and savings. Savings may be idle or active. Savings becomes active, when it is canalized into return bearing avenues. So, the main objective of the study is to analyze the factors influencing the investment decision variables on investment behaviour of Investors in Hanumakonda district. The data is collected through structured questionnaire on simple random sampling technique and distributed to 384 investors in Hanumakonda district. It was found from the research analysis that age, educational qualification and annual income effecting the investment decision of investor’s investment avenues like equity and stocks, bonds and debentures, mutual funds, bank deposits, post office, public provident fund, life insurance, real estate, chit funds and gold/silver.


Introduction
Investment is the cost of certain present value for the uncertain future reward. In other words investment refers to assurance of funds to one or more assets that will be held over some future time period. Anything not used today but saved for future use can be termed as investment. One also needs to understand that investment is not gambling, gambling is putting money at risk by betting on uncertain outcome with the hope that you might win money. It requires arriving at number of decisions such as type, mix, amount, timing, grade etc. Moreover, such decision-making has not only to be continuous but rational too. An investment decision is a trade-off between risk and return. All investment decisions are made at a point of time in accordance with the personal investment ends and in thought of uncertain future. The daily usage of the term investment can mean a variety of things, but to the man on street it usually refers to a money assurance of some sort. Every investor differs from each other in various aspects like demographic factors, socio-economic background, marital status, educational qualification, age, gender, etc. Every investor should seek to manage one self's wealth effectively, obtaining most from it. This also includes protecting the assets from inflation, taxes and other factors.

Research Objective
• To study the factors influencing the investment decision of investors.

Research Methodology
The research is empirical in nature and sample size of 384 individual equity investors has been collected through random sampling method. Data has been collected through a structured questionnaire and primary data as well as secondary data has been used for the current study. The scaling technique is used for the questionnaire is a 5-point Likert-scale ranging from 5-Highly Important, 4-Important, 3-Neutral, 2-Slightly Important, 1-Unimportant. For analyzing the collected data effectively and efficiently to draw sound conclusions, a number of statistical techniques included Mean, Standard Deviation is used in the study. The scope of study is related to persons who are living in Hanumakonda district only.

Data Analysis Descriptive Statistics of Survey Respondents
Following table describes descriptive statistics of investors Socio-Economic Characteristics

Source: Primary Data
From the above table -1shows that total respondents are 384 among them gender frequency in percentages are 80.5% male respondents and 19.5% female respondents participated in the research. It is clear that in the research total respondents are 384 among them frequencies in number are 309 male respondents and 75 female respondents participated in the research.
It is clear among the total 384 respondents age frequencies in percentage are 20 years and below age group is 1.6%, above 21 and upto 40 years age group is 64.8%, above 40 and 60 years is 31.8% and above 60 years is 1.8%. From the table among the total 384 respondents age frequencies are 20 years and below age group are 6, above 21 and upto 40 years age group are 249, above 40 and upto 60 years are 122 and above 60 years are 7.
Among the respondents education qualification frequencies in percentages are Secondary School Education is 4.7%, Intermediate is 10.4%, Graduation is 28.6% and Post graduation is 56.3%.

Factors Influencing Investment Decision for Investors Frequencies Table
The below table gives the descriptive statistics on how different factors influencing the investment decision of investors.

Conclusion
The most effecting influencing factor for investment in stock market is stock price of that particular company. Based on the stock price the investor will take the decision whether to buy, sell or hold the particular shares in investor's portfolio. So, the most influencing factor is stock price of the share in the stock market.