Regular price fluctuations in capital market: Investors behavior with their portfolio scenario and its impact on the market.

Abstract

Investment means to put money in any endeavor for additional income. It seems to be fascinating to many individuals because through investment they can earn more money than investing in a bank. But the profit and loss everything depends upon the individual. There can be two types of investor, one, who invest and trade by himself. Another one is one who invest and gives the permission of trading to any merchant bank. In case of individual investor price fluctuation of stocks is a common phenomenon. Investors act differently based on their age, years of experience, gender, professional degree qualification, portfolio size and etc. Investor may get biased based on behavioral psychological factors like overconfidence, herd behavior, optimistic or pessimistic, risk appetite and cognitive bias. On the other hand, decision may differ for any economic factor like, firm belief in profitability, positive or negative economic situation/impact. The study is conducted on 35 investors, listed in DSE in association with IDLC Investments Limited. Responses are collected from them and analyzed and compared based on independent and dependent variables. Responses data are run through SPSS where correlation, one-way ANOVA, mean, standard deviation, skewness, kurtosis and Cronbach’s alpha is calculated. It is seen that the young aged people are tend to be more affected than the other group of people. The most aged person tries to hold a steady trading environment so that they don’t take risky decision and do not involve in complexity. Women are more sensitive than men in case of any rumor or positive/negative economic situation. People with lot of experience show optimistic behavior and they tend to believe their own calculation rather than following others. Investors with professional degrees are the most talented people in the respective field. They value their own calculation, knowledge and gut feelings.