A Study on Investment Behavior of Investors towards Shares and Mutual Funds in Post Demonetization Period

Investment in share market seems to be risky proposition for many investors but staying away from it also not a wise decision. Investment behavior is a potential topic to be researched to comprehend the likes and dislikes of retail investors. Many studies related to investment behaviour in India revealed that substantial portion of the investors prefer conventional investment avenues like bank deposits, life insurance policy, post office savings scheme etc., Immediately after the announcement of demonetization the banks are flooded with cash deposits, as a result the interest rates of the banks have shown drastic decrease. Many investors are seeking for new avenues of investment like equity shares and mutual funds. Hence this paper tried to make an analysis of investment behavior of investors towards shares and mutual fund in post demonetization period. Risky investment, less safety in case of equity shares and Risky investment, low rate of return in case of mutual funds are found to be the major reasons which forbid the investors from capital market investments.