Factors Affecting Stock Selection Decisions: Case of Retail Investors of Delhi-NCR

Abstract

The study is an attempt to decipher the key factors considered by retail investors in Delhi-NCR region while selecting a stock and also attempted to inspect whether there are significant linkages between demographic characteristics of respondents and different principal factors considered important or pivotal by them. To fulfill the motive of the research paper, data was collected from 100 retail investors in Delhi-NCR and data analysis was executed with the help of factor analysis and One-way ANOVA. Findings of the study indicated that Accounting Information, Firm Image, Personal Needs, Neutral Information and Advocate Recommendation. Study also concluded that importance accorded to each important factor differed across respondents in terms of demographic features like age, education, income and experience.