Investor Behavior towards Derivative Markets in Indian Context

The behavior of retail investor’s is changing towards derivative market in India for the last few years and with the introduction of behavioral finance the researcher would like to capture that. The concept of behavioral finance is booming in the capital market, there is hardly any place where its concepts aren’t being applied. There is a need to grab more attention of the investor’s towards derivative market and draw inferences from investor’s behavior so that the derivative market can benefit and understand investor’s preference better and unravel the factors that influence the risk tolerance level of the investors. So the crux of the study will give the researcher a quantitative model reflecting the factors affecting the investor behavior in derivative market with load factors. Through this study the researchers would like to study the various factors responsible for the investment behavior in derivative market. This will not only help the asset management companies to frame there investment policy but also help the macro policy makers to frame certain policy which will encourage investors to invest in derivative market.