An empirical study on influential factor of investors’ investment towards futures and options trading in India

The investor’s understanding about their investment towards various avenues have been changed in past few decades. The investor in the early days use to invest in fixed deposits and recurring deposits and later when the mutual funds were introduced many investors referred mutual funds because there turn was comparatively higher than Fixed deposit and Recurring deposit,later when the investors were looking for higher return than mutual funds, they started investing in stock market. Many of the investors were ready to take risk for higher return. Even though the risk-taking behavior have significant difference between different age group. The investors started investing in options and futures for different purpose, namely for risk management, for high return, arbitrage etc. even though the investors lack knowledge in derivatives they tend to take decision through friends or brokers. But different age groups of people have effect of different key factors on their investment to the stock market. Therefore, this study is required to understand the influential factors of investors’ investment, awareness and risk towards options and futures trading in India. The result of the study determined that there is association among the demographic profile of the respondents, risk, awareness, and key factors of investment towards futures and options trading in Indian stock market.