Abstract
This study aims at finding the influence of the source of information preferred by individual investors on their equity diversification behavior. The data of 200 individual investors investing in Indian stock markets residing particularly in Punjab has been collected through survey questionnaires. The analysis has been done by carrying out EFA andstructural equation modelling. Three factors have been extracted namely self-research, Formal and paid channels and informal channels. The study confirms that information sources used by investors to gather information while making equity diversification decisions play a significant role.
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