Investment In India Research Articles

Investor personality as a predictor of investment intention – mediating role of overconfidence bias and financial literacy

PurposeThe purpose of this study is to examine the role of personality traits (PTs) of individual investors on their investment intention (II). Further, to study the mediating role of overconfidence (OC) bias and financial literacy (FL) on the relationship between PTs and II.Design/methodology/approachThe present study uses the quantitative approach for the data collection from the sample of 327 Indian investors investing in the stock market. The questionnaire was divided into segments to assess the investor’s PTs, OC, FL and II. The PT has been measured using the Big Five Personality Traits. Confirmatory factor analysis was used to test the reliability and validity of the constructs. The hypothesis was tested using structural equation modeling.FindingsFindings of the study show that the PTs of an individual investor are associated with FL and II but insignificant with OC bias. Further, the FL and OC bias have a positive and significant influence on II. In addition, the mediation analysis showed that FL partly mediates the relationship between PTs and II.Practical implicationsThe present study is helpful for financial companies, government, personal finance advisors and individual investors; they can keep in mind the behavior-related traits that can influence the investment decisions and design the portfolio accordingly. The policy-makers can implement programs on FL to enhance investment decisions in India.Originality/valueThis paper is unique that covers the mediating role of psychological bias, i.e. OC bias and FL, between the PTs and II of an Indian investor.

A bottom-up approach for techno-economic analysis of battery energy storage system for Irish grid DS3 service provision

This paper presents a bottom-up approach for techno-economic analysis of a Li-ion battery based Energy Storage System (BESS) to provide grid ancillary services under the “Delivering a Secure, Sustainable Electricity System” (DS3) programme in the Irish market. There are two types of service procurement mechanisms that exist in the DS3 programme: volume capped and volume uncapped. A design methodology of the storage system is investigated to optimise the installed capacity and minimize the initial cost for volume capped DS3 services. Based on the real-life project assessment, three different cost models are considered to evaluate different investment indices. The goal is to assess the economic performance of BESS for different contracted capacity systems under the different operating and financial conditions. Extensive simulation and sensitivity analysis based on the Monte Carlo method have been carried out to compare the cost model outputs. The findings are expected to give a clear idea to the investors and decision-makers about the Irish DS3 ancillary service market and clarify specific concerns on the economic feasibility of BESS for DS3 services. Moreover, it discusses the risks and opportunities related to the high volatility of the system component costs. • A bottom-up approach for Techno-economic analysis of ESS to provide DS3 grid services. • A simplified optimal sizing method for a Volume Capped ESS-based DS3 providing unit. • Clarify specific concerns on the economic feasibility of ESS for DS3 Services. • Analyse the solution economic sensitivity towards equipment cost variations. • Provide a comprehensive perception to stakeholders into the Irish DS3 service market.

A retail investor’s predicament: the JPA story

Learning outcomes The case intends to achieve the following objectives with the audience: Apply the knowledge of fundamental analysis to select good companies for investment; analyse companies for investment through the contrarian strategy; and appreciate the need of own research before investing. Case overview/synopsis This case study provides an insight into the general process around investment for a retail investor. The protagonist of the case, Rajdeep Sharma, is a middle-class, salaried IT consultant from India. He has taken inspiration from Rakesh Jhunjhunwala, a renowned investor in India, and started his journey on the road to generate wealth. He decides to adopt the contrarian strategy and identifies Jaiprakash Associates Limited (JPA) to invest his savings. JPA is a large conglomerate with decades of experience, which has diversified business across multiple sectors. However, JPA’s pursuit of growth and expansion has created financial issues because of a large amount of debt it has amassed over the past few years. The company has been unable to repay its interest and principal obligations to the debt holders, making it consider a restructuring plan to meet these responsibilities. Meanwhile, Rajdeep has been optimistic about his investments but must experience excessive turmoil due to the high volatility in the company’s share prices. The case highlights the value of sound analysis, along with the impact of information on retail investors’ decision-making process. It will help prospective investors appreciate the importance of economic, sectoral and financial statement analysis before making any investments. Complexity/academic level Fundamental analysis for MBA students majoring in Finance. Supplementary materials Teaching notes are available for educators only. Subject code CSS 1: Accounting and Finance.

Duck hunter activity, success, and satisfaction on public hunting areas

AbstractBecause hunting disturbance can influence local distribution of ducks and their availability to hunters, managers often limit access to hunting areas to improve hunting success and satisfaction. Few studies have quantified the effectiveness of public area access restrictions on duck hunter activity, harvest, or hunters' satisfaction with their hunting experience. We used a cross‐over design over 6 consecutive hunting seasons (2008–2009 through 2013–2014) on State Wildlife Areas (SWAs) in northeastern Colorado, USA, to compare the effects of restricted hunting access regulations and regulations without these restrictions on duck hunter activity, harvest success, harvest levels, and satisfaction. We also considered effects of SWA types, duck abundance, temperature, precipitation, use of equipment by duck hunting parties, and, for hunter satisfaction, hunting success, hunting parties' satisfaction with ducks seen, habitat conditions, crowding from other hunters, and SWA regulations. The number of days when duck hunters had access to restricted properties was about half that on unrestricted properties, and unrestricted properties were used by about twice as many duck hunting parties, but the mean number of hunting parties per available hunting day and mean party size were similar under the 2 types of regulations. Most (56%) duck hunting parties did not bag any ducks; hunting success (harvest of ≥1 duck by a hunting party) was best explained by a model that included a regulation type × hunting season interaction, a SWA type × month interaction, hunter density the previous day, an index of hunter investment (number of decoys used and whether dogs and calls were used), and temperature. Successful hunting parties harvested 1.92 ± 1.60 (SD) ducks/hunter/day (range = 0.1–7.0); the best model predicting the number of ducks harvested per hunter in successful parties included a regulation type × hunting season interaction, a SWA type × month interaction, hunter density the previous day, an index of hunter investment, temperature, and precipitation. Overall satisfaction of duck hunting parties with a day's hunt averaged 3.62 ± 1.20 based on a rank scale of 1 (very unsatisfied) to 5 (very satisfied), and was best explained by a model that included hunting party success; hunter investment; temperature; and satisfaction with duck numbers, habitat conditions, hunting regulations, and crowding. While greatly reducing days available for hunting, access restrictions were associated with improved chances of hunting parties successfully harvesting ≥1 duck in 5 of 6 hunting seasons, and substantially greater numbers of ducks harvested by hunters in successful parties in 1 of 6 hunting seasons. Restrictions did not have a strong direct effect on hunting parties' satisfaction with a day's hunt. Uncontrolled factors, including weather and use of equipment by hunters, had important influences on hunter success, harvest, and satisfaction. Managers should carefully assess hunting activity, hunter expectations and desires, and hunting area characteristics when considering access restrictions on public hunting areas.

The Evolution of Index Investing: Past, Present, and Future

Assets under management in US-domiciled index funds have grown from about $55 billion at the end of 1995 to over $12.5 trillion in 2021. Core beta indexes based on region, size, and sectors still dominate the index landscape in 2021. Strategic (or smart) beta indexes, including those labeled value and growth, have grown in scope but still only account for less than 15% of index AUM currently. Strategic beta exchange-traded funds have become the testing grounds for new ideas and index investment products. Looking forward, we conjecture expansion in multi-factor and fixed income index products. Simultaneously, much index innovation will be hidden from public inspection with the rise of custom and direct indexing. More indexing will move from index as an investment product to index as an investment service.

The Evolution of Index Investing: Past, Present, and Future

Assets under management in US-domiciled index funds have grown from about $55 billion at the end of 1995 to over $12.5 trillion in 2021. Core beta indexes based on region, size, and sectors still dominate the index landscape in 2021. Strategic (or smart) beta indexes, including those labeled value and growth, have grown in scope but still only account for less than 15% of index AUM currently. Strategic beta exchange-traded funds have become the testing grounds for new ideas and index investment products. Looking forward, we conjecture expansion in multi-factor and fixed income index products. Simultaneously, much index innovation will be hidden from public inspection with the rise of custom and direct indexing. More indexing will move from index as an investment product to index as an investment service.

Foreign Direct Investment

Asia is in a sweet spot, thanks to the massive investments that international investors are making in Asian countries. As the surge in investments other Asian countries like Malaysia, India, Thailand and Korea too have gained from the inflow of huge dollars into their economics. This has given a boost to these economies and their capital markets. Indian stock markets have been the recipients if massive foreign investment inflows, since the middle of last year, while FII’s have been steady investors in India. Amongst the developing and transition economics of both Europe and Asia, the fastest growing ones are the biggest recipients of Foreign Direct Investment (FDI). The latter is now accepted as panacea for all types of scarcities, financial capital, technological, know-how, efficient managerial techniques, organizational skill and access to market abroad. As against portfolio investment, FDI is a source of creation of tangible and intangible assets, employment and wealth in the host economy. It may provide rents, potential spillovers and externalities that are highly beneficial to the host country’s economic growth. The globalization of activities by Multinational Enterprises together with the effort made by all kids of governments has enhanced the important of FDI, not only as a development factors by itself, but also for its close linkage with trades technology and transfer and financial frows.

ANALYSIS OF CRYPTOCURRENCY: AN ETHICAL CONJECTURE WITH REFERENCE TO INDIAN SCENARIO

A cryptocurrency is a form of digital payment that does not rely on banks to validate transactions. It’s a peer-to-peer payment system that allows anyone from anywhere to send and receive money. Digital currency is the future of finance. India has huge rapid growth opportunities in cryptocurrency adoption. The objective of the study is to understand the growth of cryptocurrency over the year and to compare the conventional investment avenues with the cryptocurrency and SWOT analysis for future prospective of cryptocurrency in India. In India around 20 million active users of cryptocurrency. From July 2020 to June 2021 cryptocurrency market raised 640%in India. During this period from total digital currency transactions from Southern Asia, 42% is coming from the Indian market which is about $10 million. A comparative analysis of conventional investment avenues with cryptocurrency shows that Indian investors still prefer to invest in conventional investment avenues. The reason behind this, a lack of information, security issues, and no regulations for cryptocurrency are seen. SWOT analysis shows that in the Indian market due to a decentralized system, no mediate intervention, low transaction cost, the worldwide accessibility adoption rate is high. The major barrier for cryptocurrency's major weaknesses and threats are highly volatile market, security threats, black marketing, no regulations, threats associated with unknown identity. Still Indian cryptocurrency market is huge, and growth is high in the future.

Bitcoin Price Forecast — A Prediction using ARIMA Model

The investors in India are pouring to cryptocurrencies in unprecedented numbers, and the trend may indeed be hazardous. Many experts say that more investors would rush to digital currency in the coming years. While this has been a cause to rejoice for the crypto-exchanges in India, which has also attracted financing from international investors, the surge is taking place in the absence of rigorous regulations from the part of central bank or the state. Due to the obvious fact of Indian government’s previous connection with cryptocurrencies, this would be particularly troublesome. Apart from the government's viewpoint, the lack of laws exposes Indian investors to further dangers. The most significant regulatory risk is that bad players may enter the market. For the time being, Bitcoin exchanges and investors appear to have taken the RBI’s new notice as a green light. This might be an oversimplification, and the magnitude of the risk, given the size of the investments, could be disastrous. Therefore, the study evaluates if the investment in bitcoins is risky or not with the ARIMA analysis to examine the price of Bitcoin in Indian Rupee up to a projected period of 20-07-2021.

Relative forelimb–hindlimb investment is associated with flight style, foraging strategy, and nestling period, but not nest type

AbstractWe investigated Dial’s 2003 hypothesis that birds that rely more heavily on flight as their primary mode of locomotion and thus invest more in their forelimbs than hindlimbs will experience selection for smaller body sizes, greater altriciality, and more complex nests. To test this hypothesis, we examined the skeletons of over 2,000 individuals from 313 species representing the majority of avian families and all major branches of the avian tree. We used the lengths of the sternal keel and long bones of the wing relative to the lengths of the leg long bones as an index of relative locomotor investment. We found that locomotor investment was predicted by flight style, foraging method, and length of nestling period, supporting Dial’s hypothesis. Soaring birds and birds with more acrobatic flight styles, birds whose foraging methods were heavily reliant upon flight, and birds whose young spent more time in the nest tended to invest more in their forelimbs relative to hindlimbs. Nest type and body size were not significant predictors of relative forelimb–hindlimb investment, however, suggesting that the relationships among flight style, locomotor investment, and life history are not as tightly intertwined as Dial originally hypothesized.

A comparison of minimum variance and maximum Sharpe ratio portfolios for mainstream investors

PurposeMotivated by the recent theoretical rehabilitation of mean-variance analysis, the authors revisit the question of whether minimum variance (MinVar) or maximum Sharpe ratio (MaxSR) investment weights are preferable in practical portfolio formation.Design/methodology/approachThe authors answer this question with a focus on mainstream investors which can be modeled by a preference for simple portfolio optimization techniques, a tendency to cling to past asset characteristics and a strong interest in index products. Specifically, in a rolling-window approach, the study compares the out-of-sample performance of MinVar and MaxSR portfolios in two asset universes covering multiple asset classes (via investable indices and their subindices) and for two popular input estimation methods (full covariance and single-index model).FindingsThe authors find that, regardless of the setting, there is no statistically significant difference between MinVar and MaxSR portfolio performance. Thus, the choice of approach does not matter for mainstream investors. In addition, the analysis reveals that, contrary to previous research, using a single-index model does not necessarily improve out-of-sample Sharpe ratios.Originality/valueThe study is the first to provide an in-depth comparison of MinVar and MaxSR returns which considers (1) multiple asset classes, (2) a single-index model and (3) state-of-the-art bootstrap performance tests.

ИНВЕСТИЦИОННАЯ ПОЛИТИКА ГОСУДАРСТВА КАК ИНСТРУМЕНТ ЭКОНОМИЧЕСКОГО РОСТА

The article defines the role of the state's investment policy as an instrument for the effective development of the leading sectors of the economy, the stable functioning of the basic infrastructure, achieving macroeconomic stability and stimulating economic growth. The object of the study is the investment policy of states. The subject of the study is the mechanisms of economic growth of the country. The purpose of the study is to identify and scientifically substantiate the role of investment policy in the economic growth of the country. A detailed analysis of the share of capital investments in GDP, the index of investments in fixed assets for 2017-2021 is presented, and the investment policy determining the state of developed countries and developing countries is also evaluated. The methods of correlation and regression analysis used made it possible to determine the relationship between real GDP, the share of industrial production in GDP and the index of investment in fixed assets in countries with a transforming economy. It is established that in the vast majority of countries, an increase in investments in fixed assets contributes to the acceleration of economic growth, and the level of economic growth determines the investment potential of countries. It is determined that the heterogeneity of the impact of investments on the level of economic growth in countries with transformational economies is due to their raw orientation, insufficient level of validity and predictability of the implemented investment policy of the state. It is proved that the investment policy of the state is an important tool for ensuring macroeconomic stability and stimulating economic growth in a recession. It is proposed to create conditions for the macroeconomic balance that contribute to the increase of business activity of enterprises due to the purposeful influence of state investment policy on economic processes by ensuring qualitative transformation and innovation of the national economy. The results obtained show that the level of influence of public investment in relation to the level of economic growth varies significantly depending on the level of development of financial institutions in the country and the infrastructure of the financial market

Effect of decisional factors on mutual funds actual purchase behaviour among Indian investors

Indian investors have always shown interest towards savings and investment. Indian economy has shown a shift of preference of investment avenues from traditional avenues like gold and other precious metals to mutual funds. Financial sector is helping Indian economy and mutual fund has emerged as one of the fastest growing sectors. Mutual funds make saving and investment simple, accessible, and affordable. Thus, it has become imperative to study mutual funds from a different angle, which is to focus on investor's perception, expectations, subjective norms and buying behaviour. This research paper is focused on the number of factors that highlights investors' actual purchase behaviour towards mutual funds. This study has included seasoned mutual fund investors as respondents from across India using survey method for collecting data. SPSS Amos 20 was used to analyse data using structural equation modelling (SEM). Results have shown that investor's subjective norms and perceived purchase risk affects purchase decision involvement. It was also found that the role of information search and information processing of mutual funds has a major impact on actual purchase behaviour of an investor.

INVESTOR RISK TOLERANCE AND PORTFOLIO MANAGEMENT: A LITERATURE REVIEW

Risk tolerance is the level of risk that an Investor believes they are willing to accept. Risk Tolerance must be measured simply because it is an aspect of utility for any investment decision and maximizing the expected utility is considered to be the ultimate goal in any financial activity. The research paper is completely based on secondary sources of data, which has been prepared by reviewing various research articles from journals, magazine and books. Further, attempts are been made to explore the reviews on Investor Risk Tolerance and Portfolio Management in various sectors/industries. The man aim of this study is to examine the various researches carried out on Investor Risk Tolerance and Portfolio Management, to identify the various elements determining Investor Risk Tolerance, to provide suggestions for optimal management of Portfolios. The present research paper tries to give few suggestions for policy makers and like the policy-makers needs to conduct researches on an ongoing basis and investigate whether there are any changes in the biases that are perceived by Indian investors that could affect many stakeholders severely.

Effect of decisional factors on mutual funds actual purchase behaviour among Indian investors

Effect of decisional factors on mutual funds actual purchase behaviour among Indian investors

Priority Study on Commodity Market Operation and Performance for Indian Investors

Priority Study on Commodity Market Operation and Performance for Indian Investors

Can Cryptocurrencies Provide a Viable Hedging Mechanism for Benchmark Index Investors?

Can Cryptocurrencies Provide a Viable Hedging Mechanism for Benchmark Index Investors?

Do Index Investors Impact Investee Firms’ Disclosure Aggregation?

Do Index Investors Impact Investee Firms’ Disclosure Aggregation?

An Investment Index for Lithic Technology: Implications for Investment, Mobility, and Division of Labor on the Colorado Plateau

An Investment Index for Lithic Technology: Implications for Investment, Mobility, and Division of Labor on the Colorado Plateau

A short descriptive analysis of the European evolutions of input price indices of agricultural products between 2008-2017: Patterns, trends and implications

Background: The evolutions of the inputs price and investment indices of the products in agriculture are not only determinant elements in understanding the fluctuations of the food price and the market instability, specific to the agricultural sector but also affects the agricultural production and traceability. Analyzing the European evolutions of the inputs price indices of agricultural products offer the possibility to understand the main trends and tendencies in the agricultural system by reviling the main trend tenancies during a nine year period long. Purpose: The main aim of the study is to investigate the evolution of input price indices of agricultural products in order to underline the specific patterns, trends and implications of the agricultural policies. In addition, the research pays a special attention to the investigation of the Romanian agricultural policy evolution on the most relevant time frame of economic conformity with the European agricultural model. The descriptive analysis is based on the specific annual datasets of price indices of the means of inputs in agricultural production, and the index of real prices of goods and services for investments in agriculture during 2008 - 2017, reported to 2010 as the baseline year. Findings/conclusions: The analyses confirms that the agricultural sector evolution has generated significant input and investment prince changes and unprecedented trend evolutions that led to the massive changes on the agricultural pattern. We strongly advocate and recommend for promoting a solid capacity and durable agricultural production systems and policies through sustainable and long term investments in order to avoid disruptive tendencies in the agricultural market system. Limitations/future research: The research explore the evolutions of the inputs price and investments indices of the products in the European agriculture only form the descriptive analysis without covering an extensive framework or considering other additional variables which consist the main limitation of this study. In a future research the authors will address and extend the research framework by inserting additional variables and items and propose a large and integrative model of analysys.