A Factors Influencing Investors towards Investing in Fd's:An Empirical Study of Individual Investors of Punjab

The paper is an empirical attempt to analyze the perception of individual investors of stock market of Punjab towards investing in fixed deposits. For the purpose, the factors affecting the decisions of individual stock investors to invest in fixed deposits were gauged. A pre-tested, well structured questionnaire which was administered personally and the responses of 241 respondents are analyzed. The responses have been analyzed with the help of Factor Analysis applied to group variables into identifiable categories. Variables could be grouped into ten factors with the help of factor analysis influencing investors to invest in fixed deposits i.e. Probable Benefits Factor, Others' Recommendations Factor, Market Indicators Factor, Integrity Factor, Saving Benefit Factor, Security Needs Factor, Social reasons Factor, Services Factor, Herd effects Factor and Personal financial needs Factor. The current research will be helpful to bank intermediaries and financial advisors in understanding the attitude of individual stock investors and offering them advice as per their state of mind.