Investors Perception towards Derivatives Market

Abstract

The derivatives market in India is witnessing immense growth. It is revealed by the NSI statistics data
that the overall turnover of time ahead and options in the NSI market stood at Rs. 345391355.46 Cr. in
2019 and is estimated to be up to Rs. 253580055.01 cr. in 2021. Retail and institutional investors have
played an important role in the development of derivatives trading in India. Retail investors play a major
participation in equity derivatives, compared with an institutional investment that has contributed up to
52%, as a large number of retail investors are participating in derivatives trading. This research paper
focuses on the level of awareness of the derivative products used by investors and the preference of
investors towards various investment options. Various patterns of analysis have been adopting by
investors for investment in derivatives, such as age group of investors, investment pattern, equity and
investment market association with derivatives market etc. The present study based on the assumption of
investment for derivatives. In this paper, the primary data for the study has been collecting based on the
questionnaire of the retail investor. Apart from this, in this study, result is also mentioned that investors
consider various types of factors for investing in derivatives like broker hedging fund, financial advisors,
investors' own knowledge about financial products, risk control etc.. these all are factors help for taking
decision to invest in derivatives.