A STUDY ON INVESTOR AWARENESS AND RISK APPETITE TOWARDS FINANCIAL DERIVATIVES (FUTURES AND OPTIONS) WITH REFERENCE TO DIVYA SWAROOPA FINANCIAL SERVICES PRIVATE LTD

Authors:

Dr. J SOFIA VINCENT ¹,  Mr. VINOTH V²

¹ Dr. J sofia vincent, Professor, Master Of Business Administration & Panimalar Engineering College, Chennai -600123

²Mr. Vinoth V, Student, Master Of Business Administration & Panimalar Engineering College, Chennai -600123

Abstract

This Study Explores Investor Awareness and Risk Appetite Towards Financial Derivatives, Especially Futures and Options, With Reference to Divya Swaroopa Financial Services (P) Ltd. The Main Aim Is to Understand How Well Investors Are Familiar with Derivative Instruments and How Their Willingness to Take Risks Influences Their Investment Decisions. The Research Is Based on Both Primary and Secondary Data. Primary Data Was Collected Through a Questionnaire From 413 Clients of The Company Who Actively Participate in the Stock Market, While Secondary Data Was Gathered from Journals, Articles, And Previous Studies Related to Investment Risk and Derivatives. The Data Was Analyzed Using Percentage Analysis And Charts For Basic Understanding, Along With Statistical Tools Such As The Mann-Whitney U Test, Kruskal-Wallis H Test, Chi-Square Test, And Spearman Correlation To Examine Relationships And Differences Among Variables. The Study Shows That Investor Awareness and Risk Appetite Vary Across Individuals, And A Higher Level of Understanding Often Leads to A Greater Willingness to Invest in Derivatives. It Also Highlights That While Some Investors Are Attracted by The Potential for Higher Returns, Others Remain Cautious Due To the Risks Involved. Overall, The Study Helps in Understanding Investor Behavior and Can Support Financial Firms In Improving Guidance And Awareness Among Investors.

Keywords: Technical Analysis, Intraday Trading, NSE Stocks, RSI, MACD, VWAP, Bollinger Bands, Trading Strategies.