INVESTOR’S BEHAVIOUR TOWARDS COMMODITY MARKET
DOI:
https://doi.org/10.29121/shodhkosh.v5.i5.2024.4973Keywords:
Exchange Traded Funds, Investment Behavior, Commodity Marke, Irrationality, trading, retail investorsAbstract [English]
Earning money is important it is also important to make money work for you through investments in better markets can fulfil this desire. . investing in better markets can fulfil this desire. Investors invest their hard-earned money keeping the intention to earn good returns. Investors choose their investment avenues based on their financial goals. All the investor's goals vary from person to person. Investor based on their intentions collect the information and form their perception and attitude towards the investment options available in the market. Investment decisions are influenced by internal and external factors. Internal factors demographic factors, personal factors, external factors and behavioural biases. Such as inflation, market conditions, regulatory system and political conditions of the country.
Commodity markets offer investment opportunities for retail investors to invest in Commodity exchange-traded funds. Commodity Exchange Traded Funds (ETFs) are one of the investment avenues available to investors who want to be exposed to the commodity market and earn good returns. Commodity Exchange Traded Funds are funds which invest in commodities, such as precious metals, agricultural commodities, hard metals and Energy and livestock etc., Commodity prices are influenced by the performance of the economy or the forces of demand and supply. Instability in commodity prices can give investors leverage which helps them generate revenue. The commodity market operates through various platforms, including commodity exchanges like the Multi Commodity of India(MCX) and the National Commodity and Derivatives Exchange (NCDEX). These platforms enable standardized contract agreements for trading.
According to the traditional theory of finance, investor exhibit rationality in their investment decisions but normally human nature is often irrational, leading to biased decisions based on psychological expectations. The study objective is to understand the investment behaviour of retail investors towards commodity markets and commodity Exchange Traded Funds. Primary data was collected through a structured questionnaire and secondary data was gathered from researched articles, journals and online platforms.
References
Augusto Costa, Marcelo Klotzle, Antonolo carlo Figuriredo Pinto (2019): investor behavior in ETF markets: a comparative study between the US and Emerging markets, International Journal of Emerging Markets ahead-0f-print.
A. Parameswara Gupta (2022): Level of investor’s satisfaction with ETFs, advantages and perception towards investment- IJARIIE- Volume( 8), (1). ISSN(O) -2395-4395.
Haruthai., Kasemharuethaisuk ,Taweesak samanchuen (2023): Factors influencing behaviour intention of digital investment services of mutual fund distributors adoption in Thailand. MDPI, (Sustainability journals), volume 15, (3).doi:10.3390/5415032279. DOI: https://doi.org/10.3390/su15032279
Iver ekeland, Delphine Lantier, Bertrand Villeneuve (2018): Hedging pressure and speculation in commodity markets, 74th International Atlantic Economic conference. Research gate DOI: https://doi.org/10.1007/s00199-018-1115-y
Bhaskar krishnappa, Thandava Murthy. (2022): Assessment of price volatality of commodities traded on MCX India relationship between future price of selected commodities and different parameters on economic factors affecting commodity, Journal of positive psychology. Vol-6, issue-3. pp: 5137-5161.
Viswanathan,. P Govindaswamy (2016). A study on investors perception towards commodity trading in sky commodity India Pvt ltd at Chennai. Emperor international journal of finance and management research @mayas publication. Vol-11, Issue-07, july 2016. pp 81-97.
E. Ramesh, N.V Sriranga Prasad, S. Parminder Singh. (2019): Investor Behavior towards Commodity market with reference to Karimnagar District, Telangana state.IJRTE, Vol:8, Issue -4, November 2019. ISSN:2277-3878. DOI: https://doi.org/10.35940/ijrte.C6128.118419
Tom James (2016): commodity market trading and investment, A practitioners guide to the markets.springer Link, Palgrave Macmillan Studies in Banking and Financial Institutions. DOI: https://doi.org/10.1057/978-1-137-43281-0
Sharma A., kumar, A (2019): A review paper on behavioral finance; A study of emerging trends qualitative research in financial markets. Vol-12 (2), PP.137-157.ISSN:1775-4179. DOI: https://doi.org/10.1108/QRFM-06-2017-0050
Seilan anbu(2020): Performance Analysis of Indian commodity Market.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Thriveni S.R, Dr. Irshad Nazeer
This work is licensed under a Creative Commons Attribution 4.0 International License.
With the licence CC-BY, authors retain the copyright, allowing anyone to download, reuse, re-print, modify, distribute, and/or copy their contribution. The work must be properly attributed to its author.
It is not necessary to ask for further permission from the author or journal board.
This journal provides immediate open access to its content on the principle that making research freely available to the public supports a greater global exchange of knowledge.
