2025, Vol. 6, Special Issue 3
Financial derivatives perception factors: Investors view in Hyderabad
Author(s): K Mahender Reddy
Abstract: Indian financial derivatives market are booming like anything nowadays and generating mammoth profit to investors. Especially pharma and service sector shares are nourishing in a faster way to reach exponential outcome level. Experts and academic research show that investor perception of financial derivatives is sharply divided, with opinions ranging from derivatives being invaluable risk management tools to being highly speculative and complex "weapons of mass destruction". The view an investor holds is shaped by their financial knowledge, risk tolerance, and investment objectives. The trading activity in derivatives markets helps determine the fair value of the underlying assets, which improves overall market efficiency and transparency. Research in the Indian derivatives market shows that age, employment, income, and trading experience can influence an investor's perception of risk and their investment objectives. For example, experienced and higher-income investors are more likely to participate and take on greater risk. Economic factors like market volatility and liquidity also influence investor perception. Periods of high volatility can increase interest in derivatives for hedging, but they can also make risk-averse investors more cautious.
DOI: 10.22271/27084515.2025.v6.i3Sa.824
Pages: 190-194 | Views: 77 | Downloads: 22
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How to cite this article:
K Mahender Reddy. Financial derivatives perception factors: Investors view in Hyderabad. Asian J Manage Commerce 2025;6(3S):190-194. DOI: 10.22271/27084515.2025.v6.i3Sa.824
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