NEED OF THE STUDY

Different investment avenues are available investors. Stock market also offers good
investment opportunities to the investor alike all investments, they also carry certain risks.
The investor should compare the risk and expected yields after adjustment off tax on various
instruments while talking investment decision the investor may seek advice from expartry
and consultancy include stock brokers and analysts while making investment decisions. The
objective here is to make the investor aware of the functioning of the derivatives.
Derivatives act as a risk hedging tool for the investors. The objective if to help the investor in
selecting the appropriate derivates instrument to the attain maximum risk and to construct the
portfolio in such a manner to meet the investor should decide how best to reach the goals
from the securities available.
To identity investor objective constraints and performance, which help formulate the
investment policy?
The develop and improvement strategies in the with investment policy formulated. They will
help the selection of asset classes and securities in each class depending up on their risk
return attributes.
SCOPE OF THE STUDY
The scope of the research is very wide as it is increasing concern of the people towards
derivatives . So, it is important to know the awareness, behavior and attitude of the trader and
investors . Our study is confined to Jalandhar only.
OBJECTIVES OF THE STUDY
1. To know about the derivative products available in the market
2. To know the awareness among the traders and investors.
3. To know the source of data collection by trader and investor.
4. To know the correct amount of investment.

LIMITATION OF THE STUDY

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1. Time Constraint: The study is limited because it was conducted in less time.
2. The study is confined to the city of Jalandhar only.
3. Lack of resources: resources like no. of respondents, time, cost and awareness.
4. Cost Constraint: Due to limited funds the study is performed and concluded
accordingly.
5. The lack of information sources for the analysis part.
6. Reluctance of the people to provide complete information about them can affect the
validity of the responses.
7. The information can be biased due to use of questionnaire.

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