Fintech Revolution and Factors Affecting Trading Preferences among Retail Investors in the Post Digitization Era of the Stock Market

Abstract

The advent of financial Technological advancement and digitization has caused immense change to the way Stock market and financial service business function. All information for  a retail investor is just a click away be it  financial details of the companies, past records, companies’ financial performance reports, graphs etc. However amidst all this information explosion there is a dearth of knowledge in the form of financial literacy about the stock market or companies before investing. Most of the retail investors invest based on suggestions from friends, relatives or sometimes based on some expert advice without having any appropriate knowledge of stock market and later sell their stock at loss at time of volatile market situation or deposition the gaining stock and hold on loss making stocks which would rarely raise in price when compared to the gaining stock. These type of situations can be avoided by the retail investors by gaining financial literacy before making an investment. Hence this study is undertaken to identify the factors that influence the investment decision of the retail investors in stock market of India, to identify factors for not preferring trading online and to find other factors like demographic, educational, risk factors affecting the trade pattern of retail investors.