A Descriptive Study of Stock Market Awareness and Investment Behaviour among Retail Investors

Abstract : Purpose: The purpose of this study is to examine the level of stock market awareness among retail investors in India and analyse how awareness influences investment behaviour and capital market stability. Methodology: The study adopts a descriptive research design and is based on secondary data collected from official sources such as SEBI, RBI, NSE, AMFI, and the Economic Survey of India for the period 2015–2024. Trend and comparative analyses were used to interpret the data. Findings: The findings reveal a substantial gap between stock market awareness and actual participation. Retail investors show increasing market engagement, a growing preference for indirect investment avenues such as mutual funds, and a positive shift towards disciplined investment strategies. Enhanced retail participation has improved market liquidity but has also contributed to short-term volatility. Limitations: The study is limited by its reliance on secondary data and lack of primary investor-level insights, which restricts behavioural analysis. Implications: The study highlights the need for stronger financial literacy initiatives and policy measures to transform awareness into informed investment behaviour, supporting sustainable capital market development.