STOCK MARKET INVESTMENT ANALYSIS AND RISK MANAGEMENT PRACTICES

This study examines the risk management practices adopted by stock market investors to minimize financial losses and enhance investment performance. Risk management plays a critical role in stock market investments due to market volatility and economic uncertainties. The study employed a descriptive research design and used both primary and secondary data. Primary data were collected through a structured questionnaire from 124 respondents in Coimbatore City using a simple random sampling technique. Secondary data were sourced from journals, articles, websites, and reports published by the Securities and Exchange Board of India (SEBI). The study evaluates key risk management tools such as diversification, asset allocation, Value-at-Risk (VaR), beta analysis, stop-loss mechanisms, and algorithmic trading models. Frequency and correlation analyses were used to analyze the data. The findings indicate that although investors are generally aware of stock market risks, the relationship between risk awareness and risk identification is positive but statistically insignificant. The study concludes that the adoption of systematic risk management strategies can significantly improve investment decision-making and portfolio stability.