STUDENTS’ PERSPECTIVE OF CAPITAL MARKETS : A STUDY OF UNDERGRADUATE COLLEGE STUDENTS IN MUMBAI.

Abstract

The financial market comprises of the capital market and the money market. Capital market aims at financing the fixed capital requirement of the businesses whereas working capital requirement is looked after by the funds raised through the money market. The present paper aims at exploring degree of knowledge and awareness of capital markets of the undergraduate students of southern Mumbai. Researcher conducted this gender-based survey of 220 college students on the demographic, social and economic parameters. The statistical analysis using tables, bar graphs and Mann-Whitney U test were used to compare the significance between different groups. It has been found that internet is the prime source of information for creating awareness about capital markets. Higher number of girl students than boy students believed that capital market is a game of greed and fear. There is a common agreement on the fact that capital markets offer greater liquidity than other asset classes and dealings in capital market are risky. Interestingly, more girl students find online trading easy and time saving as compared to boys. Both boys’ and girls’ mean score reveal that they consider bank accounts aa the safest financial products followed by NPS life insurance and PPF they consider postal schemes. There is consensus among boys and girls that the stock market is the most-riskier option of investment followed by mutual funds and life insurance products were considered as safer and trustworthy source of investment. Opinion on the most preferred mode of payment revealed that “Cash” seems to be the most preferred option of making payment followed by google pay. It was recommended to inculcate regular saving habits among young buddies by motivating them to control their spend-thrift behaviour. More and more reading on financial markets and current affairs is needed. The present study open venues for further research in the spheres of securities market, SIP (systematic investment plan) investment habits amongst youngsters, two decadal performance of Nifty-fifty companies in India, case studies of individuals named in FORBES list of the richest Indians, contribution of credit rating agencies in protecting the interest of investors, business acumen amongst young entrepreneurs, financial and innovative practices, career planning and development in the field of capital markets etc.

 Key words: Financial markets, Capital markets, Stock markets, SIP