Indian Journal of Finance
By: Associated Management Consultants (P) Ltd.Single Issue
Single Issue
- IJF-April12-Article5-REVISITING MYTHS ASSOCIATED WITH DERIVATIVES : AN EMPIRICAL STUDY
- Price : 80.00
- Published on March 27, 2013
- Associated Management Consultants (P) Ltd.
- Issues 356
- Language - English
- Published daily
About this issue
Literature on financial derivatives is replete with myths associated with them. The current study attempts to examine whether they are still prevalent amongst investors in India even though over a decade has passed since organized trading in financial derivatives was first introduced in India. After an empirical analysis of the views of 177 investors, it was revealed that myths about derivatives are rampant among the investors who believe them to be very complex, high-risk instruments unsuitable for Indian markets. They also lack faith in the regulatory mechanism surrounding derivatives trading. These misconceptions need to be effectively dispelled before derivatives can be invested in and understood in the spirit in which they were originally designed. This will also contribute towards improving the volume of derivatives trading in India. Keywords: Financial derivatives, myths, investors
About Indian Journal of Finance
Indian Journal of Finance, a source of sophisticated analysis of developments in the rapidly expanding world of finance, is a monthly journal with topics ranging from corporate to personal finance, insurance to financial economics and derivatives.