International Journal of Research In Science & Engineering e-ISSN: 2394-8299 Volume: 2 Issue: 3 May-June 2017 p-ISSN: 2394-8280 IJRISE| www.ijrise.org|editor@ijrise.org [121-128] INVESTMENT BEHAVIOUR OF INDIVIDUAL INVESTORS IN SHARES, BONDS AND MUTUAL FUNDS: A PRAGMATIC STUDY Swapnaja Patwardhan 1 , Vivek Katdare 2 , Manish Joshi 3 1 MES’s IMCC, Pune, swapnaja.patwardhan@gmail.com 2 KCE’s Institute of Management & Research, Jalgaon, vvkatdare@rediffmail.com 3 Dept. of C.S., NMU, Jalgaon , joshmanish@gmail.com ABSTRACT Diversified financial service sector has given wide range of opportunities to individual investor ’s. The individual’s decision of investment is prejudiced by the kind of services rendered and the benefits offered in the financial market. Financial knowledge and experience has an impact in financial investment decision making process. This paper aims to study the investment patterns of individual investors’ considering the objective of the investment, composition of portfolio, risk bearing capacity, the market knowledge they possess, demographic characteristics, attitude etc. Duration of the investment is one of the most important factors in decision making process. Quantitative research has been conducted to determine the type of relationship that exists between the variables. To perform this literature review research papers, journal articles, white papers on behaviour of individual investor from various countries are studied. Research papers are analysed thoroughly in order to present excellent conceptual framework. This study proposes that the perception of an individual investor could be a great help to the financial consultants, fund managers and asset management agencies. Keywords: Investment Management, Individual Investor, Behavioural Patterns, Financial Markets. ----------------------------------------------------------------------------------------------------------------------------- 1. INTRODUCTION An investment in diversified financial sector is an interesting task which attracts people during their journey of life. Basic aim behind all investments is capital appreciation for earning income. Wide ranges of opportunities are available for an investor to invest in financial market. The pattern of investment differs from investor to investor on the basis of objective behind the investment. There are several factors that attract and motivate investors’ to invest in financial market. Researchers from various countries are concentrating on the behavioural patterns and demographic characteristics of individual investor. Decisions of individual investors’ were believed to be based on the Modern Portfolio Theory proposed by Markowitz in 1952. There are three basic criterion’s of modern portfolio theory i.e. Standard deviation, Expected return and correlation. However it was proved that individual investor possess very few stocks and are unable to diversify their portfolio [1]. An individual’s risk bearing capacity also plays an important role in financial decision making process to achieve desired financial goals. To understand the individual investors’ behaviour factors like objective of the investment, composition of portfolio, risk bearing capacity, the market knowledge, demographic characteristics and attitude need to be considered. The present study aims to understand the investment patterns of individual investors ’. To perform this literature review research papers, journal articles, white papers on behaviour of individual investor from various countries are studied. Research papers are analysed thoroughly in order to present excellent conceptual framework. It will be a great help to the financial consultants, fund managers and asset management agencies to understand the requirements and expectations of an investor. In this study, research papers are reviewed on the basis of parameters like objective, Method used Main finding and sample size, Result obtained etc. It was observed that in most of the papers primary data