An Empirical Study On The Factors Influencing Investment Behavior Of Investor Towards Gold Futures

Abstract

The financial instruments which derived their prices from physical Gold are Known as Gold derivatives. Gold derivative is contracts between seller and buyer who take exposure to physical gold. Types of gold derivatives traded enormously in India are Gold coins/Gold Bar, Gold ETF, Gold Options, Gold Futures. The Indian government aims to transform the Indian gold market by initiating Make in India, setting up of Bullion Exchange that would provide an efficient market to gold and so on. In this sense it's very important to know the investor behavior towards gold and its derivatives. In this research attempts to know the investment behavior of investors towards Gold Futures using Factor Analysis method. The deciding factors of the investors such as diversification, market fluctuations are inclined towards investing in Gold Futures.