Vivek M. Tathod, Dr. Sunil G. Losarwar

ABSTRACT

Introduction: Investment is the sacrifice of certain present value for the uncertain future reward. It entails arriving at numerous decisions such as type, mix, amount, timing, grade etc. of investment and disinvestment. Further such decision making has not only to be a continuous but rational too. Broadly speaking, an investment decision is a trade-off between risk and return. All investment choices are made at points of time in accordance with the personal investment ends and in contemplation of an uncertain future. Since investment in securities are revocable, investment ends are transient and investment environment is fluid, the reliable bases for reasoned expectations becomes more and more vague as one conceives of the distant future. Investors in securities will, therefore, from time to time, reappraise and re-evaluate their various investment commitments in the light of new information, changed expectations and ends.