Investment Objectives of Select Agricultural and Non-Agricultural Commodities: A Study of Derivative Investors in Rayalaseema Region of Andhra Pradesh

Abstract

The paper discusses financial derivatives, which are financial instruments whose value derives from underlying assets such as commodities, securities, currencies, or indices. The objective of the paper is to understand the investment objectives and satisfactory levels of derivative investors in select agricultural and non-agricultural commodities. The study considers commodities contracts based on the volume of trade in the Rayalaseema region of Andhra Pradesh, India. Turmeric and cotton from agricultural commodities and gold and silver from non-agricultural commodities are chosen based on their awareness level and volume of trade. The paper presents the responses of sample investors in terms of highly satisfied, neutral, dissatisfied, and highly dissatisfied. The study concludes that investment objectives of derivative investors in select commodities differ based on gender.