Doing research and up to what extent your research will be utilized in the practical life is one of the key impact factor in the research work. This study is basically separated in seven segments including conclusion of the research work has been carried out. The segmentations and its included aspects are brief out as under. The thesis is on Indian Economy as well as financial system of India. In which I have found that Indian has the largest and superfast developing economy across a global economies and it can be considered one of the super powers. As far as Asian nation is concerned India is getting seventh rank in land base and second after China in terms of population. The Indian economy is the largest economy by nominal Gross Domestic Products and by Purchasing Power Parity is the fourth largest. And I have found that capital is the central factor for the economical growth in the nation. A pace in economic development is conditioned, among other things, by the rate of capital formation. And capital formation is conditioned by the mobilisation and channelisation of investible funds. The role of the financial system is to channel funds from surplus sectors to deficit sectors. Facilitating such flows on a national level increases the level of investment and effective demand and thus accelerates economic development. Financial system is a mirror reflection of an economy for any nation. The economic development of a country depends, inter alia, on its financial structure. In the long run the larger the proportion of financial assets to real assets, the greater the scope for economic growth. Investment is a pre-condition of economic growth. This apart, to sustain growth, continued investment in the growth process is essential. The second chapter of the thesis included review of literatures and in this it has been found that most of the research has been carried out supported that most of the investors have different perceptions and belief during investment decision making process. And most of the investors are following the other investors advised or analyst’s advice