Determinants of Investment Behaviour of Individual Investors

Abstract

India is one of the fastest-growing economies in the world. Over the last decade, both newlinegovernment and private industry have endeavored to bring about an environment conducive to growth. newlineThis is increasingly reflected in better earnings and higher disposable incomes for the working newlinepopulation. The current research study focused on the behaviour of Professionals of Information newlineTechnology Sector, since IT professionals are considered to be highly remunerative. The study was newlinemainly concerned with primary data. The data were collected from individuals who were willing to newlinereveal the information on their financial behaviour by adopting informational referral sampling newlinetechnique, through carefully instructed interview schedule, constituted 482 respondents. The study was newlineconducted from September 2011 to March 2015. Structural Equation Modeling was performed to newlineconstruct rational, irrational and composite models. newlineInvestment aspiration of the IT Professionals is actually a commitment to secure the newlineconsumption of all regular financial inflows with futuristic perspectives. The study exposed the fact newlinethat, the investment strategies of the investors are largely influenced by the socio-economic factors and newlineit further reveals that the behavioural bias plays a vital role in determining the investment process of newlineindividual investors. Different types of investment avenues are available and the investors have to newlinebecome more alter and choosy in selecting profitable investment avenues with minimum risk. The newlineselected investors in the study are not having adequate awareness about the investment and also not newlineconsulting the financial advisors, hence they prefer to invest in traditional and safe financial products. newlineThe individual investors should not be left behind the isolated batch in the investment market. The newlineneed of the hour is to promote financial literacy at a very early age in one s life and help the common man to make his financial plan profitable for himself. newline