Indian investor saving patterns usually include investments in low risk instruments like saving bank account, fixed deposits, provident funds, tax saving instruments, gold and government securities and medium risk instruments like mutual funds, real estate and ETFs. Investors base their investment decision based on objectives, risk taking capabilities, return expectation, and maintaining liquidity and profitability balance. Personality of an individual is also an important aspect which explains their behaviour. Įvery investor has a different background, experience, work profile and investment needs and, therefore, make investment decision in various available avenues with a different mindset. Research studies have shown that investors are irrational and their investment decisions are affected by psychological biases, personality, demographics, experiences or heuristics. After the world has recovered from global financial crisis, behavioural finance has again gained importance in all countries of the world. Prospect Theory propounded by Kahneman and Tversky and Mental Accounting given by Thaler are significant work in this regard. Investor behaviour and psychological biases that affect investment have now been researched by many. But behavioural researchers have found various evidences wherein investor decision making is not always rational and is affected by errors and biases. Standard finance theories of Capital Asset Pricing Model, Portfolio Theory given by Markowitz and Efficient Market Hypothesis assume investor to be rational and maximises expected utility. Less researched in studying investment behaviour in Indian context. MBTI personality assessment is one new dimension which is Investment pattern, behavioural biases and demographic characteristics of Originality: This study identifies relationship between Investment portfolios and products for their clients based on their demographic,Īnd behavioural profiling. Useful for portfolio managers, investment advisors who can use it for designing MBTI personality type is a less significant variable whichĭirectly affects investment patterns of Indian investors. Investment in low risk instruments does not differ forĭemographic variables of investors as all investors invest equally in safe Investment in medium risk instruments significantly differ for work experience Investment in high risk instruments is different among malesĪnd females, various age groups, marital status, and work place activity. Risk taking attitude is affected by personality Investors are majorly balanced or conservative out of the total sample in Status, nature of employment and work experience of investors. Findings: The results show that presence of o ptimism bias in investors is influenced by marital Results were analysed using chi-square and ANOVA. The questions were related toĭemographic variables, optimism bias, investment pattern and MBTI ( Myers-Briggs Type Indicator ®) personality assessment. Was administered on 117 respondents in India. Data and Methodology: A structured questionnaire Scores, risk taking behaviour, biases and investor demographics. The individual characteristics include MBTI personality Purpose: The study undertakes to identify individual characteristics and their
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