Abstract

http://ssrn.com/abstract=1011008
 
 

References (27)



 
 

Citations (2)



 


 



Do Investors in Structured Products Act Rationally?


Rene Fischer


EBS Universität für Wirtschaft und Recht - EBS Business School - Department of Finance, Accounting and Real Estate

August 22, 2007


Abstract:     
This study analyzes the strategies individual investors pursue when Purchasing structured products. Using a survey among almost 800 German investors we find that they mostly show rational investment motives like diversifying or reducing cost. However, a considerable part shows irrational and/or inconsistent strategies. Higher risk attitude and investment activity are connected with this irrational behavior. Financial advice has a positive effect on investment strategies of individual investors.

We encourage consideration of these Findings when explaining common investment mistakes like overtrading or underdiversification. Certain investor groups seem to be driven by other motives than suggested by standard Financial Theory.

Number of Pages in PDF File: 28

Keywords: Household Portfolio, Investment Strategy, Structured Products, Individual Investor

JEL Classification: D14, G11

working papers series


Download This Paper

Date posted: September 24, 2007  

Suggested Citation

Fischer, Rene, Do Investors in Structured Products Act Rationally? (August 22, 2007). Available at SSRN: http://ssrn.com/abstract=1011008 or http://dx.doi.org/10.2139/ssrn.1011008

Contact Information

Rene Fischer (Contact Author)
EBS Universität für Wirtschaft und Recht - EBS Business School - Department of Finance, Accounting and Real Estate ( email )
Gustav-Stresemann-Ring 3
Wiesbaden, Hessen 65189
Germany
Feedback to SSRN


Paper statistics
Abstract Views: 2,451
Downloads: 787
Download Rank: 15,384
References:  27
Citations:  2

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo4 in 0.531 seconds