Saving and Investment Behaviour – Review and an Agenda for Future Research

Abstract

Today the financial services sector has become highly diversified offering the investor with a wide range of investment avenues. With proper investment strategies and financial planning investor can increase personal wealth which will contribute to higher economic growth. Economic growth is among the most vital factors affecting the quality of life that people lead in a country. Three variables that measure the growth of an economy are Income, Saving and Investment. In this paper miscellaneous literature existing globally has been reconnoitered to recognise the investor’s behaviour. Using interpretative approach viz., objectives, sample, research methodology and results of the study have been taken for further enquiry. This study constructs a robust conceptual framework for the researchers by meticulously analysing the experimental studies on investor behaviour in different countries. The paper exhibits that there are numerous variables that direct an investor’s decision to invest. Further, we propose an empirical study to determine the relationship between the income, saving and investment behaviour among the IT professionals of Bangalore. The results from the proposed study could be of great relevance to the investors for their wealth management and to the policy makers, the investment agencies, the researchers as well as managers of the firms to prepare themselves to respond to the varying behaviour of the investor.

Keywords: Financial Planning, Investment Behaviour, Personal Wealth Management

JEL Classification: D19, D31, E21, G11