A Kaleidoscopic View on the Impact of Financial Knowledge on Investment Decision of Individual Investors

International Journal on Emerging Technologies 11(1): 130-135(2020)

6 Pages Posted: 20 Feb 2020

See all articles by Mercy Silvester

Mercy Silvester

Chevalier T. Thomas Elizabeth College for Women

Vijaya Kumar

Sir Theagaraya College

Nishad Nawaz

Kingdom University

Date Written: January 22, 2020

Abstract

The study was directed to know the individual investor’s behavior with the primary objective of exploring the role of financial knowledge on decisions of investment in the Chennai city of Tamil Nadu. For the purpose of study exploratory research design deployed to get required data by having convenient nonprobability sampling method and analyzed using PSPP Version 1.0.1, and the statistical tools such as descriptive statistics, reverse weighted average mean ranking, factor analysis & multiple regression analysis statistical techniques used to draw significant answers to study objectives. The empirical evidence reveals that the underlying dominant dimensions of financial knowledge variables are grouped into nine dominant factors and investment decision variables are significantly grouped into seven independent factors. Further, the awareness factor has the significant influence on investment decisions of individual investors followed by interest factor, Risk & Return Factor, Portfolio Management Factor, and information factor in their order of influence. This study find that the individual investors are shown positive intend towards the investment decision and need to develop in many aspects related to the enrichment for betterment in their financial knowledge to gain more awareness information before making their investment decisions.

Keywords: Behavioral Finance, Investment Decisions, Financial Knowledge, Individual Investors, and Investment Avenues. I

JEL Classification: G1, M0, M4

Suggested Citation

Silvester, Mercy and Kumar, Vijaya and Nawaz, Nishad, A Kaleidoscopic View on the Impact of Financial Knowledge on Investment Decision of Individual Investors (January 22, 2020). International Journal on Emerging Technologies 11(1): 130-135(2020) , Available at SSRN: https://ssrn.com/abstract=3523513

Mercy Silvester

Chevalier T. Thomas Elizabeth College for Women

Perambur Chennai
India

Vijaya Kumar

Sir Theagaraya College

Chennai
India

Nishad Nawaz (Contact Author)

Kingdom University ( email )

Bldg. 296، 3903 شارع الاستقلال
Riffa
Bahrain
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Road 3903, (Fax)

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