A Study of Individual Investor Behaviour For Stocks and Gold in Anand City
International Journal of Research in Commerce, Economics & Management. 11(2). 8-16.
19 Pages Posted: 29 Apr 2021
Date Written: February 1, 2021
Investors’ primary goal is to increase their wealth. For long term wealth creation, stocks and gold are inevitable components of the investment portfolio. Generally individual investors have certain behavioral tendencies that affect their investment decisions and portfolio returns as a result. There has been a lot of research interest around this topic in the recent years. Many people invest in stocks but not all have the skills or the expertise to evaluate which stocks are good and which are not. Therefore, they rely on some cognitive and emotional decision-making methods to make a suitable investment decision for them. Gold investment is also guided by the traditions and customs rather than a rational and sound investment decision. This research paper mainly focuses on the factors that affect the individual investors’ investment decision making process for stocks and gold and eventually affect the portfolio performance. The investors’ preferences and behavior have been analyzed with the help of descriptive statistics, Mann-Whitney U Test and Principal Component Analysis statistical tools.
Keywords: stock market, gold investment, investment behaviour, investment preferences, behavioral biases
JEL Classification: G41, D14, G11
Suggested Citation: Suggested Citation