FACTORS SHAPING INVESTMENT DECISIONS OF INDIVIDUAL STOCK MARKET INVESTORS IN VISHAKHAPATNAM

  • Unique Paper ID: 185656
  • Volume: 12
  • Issue: 5
  • PageNo: 2260-2268
  • Abstract:
  • This study aims to identify key determinants and examine their correlation with investor behavior in the Indian stock market. Utilizing a convenience sampling method, data were collected from 384 respondents through structured questionnaires. Analytical tools such as decision tree analysis and chi-square tests were employed to derive meaningful insights. The findings highlight two pivotal factors shaping investment decisions: the investor's net worth and personal market knowledge. The results suggest that investors with higher net worth tend to exhibit a greater propensity toward risk-taking, while those with substantial market knowledge make more informed and strategic decisions. Other influential elements include friends’ opinions, expected returns, and the past performance of companies. The study underscores the importance of personal and fundamental analysis factors in guiding investment behavior. Personal characteristics such as age, gender, risk tolerance, and psychological traits significantly affect decision-making processes. Meanwhile, fundamental analysis parameters like company stability, dividend policies, and interest rates provide essential cues for sharing selection. By integrating these diverse determinants, this research contributes to a holistic understanding of investor psychology and market dynamics. It offers valuable insights for financial advisors and individual investors aiming to optimize portfolio performance.

Copyright & License

Copyright © 2025 Authors retain the copyright of this article. This article is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

BibTeX

@article{185656,
        author = {Dr Venkataramana Arangi},
        title = {FACTORS SHAPING INVESTMENT DECISIONS OF INDIVIDUAL STOCK MARKET INVESTORS IN VISHAKHAPATNAM},
        journal = {International Journal of Innovative Research in Technology},
        year = {2025},
        volume = {12},
        number = {5},
        pages = {2260-2268},
        issn = {2349-6002},
        url = {https://ijirt.org/article?manuscript=185656},
        abstract = {This study aims to identify key determinants and examine their correlation with investor behavior in the Indian stock market. Utilizing a convenience sampling method, data were collected from 384 respondents through structured questionnaires. Analytical tools such as decision tree analysis and chi-square tests were employed to derive meaningful insights. The findings highlight two pivotal factors shaping investment decisions: the investor's net worth and personal market knowledge. The results suggest that investors with higher net worth tend to exhibit a greater propensity toward risk-taking, while those with substantial market knowledge make more informed and strategic decisions. Other influential elements include friends’ opinions, expected returns, and the past performance of companies. The study underscores the importance of personal and fundamental analysis factors in guiding investment behavior. Personal characteristics such as age, gender, risk tolerance, and psychological traits significantly affect decision-making processes. Meanwhile, fundamental analysis parameters like company stability, dividend policies, and interest rates provide essential cues for sharing selection. By integrating these diverse determinants, this research contributes to a holistic understanding of investor psychology and market dynamics. It offers valuable insights for financial advisors and individual investors aiming to optimize portfolio performance.},
        keywords = {Individual investors, net worth of the investor, stock market, decision tree analysis.},
        month = {October},
        }

Cite This Article

  • ISSN: 2349-6002
  • Volume: 12
  • Issue: 5
  • PageNo: 2260-2268

FACTORS SHAPING INVESTMENT DECISIONS OF INDIVIDUAL STOCK MARKET INVESTORS IN VISHAKHAPATNAM

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