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- Title
Internal & External Factors Influencing Investment Decision-Making.
- Authors
H., Gayathri; Ganesan, S.
- Abstract
The investment decision is always quite attractive. It offers investors the chance to make money and broaden their financial horizons. Additionally, making an investment decision requires considering several important factors, including your objectives, risk tolerance, and budgeting abilities. This study compiled a list of internal and external factors affecting investors' investment decisions and investments. The study examined how respondents select the investment avenue while the internal and external factors influence the investment decision. This research grouped the influencing factors into external and internal factors. For this purpose, a survey questionnaire was used to test the hypotheses. The population taken in this survey was individual investors of the selected district of Tamil Nadu, India. A total of 235 questionnaires were distributed; only 230 were received back, and 30 were not included in the analyses as they were incomplete. Hence, 200 questionnaires were used in the analyses. The factor analysis and ANOVA tests were applied to identify the factors administering the investment decisions. It is essential to understand which factor can play a role in the decision-making to make the most favourable financial decisions possible. The investor, while investing, may be influenced by numerous sociodemographic and economic factors. These factors are classified with the help of Factor Analysis. The internal influencing factors were grouped as Capital Appreciation (CA), Social Status (SS), Retirement Planning (RP), Financial Forecasting (FF) and Wealth Creation (WC). The researcher identified five significant factors as external factors with components, namely Fundamental Factors -FF, Company Performance-CP, Technical Factors-TF, Market Factors-M, Gold Investment-GI, and Real Estate Investment - REI. These internal and external factors were studied with the personal profiles of the respondents to understand which internal factors mostly govern the investment decisions concerning their socio-demographic profile. This study aimed to discover the elements that influence investment decisions made by individual investors while making investment decisions. These internal and external factors were influenced differently among socio-demographic components.
- Subjects
TAMIL Nadu (India); BUSINESS forecasting; INDIVIDUAL investors; INVESTORS; DECISION making; DECISION making in investments; CAPITAL appreciation; REAL estate investment
- Publication
AIMS International Journal of Management, 2024, Vol 18, Issue 1, p37
- ISSN
1939-7011
- Publication type
Article
- DOI
10.26573/2024.18.1.4