Investors' Behaviour and the Investment Decision-Making of Chennai's Residents

Abstract

Beholding challenges, the present study is a challenge to get an insight into the factors of investment behaviour that has an impact on the investment decisions of the Non-Resident and Resident Indian Individual Investors.Behavioural finance approach explores the Investment Behaviour of investors as well as tries to identify how these behaviours guide investment decisions. Investment Behaviour is an important research area which varies among investors, regarding factors characterised mostly as Demographical and Psychological factors. Thus, mapping the investment Behaviour of individuals is a big task to the researchers. Copious research has been performed across the world for identifying the Investment Behaviour of investors and that different factors how it influences the investment decision. The purpose of this study is to determine the association between investor behaviour and Investment Decision Making among in Chennai’s Residents. To that objective, the independent variable is Investor Behaviour, and the dependent variable is as follows. Invest money, make investment decisions, plan for retirement, make temporary arrangements, make financial judgments, and cover unexpected expenses in information technology. Investment Decision Making is a dependent variable, and its sub variables include Rational, Intuitive, Dependent, Avoidant, and Spontaneous. Data for this descriptive research will be gathered via a questionnaire sent out to 417 workers in Chennai. To analyse the data in this study, we will use a method called multiple regression. Based on the results, we infer that Chennai residents' investor behaviour is positively correlated with and significantly influenced by investment decision making.