Antecedents of Individual Investor Behaviour: Awareness, Risk Perception and Decision making – A SEM Approach
Influence of capital market ensures economic development of the country. Equitymarketsplay a major role in capital rationalization and business investment distribution. The investors’ decision regarding the equity market is pertinent in determining the market trend, thereby affecting the economy. The main objective of this research is to analyse the impact of behavioural factors influencing the decision making of equity investors. Also identifying the extent of awareness about the equity markets and risk perception determining the behaviour of the investors is analysed. The study pertains on how the behavioural factors on the investment decision making viz., Technical analysis, and Fundamental analysis and Market psychology have impact. By using Descriptive research design, primary data is collected from short term investors through non probability sampling method. Factor analysis and Structural Equation Model are used for analysis. The research shows that perception of risk has a significant impact on investor behaviour. The results indicate the structural path model closely fit to the sample data, demonstrating the effect of behavioural factors on investment decisions.