Akshara Chadha, Cheril Mehta, Dikshant Lal, Alaknanda Lonare
Abstract: In todays dynamically evolving world, which is driven by the fast-paced economies of the leading countries, every individual is investing with an aim for wealth maximization. This phenomenon has in turn driven the growth rate of the stock markets and has led to formation of a fertile ground for varied researchers, in an attempt to analyse and understand investor decisions. This study aims at identifying the various factors that help estimate the investor sentiments. It attempts to understand the significance of demographic factors of population such as gender, age, education, occupation, income, savings and family size over the several elements of investment decisions like priorities to characteristics of investments, period of investments, reach of information source, frequency of investments and analytical abilities. To achieve the said objective, survey was conducted to understand the behavioural aspects of an individual when investing and in turn develop prediction models that can help the companies in this sector predict what type of investor their customer is and their aggression level. This research gains significance as the consumer demands are increasing exponentially and in order to customize their offering for customers the companies need to analyse and segment them. Based on the said segmentation, companies can plan, develop and ensure that the customer requirements are adhered with. This study aims to achieve the said goal.
Keywords: Behavioural Finance, Individual investors, Financial Ratios, Investment Decision Making, Investor Behaviour