Navigating the Complexities of Individual Investor Behaviour: A study on employees of private sector bank and insurance companies

Abstract

Throughout the years, the disposition, mindset, and approach of investors have undergone significant transformations. These changes have encompassed a shift from illogical to rational behavior, impulsive to composed decision-making, and passive to active engagement. Investors are becoming more cognizant of the advantages and disadvantages associated with a specific investing selection. Investors from financial service businesses, such as banking and insurance, exhibit distinct perspectives and behaviors when it comes to making investment decisions. The primary aim of this study is to identify and comprehend the influence of various factors on the investment behavior of employees in the Banking and Insurance sector. A well organized questionnaire is employed to gather data from a sample of 300 participants. The adoption of purposive sampling technique is employed. The data is analyzed using Factor Analysis, Correlation, and ANOVA. The study identified the primary characteristics that influence the investment behavior of individual investors as follows: (I) Security and Benefits, (II) Liquidity and Returns, (III) Influence of Peers, Family and Co-investors, and (IV) Risk Tolerance. These aspects exert a substantial influence on the process of making investment decisions. Consequently, investors must carefully plan and comprehend these factors before committing their funds.