Abstract:
Title: Effect of demographic Factors on investment decision making
Issues of study: Value maximization of assets and cash inflows is traditionally
considered as major interest to stakeholders. Investors on the basis
of demographics and tolerance to the risk choose to put their
savings to increase their present and future income inflows.
However choosing between options and making investment final
decision depends upon the demographics of individual. The
investment options chosen are bifurcated in to high and low risk
investment options and the preference on the basis age, gender,
marital status, occupation, and income level, was a point of concern
in this study
Purpose: To be able to make a good investment decision, it is necessary to
analyze investment decision-making process and, to draw an
outcome about what actually cause an investor to make an
investment decision was the purpose of study. The main focus of
this study is on investment decision-making trends This study also
discuss other variables which have positive effect on one's aptitude
to choose an option and let go other such as financial literacy,
which lead towards making investment decision.
Method: The thesis is based on both literature studies and empirical
research. The study identifies most relevant factor that contributes
to make investment decision. Keeping in view each factor as a
variable, its outcome on investment decision making on the basis of
risk were evaluated. By combining the findings and results, a
conclusion followed to link the results together
Conclusion: The conclusion was drawn based on the results, most of the
investors like to invest in secured or with minimum risk options
like real estate, investment option with fixed rate of return and gold
were preferred. However investment trend in stock exchange, and
options with high level of risk was avoided by investors. Since
level of risk differentiate an individual from risk averse to risk
seeker, the study also identifies the age and gender having relation
with investment decision making. Moreover choosing option or
portfolio of investment also help to can diversify the risks of most
uncertain a investment alternative
