Determinants of Investment Decisions in Security Market Instruments

R. Jayalakshmi and Dr.N. Lakshmi

Investors are individuals possessing portfolios for which they are direct beneficiaries. Investors propose to invest money when they recognize a chance to earn profit. The specific focus is on the determinants that drive investors before taking decisions in security market investment. In addition, the study also attempted to analyze the level of risk associated with return in security market investments. The primary data required for the study were collected using questionnaire from 100 investors of Coimbatore city in Tamil Nadu. To evaluate the factors influencing investments in security market instruments factor analysis as well as cross tabulation was used to study the association between the levels of risk associated with the level of returns in security market investments. Results of factor analysis disclosed that Governance, Image and Performance were the dominant factors that determined the investment decisions of investors before taking investment decisions in security market instruments. The study concluded that it would be of great help to the fund managers and financial planners to develop investment strategies while taking decisions regarding the selection of financial instruments in the securities market.

Volume 11 | 10-Special Issue

Pages: 904-910

DOI: 10.5373/JARDCS/V11SP10/20192886