IMPACT OF THE PERSONALIZED FACTORS ON THE INVESTMENT BEHAVIOR OF INVESTORS – A CASE STUDY OF LUDHIANA

Abstract

The investment behavior of investors is the function various personalized factors. Investment behavior is affected by many factors which are peculiar to the investors. This study was conductedto examine the impact of various personalized factors on the investment behavior of the investors.The sample size was 500 investors from Ludhiana city. To explore the relationship between various personalizedfactors and the investment behavior of the investors, the chi-square test was applied. Results of the study showed that sector preferences had an important effect on the behavior of the investors.The objectives of investment, too, affected the investment behavior of investors. Sector preferences had an important effect on the behavior of the investors. Factors of investment did not have severe effects on the investor’s investment behavior. It was also found that investment experience brought changes in the behavior of the investors while investing. The percentage of income invested by investors again had a crucial role to play in the investment behavior of investors. This study showed that even the time horizon had a large effect on investment behavior. Constraints of investment did not have severe effects on the investor’s investment behavior.