Friday 11 May 2018

Factors Influencing Investors Capital Market Investment in Retail Sector

According the Research conducted by Lockeys consulting,


The results indicates that the factors which are important to be considered for the making an investment decision is different from investor to investor but the factors whose are changing in proportion to the increase in the expertise of an investor.
The expertise of the persons investing in the capital markets increases by 0.581 when the investor is giving more importance to his/her knowledge factor and also increasing by 0.304, when investor give importance to identifying returns in markets and investing, and decreases by 0.39 when the investors depend more on friends advise to invest in the capital markets.
This research findings help in targeting the customers future decisional shift in investment selection factors will helpful for financial institutions to target their product to selected customers.  So, the capital markets or the organisations involving in trading business have to focus their promotions through friend referrals and advertisements of high returns stocks in the initial stages for getting the investment from an individual’s; where present young people are giving importance to their friends and returns factors, which helps in increasing investing population base exponentially from 1% as of now. The data collected also indicated there are 92.3% investors who invested in capital market, also recommended their products to their friends compared to 57% recommended for family members, 47% for Colleagues.
The financial investing institutions have to change their strategy while targeting people who have good expertise, because they will depend more on their knowledge to take their investment option, also the higher returns have a positive impact on their investment decision. They shift to rely more on their knowledge based investments along with returns what they get for particular investment or stock in the capital market. So, the financial institutions should focus on those advertisements of innovative products gives considerable returns to get their customer to invest more.

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