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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