Factors influencing investment decisions: a study of retail investors in Hooghly district of West Bengal

This study aims to identify the factors influencing the investment decisions of retail investors in Hooghly district of West Bengal. In today's financial world, several investment avenues are available in front of retail investors but in spite of this availability, people are investing their hard earned money at wrong places. With the continuous change in the dynamic environment, investors’ behaviour is also getting changed but the awareness level is not getting enhanced which is reflected in different irrational decisions of investors. Irrational financial decision implies investors’ inability to match their investment objectives and features of the selected investment avenue. The study concludes that retail investors choose a particular investment avenue to meet their long term family needs in future and emergency needs, to protect themselves from inflation, to avail tax benefits, to cover risk factors and for capital growth. As per the study most of respondents invest to meet their long term family need in future. The second preference is towards availing tax benefits.