This research seeks to explore the influence of various behavioural factors on investment decisions in capital market made by individuals of Generation Millennials (born between 1981 and 1996) in India.
A total of five behavioural factors such as FOMO, Stock Characteristics, Market Information, Investor’s Cognitive Psychology, Word of Mouth using a sample of 251 respondents have been investigated.
The results indicate that while word of mouth negatively impacts investment decisions, factors such as FOMO, stock characteristics, market information, and investor’s cognitive psychology positively and significantly influence these decisions. Additionally, the study reveals significant differences in investment decision-making based on gender, age, employment status, trading frequency, and income allocation.
According to a survey of the literature, not many studies have exclusively examined these behavioural factors in relation to their influence on Generation Millennials investors. While several studies have explored psychological constructs among Generation X, there is a notable dearth of research focusing on Millennials in India. One of the reasons for limited study can be that these investors have started investing in capital markets only few years ago. This indicates that this aspect of behavioural finance among generation Millennials investors remains largely unexplored and requires further attention from researchers globally. Additionally, most existing studies have been conducted in European, African, and American regions, with minimal research available on Asian markets. By investigating the influence of multiple factors on investment decisions and the various biases related to them, this study seeks to bridge this gap.
Generation Millennials, FOMO, Stock Characteristics, Market Information, Investor’s Cognitive Psychology, Word of Mouth, Investors Investment Decisions
