Psychological Determinants Affecting Investment Decision Behaviour of Millennial Investors

ABSTRACT

In today’s scenario, Investment decision behaviour has attracted undivided attention in academia especially in context of millennials--the educated lot who are more proactive and focussed in their investments. This study attempts to understand the impact of psychological factors on the Investment decision intentions of young educated millennials on lines of ‘theory of planned behaviour’(TPB) with three additional constructs--i.e. Risk Tolerance, Financial Interest, Financial Awareness and knowledge. Using cross-sectional descriptive research design, data were collected from 250 millennials from Delhi/NCR. The factors were identified through Exploratory Factor analysis and then validated through Confirmatory factor Analysis (CFA). The model was finally tested with structural equation modeling (AMOS-SEM). Thus, the study saliently validates and extends TPB framework in a unique way linking these constructs-- Risk Tolerance, Financial Interest, Financial Awareness and knowledge, Attitude, Subjective Norms, and Perceived Behavioural Control that has been untouched in extant studies.

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