• Nayanjyoti Nandy
• Ashish Bapayi

Individuals earn money in order to spend their livelihood, but after using a part of earnings for expenditure they save the rest amount in form of savings. This saving is called investment if the individual puts the money into a financial instrument which reaps a percentage over that amount as return. Every individual invests money in instruments which he feels is correct for him. Selection of the financial instrument depends of how much return he needs, the cost benefit tradeoff between his investment and cost of investment, his risk-taking ability etc. Here we have analyzed a few psychological and physiological factors like age, gender, financial literacy etc. and determine whether they have any effect on the investment behavior. From our findings we can imply that the factors mentioned here do have an effect on the choice of financial instruments. The instruments here are a few of the money market, metal market and stock market or equity linked. People knows that the risk in investing in the equity market is the maximum while that in the public sector banks is the minimum. This risk tolerance of an individual decides where the individual will put his money into, even his demand for the return depends on these factors. By analyzing these factors, we can design a method by which we can predict an individual’s investment strategy and help channelize our efforts to sell a financial product to the target segment. It will reduce the efforts involved in selling a product to an unwilling customer.

Investment Behavior, Risk Tolerance, Psychology, Physiology, Behavior

"A Comprehensive Study on Factors affecting Investment Behavior", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.6, Issue 6, page no.941-945, June 2019, Available :http://www.jetir.org/papers/JETIR1907130.pdf

"A Comprehensive Study on Factors affecting Investment Behavior", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.6, Issue 6, page no. pp941-945, June 2019, Available at : http://www.jetir.org/papers/JETIR1907130.pdf