Determining Investment Behaviour: An Analysis of the Role of Gender and Age of Individual Investors

Abstract

Every investor needs to find a way to strike a balance between the possible rewards of an investment and the risks that are associated with it. The risk perception of an investor might impact his investing option. This research examines investing behavior and its determinants. This study aims to evaluate the relationship of saving behavior, self-control, financial literacy, risk attitude, expert advice, personality traits and investment awareness in investment activities of male and female investors and of investors falling within defined age-groups. With a sample size of 431 out of 450 respondents, data collection used snowball sampling, through the Google Forms. Reliability was assessed using Cronbach’s Alpha, and analysis involved descriptive statistics and non-parametric tests. It was found that gender does not play a role in the factors of saving behavior or expert advice while personality traits, financial literacy, risk attitudes and investment awareness are significantly different in female and male investors in Uttar Pradesh. while investment awareness, saving behavior, financial literacy and personality traits are significantly different among the defined age- groups of investors. Key for policymakers and corporate advisors, this study informs about strategic investment decisions. Understanding investor behavior guides economic growth initiatives and raises awareness about optimal investment opportunities.