A study on the influence of personality type on the investment decision of individual investors in Coimbatore district
Showndhariyaa D, Dr. S Kavitha
The most crucial challenge faced by the investors is perhaps in the area of taking investment decisions. Every investor differs from the other in all aspects due to various factors like socio-economic background, marital status, educational level, age, gender etc. The Big Five personality traits, also known as the five factor model (FFM), is a model based on common language descriptors of personality. Behavioural finance attempts to explain and increase understanding of the reasoning patterns of investors, including the emotional processes involved and the degree to which they influence the decision making process. Due to emergence of many products of investments the companies need to ascertain the preferences and perceptions of the investors from time to time, and frame necessary polices to adapt to their changing needs. This study aims to study on the influence of personality type on the investment decision of individual investors. The objectives are to identify and analyze individual investors’ investment pattern, personality type, and preferences towards investment avenues, satisfaction evaluation of investment returns and the reasons for investment. 220 individual investors in Coimbatore district are taken for the study through convenience sampling and descriptive research is followed. Tools used for the study are Percentage analysis, Chi- Square Test, One Way ANOVA and Multiple Regression.