Factors Affecting Influencing Investment Decisions of People Around Age Group 22-26
Abhayansh Gupta1, Dr. Kiran Kumar2, Padmaraj Harnal3
MBA Student- Finance, Assistant Professor, MBA Student- Finance
Faculty of Management Studies, CMS B School, Jain (Deemed-to-be university), Bangalore
Abhayansh_gupta23@cms.ac.in, Kiranm287@gmail.com, Padmaraj_harnal23@cms.ac.in
Abstract:
Study examines the factors influencing investment decisions among young adults aged 22-26, focusing on their financial goals, investment knowledge, preferred vehicles, and allocation behaviours. Through survey data, we observe that most respondents prioritize short-to-medium-term financial security1, emphasizing liquidity, potential returns, and risk level in their investment choices. The data gives mixed levels of self reported investment knowledge whereby a significant proportion has moderate to low understanding of investment concepts, indicating that there may be potential demand for more specific financial education. Investment allocation patterns appear to be cautious as most individuals2 commit less than 20% of their monthly income to investment activities and most are limited by debt service and housing costs. More investment options have preferences, covering stocks and mutual funds to cryptocurrencies and fixed deposits, both in proportion. Challenges like a fear of losses, disposable income significantly limited, and low financial literacy often characterize these decisions, thereby reflecting a cautious yet opportunistic outlook on the way one approaches building wealth, Analytical3 techniques in Excel, including pivot tables and correlation analysis, shed light on investment behaviors and preferences, while visualizations will highlight trends in distributions. Their findings thus reveal the demographic-specific needs of young investors and emphasize the importance of fostering budget-friendly financial resources and education that support both conservative and aggressive strategies. Financial institutions can benefit from this data by developing tools and guidance toward informed, confident decision-making among young investors striving to achieve financial stability and growth.
Keywords: Investment decisions, Young adults, Financial goals, Risk tolerance, Investment knowledge, Income allocation, Financial literacy
