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REVIEW OF LITERATURE
Snyman and Saaynam (2009) in their research article titled "Key factors influencing
foreign direct investment in the tourism industry in South Africa", aimed at identifying
the key factors influencing foreign direct investment (FDI) in the South African tourism
industry. It was found that the following key factors: namely perception and
infrastructure, government and policy, economy, competitiveness, and nature. The results
also indicated which type of product is preferred by which international market. The
results can be used to assist government policy on FDI as well as to assist marketers to
focus on specific issues in their marketing campaigns.
Rakesh (2010) in their research article titled " An Analysis of Investors
behavior on various investment avenues in India aimed at identifying
the needs of current and future investors, investors preference
towards various investment avenues are identified based on their
occupation and investors risk in selecting a particular avenue is
dependent on the age of that investor

Mutswenje (2014) in their research article titled A Survey of the Factors Influencing
Investment Decision : The case of Individual Investors at the NSE aimed at identifying
the factors which have an effect on the behavior of the Individual Investor which may
related to firm image or accounting information or neutral information or advocate
recommendation or based on personal financial needs. It was found that the important
factors are firm position and performance, investment returns and economic condition,
Diversification and loss minimization.

Phan and Zhou (2014) in their research article titled Factors Influencing Individual
Investor Behavior: An Empirical Study of the Vietnamese Stock Market aimed
identifying an interesting insight to factors deciding behavioral intention of an individual
investor by four psychological elements, namely overconfidence, excessive optimism,
psychology of risk and herd behavior. It was found that the gender could create great

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deviation regarding the links between psychological elements and investment attitude,
attitude and behavioural intention, subjective norm and behavioural intention, as well as
between perceived behavioral control and behavioral intention. However, we do not
observe a stronger overconfidence among male investors than among female investors
on the Vietnamese stock market.

Jain and Mandot (2012) in their research article titled impact of demographic factors on
investment Decision of investors in Rajasthan aimed at identifying the relationship
between level of risk and demographic factors of investors confined to Rajasthan state.
It was found that the various demographic factors like age, marital status, gender, city,
income level, market knowledge, occupations and qualifications etc have major impact
on investment decision of investors in Rajasthan. Demographic factors like Gender and
City have no impact on investment decision of investors.

Srinivasa and Rasure (2011) in their research article titled factor influences and
individual investor behavior: the study of Indian stock market aimed at identifying the
study of an empirical survey of the factors, which mostly influence individual investor
behavior in the Indian stock market. It was found that there may be a certain degree of
correlation between the factors that behavioral finance theory and previous empirical
evidence identify as the influencing factors for the average equity investor, and the
individual behavior of active investors in the Bombay Stock Exchange (BSE) influenced
by the overall trends prevailing at the time of the survey in the BSE.
Chandra and Kumar in their research article titled Factors Influencing Indian Individual
Investor Behavior: Survey Evidence aimed at identifying the investors making
investment decisions based on heuristics and know whether they are overconfident in
their judgments. Second, their investment behavior is highly influenced by
representatives. Third, though investors follow fundamentals, they prefer those pieces of
information which are easily adjustable into their investment decision-making. Finally,
there exists an asymmetric pattern of distribution and usage of information among
individual investors which affects their investment behavior to greater extent. It was
found that the behavioral biases do influence their investment decision making

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processes. It is evident from the findings that heuristic factors and prospect theory both
are influential. It is interesting to see that sample individual investors exhibit to rely on
traditional information sources including companys financials for their investment
decision making process.
Lodhi (2014) in their research article titled factors influencing individual investor
behavior an empirical study of city Karachi aimed at determining how the personal
investment is affected by the level of knowledge an investor possesses about different
investment, instrument, knowledge of the relationship between risk and return along
with the knowledge of companies performance analysis technique and portfolio
management techniques. It was found that financial literacy and accounting information
helps investors in lowering information asymmetry and allows investors to invest in
risky instruments. But as age and experience increase investors performance changes
investors preference changes to less risky instruments, it does not mean that investor
does not prefer to invest in shares, he will but with the intention of getting dividend
return rather than capital gain.
Islamoglu (2015) in their research article titled determination of factors affecting
individual investor behaviors: a study on bankers aimed investigate the factors that
influence individual investor behavior and to identify whether they behave rationally
when pursuing their own benefits (i.e.) individuals spare some of their income for
expenditure and some for saving. It was found that they were confident and had enough
knowledge about investment, they have alternatives plans to reduce risk and gave
importance to innovation financially, they also show interest in financial information
presented by means of communication instruments such as media and the internet, the
past experience were taken into account while taking decision, seek experts opinions.
Luong and Thu Ha (2011) in their research article titled behavioral factors influencing
individual investors decision making and performance aimed at identifying behavioral
factors influencing individual investors decision at the Ho Chi Minch Stock Exchange
and they have taken five behavioral factors such as Herding, Market, Prospect,
Overconfidence-gambles fallacy, and Anchoring- ability bias. It was found that most of
the factors have moderate impacts whereas market factor has high influence. It was
found that only three factors are found to influence the investment performance. Herding

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(including buying and selling; choice of trading stocks; volume of trading stocks; speed
of herding), prospect (including loss aversion, regret aversion, and mental accounting)
and Hueristic (including overconfidence and gambling fallacy). The heuristic behaviours
are found to have the highest positive impact on the investment performance while the
herding behaviors are reported to influence positively the investment performance at the
lower level. In contrast, the prospect behavior gives the negative impact on the
investment performance.
Shafi (2014) in their research article titled Determinants influencing individual Investor
behavior in Stock market: A cross country research survey aimed at identifying factors
that influence investment behavior in different countries and the ways these factors
impact investment risk tolerance and decision making process among men and women
and among different age groups.
Mittal et al (2012) in their research article titled Investment in financial products: what
motivate the investor A study in Jaipur aimed at identifying the study to make
generalization of consumers behavior towards the investment of money and then to
measure the extent of brand loyalty, altogether with knowing what other marketing mix
variable affect buyers decision regarding the investment in financial products. It was
found that male invest more than females 83% professional people invest money in
market, good strategy to invest by offering tax saving investment, target businessman for
Demot Ales, sell life insurance products as investors likes to invest on yearly basis,
create brand attribute. Investors are not completely satisfied with equity and commodity
market and also by working with agents and brokers.

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Merikas, et al (2004) in their research article titled Economic Factors and Individual
Investor Behavior: The Case of the Greek Stock Exchange aimed at identifying an
empirical survey of the factors, which mostly influence individual investor behavior in
the Greek stock exchange. It was found that there may be a certain degree of correlation
between the factors that behavioral finance theory and previous empirical evidence
identify as the influencing factors for the average equity investor, and the individual
behavior of active investors in the Athens Stock Exchange (ASE) influenced by the
overall trends prevailing at the time of the survey in the ASE.

Tamimi (2006) in their research article titled Factors Influencing

Individual Investor Behaviour: An Empirical study of the UAE Financial
Markets aimed at identifying factors influencing the UAE investor
behavior. It was found that the most influencing factor was by order of
importance: expected corporate earnings, get rich quick, stock
marketability, past performance of the firm's stock, government
holdings and the creation of the organized financial markets. On the
other hand, five factors were found the least influencing factors on the
UAE investor behavior. The least influencing factor was by order of
importance: expected losses in other local investments, minimizing
risk, expected losses in international financial markets, family member
opinions, gut feeling on the economy. Two factors had unexpectedly
least influence on the behavior of the UAE investors behavior, namely
the religious reasons and the factor of family member opinions.

Chakraborty and Digal (2011) in their research article titled A Study of

Saving and Investment Behaviour of Individual Households An
Empirical Evidence from Orissa aimed at identifying the investment
pattern, saving objective and preferences of individual investors for
various investment options available in India. It was found that female
investors tend to save more in a disciplined way than the male

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investors. It was observed that women are risk averse indeed but save
more than the male counterparts as the income level rises. From the
research point of view, such a study will help in developing and
expanding knowledge in this field of personal finance and investment.

Hebb and Hadji in their research article titled Exploring factors that influence social
retail investors: Evidence from Desjardins Fund aimed at identifying the factors
associated with socially responsible investment decisions in order to better understand
how they influence the choices of individual social investors and analyze theoretical and
practical implications. It was found that the social investors seek profit and want their
social values to be taken into account and there must be increasing the role of the
institution in the development of SRI.

Khim (2008) in their research article titled how investor behavioral factors influence
real estate investment satisfaction and reinvestment intention in penang, Malaysia
aimed at identifying investors investment satisfaction relative to investors reinvestment
intention in local context. In order to determine the relationship between investors
investment satisfaction, investors behavioral factors were examined through a multidimensional framework. It was found that investors investment satisfaction has an
influential on the investors reinvestment intention the major factors that determine
investors determination in their investment satisfaction and reinvestment intention are
Investment Profitability, Investment Security, Investment Liquidity, Regulations,
Investment Location, Investment Wellbeing.

Mathi and Kungumapriya (2014) in their research article titled Review of Literature on
Investment Behavior of Rural Investors aimed at identifying the individual investor
behavior and certainly significant differences in the buying behavior of the rural
consumers from the stand point of product development, pricing policies, distribution,
and after-sales service, which create differences in requirements for marketing strategies
in rural India. It was found that the availability of quality financial services in rural areas

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is extremely important for the growth of the economy as this will enable the large
number of rural households to fund the growth of their livelihoods.
Obamuyi (2013) ) in their research article titled Factors influencing
investment decisions in capital market: a study of individual investors
in

Nigeria

aimed

at

identifying

the

main

factors

influencing

investment decisions of investors and how these factors are related to

the investors socio-economic characteristics in the Nigerian Capital
Market. It was found that the five most influencing factors on
investment decisions of investors in Nigeria are past performance of
the companys stock, expected stock split/capital increases/bonus,
dividend policy, expected corporate earnings and get-rich-quick. Since
the identified most influencing factors are usually classified as wealth
maximizing factors, the study recommends that the investment
climate and the market environment be made friendly and conducive
to attract investors by creatively developing programmes and policies
that impact on investors decisions in order to maximize the value of
the firms and enhance the wealth of the investors. The market players
should re-organize the market and implement accommodating policies
which will eliminate fraud and resolve the leadership crisis in the
market.

Kengatharan (2014) ) in their research article titled The Influence of

Behavioral Factors in Making Investment Decisions and Performance: Study on
Investors of Colombo Stock Exchange, Sri Lanka aimed at identifying the behavioral
factors influencing individual investors decisions at the Colombo Stock Exchange
and

the relations between these factors and investment performance are also

examined. It was found that there are four behavioral factors affecting the investment
decisions of individual investors at the Colombo Stock Exchange which are Herding,
Heuristics, Prospect and Market. Most of the variables from all factors have moderate
impacts whereas anchoring variable from heuristic factor has high influence and

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choice of stock variable from herding factor has low influence on investment
decision.