Investment Behaviour of Government Employees in Kerala
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Date
2023-11
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Avinashilingam
Abstract
The Indian economy is growing rapidly, and wise investments are crucial for economic
development. This study analyses the investment behaviour of government employees in
Kerala, focusing on their intellectual and behavioural aspects. Previous studies have explored
investment decision-making, risk tolerance, emotional intelligence, and behavioural biases.
However, few studies have examined the relationship between investors' intelligence,
personality, and investment behaviour. The study identifies a research gap in understanding
investors' intelligence and personality traits concerning their investment behaviour.
The major objectives of the study are to Investigate the impact of intelligence and personality
on investment behaviour. the specific objectives are to study investment patterns, Investment
Preferences and Investment Decision Making in relation to intelligence and personality, to
analyse investment decision-making behaviour (rational and irrational) and examine
demographic influences on investment behaviour.
The study employed a descriptive and analytical research design, surveying 384 Grade II
government employees in Kerala. Sample are selected using Proportionate Stratified Random
Sampling Technique. For studying investment intelligence, here used Multiple intelligences
based on the Multiple Intelligence theory of Howard Gardener and the study used Big Five
Personality Traits to measure investor personality. Data were collected using s structured
questionnaire and tools for data analysis are Descriptive statistics, ANOVA, t test, Multiple
Regression, Canonical Correlation and Structural Equation Model.
The study found that Investors’ Intelligence and Personality; especially Multiple intelligence
and big five personality traits influence investment behaviour. As studied Investment Decision
making of Government Employees, Irrational behaviour is slightly more prevalent than rational
behaviour. Bank deposits, insurance, and chit funds are favoured investment avenues and
Safety, return, liquidity, and marketability are primary factors influencing Investment
Behaviour.The study proposes a conceptual framework incorporating cognitive and behavioural aspects
to explain investment behaviour. The findings suggest that government employees exhibit both
rational and irrational behaviour, influenced by intelligence, personality, and demographic
factors. Applying these findings can enhance wise investments, contributing to financial
stability and national economic growth. Financial advisors should consider clients'
psychological aspects when offering advice. Future research should explore other demographic
segments and investment avenues.Theoretical Implications of the study include: Cognitive abilities and personality traits
significantly impact investment decisions; Multiple intelligences and Big Five personality traits
influence both rational and irrational decision-making; Behavioural biases, such as
representative bias and overconfidence, prominently affect investment choices among
investors.Practical Implications: Employer-sponsored programs and financial literacy initiatives can
enhance employees' financial well-being; Financial planning should be personalized,
considering individual cognitive strengths, personality traits, and biases; Investment products
can be tailored to cater to diverse risk perceptions and investor profiles.
This study's focus on salaried investors warrants exploration of non-salaried investors,
institutions, and mutual fund managers. Future research can incorporate additional variables
(e.g., economic conditions, financial literacy) and investigate individual intelligences.
Longitudinal studies and cross-country comparisons of investment behaviour and economic
influences are also recommended.
Key words: Investment behaviour, Multiple intelligence, Big five personality traits,
Investment pattern, investment preferences, Rational investment decision making, Irrational
investment decision making, Behavioural biases, Prudence.
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Commerce