Determinants of Investment Decisions of Employed Women in India

Investment is a critical financial activity that involves the allocation of funds into various financial assets to generate returns. For employed women, investment decisions are shaped by multiple socio-economic and psychological determinants. The ability to engage in financial decision-making fosters economic empowerment and enhances financial literacy. Investors can be broadly classified into conservative, moderate, and aggressive categories based on their risk tolerance and investment preferences. Available investment avenues include corporate securities, equities, bonds, blue-chip stocks, and mutual funds. Access to financial information through institutions, markets, and media significantly influences investment behaviour. This study explores the factors influencing investment decisions among employed women, focusing on socio-economic, psychological, and economic aspects affecting their financial behavior. It analyzes the investment choices of working women in Bangalore, Karnataka, using primary survey data. The study focuses on employed women in Bangalore, surveyed in 2024 as the component of analysis. Working women are chosen for the study because, in the contemporary age, working women play a significant role in family decision-making, and contribute to the family's income. Research indicates that women in the workforce are generally cautious and conservative when making investment choices. The research employs exploratory and confirmatory factor analysis to identify key determinants of investment decisions of employed women. The results indicate that there are 20 key determinants of investment decisions of employed women. The key determinants include “Holistic Financial Planning and Investment Strategy", "Multifaceted Investment Decision Framework", "Independent Investment Confidence and External Influences", "Independent Analysis with Market and Economic Sensitivity", and "Socially Responsible and Impact-Driven Investing". These insights aim to enhance financial security and promote inclusive economic growth in India.

Determinants, Investment Decisions

1. Amravati, S. G. B. A. U. (2022). Investment Decision Making of Women in 21st Century. International Journal of Research in Economics and Social Sciences, 7(2), 42–53. [Google Scholar] [Crossref]

2. Chaturvedi Sharma, P., & Goel, R. (2019). Factors Affecting Investment Decision of Working Women in Delhi-Ncr. Research Repository of GIBS, 90(1), 58–66. [Google Scholar] [Crossref]

3. Daniel, N. N., Chhatrapati, C., & Ji, S. (2024). A Study Of Factors Influencing Investment Behaviour Of Working Women In Uttar Pradesh. International Journal of Creative Research Thoughts, 12(2), 668–681. [Google Scholar] [Crossref]

4. Gill, S., Kashif Khurshid, M., Mahmood, S., & Ali, A. (2018). Factors Affecting Investment Decision Making Behavior: The Mediating Role of Information Searches. European Online Journal of Natural and Social Sciences, 7(4), 758–767. http://www.european-science.com758 [Google Scholar] [Crossref]

5. Kappal, J. M., & Rastogi, S. (2020). Investment behavior of women entrepreneurs. Qualitative Research in Financial Markets, 12(4), 485–504. https://doi.org/10.1108/QRFM-04-2020-0053 [Google Scholar] [Crossref]

6. Khan, P. C. (2023). Investment Behaviour : A Comparative Study on Investment Choices of Women Investors. International Journal for Research in Engineering Application & Management, 9(04), 27–32. [Google Scholar] [Crossref]

7. Krejcie, R. V, & Morgon, D. W. (1970). Determining Sample Size for Research Activities. Educational and Psychological Measurement, 30, 607–610. [Google Scholar] [Crossref]

8. Kumar, P., & Kumar, S. (2021). Determinants of Risk Appetite of Women Investors: Evidence From Survey. Journal of Commerce & Accounting Research, 10(1), 41–51. https://kedge.idm.oclc.org/login?url=https://search.ebscohost.com/login.aspx?direct=true&db=bsu&AN=149409271&site=ehost-live&scope=site [Google Scholar] [Crossref]

9. Manju, G., & Krishnamoorthy, N. (2019). Investment Decisions of Working Women Investors in India. Online International Interdisciplinary Research Journal, {Bi-Monthly}, 9(09), 274–280. [Google Scholar] [Crossref]

10. Niculaescu, C. E., Sangiorgi, I., & Bell, A. R. (2023). Does personal experience with COVID-19 impact investment decisions? Evidence from a survey of US retail investors. International Review of Financial Analysis, 88(February 2020), 102703. https://doi.org/10.1016/j.irfa.2023.102703 [Google Scholar] [Crossref]

11. P.H, H., & Uchil, R. (2020). Influence of investor sentiment and its antecedent on investment decision-making using the partial least square technique. Management Research Review, 43(11), 1441–1459. https://doi.org/10.1108/MRR-06-2019-0254 [Google Scholar] [Crossref]

12. Rattanaprichavej, N., & Teeramungcalanon, M. (2020). An investment decision: Expected and earned yields for passive income real estate investors. Cogent Business and Management, 7(1), 1–27. https://doi.org/10.1080/23311975.2020.1786331 [Google Scholar] [Crossref]

13. Sharma, M., & Kota, H. B. (2019). The role of working women in investment decision-making in the family in India. Australasian Accounting, Business and Finance Journal, 13(3), 91–110. https://doi.org/10.14453/aabfj.v13i3.6 [Google Scholar] [Crossref]

14. Shetty, S. (2013). Factors Affecting Investment Decision Making of Urban Individual Investors in India Doctor of Philosophy (Issue December). [Google Scholar] [Crossref]

15. Tannu, & Kumar Meet, M. (2024). A Study On The Investment Behaviour Of Women Employees In Delhi Ncr. Educational Administration: Theory and Practice, 29(2), 377–384. https://doi.org/10.53555/kuey.v29i2.4747 [Google Scholar] [Crossref]

16. Ummah, M. S. (2019). Determinants of Investment Decisions by Women Entrepreneurs in Kenya. In Sustainability (Switzerland) (Vol. 11, Issue 1). http://scioteca.caf.com/bitstream/handle/123456789/1091/RED2017-Eng-8ene.pdf?sequence=12&isAllowed=y%0Ahttp://dx.doi.org/10.1016/j.regsciurbeco.2008.06.005%0Ahttps://www.researchgate.net/publication/305320484 SISTEM PEMBETUNGAN TERPUSAT STRATEGI MELESTARI [Google Scholar] [Crossref]

17. Vijay, C. (2021). “A STUDY ON DETERMINANTS OF INVESTMENT BEHAVIOUR OF INDIVIDUAL INVESTORS WITH REFERENCE TO CHENNAI” Internal Examiner External Examiner ACKNOWLEDGEMENT. www.sathyabama.ac.in [Google Scholar] [Crossref]

• Financial Technology (Fintech): Current Research at The Cutting Edge
• Reforming Corporate Governance in Malaysia to Address Fraudulent Financial Reporting Cases
• Stock Market Efficiency and Economic Diversification in Nigeria and South Africa
• Financial Stability and Financial Performance of Small and Medium Tiered Deposit Taking Savings and Credit Cooperatives in Kenya.
• Regulator Sandboxes for DeFi: A Comparative Analysis of Policy Effectiveness in the EU, US, and Asia Pacific