March 2021
The IUP Journal of Financial Risk Management
Focus
The retail investors are more aware now and increased investor's awareness is a cause for concern for the marketers of financial sector products and services. The second paper, "Retail Investor Behavior Towards Life Insurance, Mutual Fund and Unit-Linked Insurance Plans (ULIPs): A Thematic Literature Review", by Portia Wankhede and Girish Mude. The paper highlights the concern of retail investors about financial investments. Aware retail investors make marketing tactics for financial service companies redundant. The paper examines consumer buying behavior toward life insurance, mutual funds, and ULIPs through a survey of scientific, peer-reviewed papers. The paper focuses on thematic analysis to discover the determinants and uncover the refined findings of retail investment decisions. The findings of the review are grouped to provide a critical assessment of existing research as well as a chance to develop behavioral analysis of retail investor research. The paper reviews 65 papers under 7 categories. The categories included are demographic and socioeconomic factors of the investors, influence of financial planning advisors and investment decisions by the investors, financial literacy/financial knowledge, life insurance studies in India, investor's specific behavior towards mutual fund as an investment option, ULIPs as an insurance or investment, and investor's decision-making process and theory of planned behavior.
Scams do affect the investor sentiments negatively and should be stopped at any cost with jurisprudence from the regulators and government. The goal of the final paper, "The Impact of Financial Scams on Investor Behavior", by Anjana Buddaraju and P Riya Devaiah, is to understand, analyze, and investigate the investors' reactions to financial scams of the companies in which they have invested. The paper also reports how previous financial losses affected investors' future investment choices. Based on a thorough analysis of the current material and in-depth investigation of the thinking of investors who have lost their assets and investments, the study concludes that investors react negatively to financial scams.
Consulting Editor
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| Article | Price (₹) | ||
| The Impact of Covid-19 on Selected Securities Traded on NSE India: An Empirical Analysis |
100
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| Retail Investor Behavior Towards Life Insurance, Mutual Fund and Unit-Linked Insurance Plans (ULIPs): A Thematic Literature Review |
100
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| The Impact of Financial Scams on Investor Behavior |
100
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The Impact of Covid-19 on Selected Securities Traded on NSE India: An Empirical Analysis
This paper carries out a brief study of the impact of Covid-19 on seven indices of the Indian economy. For the analysis, risk, covariance, and Capital Market Line (CML) formulas have been applied to the same set of stocks belonging to two different time periods, i.e., pre- and post-Covid. Using these formulas and two tools, namely, the Granger Causality Test and the Augmented Dickey- Fuller Model (ADF), the impact of Covid-19 on the stocks has been analyzed. After a thorough analysis, it is concluded that the impact of the pandemic has been drastic on the selected stocks and the performance of the stocks has been highly fluctuating post Covid-19.
Retail Investor Behavior Towards Life Insurance, Mutual Fund and Unit-Linked Insurance Plans (ULIPs): A Thematic Literature Review
Retail investors are becoming increasingly worried about financial investment, which, after many financial crises, makes it challenging for financial service companies in India to devise marketing strategies. This paper provides a review of scientific, peer-reviewed articles that examine the consumer buying behavior towards investment in life insurance, mutual funds and Unit-Linked Insurance Plans (ULIPs). The research articles were obtained following a literature search on prominent databases like Web of Science, EBSCO and Google scholar. There are dozens of studies identifying behavioral analysis of retail investors. However, this paper makes an emphasis on the thematic analysis to identify factors and to uncover nuanced findings of retail investment decisions from an Indian perspective. The discussions that the authors present allow seeing how the investment behavior pattern of retail investors is shaping the financial investment discipline. The review's findings are organized to provide a critical diagnosis of existing research and an opportunity to advance in behavioral analysis of retail investors' research.
The Impact of Financial Scams on Investor Behavior
Financial scams have become common in India. Indian stock markets have been witnessing the occurrences of financial scams and investors losing out money due to the scam's impact. This bad investment experience of financial fraud in the stock market creates a negative notion amongst investors and discourages them from investing in stock markets. This research paper tries to understand, interpret, and explore the investors' reactions towards financial scams of the companies in which they have invested and how those past experiences of monetary loss in financial scams have affected their future investment choices. A systematic review of existing literature was conducted to make an in-depth analysis of the mind space of investors who have lost their savings and investments and to understand their mindset post the financial scams. The analysis subsequently helped acknowledge that the investors have reacted to the financial scams. The reactions have negatively impacted the percentage of money invested in shares and stock markets, which is in turn affecting the stock market capitalization.