Published Online:October 2024
Product Name:The IUP Journal of Accounting Research & Audit Practices
Product Type:Article
Product Code:IJARAP081024
Author Name:Neha Gupta, Matloob Ullah Khan and Md Sikandar Azam
Availability:YES
Subject/Domain:Finance
Download Format:PDF
Pages:151-189
Given the complex nature of financial markets and the wide range of investment opportunities available, a comprehensive understanding of financial concepts and practices is crucial for making informed investment decisions (IDs). This paper focuses exclusively on the five-factor model-based personality traits (PTs), i.e., OCEAN, which mediates between financial literacy (FL) and ID. The study obtained 276 responses from Delhi NCR. Data from a five-point Likert scale were analyzed using Smart-PLS application. The findings indicate that conscientiousness, agreeableness, openness to experience, and extraversion are favorably affected by financial knowledge while making investment choices. On the other hand, neuroticism has a significant but unfavorable influence on investment choices. The study advances the understanding of investor behavior by examining the connections between self-FL, PTs and investment choices. The study advocates that financial institutions provide personalized investment advice based on the consumer profiles of prospective clients.
Investment decisions are a fundamental aspect of personal and institutional financial management, involving a comprehensive process of evaluating all available options to select the most advantageous option (Jariwala, 2015; Goel and Rastogi, 2021; and Harini and Subramanian, 2023).