Identifying Key Factors Inducing Optimal Investment Returns By Using Structural Equation Model

Abstract

Individual investments of women have started with the advent of soft jobs and changing trends of social behavior of society towards working women. This leads to focus on women investors and channelizing the savings into potential and productive investments by many niche investment opportunities, but, the risk associated with each of the sources of investment are vary. Women prefer to invest in safe avenues, but the expected returns of the same are low and mostly these investment avenues do not circulate the funds for productive purposes. By keeping this in mind, to identify the common factors of investment decision like financial awareness, investment advice, risk tolerance, tenure of relationship of women with the investment advisor and their role in risk tolerance and investment decision is analyzed in the present study. For this purpose, a snow ball sampling is adopted and selected the women from IT sector. The study is conducted in Chennai city, South India. The sample size is 442. The results of the study indicates that, the inter relationship between the financial advice, tenure of relationship with the risk tolerance and investment decisions of women working in IT sector in the sample is accepted at 5% level of significance, with the observed p value of 0.172 indicating the nominal level of influence. but, trust, service quality of financial advisor and investment climate are the major factors influencing the risk tolerance and investment decisions of women in IT sector with the observed individual p values of less than 0.001 in the sample indicates the strong and direct cohesive relationship and impact. Hence, the financial advisors should be trust worthy, service quality should be delighted and the investment climate should be conducive to improve the confidence of women towards market investments and to improve the risk tolerance and positive investment decisions in the economy.