Investing Brilliance: Unveiling the Financial Minds of IT Professionals in Kerala

Abstract

Purpose – This paper aims to investigate the investment behavior of Information Technology (IT) professionals in Kerala, delving into the intricate decision-making processes underlying their investment choices. It seeks to shed light on how IT professionals navigate the diverse array of investment options available to them, discerning the factors influencing their decisions and exploring the impact of socio-cultural dynamics on their investment strategies.

Methodology and approach – Departing from conventional variance-based approaches, this study adopts a process-oriented methodology to gain a nuanced understanding of individual investors’ buying decisions in the context of the Indian stock market. Through in-depth one-on- one interviews, participants retrospectively recount their investment experiences, elucidating the underlying motivations, rationalizations, and validation processes behind their investment decisions.

Findings – The findings reveal the significant influence of socio-cultural factors in shaping IT professionals’ investment behaviours, with the dichotomy between “Safe” and “Risky” mental accounts emerging as a prominent categorization strategy. Three fundamental building blocks— Identification, Rationalization, and Further Validation—are identified as pivotal in the decision- making process, culminating in individual investors’ buying decisions. Moreover, biases are observed to play a dual role, acting both as attention boosters and rationales in shaping investment decisions.

Originality – This study contributes to the existing literature by synthesizing behavioural biases with attention and rationalization phenomena, providing novel insights into the mechanisms through which biases manifest during individual investors’ buying decisions. By elucidating the intricacies of IT professionals’ investment behaviour, this research offers valuable implications for practitioners, policymakers, and academics seeking to understand and address the complexities of investment decision-making in contemporary financial markets.