Factors affecting Investment Decision for Individuals
The Investment decision relates to decision made by Investor’s with respect to the amount of funds to be deployed in the investment opportunities. However, there are certain aspects that influence the decision of the investor’s which are discussed below in detail: 1. Security This starts with the safety of the capital invested. Investor is always keen on getting higher returns which in turn is related to ability of taking risks. There is a famous saying that “Higher the risk, higher the return” that is applicable to most of the investment avenues however one should always know that “Lower the risk, Higher are the chances of capital being secured “. Hence in order to understand the safety of investment, one need to understand the level of risks involved. 2. Liquidity Liquidity means how easily and quickly one can liquidate the investments. The degree of ease could be different across different categories. Certain investment opti...