Determinants of Investment Decisions of Employed Women in India

Abstract

Investment is a critical financial activity that involves the allocation of funds into various financial assets to generate returns. For employed women, investment decisions are shaped by multiple socio-economic and psychological determinants. The ability to engage in financial decision-making fosters economic empowerment and enhances financial literacy. Investors can be broadly classified into conservative, moderate, and aggressive categories based on their risk tolerance and investment preferences. Available investment avenues include corporate securities, equities, bonds, blue-chip stocks, and mutual funds. Access to financial information through institutions, markets, and media significantly influences investment behaviour. This study explores the factors influencing investment decisions among employed women, focusing on socio-economic, psychological, and economic aspects affecting their financial behavior. It analyzes the investment choices of working women in Bangalore, Karnataka, using primary survey data. The study focuses on employed women in Bangalore, surveyed in 2024 as the component of analysis. Working women are chosen for the study because, in the contemporary age, working women play a significant role in family decision-making, and contribute to the family's income. Research indicates that women in the workforce are generally cautious and conservative when making investment choices. The research employs exploratory and confirmatory factor analysis to identify key determinants of investment decisions of employed women. The results indicate that there are 20 key determinants of investment decisions of employed women. The key determinants include “Holistic Financial Planning and Investment Strategy", "Multifaceted Investment Decision Framework", "Independent Investment Confidence and External Influences", "Independent Analysis with Market and Economic Sensitivity", and "Socially Responsible and Impact-Driven Investing". These insights aim to enhance financial security and promote inclusive economic growth in India.