Factors Influencing Investment Behavior of Millennial Investors in the Stock Market in Bangalore Urban

Abstract

The stock market behavior of millennials investors in Bangalore Urban is influenced by risk tolerance, financial literacy, peer influence, and technology. This study helps in understanding the status of millennials' investment behavior and decision-making processes in the market. Data were collected through 284 structured questionnaires, which were analyzed using KMO and descriptive statistics. The results indicate that risk tolerance significantly influences which types of investments millennials opt to make, and the higher financial literacy scores positively correlate with increased investment activity. The research further indicates that millennials like self-directed investment and nearly rely on digital platforms and online information sources. Moreover, the analytical relationship of the constructs as portrayed by SEM also brings out the connection between the constructs. The results of the study highlight that the millennials base major decisions for investment on the perceived risk and financial literacy. This paper contributes to the overall body of behavioral finance research by shedding light upon the influence of gender dynamics and financial market performance as elements underpinning the current importance of financing literacy and perceived risk in fostering greater investment participation in millennials.