Investors’ Hard Earned money: Perceptions& Calculative Decisions towards Financial Innovation

Abstract

Financial innovations are the engine for the growth of any economy. Financial innovations are not new to the Indian Economy; these are having great history and proven success story. Indian Economy has a great potential for every type of financial innovation. However, certain geographical areas are waiting for financial growth and upliftment. At the international level, there is cutthroat competition in the urge to enhance stakeholder's wealth. This competition leads to the emergence of financial innovation. Indian investors these days experienced several exposures because of this growth and expansions. This study is an attempt to know the perceptions of Indian investors towards the innovative financial instrument. Investigator collected primary data with the help of a structured questionnaire, which was based on a five-point Likert scale. A sample of 307 investors collected, based upon 30 variables. These variables were the different statements that depict the factors responsible for investors' buying decisions while investing in innovative instruments. Factor analysis and SMART PLS techniques were used to analyse the data. The effect size for Goodwill, Annual Reports, Expert Advice, External Factor, Information/Recommendations is moderate. At the same time, for Corporate Earning, Future Expectations shows no effect, and for product quality, this effect is week.