An analysis of investor behaviours and preferences across financial products

Abstract

This study examines the decision-making processes of individual investors when selecting financial products in the face of an expanding array of investment opportunities. While innovative options, such as cryptocurrencies and exchange-traded funds (ETFs), have gained prominence, traditional instruments, including stocks and bonds, continue to be the predominant choices. Through a quantitative analysis of survey data from 120 active investors, this research identifies key trends in investment preferences, risk tolerance, and demographic influences. The findings reveal that investors' choices are primarily driven by three factors: expected returns, perceived risk, and familiarity with the product. Additionally, demographic variables, particularly age, income, and education, play a significant role in shaping investment behaviour. Younger investors exhibit greater risk appetite and openness to exploring new opportunities, whereas older investors tend to favour stability and familiarity. By elucidating these behavioural patterns, the study provides actionable insights for financial practitioners, policymakers, and individual investors seeking to optimize portfolio strategies in an evolving financial landscape. The results underscore the importance of aligning investment products with investor profiles, enhancing financial literacy, and addressing behavioural biases to improve decision-making outcomes.