Abstract

The stock market is a vital capital channel for the economy and a potential investment channel for investors. Thus, the study explored the key factors affecting individual investors' stock investment decisions in the Ho Chi Minh City stock market. Based on a survey data set of 700 individual investors of securities companies in Ho Chi Minh City, the authors used structural equation modelling (SEM) and SPSS 20.0, Amos software. The results empirically identified five factors affecting individual investors' investment decisions: profitability and stability, growth potential, behavioural finance, market psychology, and macro-environmental factors. The article's findings were to find out five key factors that had a substantial impact on the investment behaviour of individual investors and were significant statistically. This result was a scientific basis to propose practical personal investment implications, primarily focusing on enhancing effective investment. Finally, the study offered recommendations to improve investment laws and policies to attract domestic and foreign stock market investors.

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