Abstract
Discipline is the bridge between goals and accomplishments and good financial habits bring discipline in financial decision making and have profound impact on the investment choices. This study proposes to study core financial habit of making financial plan adopted by individual investors while doing their investment planning and its impact on the investment preferences and objectives. In this study, survey approach has been adopted using a structured questionnaire with 559 sample size. The study has been taken within the geographical area of Indore and Ujjain district in Madhya Pradesh State of Central India. It has been found from the analysis that financial habits of investors play a crucial role in their investment preferences and objectives. Analysis has been done using Mann Whitney U test.
 The results of the research paper would contribute in developing understanding of the impact of financial habits on investment behavior and choices and thus serves an important insight to investors, financial planning professionals and other stakeholders linked to financial planning.
Highlights
IntroductionThe strong foundation of financial prosperity can be built on right financial habits
Financial habit of making a financial plan may have profound impact on the quality of financial decisions as it lays down the financial goals and its pathway clearly
Out of the total 559 respondents, 50.3% make a financial plan and 49.7 % denied of making any financial plan
Summary
The strong foundation of financial prosperity can be built on right financial habits. Financial habit of making a financial plan may have profound impact on the quality of financial decisions as it lays down the financial goals and its pathway clearly. Financial theories have evolved from the ancient times to modern times taking the journey from rationality to finance behavioral theories. The behavior of investor impacts the decision making process and its outcome. Investment decisions are very complicated as many investment options are available in market with different level of risk and returns, tax treatments, cost of transaction etc. A clear financial plan can provide clarity to many important aspects and expectations related to investments. A good financial plan would have several steps to following from assessing the current financial position, identification and setting the financial goals
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
