Investment Avenues Research Articles

Sectoral Performance of ESG Enabled Stocks during COVID-19 Pandemic in the Indian Stock Market

Over past one decade, there is significant rise in Environment, Social and Governance (ESG) enabled investment practices across the globe and Indian economy is no exception to that. The ESG-enabled investment options provide better investment avenues for investment for retail and institutional investors by ensuring the long-term sustainability of the business. The present study tries to assess whether there is any impact of ESG scores on performance of stocks at the time of COVID-19 pandemic period. The study compares the performance of stocks with high ESG score vis-à-vis stocks with low ESG scores during COVID-19 period for different sectors of Indian stock market. The study considers the data of 312 sample firms listed on BSE 500 index. The event study methodology is used to assess the impact of COVID-19 on Indian stocks. The stocks were further divided into three categories high score (top 30% of firms), medium (middle 40% of firms) and low (bottom 30% of the firms). The results of the study suggest that the investors were more confident about the performance and revival of firms that carry high ESG scores than firms with low ESG scores. The investors are confident about the long-term prospects and sustainability of the firms, and they tend to hold their investment in the firms with high ESG scores.

Investors' Perception towards Investment Avenues

Investors' Perception towards Investment Avenues

Impact of behavioral factors on the investor’s intention in peer-to-peer lending

PurposePeer-to-peer lending has emerged as a promising alternative investment avenue globally. This study explores the variables influencing investors' intention in peer-to-peer lending. Studying these factors is crucial for inspiring investor motivation, which leads to the growth of peer-to-peer lending platforms in India.Design/methodology/approachThe research utilizes information gathered from 293 investors of the Rang de platform through a questionnaire. It employs ordinal logistic regression to assess how demographic characteristics, investor experience, social projects and investment factors influence the study’s outcomes.FindingsThe research indicates that the education qualification and income level of the investors are significant demographic variables in their investment decisions. Moreover, social projects, the experience of the investors and investment factors affect their intent to invest more in peer-to-peer lending projects.Research limitations/implicationsIt helps stakeholders and borrowers of crowdfunding platforms think about these aspects when creating plans to bring in and keep investors. This approach also enhances the openness and dependability of lending processes.Originality/valueThis research sheds light on Indian investors' behavior toward peer-to-peer lending platforms and includes new investment factors like project categories and impact partners that other researchers did not identify.

Exploring the Connectedness between Non-Fungible Token, Decentralized Finance and Housing Market: Deep Insights from Extreme Events

The current digital innovation, health crisis, together with catastrophic economic and financial events have disturbed both digital and conventional asset markets that caused drastic change in investment avenues. Therefore, the purpose of this study is to investigate the connectedness between Non-Fungible Token (NFTs), Decentralized Finance (DeFi) assets, and housing market by applying Quantile connectedness of Ando et al. [27] with extreme tail of distribution technique. The period of this study is extended from 5th March 2018 to 8th January 2024 which covered recent catastrophic events such as Bitcoin Price Crash-2018, COVID-19, Global plummet in Oil Demand-2020, and Russia-Ukraine War. The findings reveal that NFTs and DeFi assets possess weak connectedness with housing market in normal market state, however, connectedness become robust in extreme bearish and bullish market states. Moreover, NFTs and DeFi assets are net transmitters and housing market acts as net receiver of shock in all market states. Investors, portfolio managers, and policymakers should carefully analyze both digital financial assets and housing market especially during extreme events to build well diversified profit-gaining portfolios and to formulate policies.

Investors Decision making Behaviour in Insurance Investment Preference

This study focuses on understanding investors’ decision-making behavior in the context of insurance investment avenues. It employs the Flinder’s Decision Making Questionnaire, based on the decisional conflict model proposed by Irving Janis and Leon Mann in 1979. The questionnaire comprises 31 items that assess six dimensions of decision-making behavior: Vigilance, Hyper Vigilance, Defensive Avoidance, Procrastination or Postponement, Buck-Passing, and Rationalization. This study examines how these six dimensions influence investors’ decisions regarding insurance investment preferences. The objective is to analyze the patterns of investors’ decision-making behavior and their impact on investment choices in the insurance sector.

Desirability of Sukuk as a New Investment Avenue: An Exploratory Study in Bangladesh

Sukuk can be a worthwhile device for meeting demand of those willing to invest in Shariah-compliant avenues of investment, which has been largely catered by Islamic banking products in Bangladesh. Using survey data collected from existing market investors, this study aims to explore the factors contributing to their choice of investment in sukuk. The risk-return preference of the investors is crucial for structuring the sukuk for issuance. Major factors contributing to the investment decision of the sukuk of surveyed participants also include confirmation of the use of proceed of the project in a Shariah-compliant way, risk-adjusted return, timely payment of the expected cash flows, tradability in the secondary market, awareness regarding the expertise, and independence of the Shariah advisors in the Shariah supervisory board (SSB). To facilitate the new instrument and utilize it for the development of the country, especially for the infrastructural development and green projects, government and other policymakers can contemplate offering government guarantee as well as tax exemptions demanded by the respondents of this study. The respondents expressed aversion to longer-term investment opportunities; rather sukuk maturity of up to five years was found desirable. Apprehension for upholding a distinct special purpose vehicle (SPV) and trustee for sukuk was revealed in the study. Although sufficient care was taken in selecting the sample, the limitation of the study is that it may not be deemed conclusive due to the lower sample size. A larger scale study may be conducted to reckon the insight of more potential investors in the market.

Do Real Estate Investments Yield the Highest Returns in Pakistan?

The investment choices of economic agents are critical in determining the value of capital stock in different sectors of the economy. These choices depend upon the available investment options in society and the expected rate of returns. In the case of Pakistan, it is commonly perceived that real estate investment in the form of buying a piece of land or buying a house comparatively yields the highest returns. This study aims to devolve on this presumption and estimate returns from different available investment avenues. Our findings, contrary to common perception, suggest investment in stocks yields the highest real returns while real estate returns stand second. However, the associated risk with stock investment is higher than in the real estate sector. Therefore, one can argue that real estate investment offers better returns comparatively. Surprisingly, we also find that the real returns from treasury bills, national savings accounts, and silver are negative. We also delve into the potential determinants of real estate returns and their impact on investment outcomes. The estimation results reveal that GDP growth, interest rate, and inflation pandemic are significantly affecting the rate of returns from real estate, while the Covid pandemic has negatively affected the returns from housing.

HALAL INVESTMENTS: HABITS AND APPROACHES IN MALABAR REGION

The study examines the investor behaviour, its influencing factors among the Muslim community in the Malabar region of Kerala (covering Malappuram, Kozhikode, Kannur, and Kasaragod) in aligning financial decisions with ethical and religious values (Halal). It adopts a descriptive research design, utilizing both primary and secondary data. Primary data is collected via a self-designed questionnaire, while secondary data is gathered from books, journals, and online sources. A random sample of 200 respondents from these four districts is studied over a 40-day period. Data is analysed using SPSS and presented through various statistical methods. The study's key objectives include examining the extent of halal investments within the community, identifying preferred halal investment avenues, exploring factors influencing these decisions, and analysing the impact of Islamic education on halal investment. The study highlights the correlation between level of Islamic education and halal investment engagement among Muslim community. KEYWORDS: Halal, Sharia, Investment habit, Investment approach, Malabar region, Islamic education

Investors Preferences and Awareness towards Various Investment Avenues in Delhi-The Capital City of India

This research explores into investors’ investment preferences and awareness levels in Delhi- the capital city of India. Exploring a dynamic marketplace brimmed with traditional and contemporary avenues, this study sheds light on the following: This study identifies the most popular investment options among Delhiites and considering factors such as risk appetite and financial literacy and income levels. It analyzes whether traditional instrument’s such as bank deposits & real estate prevail or whether modern instrument’s such as mutual funds and the stock market are gaining popularity. This study investigates the level of awareness among different investors segments across a diverse spectrum of investment possibilities. It examines how factors such as age, education and occupation affect investors' knowledge of different options and highlights potential shortcomings and opportunities for financial literacy initiatives. This study examines the key factors influencing investment decisions in Delhi. It goes beyond risk return tradeoffs and analyze how the factors such as investment horizon and tax implications and emotional comfort levels shape investors choices. This research proposes targeted solutions by understanding the unique preferences and knowledge gaps in Dеlhi's investment landscape. It recommends strategies to bridge information gaps and promote responsible investment practices and promote a prosperous and inclusive financial ecosystem in the city. The aim of this research is to contribute to a more informed and empowered investment environment and ultimately boosting financial well- being and economic growth within the city by illuminating the motivations and behaviors of Dеlhi's investors. Keywords: Delhi investment preferences, Traditional vs. modern avenues, Investor awareness disparities, Decision- making drivers, Risk tolerance.

STUDY OF RISK AND RETURN OF MUTUAL FUNDS

There are many avenues in financial market. An Investor can invest in Bank deposit, corporate debenture and bonds which has law risk with low return. He may also Investor in stock of company which has high risk with hight return. Investors look for safer investment avenues and want to maximize their returns in according to their risk. Whereas people also tries to invest money as early as possible so that the money will grow accordingly in his lifetime. Choose a good investing option is very critical because a balance is required to be maintained between the risks and returns involved in investment. Return is inspiring force and principal reward in the investment process. One of the essential, reason because ofwhich one needs to invest fairly is to meet the cost of inflation. Inflation is the rate at which the cost of living increases at that time. A mutual fund is an expertly overseen company of collective investments that swimming pools money from numerous buyers and puts it in stocks, bonds, momentary money market instruments, as nicely as distinct securities. Mutual money is emerging as helpful instrument for a large scope of speculators, from people looking to put some thing aside for retirement to subtle socialites concentrated on defending their belongings and businesspeople to make wealth. Mutual Fund is a trust that pools the reserve funds of various buyers who share a typical financial objective. Anyone with an investible overflow of as little as two or three thousand rupees can put resources into mutual fund devices as indicated by means of their expressed objective and strategy. Mutual Fund Company pools money from a gathering of individuals with normal hypothesis targets to buy securities, for example, stocks, bonds, money market instruments, a mixture of these instruments, or significantly unique belongings so as to acquire the reward of enhancement and expertly oversaw container of protections at a reasonably ease. In a mutual fund, the fund manager, who is likewise excellent as the portfolio manager, trades the funds underlying securities, acknowledging capital positive factors or losses, and gathers the dividend or hobby income. The income are passed alongside to the investors. The charge of a share of the mutual fund, acknowledged as the net asset value (NAV), which is determined on day through day base, in mild of the absolute estimation of the mutual fund divided by the extent of high-quality shares presently issued.

A STUDY OF INVESTOR’S ATTITUDE TOWARDS MUTUAL FUNDS AS AN INVESTMENT OPTION

Mutual fund as an investment avenue provides a platform to the investor who does not want to take high risk on their hard-earned investment. In India, mutual fund industry is growing rapidly and this industry has emerged as an important segment of the financial market of India, especially in channelizing and mobilizing the savings of millions of individuals into the investment in equity and debt instruments. Mutual fund investment is less risky than investing directly in stocks and is therefore a safer option for risk averse investors. A competent fund manager should analyse investor behaviour, perception, and attitude and understand their needs and expectations to gear up the performance to meet investor expectations and requirements. Also, the mutual fund industry today is one of the most preferred investment options of all over the world. It plays a crucial role in the economic development of a country. Mutual fund active involvement can be seen by their dominant presence in the money market as well as the capital market. They are also found very active in the stock market by way of ensuring stability as a supplier of large funds through steady absorption of floating stocks. Investors invest directly in individual securities or indirectly through a financial intermediary. Study intends to identify the usage of schemes and level of risk on the basis of their income level. The findings of the study indicate that the majority of the selected respondents have used open ended schemes with moderate risk.

AWARENESS AND ATTITUDE OF INVESTORS TOWARDS INVESTMENT ALTERNATIVES IN ERODE DISTRICT

Awareness on investment alternatives is a part of financial literacy. Financial literacy means a set of skills and knowledge that helps in understanding the various aspect of financial investments and enables an effective decision making process. Awareness means knowledge of the existence of a particular truth, event or thing. Awareness is commonly considered to be the first stage in the process of investment decision. Investors’ awareness means the prospective or existing investor is conscious and is having the knowledge of the existence of the investment avenues for investing the savings. Investors are expected to know about the various investment alternatives available to make effective investment decision. Knowledge about the various investment avenues facilitate comparison of merits and limitations each alternative.

Perceived Financial Transparency and Loyalty in the Islamic Banking Sector of Pakistan: Exploring the Role of Trust and Age

The banking sector is the backbone of the global economic system. Islamic banking has emerged as crucial for the economic sector of all developing as well as developed countries. Investment in Islamic avenues is based on the trust and perception of local consumers. This study examines the relationship between the Perceived Financial Transparency of Islamic Banks (PFT) and Loyalty with Islamic Banks (LB). Furthermore, the study examines the mediating role of perceived trust and the moderating role of age. Moreover, the moderated mediation role of age is examined between PFT and perceived value. Data was collected from the 424 consumers of Islamic banks working in Pakistan and was analyzed through PLS-SEM. Results of the study reported a significant and positive relationship between PFT and perceived trust. Similarly, results reported that perceived trust leads to loyalty. Moreover, in terms of mediation analysis results reported that perceived trust significantly mediates between PFT and brand loyalty. Additionally, the moderation results reported that age significantly moderates between PFT and perceived trust. This study will benefit the banks and policymakers to devise policies according to the changing demands of the customers. Moreover, it will encourage conventional bank customers to invest in Islamic banks and other Islamic investment avenues.

Implementing the Variance-Covariance Method for Assessing Market Transaction Risks in Raw Material Sector Stocks

The capital market plays a crucial role in supporting a country's economic growth. Besides being a funding source, the capital market also serves as an investment avenue for investors, particularly through stocks. Every investor must be willing to bear risks in line with their targeted returns. Risk is defined as the uncertainty of future outcomes due to market condition changes, and VaR (Value at Risk) is used to determine the tolerated loss at a certain confidence level. This study discusses the application of the Value at Risk (VaR) method using the Variance-Covariance approach to mitigate market risks in the portfolio of raw material sector stocks. The study focuses on two raw material sector stocks in Indonesia, assuming a normal distribution of asset price changes. The measurement results indicate that with an investment of Rp. 100,000,000.00, a 95% confidence level, and a 1-day period, the VaR of the portfolio of these five stocks is Rp. 2,769,750.00. This research provides critical insights to assist investors in understanding and managing portfolio risks, making VaR a key indicator to measure potential future risks and laying the foundation for decision-making in risk management.

An Ethical Evaluation of Savings and Cooperative Societies in Ukum and Katsina-Ala Local Government Areas of Benue State

There a number of thrifts cooperative societies in Ukum and Katsina-Ala Local Government Areas which provides informal savings and investment avenues for the rural dwellers. However, there are a number of factors that affect the effectiveness of these thrifts and cooperatives such as poor and non-repayment of loans and misappropriation of funds. These challenges border on lack of ethical principles in business. Thus, one of the basic problems confronting business practice among the people of Ukum and Katsina-Ala Local Government is poor ethical principles in business practice. This paper therefore evaluates the ethics of savings and investment of selected thrifts and cooperative societies in Ukum and Katsina-Ala Local Government Area of Benue State. The paper adopts both primary and secondary sources of data collection and employed the descriptive and analytic methods of data analysis. Two thrifts and cooperative societies in Ukum and Katsina-Ala LGAs were sampled for the study. The analysis revealed that thrifts and cooperative societies have positive impact on business practice among the people. It is evident that cooperative societies exist in Ukum and Katsina-Ala LGAs where people save and invest monies in different businesses including farming, trading, purchase of commercial vehicles, motorcycles and in meeting other household needs. However, it was found that there are ethical challenges in managing thrifts and cooperative in Ukum and Katsina-Ala LGAs. These challenges are a result of poor ethical principles which are shown in the conduct of those who take loans without paying back and financial misappropriation on the part of those who own and manage such thrifts and cooperatives. The paper recommends among others that there is need to strengthen the ethical principles of integrity, financial accountability and transparency in Ukum and Katsina-Ala LGAs of Benue State for more effective business activities in the area. People borrowing money should do that with good reason and in a manner that they can repay the loans. Traditional and religious leaders should encourage people in the area to join thrifts and cooperatives, bams and adashi as ways of raising capital to start new businesses in the area.

Intersecting Dynamics: The Role of International Carbon Markets and Private Credit in Reshaping Global Financial Systems

This paper explores the dynamic interplay among the development of international carbon markets, the ongoing global retirement savings crisis, and the rising prominence of private credit. The growth of carbon markets as a cornerstone of climate policy initiatives is reshaping global financial landscapes, influencing investment strategies, particularly within pension funds, and enhancing the appeal of private credit as an alternative investment avenue. This comprehensive analysis addresses how the integration of carbon markets with environmental, social, and governance (ESG) criteria into investment decisions is pivotal in resolving the retirement savings shortfall while fostering sustainable financial growth.

Financial Literacy and other Factors Influencing Investment Behaviour of Individual Investor: A Review of Literature

Indian investor’s behavior has been changing drastically in the post-economic reforms era in investment activity, preferences in selecting various financial instruments, evaluating and in analyzing the investment avenues. In this paper the diverse literature available worldwide on individual investor behavior has been explored. Its main objective is to understand individual investor behavior.

Investors Perception Towards Trading in Futures & Options

We have attempted to ascertain and determine investors' perceptions towards the derivatives market in this research report. An investor may have many questions before making an investment, such as what are the available investment avenues? Where should I put my money? What should I think about? And so forth. Therefore, financial literacy is of utmost importance. It would therefore be intriguing to view an investment from each of these perspectives. Thus, all of these important considerations are made when starting the current project. Problem: There is a lack of understanding and awareness among investors regarding the derivative market. Investors always make investments with the hope of earning a return on their investments. However, there is always a high risk associated with the investment in the derivatives, which is mostly either not recognized or underestimated by the new investors/traders who are mostly new and are at a beginner’s stage in the field. Approach: Derivatives products and trading are developing more quickly these days. On the other hand, the derivatives component is typically employed for hedging as well as trading. Additionally, look for a relationship between the money earned and the money spent on derivatives. We try to find how investors feel about the derivatives instrument and with what perception they enter the derivatives market. Result: We will try to explore about and get familiar with investors psychology concerning the investment in derivatives instrument and the issues they face due to illiteracy in the beginning stages of the derivatives market. This study will clarify and throw the light on the basic and general perception of investors on derivatives investing.

Retirement Planning and Avenues

This study examines the dynamics of retirement planning, focusing on factors influencing individuals' decisions, preferred investment avenues. Through primary data collection via questionnaires, the study identifies major considerations such as family needs, healthcare, and income stability post-retirement. Findings indicate a preference for secured small saving plans over mixed investment options, with a notable lack of awareness about available investment avenues. The study recommends early and consistent savings, diversified investments, and regular review of retirement plans.

Are women more risk-Averse than men regarding investment decision?

This paper emphasizes the significance of how gender influences the decision of an individual while taking investment decisions. It investigates the possible impact of gender on investment behavior, risk tolerance, and preferred investment avenues. Prior research has investigated of female investors having lower risk tolerance than men and tends to steer clear of high-risk investment options. The study made an effort to highlight the disparities between men's and women's investing options and risk tolerance. Differential gender-based investing patterns have been shaped by cultural expectations and traditional gender stereotypes. In several past literatures women have always been underestimated by researchers in the magnitude of investment decision making as several past papers have shown they have encountered various social stigma and that are the possible reasons which have a greater impact on their investment choices. According to research, women frequently have more risk-averse attitudes than men do when it comes to their financial activities. In our present research paper we clearly get a striking disparity in the investment options and a remarkably distinct tolerance level for risk aptitude for male and female investors.