Comparative Analysis of Investors' behaviour Based on demographic Factors

Investment behaviour plays an important role in financial decision making and market outcomes are often influenced by this behaviour causing bubble in market which is also known as market anomalies. The purpose of this study is to compare the relationship between investor behavior and demographics among investors residing in Jalgaon city. An investor is regarded as a non-professional individual who makes stock market investments. Investments decisions are not always sound and are influenced by psychological, cognitive, emotional and demographic factors. Three demographic factors – gender, age and qualification are taken into account in this study. A structured questionnaire is used to gather primary data from individual investors of Jalgaon City. To find significant differences between demographic groups statistical tools like descriptive analysis t-tests, ANOVA and post-hoc tests were applied. The results of the t-test indicate a difference in behavioural responses between male and female investors in Jalgaon city. Further, ANOVA results reveal a there is no statistically significant difference in investor behaviour across age & heuristic, prospect & herding behaviour among qualification groups indicating uniform attitudes towards risk & loss among investors of different age & qualifications. However one-way ANOVA indicate that investors’ market factor based investment behaviour varies significantly across different educational qualification levels of investors in Jalgaon city.