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Factors Effecting Investment Decision in Stock Exchange by Individual Investors.

Shahid Nazar M.Sami

SUPERIOR UNIVERSITY

INTRODUCTION

Investment is a critical decision

Investment means putting your money to work to earn


more money. Investing even a small amount can produce considerable rewards over long term especially if you do it regularly.

Investment decision by investors as being considered


as based for success or failure of his or her business.

INTRODUCTION

Some investor used fundamental and some take decision

on the basis of emotion, feeling, thoughts, affective reaction


which come into the biasness of the investors.

The benefit of investment are financial independence increase in wealth fulfill personal goals desire of family

members increase knowledge and increase vision (Ashis


Dubey, 2009).

PURPOSE OF THE STUDY The purpose of this study was to explore

the factors which effect investment decision


by individual investors in stock exchange of

Pakistan. The investment issue in Pakistan


and provide a framework for the upcoming researcher so that they can do more work it and gives the recommendation on it.

Research Methodology

Interpretivism paradigm

Qualitative research approach was used


A sample unit are investors of Lahore Stock Exchange Pakistan.

The data collection through semi structured Convenience sampling techniques was used

10 investors from Lahore Stock Exchange


replied positive and useable response.

Instrumentation

Three themes were used and semi structured

interviews from investors

Factors effecting investment decision

Strategies for investment decision

Recommendation for investment decision

Results
After transcribing the interviews the qualitative data is passed through comprehensive analysis procedures. In this regard first stage analysis, thematic analysis and stage structured analysis are conducted through interview grid and coding procedures the results are as follows: Factor effects: subjective feelings as one of the respondent said

if u have saving then you make the investment.


Strategies subjective feelings as one of the respondent said first of all we should concerned five years balance sheet of the company to see the profit/loss. Recommendation: subjective feelings as one of the respondent said you have the complete knowledge about the company in which you want to invest your money

Discussion:

According to our research these factors which effect the investment decision in stock exchange are savings, risk, political and economic factors and return on investment and government policies.

Opposite to the studies Kai and Farid (2003) find that both economical and political factors which have impact on investment decision. Chandra (1990) demonstrates that Kenyas recent economic performance has been among the best in investment decision.

Discussion:

George and Gautam (2003) analyzed that measurement of risk are one of the most researched area.

Jasim Y (2008) result that risk is a factor that which is support individual decision including financial and investment.

Shahbaz and Mahmood (2006) realized that savings investment are the two key macro variables which can play a significant role

in economic growth and promotion of employment in the


developing country.

Conclusions and Implications

we interpret that our research will help us to

understand the investment decision and factors that


affect the investment decision.

In this research paper we investigate factors which

affect the investment decision and investment


strategies.

We conclude the most important factors which effect

the investment decision in stock exchange. The


factors should be considered by the investors for the success of the development.

Proposed Model
.

Risk

Savings
Political and economical

Investment decision

Rate of return

Limitations

The study only targeted the investors of Pakistan stock exchange and in Pakistan we targeted only Lahore stock exchange

We select only the investor of stock exchange so the 0ther investor does not include our research

Since the decision is investors of stock exchange so our result for the investors of stock exchange.

Limited interview conducted

Our sample size is 10 so it is difficult for other researcher to


generalize our research.

Future Research Dimensions


In Future studies can be conducted

This research is used for exploring the multiple diimension This research is compared with other Stock Exchage Using random and more representative sample selected from Lahore stock exchange .

Considering other determinants and outcomes of good investment decision

While increasing the sample size our research can be explore

Provide the support of investor for making good investment decision.

References
Arago, V., & Fernandez-Izquierdo, A. (2003) GARCH models with changes in variance: Un approximation to risk measurement. Journal of asset management, 227. Chandra Watkins, (1990,) Kenya economic condition related to American investment, business America. George Birbilis, Gautam Mitra, (2003). Using @Risk to calculate portfolio performfor the analysis of risk and optimization modeling application, Brunel University, Uxbridge, and Middlesance, centre ex, UB8 3PH Shahbaz Nasir & Mahmood Khalid, (2006,) saving investment behavior in Pakistan: an empirical investigation, Pakistan institute of development economics and accounts.