Review of Literature on the Factors Influencing Investors Decision Towards Investment in Shares

Abstract

This study is aimed specifically at persons who have savings but avoid investing in the financial market. The application of our funds somewhere with the goal of gaining some more as we are applyingfor make an investment. The researcher attempted to identify the factors that restrict the transfer of funds from savers to demanders. The seamless flow of funds from both sides is critical to the success of the financial market. It was discovered that there is a schism between borrowers and lenders. To close this gap, it is vital to encourage ordinary people to invest. In developing countries such as India, just 5% of the population (1.2 billion) is involved in the investing process. The behavioral characteristics of investors are influenced by socioeconomic, cultural, and psychological factors. The findings indicate that instances of persons achieving financial security through share investment had the greatest influence on investors. Market considerations, hedging variables, and economic indicators all have a stronger impact on investment decisions. This result also demonstrates that the use of business annual reports containing financial ratios influences investors' decisions in the stock market.