Confirmatory factor analysis on influence measures of investment

Abstract

Background of the study: In an investment decision, several factors are responsible for a investors to make their investment or chose their preferred investment avenues. Factors such as, Benefit derived from the chosen investment, Objective of the particular investment, Financial literacy over the proposed investment, and influence of investment measures were mostly consider by the investors while making their investment measurement. Objective: This article explores the investment influence measures consider by the people for making their investment decision. This research paper has a primary objective to highlight the most and least influential measures consider by the peoples while making their investment. Methodology: This study is confirmatory by the way of proving the six investment influence measures of peoples’ investment decision emerged under influence factor by using the path analysis. There are two hundred sample respondent were identified under the purposive sampling in the urban area of Tiruchirrappli District. All the issued questionnaire were collected and scrutinized by using SPSS 20 statistical package and AMOS 20 to derive the path analysis. Result: All the six influence measures significantly influence investor’s investment decision. It is estimated that When influences dimension goes up by 1 standard deviation, Safety of the particular investment goes up by 0.769 standard deviations and prevailing Tax saving on the investment goes up by 0.733 standard deviations and Simplicity of the investment process goes up by 0.768 standard deviations.