Investors Decision Making Styles and Portfolio Performance: A Comparative Moderate, And Aggressive Investors

Abstract

This study explores the factors influencing portfolio performance (PP) among individual investors, focusing on decision-making style (DMS), risk tolerance (RT), financial literacy (FL), investment horizon (IH), and diversification strategy (DS). Using a sample of 295 respondents, data were collected through a structured questionnaire with a 5-point Likert scale. The analysis was conducted using R Studio, with regression modeling employed to test the proposed hypotheses. The findings reveal that DMS significantly impacts PP, while RT, FL, IH, and DS exhibit varying degrees of influence, with DMS emerging as the most substantial predictor. The study contributes to the understanding of investor behavior and provides insights for improving investment strategies. The results indicate that enhancing decision-making styles and refining diversification strategies can significantly boost portfolio performance. This research also emphasizes the importance of financial literacy and risk tolerance in shaping investment outcomes. Future studies could explore the impact of external factors such as market conditions and investor psychology. The global relevance of this research extends to understanding investment patterns across different socio-economic contexts.