A Conceptual Framework for Elucidating Investors' Proficiency in Investment Instruments in Emerging Economies

Abstract

The biggest hurdle in individual investment decision is the absence of an information framework which can guide them acquisition of relevant Investment Product Knowledges, thereby supporting their wealth maximization goals. The present study is an attempt to formulate an optimal investment framework facilitating investor decision making.

The authors conducted a comprehensive literature review and formulated one such framework establishing the investors' perception of the significance of a product (PSP) as a primary factor determining the long-term product involvement (LTPI) and investment product knowledge (IPK). We have also explored the role of demographic information on IPK and PSP as a mediator. The study has provided hypothesis which can be further tested for implementing the framework.