Behavioral Finance with Reference to Student Investors

Abstract

In today's corporate world finance is the life blood of any business where, investment decisions of stakeholders play a vital role in ensuring the financial viability of every business venture. It's the financial awareness of the investors which leads to the formation of certain perceptions which, transforms as conventional behaviors reflecting ontokey investment actions and decisions. The objective behind pursuing this research is to understand these behaviors and perceptions of the student investors. An analysis of primary and secondary data elucidates the facts that college students are either aware about stock markets but are restricted towards investing in few financial products or are completely unaware about stock markets and investments. In the due process of this research a sincere effort is undertaken to design a scientific model, "The Funnel Model" which illustrates the current investment scenario and different methodologies which could be put into practice to positively influence the behavioral aspect of the student investors. Funnel model if implemented will enhance the participation of the student investors which will pump in more capital towards various business avenues. Thereby, facilitating greater availability of finance and leading to the attainment of business excellence.