WSEAS Transactions on Business and Economics
Print ISSN: 1109-9526, E-ISSN: 2224-2899
Volume 13, 2016
The Novice Versus the Experienced Investors: Insights into the Work of the Investment Behavior
Authors: , ,
Abstract: This paper compared investing behaviors of experienced and novice share investors in theMalaysian equity market. The comparison is made betweenboth experienced institutional and retail investors with novice share investors. Despite some obvious differences in their behaviors, all three types of investors did behave the same in using main information to make financial decision. Investors’ behavior is related to their investment preferences and risk tolerance. Novice share investors are risk averse and financially less knowledgeable. They have great dissatisfactions with their current savings in their bank accounts and property investment despite possessing excess cash on-hand. The dissatisfaction of novice share investors on investment and their average investment skills suggest the need of financial literacy to reduce the performance gap they face. Financial education at a young age and innovation in simplifying financial products and their processes cast important consumer and policy implications.
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Pages: 207-215
WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 13, 2016, Art. #20