Investors and investment choices: determinants of the financial advisors persuading the investors and the role played by financial advisors on the decisions of the investors

This study makes an attempt to understand the support extended by financial advisors through reviewing the various scholarly articles on financial advisors.
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Investors and investment choices: determinants of the financial advisors persuading the investors and the role played by financial advisors on the decisions of the investors International Journal of Management (IJM) Volume 9, Issue 6, November–December 2018, pp. 34–53, Article ID: IJM_09_06_004 Available online at http://www.iaeme.com/ijm/issues.asp?JType=IJM&VType=9&IType=6 Journal Impact Factor (2016): 8.1920 (Calculated by GISI) www.jifactor.com ISSN Print: 0976-6502 and ISSN Online: 0976-6510 © IAEME Publication INVESTORS AND INVESTMENT CHOICES: DETERMINANTS OF THE FINANCIAL ADVISORS PERSUADING THE INVESTORS AND THE ROLE PLAYED BY FINANCIAL ADVISORS ON THE DECISIONS OF THE INVESTORS S Veena Hindustan Institute of Technology and Science (Deemed to be University), India ABSTRACT There are many number of investment avenues with simple choices like investments in banks deposits to complex investment avenues like investing in share markets and others. The investor gets confused and sometimes misled with vast amount of information available. In such a case, the investor may require a support while searching for the information, evaluating the alternatives and finally deciding the investment avenues. This support may be available from personal sources like family members, friends or peers or from intermediaries like financial advisors. This study makes an attempt to understand the support extended by financial advisors through reviewing the various scholarly articles on financial advisors. Key words: Financial advisors, personal characteristics, information search, evaluation of alternatives, decision making, impact. Cite this Article: S Veena, Investors and Investment Choices: Determinants of the Financial Advisors Persuading the Investors and the Role Played by Financial Advisors on the Decisions of the Investors. International Journal of Management, 9 (6), 2018, pp. 34–53. http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=9&IType=6 1. INTRODUCTION The objective of the article is to identify and understand the characteristics of a Financial Advisor necessary to initiate a communication and the role played by the advisor in various stages from information search, to evaluation of alternatives, to decision making from among the alternatives and impact created by advisors in the minds of the investors. http://www.iaeme.com/IJM/index.asp 34 editor@iaeme.com S Veena Methodology The study is solely based on reviewing the various scholarly articles on financial advisors on personal characteristics of the advisor, the role played by the advisors in information search, evaluation of alternatives, decision making and their impact on the behavior of the investors‟ decisions. Findings The study, by reviewing various articles and from the research findings of various researchers, has found out that the services of advisors would surely benefit the investors to a large extent, helping them to make an optimal investment decision. The study also found out that the investors with more income tend to utilize the services of financial advisors than with less income investors. Future Research The study can be taken as a prelude for investors for utilizing the services of the advisors and advantage that can be reaped. In future for the financial stability, the investors have to necessarily seek the support of advisors. 2. LITERATURE REVIEW Introduction There has been a phenomenal change in the financial services sector and has led to a development of large number of financial institutions coming out with large number of investment products in savings, insurance, mutual funds, equities and commodities. At present, the Indian economy is fast growing with high disposable income, and so has high saving potential. The rapidly changing financial structure and its market with complexities makes an individual investor, with such a high disposable income, confused and sometimes even worrying as to choice of an investment, the amount of the investment and to gain maximum profits out of such investments. Also the investor gets baffled with the choices as he lacks the knowledge, skill and the time to spend for researching the avenues. Chater et al.(2010), have informed in their paper, that consumers clearly struggle with understanding investments, with very few able to identify the investments which would meet their requirements or give them a best return. Objective The objective of the article is to identify and understand the characteristics of a Financial Advisor necessary to initiate a communication and the role played by the advisor in various stages from information search, to evaluation of alternatives, to decision making from among the alternatives and impact created by advisors in the minds of the investors. Methodology The study is solely based on reviewing the various scholarly articles on financial advisors on personal characteristics of the advisor, the role played by the advisors in information search, evaluation of alternatives, decision making and their impact on the behavior of the investors‟ decisions. Financial Advisors Lowings and Thomas (2008), in their research conducted for FSA, found out that the consumers did not consider themselves to be confident and their experience is limited to one http://www.iaeme.com/IJM/index.asp 35 editor@iaeme.com Investors and Investment Choices: Determinants of the Financial Advisors Persuading the Investors and the Role Played by Financial Advisors on the Decisions of the Investors off purchase. In such a situation, the investor has to depend on someone to make his choice the most optimal one. Financial Services Consumer Pa ...