Abstract:

Individual investors are regarded as one of the key groups that contribute a sizable amount of money via their savings to the process of capital formation in the economy. Financial system plays a significant role in mobilising the savings of individual investors. To attract investors, the financial system provides a variety of instruments, including bank deposits, shares, bonds, mutual funds, and debentures. Retail investors choose the best instruments to meet their investment objectives/goals based on the risk and return characteristics of each instrument. The present study focuses on analysing the retail investors’ perception towards the financial instruments. The data required for the study was collected from the retail investors in the Muscat Governorate and the study found that majority of investors are considering investing in financial instruments. The results of the Kruskal-Wallis H test showed that the demographic factors like age, education, income levels have a statistically significant impact on the perception of investors’ towards financial instruments. The findings of the study will aid the policymakers in bringing more individual investors into the umbrella of financial system.

Description:

Retail Investors, Financial Instruments, Individual Investors, Kruskal-Wallis H test