FACTORS INFLUENCING THE INVESTMENT DECISION OF THE CUSTOMERS IN BANKING SECTOR

Abstract

Deposits are not only a part of the money supply, they also affect it in important ways. Government create and spread money throughout the economy in response to key movers like investment. Investment is largely possible because people can move large sums of money by saving, transferring and withdrawing funds from bank accounts.

 Bank deposits are a primary tool for investment, and without them businesses would not be able to access funds from individuals at all. This study aim at determining the basic driving force of investment of customer in banking sector and their perception towards their investment in banking sector.

The study is to know the customers perception toward the investments in banks and how the customers are  aware of the other form of investments like equity, gold, real estate etc. secondly how frequently the customers are investing and their satisfaction towards their investments. The main aim of this study is to determine the factor that influence the investors to invest in banking sector.

 Descriptive research is adopted in the study. Convenient method has been used as sampling design with 110 respondents. Structured Questionnaire used for the survey. Primary data has been used. Appropriate statistical will be used such as Correlation, Chi square, Friedmen’s test, ANOVA and Regression analysis.

This study aims to gain knowledge about key factors that influence investment behaviour in banking sector and ways these factors impact investment risk tolerance and decision making process among the customers. The individuals may be equal in all aspects, may even be living next door, but their financial planning needs are very different. Hence keeping this in mind, the present study is an attempt to find out the factors which affects individual investment decision in banking sector and differences in the perception of Investors in the decision of investing in banks.