Does Demography & Socio-Economic Status Influence Investment Motives?

Abstract Research studies in the past have analyzed the significance of demographic and socioeconomic status influencing investment preference and behavior. However, no study has focused on analyzing their impact on ‘Investment motives’. Hence, this study examines the investment motives and analyzes the significance of the impact of demographic and socioeconomic factors on investment motives. The study uses factor analysis and Multivariate analysis of variance (MANOVA) for this purpose. The data are collected from 753 investors through a structured questionnaire. Results of the study show that investment motives are grouped into six categories i.e., nature of the investment, future financial needs, investor characteristics, safety and stability, investor behavior, and investor options. Further, there exists a main effect of employment, marital status, location, and the number of earning members on investment motives. Likewise, there exists an interaction effect of age and location, gender and income, and age and income on investment motives. The study adds to the existing literature by comprehensively analyzing all the demographic, socioeconomic status with the investment motives.