A Study on Investors’ Satisfaction and Repeated Investment Behaviour a Structural Equation Modeling Approach

Abstract

Purpose: Investors always try to make lucid decision while investigating and inferring information collected from several sources for investment avenues to arrive at an ideal investment decision. But at the same time they are prejudiced by various internal and external factors that stimulate them in their investment decision. This paper attempts to explore the impact of investment decisions on investor’s satisfaction in the city of Chennai. Methodology: The survey was conducted on the internal and external factors which impact the behaviour of investors with respect to investment in mutual fund industry from 350 investors of mutual funds across the city. The data was analyzed through Exploratory Factor Analysis (EFA), Confirmatory Factor Analysis (CFA). Structural equation modeling has been used to identify the various factors affecting investor’s decision making in mutual funds and its effect on investor’s satisfaction. Results: The outcome of the analysis revealed that there was an impact of investment decision on investors’ satisfaction. It was concluded that right investment decisions will lead to better investor’s satisfaction. The study further analyses the relationship between investors’ satisfaction and repeated investment behaviour. Conclusions: The findings indicated that financial attitude drives, information drives and investment outcomes are the main reason which, results in investors satisfaction and in turn results in repeated investment decisions.