BEHAVIOURAL INSIGHTS INTO SHAREHOLDING PATTERNS AND INVESTOR CONFIDENCE
Keywords:
Behavioral Finance, Retail Investors, Market Confidence, Shareholding Patterns, Investment Psychology, Risk Perception,,Abstract
Significant changes in individual investor involvement and behavior have driven an
extraordinary global financial markets transition in recent years. From 2020 to 2024, this
thorough study looks at the complex link between investor psychology and shareholding
patterns across significant worldwide markets. By means of in-depth surveys of 2,500,000
retail trading accounts and comprehensive analysis of market data including over 500,000
investment decisions, this study exposes basic changes in investment decision-making
processes and market confidence indicators. While retail investors with high financial literacy
scores show 32% reduced portfolio turnover rates than their less-informed counterparts, the
study finds notable correlations between social media sentiment and trading volumes (r = 0.78,
p < 0.001). Moreover, the research records a 47% rise in risk-adjusted returns among investors
that follow systematic investment policies and have diverse portfolios. These results
significantly add to the body of knowledge on behavioral finance and have pragmatic
consequences for financial institutions adjusting to the changing retail investment scene,
regulatory authorities, and market players.
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