Factors that Influence Investors in Investing Stock with Investment Interest as Mediating Variable in Indonesian Capital Market

Prayudha, Dimas Raka; Kuswanto, Adi

doi:10.5281/zenodo.2649091

Cited by 1 publication

(2 citation statements)

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“…To improve this process, it needs to be more considerate. There are many other reasons for people to invest, such as pleasure, work, and hobbies [11]. Different investment purposes would lead to completely different portfolio structures, leading to different results.…”

Section: Discussionmentioning

confidence: 99%

“…With this clear distinction between the two types of stocks in mind, investors could choose the more suitable stocks instead of randomly guessing whether the bought stock gives more ownership or monetary benefit. Also, Prayudha and Kuswanto proved that investment return is positively correlated with investment interest [11]. Therefore, according to Benson and Jackson, building of a good investment portfolio consists of the following steps: deciding whether to invest personally or with the help of professionals, choosing an account, choosing risk tolerance, determining the best asset allocation, and rebalancing the investment portfolio [3].…”

Section: Literature Reviewmentioning

confidence: 99%

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Research on the Process of the Formation of an Optimal Investment Portfolio

Zhang

2023

AEMPS

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In the financial market, there are different types of financial instruments, such as equities, bonds, and mutual funds, and investors can build an investment portfolio through their buying and selling activity in the market. Limited-experienced individual investors are often attracted to stocks or bonds with high returns when trading in the financial market and building an investment portfolio. This could make them underestimate the adverse impact brought by investment risks on their expected returns for the portfolio. An optimal investment portfolio should be aimed at with a step-by-step process that considers risk tolerance, portfolio selection, and the monitoring of the portfolio after it has been formed. This theoretical process would first consider the way in which individual investors could assess the risk involved in the portfolio. The beta coefficient is one of the indicators and it can be estimated via the capital asset pricing model (CAPM). Then, a well-diversified portfolio would be favoured, not only across different financial instruments, but also across different industries, and the minimum desired number of instruments included in the portfolio is 30. Rebalancing portfolios is a crucial step in keeping the original structure, and ilinskijs criterion helps individual investors to rebalance more efficiently. Although this process helps investors in building investment portfolios, it should include more areas of concern about investors own interests and the plausibility should be further tested.

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Section: Discussionmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%