Investment decisions across a variety of financial markets are significantly influenced by investor behavior. Individuals' investment choices have changed due to a variety of factors, including the financial landscape, growing financial awareness, technological improvements, and behavioral impacts. Modern investment instruments like mutual funds, stocks, cryptocurrencies, and digital investment platforms are becoming popular, especially among younger generations, while traditional investment avenues like fixed deposits, gold, insurance, and real estate continue to draw investors due to their safety and liquidity. With a focus on Gujarat State specifically, this study attempts to analyze empirical and descriptive research on investor behavior toward different investment routes. Using secondary data from published journal articles, research papers, conference proceedings, and academic databases, the study employs a systematic review process. Behavioral biases, demographics, financial literacy, risk and return perception, psychological factors, and technology effects are among the key aspects that the review identified as impacting investor behavior. The results show that while demographic factors, financial understanding, and risk perception determine investment choices across traditional and modern investment channels, behavioral biases including overconfidence, herding, anchoring, and FOMO have a major impact on investing decisions. The report also identifies significant research gaps, including the dearth of studies that compare various investment options specifically for Gujarat and the poor integration of financial and behavioral factors into a single framework. The study suggests a conceptual framework that integrates behavioral, demographic, financial, psychological, and technological aspects. The results may help investors, financial institutions and researchers comprehend investment decision-making trends and encourage wise investment practices.
Patoliya et al. (Fri,) studied this question.