A Study On The Role Of Emotional Intelligence On Investment Strategy Of Investors Decision-Making

Abstract

Investment Strategy refers to the approach investors use to allocate money across various opportunities to earn the highest possible return. According to studies, emotions significantly influence investor behavior. A high level of Emotional Intelligence (EI) involves the ability to accurately perceive, reason with, understand, and manage emotions in oneself and others. This study explores how investor decisions are shaped by their Emotional Intelligence. Relevant literature on emotional intelligence, investment decision-making, and investor attitudes was reviewed using resources such as EBSCO, Sage, Emerald, Google Scholar, ResearchGate, and the National Digital Library. Only recent and relevant papers were selected for review.

The study primarily aims to examine the relationship between Emotional Intelligence and investment strategies of individual investors, and to understand the importance of Emotional Intelligence in investment decision-making. Data was collected from retail investors in Kerala using a five-point Likert scale. Statistical tools, including descriptive statistics and inferential analyses like ANOVA, correlation, and regression, were employed.

The findings suggest a positive relationship between investor emotions and investment decisions.