A survey of the factors that investment Management companies consider when Making investment decisions
Abstract
Given the investment decision process that denotes the choice of assets acquired, the
amount invested in each asset and the timing of the investment to maximize returns,
investors can invest in single assets or in a number of assets. By their very nature the
assets invested in bear different characteristics. In order to secure good and productive
investments, investors should properly analyze the characteristics surrounding the
investment assets.
The study was carried out to identify the factors that influence investment in various
investment instruments and rank the identified factors in order of importance as viewed
by the eleven investment management companies licensed by the Capital Markets
Authority. A survey was carried out in which case primary data was collected using a
semi- structured questionnaire. The data collected was analyzed using descriptive
statistics like mean scores, standard deviation and percentages. It was presented by the
use of tables and graphs.
The results indicate that numerous factors influence investment in different investment
instruments. These factors range from economic factors, company factors, social factors
and geographical factors. On the hand even where similar' factors are involved, they
influence investment differently in different instruments hence they are rated on varying
mean scores. For example an economic factor like inflation influences investment in
Government bonds more than it does influence investment in corporate bonds and stocks.
Citation
MBASponsorhip
University of NairobiPublisher
University of Nairobi School of Business, College of Humanities and Social Sciences