Author(s): Ameya Patil, Rahul B. Hiremath, Rakesh Yadav and Namita Shivlal Mane
This study examines the investment behavior of millennials in the Indian stock market, driven by the unique socio-economic and technological contexts shaping this demographic. The research aims to identify and analyze the key factors influencing millennial investment decisions. Employing a quantitative methodology, a structured questionnaire was administered to 180 millennial investors, and Exploratory Factor Analysis (EFA) was employed to uncover underlying constructs. The analysis revealed six critical factors i.e. Risk Tolerance, Financial Literacy, Technological Proficiency, Socio-Economic Factors, Social Influence, and Sustainability, collectively explaining 77.135% of the variance. Key findings indicate that Risk Tolerance and Technological Proficiency are the most significant determinants, highlighting millennials’ comfort with high-risk investments and their reliance on digital platforms. These insights provide valuable guidance for financial institutions, policymakers, and educators to develop targeted strategies that enhance millennial market participation and financial literacy.