FACTORS INFLUENCING THE CHALLENGES FACED BY INVESTORS IN DIGITALISATION OF RETAIL INVESTMENT MARKET

Abstract

The dynamic landscape of retail investment has undergone significant transformation with the advent of digitalization and enhanced financial literacy among investors. This paper explores the interplay between digitalization and financial literacy in shaping retail investment behaviors and outcomes. Using empirical data from a sample of retail investors, the study evaluates how digital tools and platforms, combined with investors’ knowledge levels, influence decision-making, risk assessment, and portfolio diversification.  However the Retail investors, also known as individual investors who trade with their own money, are confronted with a significant number of problems that have the potential to hinder their ability to achieve success in the financial markets.  The study focuses on the factors that influence the challenges faced by the investors in retail investment market. The study selected a total of 184 participants who invested in retail investments in Sangli district. The convenience sampling technique, which is a non-probability sampling method, was utilised to select the samples.  A questionnaire serves as a tool for research purposes. Exploratory factor analysis is employed to identify the challenges faced by the investors. Cronbach’s alpha serves as a metric for assessing reliability and the reliability stands for 84.6% in this study. The data has been analysed using SPSS v25. The findings reveal that Technical factor, Knowledge factor, Emotional factor, Modern digital challenges factor and other external factor are the factors that influence the challenges faced by the retail investors.