Vol. 3, Issue 3, Part K (2017)

Abstract
Investor’s relationship is determined by several demographic, economic and cognitive factors. In behavioral finance, the information structure and the characteristics of market participants systematically influence individuals’ investment decisions as well as market outcomes. Investment of hard earned money is made by investors for financial security in future on such investments. But before taking any investment decision and choosing any financial avenue, they follow a process of cognitive decision making which guides them towards selection of avenue. Investors sometimes are not having knowledge about different avenues available and thus face problems to make a good investment decision. This conceptual perspective can be used to build representation of individual investors. This model can bridge the gap between the micro level of individual investor behaviour and the macro level of aggregate market phenomena. This paper will present the concepts that help illustrate the individual investment avenues and the investment behaviour of individuals.