The Influence of Demographic Factors on the Investment Objectives of Retail Investors in the Nigerian Capital Market

Abstract

Demographic factors, as a group have been found to determine the type and level of investment an investor makes. The aim of this paper is to determine the influence of demographic factors on the investment objectives of retail investors in the Nigerian capital market. Primary data was obtained through a structured questionnaire administered on 180 respondents and analyzed with simple descriptive techniques. Chi-square test and correlation analyses were conducted to assess the effect of demographic factors on the investment objectives of retail investors in the Nigerian capital market. The results reveal that investors’ employment status and income are the most influencing factors on their investment objectives. While income has significant effect on all investment objectives, employment status has significant effect on all investment objectives with the exception of diversification objective. Educational qualification of investors has a significant effect on security investment objective. Demographic factors like gender, age, marital status and capital market experience have no significant effect on the investment objectives of retail investors in the Nigerian capital market. These findings should assist capita market operators when advising their clients on where to invest. They should also act as a guide to policy makers in coming up with policies aimed at repositioning the Nigerian capital market for more efficient fund mobilization for investment in the economy.

Keywords: Demographic factors, Retail investors, Investment objectives, Nigerian capital market.