Record Details

Investment Portfolios in an Emerging Economy: What Drives Portfolio’s Diversification?

Emerging Markets Journal

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Field Value
 
Title Investment Portfolios in an Emerging Economy: What Drives Portfolio’s Diversification?
 
Creator Bono Milan, Pedro Luiz Albertin
Eid Jr., William
 
Subject investment portfolios; diversification; risky assets; behavioral finance
 
Description This study sheds light on the investment portfolio’s decisions through behavioral insights. The study intends to identify personal characteristics that drive the level of diversification and lead investors to allocate resources in risky assets in an emergent economy, deepening the discussion about investment decisions and bringing some behavioral insights to the debate. The study has a unique and heterogeneous database of individual financial allocations from Brazil, one of the largest emergent economies. The characteristics of Brazilian investors play an important role in investment decisions, high educated and married investors tend to display diversified portfolios. To invest in risky assets, male investors have a 43% greater likelihood of investing in risky assets than females, highlighting the discussion on gender and investment decisions. Moreover, married investors tend to exhibit conservative portfolios. We observed that traditional investors are under-diversified, allocating primarily in traditional and safety assets. The results suggest that the investment decisions can be subject to psychological biases defined in behavioral finance theory.
 
Publisher University Library System, University of Pittsburgh
 
Contributor —
 
Date 2017-09-22
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://emaj.pitt.edu/ojs/index.php/emaj/article/view/120
10.5195/emaj.2017.120
 
Source EMAJ: Emerging Markets Journal; Vol 7, No 1 (2017); 1-10
2158-8708
 
Language eng
 
Relation http://emaj.pitt.edu/ojs/index.php/emaj/article/view/120/288
http://emaj.pitt.edu/ojs/index.php/emaj/article/downloadSuppFile/120/19
 
Rights Copyright (c) 2017 EMAJ: Emerging Markets Journal