Results and Discussion

Table 1: Profile of the Participants.

Variables Categories Frequency Percentage

Age (20-24) years old 30 100%

Female 25 83.33
Sex
Male 5 16.67

Total 30 100%

BSMA 3rd year 4 13.33

Program
BSMA 4th year 26 86.67

Total 30 100%

It is worth noting that of the twenty (20) items in the questionnaire, five (5) items

focused on the extent of returns, six (6) on the level of risks of financial assets, three

(3) on the contribution to investment performance, five (5) on the degree of important

of source information and the remaining one (1) focused on investor type of the said

respondents.

Tables 2, 3, 4 and 5 that follow on the succeeding pages depict these findings

in more detailed manner by illustrating the mean scores obtained by extent of returns,

level of risks of financial assets, contribution to investment performance degree of

important of source of information and investor type respectively.

Table 2: The Extent of returns of the following assets:

Variables N Mean Interpretation

Commodities 30 4.27 High

Hedge Fund 30 4.27 High

Bonds 30 4.23 High

Stocks 30 4.37 High

Savings Account 30 3.97 High

Table 3: Level of risks of financial assets:

Variables N Mean Interpretation

Hedge Fund 30 4.37 High

Stocks 30 3.87 High

Bonds 30 3.67 High

Savings account 30 4 High

Real Estate Funds 30 4.3 High

Commodities 30 4.53 High

Table 4:Contribution to investment performance

Variables N Mean Interpretation

Product Selection 30 4.2 High

Market Timing 30 4.1 High

Investment Strategy 30 4.6 High

Table 4:Degree of important source of information

Variables N Mean Interpretation

Own Judgement 30 3.87 High

Media 30 3.47 High

Friends 30 3.33 High

Price Movements 30 4.3 High

Product Brochures 30 4.13 High

Table 5: Investor Type

Variables N Percentage Interpretation

Intuitive Investor 5 16.67% Low

Strategic Investor 4 13.33% Low

Exploring Investor 9 30% Moderate

Realistic Investor 12 40% Moderate

Total: 30 Total: 100%

Among the following areas of diagnostic test, in the extent of returns, the stocks

has been so far the area that has gotten the highest mean score of 4.37, interpreted to

be at a high extent. the students perception of stocks has potential to earn higher

returns and expose them to a real-life trading environment. However, the savings

account has gotten the lowest mean score of 3.97, interpreted to be at a high extent but

this is the area that most of the respondents do not usually paid attention of when

assessing the returns potential of asset classes.

 In the level of risk of financial assets, commodities is the area that has gotten the

highest mean score of 4.53. The students are aware of the risk in investing to

commodities (e.g. inflation, weather, new technologies). However the bonds has

gotten the lowest mean score of 3.67, interpreted to be at a high extent. Students have

less perception of the risk in bonds if they invest in it.

On the other hand, three (3) of the factors according to contribution to investment

performance has gotten the same interpretation of high extent which Investment

Strategy got the highest mean score of 4.6. Students are aware of the investment

approach they are using which assess the long-term assignment of wealth to asset

classes.

In the degree of important source, price movements has gotten the highest mean

score of 4.3, interpreted to be at a high extent. Students perception of price

movements is a change in the value of an asset that offers relevant and important

financial. They consider price movements as very important. If the prices were

falling, the investors/students considering price movements as very important would

adjust their expectations downward, but often insufficiently due to the anchoring

effect. Consequently, they might not be prepared for extreme negative scenarios.

However, friends got the lowest mean score of 3.33, interpreted to be at a high extent.

BSMA Students do not usually trust investment ideas and recommendations from

friends.

On the other hand, in investor type, the students are more on realistic type of

investor. Student searches professional investment consulting to realize and pursue

investment objectives and assess the opportunities and risks of the financial market

differently. Realistic investors are the type of investors with with high knowledge and

low emotionality.
Recommendations

In the light of these findings, the following recommendations are hereby submitted:

1. Further, the BSMA students are supposed to extract factors that potentially

impact on their investment mistakes to improve their decision making when

investing.

2. The researchers’ study also suggests that BSMA students must assess the

long-term returns potential of asset classes, the short-term risk potential of

asset classes, their view on the performance contributor, view on good

diversification and determine what type of investor are they to enhance a

thoughtful diagnostic of their strengths and weaknesses as investors, which

they could use as a starting point for potential investment improvements.

3. The researchers’ study also suggests that BSMA Students must evaluate their

affinity to determine some common investment mistakes under the influence

of psychological and emotional factors.