SOCIO-ECONOMIC FACTORS AFFECTING THE REPLACEMENT OF THE HOUSEHOLD SAVINGS TO INDIVIDUAL INVESTMENTS

Abstract

In this study, social economic factors which are effective in converting household savings into individual investments are examined. Household savings are calculated by calculating the national income and household consumption expenditures of households. However, household savings have chosen to save money when they turn to various investments instead of consuming all of the revenue they earn. In this way, household savings can be achieved by subtracting the total savings from the public's share or by separating the savings of the private sectors in total. The savings levels of economic development have been important because savings have been made on the financing of individual investments. When transferring the savings to the capital market system by means of investment tools; they act on the basis of high returns, confidence and liquidity requests. There are some factors that restrict these movements, which are shown by the savings owners, and which are influenced by the savings owners at the time when they made their decisions. These factors are examined as personal, financial, environmental, legal and public.
Socio-economic factors affecting the investment decision of the savings owner; personal characteristics, financial factors, environmental factors, legal factors and public measures can be listed as. These differences are made by investors; knowledge, culture, education levels and psychological structures may be different. Therefore, in this study; first, the individual characteristics of individual investors; risk taking levels, risk-taking rates and investment period of individuals will be examined. Then, the financial factors that direct the investment decision; to protect the capital, to provide a value increase in its capital and to obtain a satisfactory income from its capital. Finally, the environmental factors leading the investor's investment decision will be discussed such factors as the cultural situation, social status, reference group and group-family relationship of the savings owner. As a result of the development of the study proposals, the examination of the factors affecting the investors' decisions can shed light on the more informed decision of the investors and the organizations that offer the investment instruments to the market can reach more transaction volume.