FINANCIAL MODELLING AS A STRATEGIC TOOL FOR INVESTMENT DECISION-MAKING
DOI:
https://doi.org/10.29121/shodhkosh.v5.i1.2024.5590Keywords:
Financial Modelling, Investment Decision-Making, Individual Investors, Strategic Tools, Risk Management, Investment Planning, Behavioral Finance, Fintech Adoption, Decision EffectivenessAbstract [English]
In today’s volatile and complex financial environment, making informed investment decisions is crucial for individual investors aiming to optimize returns while managing risks effectively. This study delves into the strategic importance of financial modelling as a decision-support tool that helps investors analyze various scenarios, forecast potential outcomes, and systematically evaluate investment options. Using an analytical framework supported by a comprehensive questionnaire survey conducted among a diverse group of individual investors and financial professionals, the research explores several dimensions: the level of awareness and actual usage of financial modelling tools, the perceived benefits in improving investment decisions, and the challenges and barriers faced by users. The findings reveal that while financial modelling significantly enhances the quality and discipline of investment decisions—by enabling better risk assessment, diversification, and goal alignment—many investors are still hesitant due to technical complexity and trust issues with automated systems. The study further discusses actionable recommendations, including improving user interface design, expanding educational initiatives, and fostering greater integration with advisory services to facilitate wider adoption. This paper underscores the critical role of financial modelling in empowering individual investors and shaping more strategic, data-driven investment behavior in a rapidly evolving financial landscape.
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Copyright (c) 2024 Shubhangi Gupta, Dr. Ganesh Sambhaji Lande
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