Small investor- advise small investors on how to manage investment risk.

Abstract

High inflation is striking all over the world due to war, conflict, and pandemics. And deglobalization and the ageing population trend lead the world into turbulence stages. These situations make understanding investment become more important to preserve wealth. The research purpose is to advise small investors on how to manage investment risk. Identify the best investment strategy for small investors and make rational decisions without effect by fear and greed. Finding the right approach to manage the risk of investment. The primary data for this research was collected through semi-structured questionnaires and received 51 participants' questionnaires from 21 countries covering most regions of the world. The research methodology used epistemology research assumptions through interpretivism study with qualitative research methods.

The literature review covers all the key areas in investments. Explain investment and considered define what is small investors and examine the limitations facing small investors and Investor Behaviour. Analysis of all the aspects that affect investment making. Such as macroeconomics, risk management, and company evaluation. The importance to understand monetary policy, the position of the American dollar in world economics, and the Economics & Economic cycle. Other themes include identifying a great business investment and what is second-level thinking that it is important to know what others think and choose what everyone investing in the future as Keynes’s viewpoints. How to think differently and find the next popular investment opportunity is the key point to success in investment. The final part explores different investment philosophies & strategies for small investors. In the investment philosophy &strategy section, explore the efficient-market hypothesis, Warren Buffett's Investing Style and how Asset allocation works.

In primary data of questions and analysis, The questionnaire has 18 questions designed in response to literature structures. The sample was conducted in 21 countries with participating representatives to study global investor risk attitudes and behaviours. The demographic profile of the participants reflects a group primarily composed of younger adults with higher education and financial stability with roughly equal gender. The key findings of the research show the majority of participants have a relatively conservative attitude toward investment risk. Consider they are incapable investors in sample participants with 96.1% having undergraduate education and 77.4% can use more than two languages. Lack of financial knowledge is the other big finding, such as a low percentage of participants being aware of high fees and expenses. The finding indicates that investors need to enhance their financial knowledge such as taking various forms, including workshops, courses, and online resources. as well as seeking professional advice can help mitigate the risk of making investment choices. There is some recommendation for small investors to address these issues, The first is to use a margin of safety that leave enough safety space in investment. Other recommendations such as Asset allocation strategy combines diversification of investment in the portfolio theory, passive such as ETFs, and active investing advantages benefits. Therefore, investors should consider long-term investment strategies that align with their risk tolerance and financial goals. Overall, Improving individuals' financial knowledge can make more rational investment decisions, that can enhance investment performance and manage investment risk.