Behavior of non‐professional retail investors in the financial market: a focus group discussion

The study focuses on the behavior of non‐professional investors who do not have the necessary knowledge, skills, and experience in making financial decisions. However, thanks to the development of digital technologies, a wide range of non‐professional investors have gained access to the financial market. Relevance. This category of financial market participants is targeted by organizers of dubious financial schemes, including those with signs of financial pyramids. Aim. To determine the personal qualities of non‐professional investors and to identify typical motives of participants. Method. Exploratory focus group discussion. Results and conclusions. During the exploratory focus group, the degree of respondents' involvement in direct investment schemes and awareness of financial instruments, investment practices and strategies, risky investment schemes, and strategies for working with high‐risk instruments were discussed. The main investment goals: receiving passive income, accumulating and preserving money, accumulating money for old age, were identified. Respondents note that investing for them is more of a hobby than a source of primary income. They adhere to a conservative investment strategy and deny participation in risky investment schemes (for example, like financial pyramids). When making decisions, they rely on information from open sources and their own expertise. Based on the results of the focus group, the motives of non‐professional investors, including: achieving success, the motive of saving, learning, excitement, etc., were identified. It is difficult to assess the level of awareness of financial decisions based on the results of the focus group discussion, since respondents provide general information without disclosing the details of their strategies.