Acumen:
International Journal of
Multidisciplinary Research
ISSN: 3060-4745
IF(Impact Factor)10.41 / 2024
Volume 2, Issue 2
153
Acumen: International Journal of Multidisciplinary Research
Investor Perceptions of Investments: Factors, Trends and Regional
Peculiarities
Sardorbek Kholmukhammedov
Department of Business Administration, Sharda University Uzbekistan
sardor.att@gmail.com
Introduction
In the modern world, the stock market plays a crucial role in economic development
by providing companies with access to capital and offering investors opportunities to
increase their wealth. However, investor participation in the stock market depends on
multiple factors, including economic conditions, government regulations, market
transparency, financial literacy levels, and individual risk tolerance. In recent years, the
government of Uzbekistan has actively pursued reforms aimed at developing the stock
market and integrating it into the global financial system. Economic liberalization,
improvements in the business climate, the adoption of international corporate
governance standards, and the digitalization of the financial sector have created
favorable conditions for attracting both domestic and foreign investors. The
development of the Tashkent Stock Exchange, the implementation of investor
protection mechanisms, and educational initiatives have all contributed to increasing
public trust and engagement in investment activities. International research also
highlights the importance of these factors. In particular, Indian scholars Dr.Nagala
Shyam Venkata Nooka Raju
and Dr. Anita Patra
have analyzed the behavioral aspects
of investors and identified key determinants influencing investment decisions. Their
studies indicate that factors such as market awareness, access to information,
transaction transparency, and government regulation significantly impact investor
confidence and their willingness to invest. Furthermore, their empirical research on the
Indian stock market demonstrates that successful reforms focused on enhancing
financial literacy and digitalizing investment processes contribute to greater
participation of retail investors. India’s experience in this area may offer valuable
insights for Uzbekistan, as both countries face similar challenges in developing their
investment climate, including the need to build public trust in the stock market. This
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International Journal of
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ISSN: 3060-4745
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study examines the key factors shaping investor perceptions of stocks and analyzes
successful practices from other countries, including India, to adapt their experiences to
Uzbekistan’s financial landscape. Special attention is given to investor trust, effective
government regulatory mechanisms, and educational initiatives that encourage greater
public participation in investment activities.
Keywords:
Stock market, investor perception, financial literacy, investment climate, behavioral
finance, investment stimulation, economic growth.
1.
Factors Affecting Investors' Perception of Stocks
1.1
Economic conditions
The state of the economy significantly affects investor sentiment. During periods of
economic growth, investors are more confident and tend to invest in stocks. During
recessions, risk aversion increases and capital is redistributed into more reliable assets
such as bonds and gold. If we look at the example of the Republic of Uzbekistan, we
can see a very positive moment as production volumes have increased in all major
sectors, with the exception of oil and gas production and pharmaceuticals.
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In 2024, Uzbekistan's economy continued to grow rapidly. According to the statistics
agency, gross domestic product (GDP) grew by 6.5% in 2024 (6.3% in 2023), which is
fully consistent with the December forecast of the Center for Economic Research and
Reforms. Production volumes increased in all major sectors of the economy, with the
exception of oil and gas production and pharmaceuticals. The manufacturing industry,
services, and construction developed most rapidly. The main growth drivers were
industries such as textiles, electrical engineering, metallurgy, food, and automotive
manufacturing. Agriculture remains an important sector for ensuring the country's food
security, with growth rates of 3.1% (4.1% in 2023).
•
Industrial production demonstrated high dynamics, increasing to 6.8% (6.3% in
2023).
•
In the pharmaceutical industry, production volume decreased by 7.5%, in the
leather and footwear industry - by 0.6%.
•
Production volumes in the electricity supply sector increased by 5.3% (in 2023
- by 9.5%).
•
Production in the oil and gas production industry will grow by 1.4% (growth in
2023 will be 4.7%).
•
Growth in the water supply, sanitation and waste disposal sector was 5.5% (3.2%
in 2023).
•
The growth rate in the construction industry was 8.8% (7.0% in 2023)
•
The service sector demonstrated higher growth dynamics than other sectors of
the economy. The volume of market services provided increased by 12.9%.
•
The largest share of sub-sectors of the service sector falls on the financial sector
- 20.6%, accommodation and food services - 10.6%, trade - 11.8%,
communications and information technology - 25.8%.
•
Retail turnover increased by 9.9%.
•
The volume of transport services increased by 11.8%, including motor vehicles
- by 8.4%.
•
The dynamics of growth in foreign trade volumes slightly decreased compared
to the previous year. According to the results of 2024, foreign trade turnover
increased by 3.8% to 66 billion US dollars, while exports increased by 8.4%,
and imports - by 0.8%.
•
By type of product, exports of fuels and lubricants increased by 39.8%, services
by 27.7%, chemical products by 29.1%, food products by 22.4%, industrial
products by 3.7%, machinery and transport by 1.1%. Exports of equipment
decreased by 7.9%, and various finished products by 7.5%.
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At the same time, imports of fuels and lubricants increased by 50.1%, services by
21.5%, food products by 5.7%, non-food raw materials by 6.3%, and in the category
of machinery and transport equipment decreased by 9.7%. Industrial goods by 4.2%,
chemical products by 3.6%. The main driver of this growth is the manufacturing
industry, which showed production dynamics and significant growth, including
electrical engineering by 16.3% (+3.1% in 2023), textile industry by 10.7% (+7.9%),
metallurgy - by 6.4% (+5.0%), food - 3.2% (+6.8%), cars - 8.8% (+16.8%),
construction materials - 7.5% (+11.5%), chemicals - 3.4% (decrease -3.3%), furniture
- 25.2% (+0.2%) industry grew. Positive dynamics are observed in the sphere of
attracting investments. During the reporting period, the volume of investments in fixed
assets increased by 27.6%. The main income came from decentralized investments -
32.8%. It is worth noting that investments from budget funds decreased by 9.7%, which
indicates the increased role of private investments. In 2024, the share of centralized
investments in the total volume of investments in fixed assets decreased to 10.5% (from
14.0% in 2023), while decentralized investments increased to 89.5%. In general, the
presented data indicate that the economy of Uzbekistan demonstrated stable growth in
2024, which is the result of structural reforms implemented in the country and indicates
the significant economic potential of the country. (Economic Development of
Uzbekistan in 2024 - Review.uz) (https://review.uz/en/ofu, 2025).
1.2
Market Volatility and Risk Tolerance.
Risk tolerance is a measure of the degree of loss an investor is willing to bear in his or
her portfolio. Investment choices should always be consistent with the investor’s risk
profile. The risk profile determines the level of risk an investor can accept, which in
turn will determine his or her asset allocation, choice of investment products, and
operational decisions such as portfolio rebalancing and exit. Depending on the level of
risk tolerance, investors can be divided into three main categories: aggressive,
moderate, and conservative. An aggressive investor, or an investor with a high-risk
tolerance, takes higher risks in order to achieve potentially high returns. A moderate
investor pursues a balanced strategy for earning income without much loss.
Conservative investors are willing to tolerate some volatility in their investment
portfolios. The risk profile depends on many factors, including family, personal, and
financial information of the investor. Family information includes information on the
number of working family members, the presence of dependents, and life expectancy.
The level of risk tolerance increases with the number of working family members and
decreases with the number of dependents. Risk tolerance is higher with life expectancy.
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Personal information includes such factors as education level, professionalism, and
psychological stability. Highly qualified and multidisciplinary specialists have a higher
risk tolerance. Psychologically stable people cope with the disadvantages associated
with risk more easily. Capital and regularity of income are two financial factors that
affect risk propensity. The greater the capital, the higher the investor's ability to
financially compensate for the disadvantages associated with risk in conditions of
market volatility. (Economy and Business: Theory and Practice, vol. 8 (90), 2022)
1.3
Financial Literacy and Awareness.
Financial literacy is a set of knowledge, skills, and abilities necessary for effective
financial management at the personal and professional levels. This includes
understanding basic financial terms, the ability to budget, set financial goals, plan
investments, manage debt, protect one’s own financial interests, and make informed
financial decisions. A financially literate person is able to adapt to changing financial
conditions and take risks with their finances within their capabilities and goals.
Financial literacy is a key factor in the daily life of every person, as well as in the
formation of a sustainable and prosperous economy. For individuals, financial literacy
provides the opportunity to make informed financial decisions, manage personal
finances, plan for the future, and protect against financial risks. For the country's
economy, financial literacy of the population is the basis for the development of
financial institutions, the effective functioning of markets, and stimulating economic
growth. It also helps reduce poverty, reduce social inequalities, and create a favorable
investment environment. Uzbekistan has made significant progress in the field of
financial inclusion in recent years, thanks to the updating of legislation and the
digitalization of financial services. In 2021, 44% of the adult population had a bank
account, double the rate in 2011. Debit card penetration and remote banking have also
increased significantly. However, trust in the financial system remains low, as
evidenced by the fact that only 3% of the adult population keeps their savings in banks,
one of the lowest rates in the region. In addition to low trust in the banking system,
there is a problem of underutilization of bank savings and inefficient distribution of
financial access points across the country. In 2023, there were more than 11,000 ATMs
and 430,000 terminals in Uzbekistan, significantly improving access to financial
services compared to previous years. However, the distribution of these points remains
uneven, especially in remote areas, limiting access to financial services for a large part
of the population. In response to these challenges, the Government of Uzbekistan has
taken a number of measures, including legislative changes and support for new
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financial technologies. In 2022, a new law was adopted that stimulates the development
of non-bank credit organizations and microfinance activities, thereby improving access
to financial services. In addition, financial literacy training and start-up financing
programs were launched, including with a special focus on women-owned enterprises,
worth about $ 180 million. These initiatives are supported by both local and
international organizations, including the World Bank, which contributes to greater
financial inclusion and sustainable economic growth. Financial literacy plays a key role
in the modern world, especially in a rapidly changing economic environment.
According to a World Bank report, more than 60% of the world's population does not
have sufficient knowledge about finance. In Uzbekistan, the situation is similar: only
about 30% of the adult population has basic financial skills. Improving the level of
financial literacy is becoming a priority for government and non-governmental
organizations. Improving financial literacy in Uzbekistan can become a catalyst for
economic growth and development. According to a report by the International
Monetary Fund, each additional percentage point of financial literacy in a country can
lead to a 0.3% increase in GDP. This is because financially literate citizens are able to
use financial instruments more effectively, invest in development, and manage risks.
Increasing the level of financial literacy can have a significant social effect, including
reducing poverty and inequality. Research by the United Nations Conference on Trade
and Development shows that financially literate people are more likely to save and
invest in education and health care, which helps reduce social inequality. Financially
literate citizens have a better chance of achieving financial well-being and stability. A
study by the National Foundation for Financial Literacy shows that people with a high
level of financial literacy are more likely to make informed decisions about lending,
investing, and retirement planning, which ultimately contributes to their financial
independence and well-being. One of the successful strategies for improving financial
literacy is the introduction of educational programs in schools and universities. In 2020,
Uzbekistan adopted the Law on the Implementation of Financial Education in the
Educational Program, which requires the inclusion of elements of financial education
in the school and university curriculum. This initiative is aimed at developing financial
skills and knowledge among the younger generation, which will help them make
informed financial decisions in the future. Both public, private and non-governmental
organizations play an active role in increasing the level of financial literacy. The state
introduces legislative measures and develops training programs, the private sector
provides financial support and develops educational products, and non-governmental
organizations conduct educational activities and provide advisory assistance. The joint
efforts of all parties create favorable conditions for increasing the level of financial
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literacy in the country. In the context of digitalization of education and the availability
of the Internet, modern technologies and online resources are actively used to teach
financial literacy. Distance learning platforms, mobile applications and online courses
provide an opportunity to gain knowledge about finances anytime and anywhere. Such
innovative teaching methods help overcome geographical and time limitations and
make learning more accessible to a wider audience. One of the main challenges faced
by financial literacy programs in Uzbekistan is the need to adapt to the specific needs
and characteristics of the population. Structural changes in the economy, the
introduction of new technologies and changes in financial instruments require constant
updating and improvement of training programs. In addition, it is necessary to
overcome geographical and socio-cultural barriers to ensure equal access to
educational resources for all segments of the population. Despite the challenges,
financial literacy programs have broad prospects for development and improvement.
The use of innovative teaching methods, such as gaming technologies, interactive
applications and online platforms, can significantly increase the effectiveness of
programs and attract more participants. It is also important to strengthen partnerships
between the state, the private sector and non-governmental organizations for the joint
development and implementation of financial literacy programs. The international
community plays an important role in supporting and developing financial literacy
programs in Uzbekistan. Foreign organizations, such as the World Bank, the
International Monetary Fund and others, provide financial and technical assistance, as
well as share advanced experiences and best practices. This helps improve the quality
of programs, expand their coverage and increase the effectiveness of activities in this
area. In conclusion, improving financial literacy is an important factor in achieving
sustainable economic growth and social stability in Uzbekistan. Despite the challenges,
we have broad prospects for developing training programs and attracting more people
to participate in them. It is necessary to continue efforts in this direction and jointly
strive to improve the level of financial literacy of the country's population. (Namozova
M.U. "Economy and Society" No. 5 (120) -1 2024)
1.4
Regulation and market transparency
Robust stock market regulation increases investor confidence. Transparency in
financial reporting, good corporate governance, and investor protection mechanisms
strengthen confidence in stocks. Effective regulation and high market transparency are
key factors in attracting investment and developing the economy. In recent years,
Uzbekistan has been actively reforming its financial system, improving the legislative
framework and introducing modern control mechanisms to increase investor
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confidence. In recent years, the government of Uzbekistan has adopted a number of
laws and regulations aimed at increasing market transparency and protecting investors'
interests.
Uzbekistan’s economic freedom score is 55.9, making its economy the 103rd freest
in the 2024 Index of Economic Freedom. Its rating has decreased by 0.6 point from last
year, and Uzbekistan is ranked 20th out of 39 countries in the Asia-Pacific region. The
country’s economic freedom score is lower than the world and regional averages.
Uzbekistan’s economy is considered “mostly unfree” according to the 2024
Index
.
Uzbekistan has pursued critical reforms to build a competitive market economy,
adopting policies that advance its economic freedom and transitioning to greater
openness and modernization. Institutional shortcomings continue to limit political and
other fundamental freedoms, but positive changes have been taking root. Despite
progress, however, the overall regulatory system lacks transparency and clarity. The
business start-up process has been streamlined. A modern labor market continues to
evolve, but informal-sector employment remains substantial. Monetary stability has
been relatively well maintained, but inflationary pressure continues.
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(Index of Economic Freedom “Economic Freedom Country Profile Uzbekistan” 2023)
Based on the above information and data presented, it can be confidently said that
Uzbekistan is doing significant work to create favorable conditions for doing business
and attracting investment. Thanks to active reforms, increased market transparency and
the introduction of modern technologies, the country is becoming increasingly
attractive to domestic and foreign investors.
1.5
Technological innovation and accessibility
The development of digital trading platforms and fintech solutions has made the stock
market accessible to a wider audience. Technologies such as mobile apps, robo-
advisors and commission-free trading have increased engagement, especially among
young investors. Let's look again at the example of the work done in Uzbekistan. Since
the gain of independence in 1991, Uzbekistan has worked through diverse economic
transformations with a transition from a central economy to a Market economy. These
have sought to develop entrepreneurship and encourage FDI inflows, at the same time
business is still shaped by history, culture and institutions (Ogunmola, G. A. (2024).
Cultural Dynamics Shaping the Adoption of Modern Management, Green Innovation,
and Digitization in Uzbekistan's Business Landscape. Academia Open, 9(2), 10-
21070).
Exchange trading on JSC "UzRTXB" is carried out on the basis of the principles of
openness, transparency and creation of equal competitive conditions for clients.
According to the rules of exchange trading, all participants in the trades have equal
rights, regardless of their status - resident or non-resident of the republic. JSC
"UzRTXB" provides domestic and foreign companies with highly liquid commodity
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assets produced in the republic, including ferrous and non-ferrous metals, oil products,
cotton fiber, mineral fertilizers, sugar, wheat flour, grain, etc. plays an important role
in ensuring the legality. The exchange is located in Tashkent, the capital of the Republic
of Uzbekistan. The exchange has a multi-industry trading infrastructure. Its structural
structure includes 13 branches located in the centers of all regions of our republic. Also,
at present, more than 200 trading platforms and 800 brokerage offices provide currency
exchange services to clients. The exchange manages 5 trading platforms:
•
Exchange electronic trading system (electronic trading system for collecting and
responding to requests for automated trading);
•
Electronic trading system for fairs;
•
Electronic trading system for the sale of license plates.
•
Electronic government procurement
•
System for the sale of mobile numbers.
(Index | UzEx.uz)
In addition, it is planned to improve the electronic government of Uzbekistan and bring
the share of electronic government services to one hundred percent, introduce the
Mobile ID-identification system for individuals when providing them, the Digital
Passport of Citizens and Digital Authority projects. The Electronic Government Project
Management Center, together with the Ministry for the Development of Information
Technologies and Communications of the Republic of Uzbekistan, is working on the
implementation of the Digital Passport of Citizens project. As an experiment, from July
15, 2022 to December 1, 2023, government agencies, banks and other organizations
will not require paper identity cards. In the future, instead of them, you can present
their digital versions in the special OneID Mobile application, which will be equal in
legal force to their physical counterparts. At the first stage of the project
implementation, it is planned to implement the system in the following areas:
• checking documents for the right to use and drive vehicles;
• domestic flights;
• travel by rail within the country;
• registration of guests in hotels, sanatoriums, rest homes and other similar
institutions;
• receiving services of mobile operators and Internet providers;
• provision of government services in government service centers;
• provision of services of commercial banks and insurance companies;
• receipt of medical services;
• providing access to students in the systems of higher education institutions.
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In addition to a passport or ID card of a citizen of the Republic of Uzbekistan, users of
the service can manage such digital documents as a driver's license, vehicle registration
certificate, marriage and birth certificate, student ID, coronavirus vaccination
certificate, and more. According to the statistics agency, the ICT market of Uzbekistan
has seen the number of telecommunications and IT companies increase by 1.8 times
over the past five years. At the beginning of 2023, there are more than 12 thousand ICT
enterprises operating in the republic. The industry employs over 100 thousand people.
According to the results of 2022, the volume of ICT services increased by 125.5% and
amounted to 22.9 trillion soums, of which 4.2 trillion soums were programming
services provided by Uzbek companies and specialists. The total revenue of the IT
sector of Uzbekistan for the first quarter of 2023 reached 2.38 trillion soums - almost
four times more than the same period in 2022. Export of digital services increased to
$57.2 million. According to IT Park, net income amounted to more than 90% of
revenue or 2.158 trillion soums. The effectiveness of Uzbekistan's recent digital
reforms is reflected in the dynamics of international digitalization ratings:
•
According to the GovTech Quality Index, Uzbekistan ranked 43rd in the world in
the public services sector, moving up 37 positions since 2020, and entered Group
“A”, which includes countries such as Brazil, the Republic of Korea, and Saudi
Arabia.
•
According to the results of the 2022 UN e-government Survey, conducted by the
United Nations every 2 years, Uzbekistan moved up 18 positions at once and
entered the group of countries with a “high/very high level of development”.
•
In the Government Artificial Intelligence Readiness Index rating, developed by the
British organization Oxford Insights, Uzbekistan has risen from 158th to 79th place
over the past 4 years.
•
According to the Telecommunication Infrastructure Index (TII), Uzbekistan is
named a country with a high level of TII. Uzbekistan ranks 19th out of 220
countries in terms of broadband internet cost.
2. International Differences in Perceptions of Equity Investments
Attitudes toward stocks vary widely depending on cultural, economic, and regulatory
factors:
•
Developed markets (US, Europe) – high levels of financial literacy, diversified
investment portfolios and widespread use of stocks for wealth accumulation and
retirement planning.
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•
Emerging markets (India, Brazil) – growing interest in stocks due to rising
middle class incomes, digitalization and regulatory reforms, although traditional
investments in real estate and gold remain popular.
•
Risk-averse countries (Japan, Germany) – investors prefer bonds and other low-
risk assets due to cultural preferences for stability.
Case Studies: Perceptions of Equity Investments in India
2.1 Investor Perception in East Godavari
Random sampling method was used to collect data from different investors. The
investors were selected using random sampling method. The sample size was 600
investors who were spread across three districts in Andhra Pradesh. From each
district, 200 investors were selected, ten Brookings approved stocks. Twenty
investors were also selected and contacted through stock brokers. The data was
collected for a period of one year (i.e.) from January 2011 to December 2016. The
data collected was the opinion of the investors and their expectations were also
analyzed. The study is based on the data collected from the investors in three
districts of Andhra Pradesh i.e. East Godavari, West Godavari and Vijayawada. The
data collected is compiled and described using tables and percentages. The data was
analyzed using descriptive statistics and Chi-square test. The study is limited to only
600 investors. In this study, only a few factors were used to analyze the factors
influencing the investment behavior of an individual investor. The survey was
conducted in only three districts of Andhra Pradesh, namely, East Godavari, West
Godavari and Vijayawada. The study also had limitations in terms of time, space
and resources.
From the above table 1, It is understood that out of 600 respondents 66 % of
respondents belongs to
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age group of 20-40, 22% respondents are below 20 years and 11% respondents
between 40- 60 years. Only 2% of respondents are more than 60 years of age group.
Above table indicates that most of the respondents belong to age group of 20-40.
Occupation also influences investment decisions of individual investor. The above
table shows the occupation of sample investor. 48% of investors were businessmen
and 36% of investors were salaried persons and 12% of investors were professionals
and 4% of investors were housewives, 2% of investors were retired persons.
The important factor which influences the whole investment decisions and attitude
of individual investor is income level of investor. When level of income increases
the risk tolerance level of investor also increases. Above table shows that 68% of
respondents are between 2lakhs and 4lakhs income level and 22% of respondents
are below 2 lakhs income level and 9% of respondents are between 4lakhs and
6lakhs income level and 2% of respondents are above 6lakhs income level.
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From the above table it clearly understood that 41% of investors showed interest to
invest their fund in IT sector and 26% investors and 18% investors were preferred
to invest Manufacturing and shipping & logistics sector respectively. 15% investors
were preferred to invest in pharmaceuticals sectors.
From the above table it clearly understood that 35% of respondents preferred to
invest government securities and 25% respondents and 20% respondents preferred
to invest in secondary markets and bullion market respectively.8% respondents
were preferred to invest in primary markets.
TESTING OF HYPOTHESIS
Hypothesis - 1
“There is no association between age of the investors and their preference of
investments”.
To test the above hypothesis the researcher has used the ‘chi-square test’.
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Conclusion: from the above graph it can be conclude that the calculate value
(305.631746) is more than the Chi-Square table value at 12 degrees of freedom is
21.026 .so there is no association between age of the investors and their preference
of investment. Table 6 shows the mean value and the standard deviations of
statements that may likely influence the attitude of the investors investing in equity
stocks. The average value of the five top highly influential factors according to the
investors’ were what the company does with a mean value of 3.77 (SD 0.979)
valuation of the company’s Stock with a mean value of 3.73(SD 0.876), company’s
10-Q annual reports with a mean value of 3.71 (SD 0.971), Price to earning ratio
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with a mean value of 3.70 (SD 0.797), Is the company profitable with the mean
value of 3.67 (SD 0.833).
The investors considered the following five factors would have low influence on
the investors investing in equity stocks. Revenue/ profit patterns of the company
was considered to be the lowest influencing factors among the five with a average
mean value of 3.36 (SD 0.931), customer/ client reviews about the company with
a mean value of 3.37 (SD 1.019), vision and mission of the company had a mean
value of 3.39 (SD 1.079), risk factors involved in the nature of business had a mean
value of 3.40 (SD 0.933). debt to-equity ratio had a mean value of 3.46 (SD 0.872).
(Anita Patra N. S. V. N Raju, International Journal of Control Theory &
Application, A Study on Investor’s Attitude towards Investment in Equity Stocks
with Reference to East Godavari, West Godavari & Vijayawada Districts of
Andhra Pradesh, 2016)
2.2
Perception of Investors in Visakhapatnam
Let us look at this region using the example of a study conducted by scientists from
India in 2016. The validity of the study depended on the systematic method of data
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collection and analysis. The study is based on the data collected from investors in the
areas of Visakhapatnam. Investors are selected using a convenient sampling technique.
Accordingly, the researcher selected 200 investors in the study area. The following
hypotheses were formulated for the study:
•
There is no relationship between the gender of investors and their investment
preferences.
•
There is no relationship between the occupation of the investor and the
percentage of investment.
•
There is no relationship between the age of the investor and investment
preferences.
Statistical Tools The collected data is compiled and described using tables and
percentages. The data is analyzed using statistical tools such as the chi-square test and
the weighted average ranking method. Savings (or) investments are recognized as
powerful tools in the fight against poverty. Investing even a small amount can bring
significant returns in the long run. But there will be confusion among people while
choosing the best investment avenues and this is the main concern of investors. While
investing money, investors are not aware of the investment alternatives. While they are
taking investment decisions, they should pay more attention to the safety, liquidity,
returns, risks, tax benefits and so on in addition to the investment option. The above
mentioned factors will confuse the investors while investing money. He should use his
skills, knowledge and experience while choosing the investment opportunity. In this
context, the present study assumes utmost importance. The study is limited to the
factors that are considered by the investors while making their investments. Their level
of awareness about the various aspects of the investment opportunities available in the
study area is considered. Indian economy is growing significantly. It has various
investment options. The study has been conducted to analyze the preferred investment
avenues and also the factors influencing the investment. In this backdrop of the study,
the researcher tries to find out the investment preferences of the respondents of
Visakhapatnam district. Therefore, there is a relationship between the occupation of the
investor and the percentage of investment. From the result of the study it is evident that
businesses invest more while professionals and employees invest less. From this study
it is revealed that most investors in Visakhapatnam considered all the 22 factors before
selecting a stock to invest in. The average of the five most influential factors as
considered by investors were: “What the company does”, followed by “Profitability of
the company”, followed by “History and Profit Prospects of the company”, followed
by the Business Model of the company. According to investors, there were four factors
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with the least priority or low influence on the stock selection decision. They were:
Vision and Mission of the company, Values and Philosophy of the company,
Customer/Client Feedback about the company and Competitive Advantage of the
company over other companies. (N.S.V.N Raju1, Dr. Anita Patra, nternational Journal
of Latest Technology in Engineering, Management & Applied Science (IJLTEMAS)
Volume V, Issue XI, November 2016).
3. Strategies to Improve the Perception of Stock Investing
3.1
Improving financial literacy
Public and private organizations should develop educational programs, conduct
trainings and disseminate information on the basics of investing. Today, persistent work
is being carried out in this area at the highest level in Uzbekistan. This is proven by the
Decree of the President of the Republic of Uzbekistan "On measures for the further
development of the capital market." " was adopted on April 13, 2021. According to this
document, the main areas of capital market development are increasing the
competitiveness of the capital market and bringing its capitalization to 45 trillion soums
by the end of 2023, creating an effective financing mechanism alternative to bank
lending, and ensuring the harmonious functioning of the capital market and the
development of all its segments by the end of 2023. It was planned to increase the share
of projects financed by the issue of securities to 5 percent within the framework of
republican and regional investment programs, introduce advanced international
experience in the industry, and create the necessary conditions for active financing of
development-oriented investments in the stock market, eliminating unnecessary
barriers and restrictions. The decree also establishes the training and retraining of
capital market specialists, systematic improvement of their qualifications, as well as
support for programs to improve the knowledge, skills and financial literacy of
minority investors, other capital market participants and the population as a whole.
(Abduvali Buriev, UzA, uza.uz/posts/301605, 2021)
3.2
Improving market regulation and transparency
Over the past few years, Uzbekistan has witnessed significant legal changes that have
affected a wide range of areas of life, from constitutional rights and economic reforms
to regulation of digital technologies and personal data protection. One of the most
important events was the adoption of constitutional reforms in 2023. Amendments to
the Constitution were the result of many years of discussions and public consultations,
the purpose of which was to strengthen democratic institutions. The reform also
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enshrined new social and economic rights for citizens, including the right to free
medical care, social security guarantees and sustainable development taking into
account environmental factors. This was an important step towards the formation of a
state governed by the rule of law, where the protection of citizens' rights and their well-
being are priorities. In addition, in 2023, amendments were made to the Law of the
Republic of Uzbekistan "On the Protection of Personal Data", which became an
important step in the modernization of the legal regulation of the digital sphere. This
law brought Uzbekistan closer to international standards similar to the European
GDPR. The law regulates the procedure for processing personal data, the rights of
subjects, data and the responsibilities of operators, which helps to strengthen citizens'
trust in digital services and the protection of their confidential information. Particular
attention is paid to reforming economic legislation aimed at improving the investment
climate and supporting entrepreneurship. Significant changes have been made to the
tax system of Uzbekistan. In 2020, a new Tax Code came into force, which provides
for a simplification of the tax system for small and medium-sized businesses, the
introduction of tax incentives and the transition to electronic reporting forms. These
measures make business interaction with government agencies more transparent and
efficient, reducing administrative barriers. The introduction of automated tax control
systems also helps reduce corruption and increase trust in tax authorities on the part of
entrepreneurs. Another important aspect of legal changes is the development of
legislation in the field of digital economy. In 2018, the President of Uzbekistan signed
Resolution No. PP-4022 "On measures to further modernize the digital infrastructure
in order to develop the digital economy", which outlined a course for the active
implementation of digital technologies, including blockchain and e-commerce. These
initiatives open up new opportunities for business and public administration, increasing
the efficiency and transparency of interactions between market participants. Regulation
of the digital economy also includes support for the use of smart contracts and other
technologies based on blockchain platforms, which opens up new opportunities for
business and public administration. Such initiatives can lead to significant
improvements in contracting processes and increased trust between market
participants. (Nodirahon Abdurakhmanova, «yuz.uz» «Legal reforms in Uzbekistan:
the
path
to
modernization
and
sustainable
development»
2024)
(https://yuz.uz/ru/news/pravove-reform-v-uzbekistane-put-k-modernizatsii-i-
ustoychivomu-razvitiyu)
3.3
Encouraging long-term thinking in investments
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Long-term investments, which are usually considered as capital investments, involve
the expansion of production capacities, the acquisition of new equipment and other
capital expenditures. In the process of achieving the key goal of investment activities,
a number of tasks are solved. Firstly, increasing the rate of economic development of
the enterprise. There is a direct connection between the effectiveness of investment
policy and the rate of economic development of the enterprise. The higher the volume
of sales and profits, the more funds, all other things being equal, remai n for capital
investments. Secondly, maximizing profits from investment activities. The possibilities
of economic development of an enterprise depend on the volumes of not accounting,
but net profit remaining after taxation. Therefore, if there are several investment
projects in the portfolio, it is recommended to choose a project that provides the
investor with the highest rate of net profit on the invested capital. Thirdly, minimizing
risks. Investment risks are diverse and accompany all types of investment. Under
unfavorable conditions, they can cause a loss of not only profit (income), but also all
or part of the invested capital. Fifthly, accelerating the implementation of investment
projects. The projects planned for implementation should be completed as quickly as
possible, since this will achieve: acceleration of the economic development of the
enterprise as a whole; the fastest possible formation of additional cash flow in the form
of net profit and depreciation charges; reduction of project risks associated with
unfavorable changes in the market situation, as well as losses from inflation. Thus, all
of the listed tasks of investment portfolio management are closely interconnected.
Thus, high rates of enterprise development can be achieved by selecting high-yield
projects and accelerating their implementation. In turn, maximizing profit (income)
from real investments is accompanied by an increase in project risks, which requires
their neutralization. Minimization of these risks is the most important condition for
ensuring the financial stability and solvency of the enterprise in the process of
investment activities. (Allayarova Mastura, Yusufaliev Olimzhon "Young scientist." -
2015. - No. 6 (86). - P. 370-372., moluch.ru/archive/86/15908/ (date of access:
02/07/2025).
3.4 Use of technologies
Digital transformation has been defined by the leadership of the Republic of
Uzbekistan as one of the priorities of national development. The basis for the country's
digitalization is the National Strategy "Digital Uzbekistan-2030", approved in 2020.
This document provides for the transition to a digital economy through the introduction
of innovations and digital infrastructure, including e-government, new security
systems, as well as investments in human capital. It is important to note that the concept
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of "smart cities", improvement of the energy cluster, as well as intensive promotion of
IT events and sites in Uzbekistan to attract foreign investment and partners were chosen
as key tracks of digitalization. Considering that agriculture is one of the driving forces
of the republic's economy, it should be noted that the agricultural sector annually
generates over 24% of Uzbekistan's GDP (about $ 22 billion). The country also
occupies one of the leading places in the world in cotton production (35 million tons
annually). In this regard, the country is implementing a comprehensive program for the
digitalization of agriculture. It is aimed at ensuring a technological breakthrough in the
agro-industrial complex, strengthening food security, and effective management of
water and other resources. The following measures are being taken within the
framework of the program:
•
Implementation of the Argo platform information system. This information system
digitizes the mechanisms of preferential lending for the cultivation of cotton,
cereals, vegetables and fruits, as well as the provision of services to agricultural
producers based on the principle of transparency.
•
Creation of a single register of product producers. An electronic passport is
generated for each land user and an identification number is assigned.
•
Transfer of document flow to electronic form. This applies to entities engaged in
the cultivation of agricultural products and the organizations servicing them.
•
Implementation of a platform for the provision of services for analyzing
geoinformation technology data and space images. A system is being created to
provide recommendations for independent monitoring of allocated sown areas and
crops based on the analysis of multispectral space images, as well as early detection
of problems and increased productivity.
In addition, a pilot project on agricultural land management using artificial
intelligence is being implemented in the Andijan Technopark. During the project, six
areas were digitized and introduced in vector format to the MoPegga online platform.
Owners of agricultural land receive recommendations based on the research results
using satellite technology. (Editorial office of the Center for Global IT Cooperation,
DIGITAL UZBEKISTAN, 2025)/ (//cgitc.ru/media/tsifrovoy-uzbekistan-osobennosti-
razvitiya-i-perspektivnye-napravleniya-partnerstva/)
Conclusion.
Investor perception of stocks is shaped by a variety of factors, including
macroeconomic conditions, regulatory frameworks, access to information, financial
literacy, and individual risk tolerance. Enhancing trust in the stock market and
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increasing investor participation require the removal of key barriers, greater
transparency of financial instruments, and the development of educational initiatives.
It is also crucial to consider global experience: analyzing successful strategies from
other countries can help identify effective investment stimulation mechanisms, which,
in turn, will contribute to sustainable economic growth and the strengthening of
Uzbekistan's financial system.
References
1.
Economic Development of Uzbekistan in 2024
- Review.uz)
(https://review.uz/en/ofu, 2025
2.
Economy and Business: Theory and Practice, vol. 8 (90), 2022
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Namozova M.U. "Economy and Society" No. 5 (120) -1 2024
4.
Index of Economic Freedom “Economic Freedom Country Profile Uzbekistan”
2023
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Anita Patra N. S. V. N Raju, International Journal of Control Theory &
Application, A Study on Investor’s Attitude towards Investment in Equity Stocks
with Reference to East Godavari, West Godavari & Vijayawada Districts of
Andhra Pradesh, 2016
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N.S.V.N Raju1, Dr. Anita Patra, nternational Journal of Latest Technology in
Engineering, Management & Applied Science (IJLTEMAS) Volume V, Issue XI,
November 2016
7.
Abduvali Buriev, UzA, uza.uz/posts/301605, 2021
8.
(Nodirahon Abdurakhmanova, «yuz.uz» «Legal reforms in Uzbekistan: the path
to
modernization
and
sustainable
development»
2024)
(https://yuz.uz/ru/news/pravove-reform-v-uzbekistane-put-k-modernizatsii-i-
ustoychivomu-razvitiyu)
9.
Editorial office of the Center for Global IT Cooperation, DIGITAL
UZBEKISTAN, 2025)/ (//cgitc.ru/media/tsifrovoy-uzbekistan-osobennosti-
razvitiya-i-perspektivnye-napravleniya-partnerstva/
10.
(Allayarova Mastura, Yusufaliev Olimzhon "Young scientist." - 2015. - No. 6
(86). - P. 370-372., moluch.ru/archive/86/15908/ (date of access: 02/07/2025).
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uzex.uz/fr/pages/about-us
