http://afr.sciedupress.com Accounting and Finance Research Vol. 6, No. 3; 2017 Published by Sciedu Press 153 ISSN 1927-5986 E-ISSN 1927-5994 A Study of the Factors Affecting the Choice of Investment Portfolio by Individual Investors in Singapore A.Seetharaman 1 , Indu Niranjan 2 , Nitin Patwa 3 & Amit Kejriwal 4 1 Dean Academic Affairs, S P Jain School of Global Management – Dubai – Mumbai – Singapore - Sydney 2 Dean, GMBA Program, S P Jain School of Global Management – Dubai – Mumbai – Singapore - Sydney 3 Director of Simulations, S P Jain School of Global Management – Dubai – Mumbai – Singapore - Sydney 4 Post-Graduate Scholar, S P Jain School of Global Management – Dubai – Mumbai – Singapore - Sydney Correspondence: Nitin Patwa, S P Jain School of Global Management – Dubai – Mumbai – Singapore - Sydney Received: May 31, 2017 Accepted: June 14, 2017 Online Published: August 21, 2017 doi:10.5430/afr.v6n3p153 URL: https://doi.org/10.5430/afr.v6n3p153 Abstract Singapore being an island economy and a financial hub with residents from diverse backgrounds, huge ethnic diversity, coming from different part of the world. This study aims to gain insights and information into the factors that affect investment planners, financial advisers and individuals need to consider improving their choice of the portfolio and its performance. People’s investment decisions and hence their portfolio, which hitherto has not been tested. Furthermore, it intends to identify the factors that drive investors to choose one investment over another and determine how they make their investment portfolios. The survey was modelled using the smart-pls statistical package (PLS-SEM), which is partial least squares structural equation modelling. Keywords: Investment portfolio, Financial investment, Investment Decisions 1. Introduction This study investigates the factors that determine and affect the investment portfolio of individual investors in Singapore. To employ the funds for a period to enhance one's wealth can be distinctively categorised between real and financial investment. Investment into the land, building, machinery etc i.e. tangible asset is termed as a real investment vs investment in stocks and bond as a financial investment. Our research focuses on financial investment more accurate to purchase a financial product or another item of value with an expectation of favourable future returns Virtually everyone makes investments. Investors today have some options to choose from to deposit their savings. Hence it becomes imperative to analyse investment process and investment management decision making in the substantially broader context (Peñaranda, 2016). Every investor has objectives, often not designed very prudently. When objectives are not clearly and consciously articulated, investors may land up making a decision which gives a suboptimal return. It is therefore wise to clarify investment objectives, to gain a clear understanding of what the portfolio is intended to accomplish. Even if an investor is unable to define investment objectives and procedures in a written Investment Policy Statement, they enhance their chances of achieving a positive result if they adopt a rational and a prudent investment approach. An investor may have a short term or a long term horizon; the short-term effectiveness examined through the event analysis of the abnormal return for the recommended stock around the financial announcement or due to market fluctuations whereas long-term investment horizon examined through the investment value from a passive portfolio management strategy (Tao, 2010). While investing, a systematic process is needed to reduce the risk, and eliminate to the extent possible, the detrimental effect that emotion, behaviour, and excessive fees and taxes have on overall investment performance while also specifying how investment opportunities and investment managers will be identified (Pfeiffer, 2016). The risk and returns available from each of different investment avenues differ. Even if an individual does not select specific assets, such as stock, investments still happen through participation in mandatory government pension plans and employee saving programmes or the purchase of life insurance or a home, according to Tamil Selvi (2015). The different avenues of investment areas are as follows: i. Low-risk avenues: savings accounts, bank fixed deposits, CPF, government securities and so on. ii. Moderate-risk avenues: mutual funds, unit trusts, ETF, life insurance, debentures, bonds.