Criteria of Optimal Portfolio Selection: Evidence From Private Investors in Greece, Turkey, Italy

Abstract

What are the criteria for private investors when they decide to invest their savings in to different investment products? Do these criteria differ between investors from different countries? We are investigating the investment portfolios determinants between private investors from Greece, Turkey and Italy. The study is grounded in the current and potential criteria and sub-criteria influencing investors in selecting financial investment products. The methodology applied in order to satisfy the research aims is the Analytic Hierarchy Process (AHP). The results show that there are considerable differences in the ranking and significance of factors that determine the selection of financial investment products in these three countries. We conclude that differences in the ranking and significance are related to country-specific rather than investor factors and they are justified by the differences of the three countries, one of which is a member of the Eurozone facing a long time of economic crisis, another a candidate EU member, with unforeseeable political system which influences the economic environment as well, and one is highly developed country which belongs to G20.