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Mungai et al., 908and the availability of inputs both domestic and imported.The owners are presumed to be change focused andtheir higher propensity to seek new opportunities, theymust then be aware of the existence of the opportunities(Chuhan, 2004). As with any other businesses, investorsoperate to make a positive return on their investment.This can only be possible in a situation where there is afair market for their outputs.Finally the aspect of Government support also emergedas being a challenge to the university students in makinginvestment decisions. This finding complements thatfinding by Thiemeyer (2003), when he established thatinvestment decisions are strongly influenced byoverarching socio-economic policy goals, such as anticyclicalstabilization of employment or support forregional economic development. According to him suchobjectives are translated into corporate goals withmechanisms that are less transparent than externalregulation. It is clear that the ownership rights give thegovernment limited ability to shape managementdecisions in ways compatible with broader societalobjectives.Measures that can be taken to enhance Universitystudents Investment PracticesThe findings on the measures that can be taken toenhance university student‟s investment practicesrevealed that indeed the respondents regarded thefollowing as the most suitable measures: educating theuniversity students on investment opportunities, creatingemployment opportunities for the university students,government support and equal access to resources. Inthis case, as financial markets become more liquid andcomplete, changes in official interest rates are morereadily transmitted to the whole term structure and moregenerally to financial asset prices. This in turn affects thewhole economy through the cost of investment financingand return on saving. In addition, the increasing weight offinancial and non-financial assets in firms andhouseholds‟ balance sheets implies that the effects ofmonetary policy through changes in asset prices andrelated wealth effects are likely becoming larger whileweakening the bank lending channel (Dash, 2010).These findings also agree with Hamid and Abaidullah(2006) when he stated that individual investors do nothave huge assets or the personal references asguarantee to get the loans; this is the major issue. Since,there will be adequate capital with individual investorsthey will hire the service of expert management. Becauseof keen interest now taken by regulators, this sector iscertainly going to improve and increase its contribution inthe economic development of the region.CONCLUSIONSThe following are the major conclusions from this study:- Products that university students would want to invest: Ithas been established that there are various investmentproducts that university students can invest in. Based onthese findings, the study concludes that majority of theinvesting respondents were found to be in the age groupof 23 to 30 years. It can also be concluded that majorityof the university students would want to invest in shares,investment trusts, as well as in foreign currencies.- Perceptions of the university students on investments:Regarding, the pereptions of the yotuh on investments, itcan be concluded that majority of the university studentsprefer investment in local companies rather thaninternational firms or emerging companies. Similarly, itcan be concluded that the university students need tobelieve that an investment they make is right. In the sameregard, the majority of the university students believe thatthe investment possesses emotions.- Challenges faced by the university students in makinginvestments: Based on the study findings, it can beconcluded that the following are the challenges that affectthe university students to a greater extent; finance,understanding financial matters, market access,government support, lack of effective communicationfrom the society and corruption.- Measures that can be taken to enhance universitystudents investment practices: The study concludes thatthe measures that can be taken to enhance universitystudent‟s investment practices includes; educating theuniversity students on investment opportunities, creatingemployment opportunities for the university students,government support and equal access to resources.RecommendationsIn the wake of the increasing number of investmentproducts available to the university students, thosebelonging to the age group of less than 30 years werefound to be less aware of different investment schemes.Investment companies cannot afford to continue ignoringthe increasing number of university students in theKenyan society and hence measures to increase theawareness of these junior citizens about differentinvestment schemes need to be designed andimplemented. There are varied perceptions by theuniversity students on investment products. This to someextent affects their investment decisions. As such it isimportant for the various stakeholders especiallyinvestment companies to conduct educational andorientation programmes in collaboration with leadingorganizations such as Universities, Institutes and StockExchanges, on various aspects of investments so that theinvestors are able to enhance their knowledge for makingprudent investment decisions.It is without doubt that the university students in Kenyaand the whole world in general face a number ofchallneges as far as their investment decisions areconcerned. As such, the study recommends that furtherstudies may be undertaken to unfold various otheraspects like Performance and Challenges of investments.Such studies will provide guidance to the Investors on thechanges and challenges faced by university students.
909 Prim. J. Bus. Admin. Manage.This kind of integrated effort will produce a lot of valueaddition to the Wealth of the Nation. The studyrecommends that other than educating the universitystudents on investment opportunities, creatingemployment opportunities for the university students,government support and equal access to resources.There is need for other measures to be put in place toenhance university students‟ investment practices.REFERENCESAkamirokhor G (2003). The role of securitiescommissions in emerging stock capital markets, inSam Mensah (eds), African capital markets:Contemporary issues. Rector Press.Alhakami A, Slovic P (1994). A psychological study of theinverse relationship between perceived riskand perceived benefit. Risk Analysis, 14(6):1085–1096.Allen F, Faulhaber GR (2003). Signaling by under-pricingin the IPO market”. Journal of FinancialEconomics, 23, 303-323.Aussenegg W (2000). Privatization vs private sector initialpublic offerings in Poland. MultinationalFinance Journal, 4(1and2) 69-99.Barber BM, Odean, T. (2000). Trading is Hazardous toYour Wealth: The Common Stock InvestmentPerformance of Individual Investors”, Journal ofFinance, Vol. 55, No. 2.Barber B, Odean, T. (2001). Boys Will Be Boys; Gender,Overconfidence and common stock investment”.Quarterly Journal of Economics, Vol. 116, pp.261-292.Barnewall, M. (1987). Psychological Characteristics ofthe Individual Investor, in William Droms, ed., AssetAllocation for the Individual Investor, Charlottsville,Va: The Institute of Chartered Financial Analysts.Barnewall, M. M (1988). Examining the PsychologicalTraits of Passive and Active Investors. Journal ofFinancial Planning. Available atwww.fpanet.org/journals/ articles/1988_issues.Bayer, P., Douglas, B and Scholz, J. K (2006). TheEffects of Financial Education in theWorkplace: Evidence from a Survey of Employers. NBERWorking Paper No.5655. Cambridge Mass.:National Bureau of Economic Research.http://www.nber.org/papers/w5655.pdf.Benartzi, S and Richard. H T. (2001). NaïveDiversification Strategies in Defined ContributionSaving Plans. American Economic Review, Vol. 91,No. 1.Bernheim, S, A. and Garrett, L. (2003). A theory of bankregulation and management compensation. Reviewof Financial Studies. Vol. 13: 95-125.Bernheim, B. D. and Garrett, D. M. (2007). Education andSaving: The Long Term Effects of High SchoolFinancial Curriculum Mandates.” NBER WorkingPaper No. 6085. Cambridge, Mass.: NationalBureau of Economic Research.http://www.nber.org/papers/W608.Bernheim, B. D (2003). Personal Saving, Information,and Economic Literacy: New Directions for PublicPolicy," in Tax Policy for Economic Growth in the1990s. Washington, DC: American Council forCapital Formation: 53-78.Blume, M. B., Crockett, J. and Friend, I. (1974). StockOwnership in the United States: Characteristicsand Trends. Survey of Current Business, 1974.Brown, J., Zoran, I., Paul, S and Scott, W. (2008).Neighbors Causal.Byrne, K. (2005). How do consumers evaluate risk infinancial products? Journal of FinancialServices Marketing. Vol, 10, pp.1-36.Christensen, C. and Raynor, M. E (2003). TheInnovator‟s Solution; Creating and sustainingsuccessful growth. Boston; Harvard BusinessScholl Press.Chuhan, P. (2004). Are institutional investors animportant source of portfolio investment inemerging markets?. The World Bank, InternationalEconomics Department, Debt and InternationalFinance Division. Policy Research Paper, Vol.1243, pp.1-35.Core, J., Guay, W., and Rusticus, T. (2006). Does weakgovernance cause weak stock returns? Anexamination of firm operating performance andinvestors‟ expectations. Journal of F inance.Vol. 61: 655–687.Corter, J.E., and Chen, Y.J. (2006). Do investment risktolerance attitudes predict portfolio risk? Journalof Business and psychology. Vol. 3, pp. 369-381.Crosnan, R. and Oneezy, U. (2004). Gender Differencesby Preferences. Retrieved fromhttp://www.hks.harvard.edu/ wappp /research/rachelcrosonandurigneez.pdf.Daniel, D and Huberma, G. (2003). Talk and Action:What Individual Investors Say and What They Do.European Finance Association Meetings inGlasgow. December 16.Dash, M. K. (2010). Managing Generation Mix: AMultivariate Approach Strategy. The Journal ofFORE Institute.Dash, M. K. (2010). Comparative Empirical Analysis ofOccupational and Motivational Differences ofDifferent Generation in Indian Work Force.International Journal of Business Research. IABEJournal.Diacon, S. and Ennew, C. (2001). Consumer perceptionsof financial risk. The Geneva papers on risk andinsurance. Vol. 26(3):389–409.Dittmar, A., and Mahrt-Smith, J. (2007). Corporategovernance and the value of cash holdings. Journalof Financial Economics 83, 599–634.Djankov, S., McLiesh, C., and Shleifer, A., (2007). Privatecredit in 129 countries. Journal of Financial
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