Investment Behaviour of Informal Sector Workers in Ghana

Abstract

Studies on individual investments have not received much attention in Ghana. It is in the back drop of this the study was conducted to assess the investment behavior of informal sector workers in Ghana. The study was conducted through a survey of 200 informal sector workers. The study finds out that the informal sector workers prefer to invest in Thrift/Cooperative unions, mutual funds, treasury bills, fixed deposits, stocks and the last one being government bonds. The informal sector places premium on financial security, business expansion, catering for dependents, purchase of assets and payment of rent as reasons why they invest. The study also found out that factors such as economic activity, age and profits influence one’s decision to invest and the level of financial literacy does not influence their decision to invest. It is recommended that there should be massive education about financial investment products among the informal sector workers. There should also be more advertisements about investment products. Regulating agencies should check the activities of various financial institutions and lastly more Thrift/Cooperative unions should be formed and registered.