Effects of Islamic Religious Practices on Investment Behaviour of Indian Muslims: A Qualitative Research in Delhi/ NCR using Focus Group Method

Abstract

Purpose: Religious beliefs and practices have a noticeable impact on the behaviour of people around the world but this is a less researched field in behavioural finance, especially in India. This gives birth to the research gap to conduct this study to examine what instigates investment decisions by Muslims and to know the degree to which Indian Muslims adhere to the Islamic laws of investment (shariah). This study attempts to find whether there is impact of religious beliefs of Indian Muslims on their investment behaviour. If Indian Muslim’s investment behaviour is different from that of Indian non- Muslims, define the dimensions/ reasons/ factors responsible for this behaviour of Indian Muslim investors.
Design/methodology/Approach: This is a qualitative study done in Delhi/ NCR; focus group method is used by the researcher due to sensitivity of the topic in secular country like India.
Originality/value: This study found that there is impact of religious beliefs of Indian Muslims on their investment behaviour; intensity of which depends upon level of religiosity of individual and influence of culture of Indian society on Muslim investors. This study has its original practical implications for the behavioural finance and need of ‘shariah’ compliance financial products in India seeing the need of Indian Muslim minority.