Exploring the Lived Experiences and Perceptions of Retail Investors in Emerging Markets: A Phenomenological Study in Southeast Asia

Abstract

Retail investor behavior in emerging financial markets has been studied primarily through quantitative models that emphasize economic indicators and financial outcomes. However, limited research exists on the subjective experiences that shape investors' decision-making processes, especially in the face of uncertainty and external market factors. This study aims to address this gap by exploring how retail investors perceive and respond to market volatility, external advice, and economic instability. We adopt a phenomenological approach to delve into the lived experiences of retail investors, seeking to understand the emotional and cognitive factors influencing their investment decisions. Data were collected through in-depth, semi-structured interviews with 15 retail investors, and thematic analysis was conducted. The research approach was qualitative, utilizing semi-structured interviews to explore the experiences and perceptions of participants. thematic analysis revealed that uncertainty, market volatility, and external advice significantly influence decision-making. Investors also expressed skepticism toward external advice, indicating a complex relationship between trust and decision-making. These findings contribute to the understanding of investor behavior by emphasizing the emotional and subjective dimensions of investment decisions. The study highlights the need for more comprehensive models that integrate psychological factors, offering valuable implications for financial education and advising.