Investments lead to economic growth in any country. Therefore, how individuals make investment decisions is an interesting phenomenon to study. After economic liberalisation, numerous investment alternatives have been made available in the market. However, preferences and attitudes regarding investments vary from person to person. Recent studies have given significant attention to the investment aspirations of young adults. This is because they are potential future investors in an economy. However, there seems to be a dearth of studies on the determinants of the intention to invest in different investment avenues concerning young adults in developing country contexts. This study aimed to explore the familiar sources of information regarding investment for young adults, explore the most preferred investment avenues among young adults, and determine what factors could influence the intention to invest on different investment avenues. The study adopted the Theory of Reasoned Action (TRA) as the basic theoretical framework. The study was carried out using an online self-administered questionnaire survey. Data were collected from 153 recently passed out graduates of the University of Peradeniya representing young adults. The data were analysed using the multiple linear regression techniques. The study's findings revealed that most individuals use the internet for mobilising investment-related information, followed by electronic media, consulting with friends, and peer investors. Further, the fixed deposit was the most preferred investment avenue, while capital market instruments were the least preferred among the graduates. In addition, results indicated that the intention to invest in different investment avenues is influenced by attitudes, risk perception, and education levels. However, subjective norms, financial literacy, and other demographic variables, such as gender, ethnicity, marital status, current occupation, and monthly income did not affect. Government stakeholders and other policymakers can consider these results for financial policymaking and planning.
Keywords: Investment Preference, Sources of Information, Investment Avenues, Young Adults, Intention to Diversification