Relationship between Locus of Control and Mental Accounting of an Individual with Respect to Investment in Gold and Gold ETFS

It has been viewed that behavioral factors undoubtedly play a role in decision making process. People receive information from different sources and process these in their mind while making a decision. People are creating separate mental accounts for different goals when it comes to spending/ investing. The aim of this study is to understand the relation that exists between mental accounting of an individual and his buying behavior towards the purchase of gold and gold exchange traded funds (ETFs) as an investment to the person's locus of control. The study was conducted on 114 individuals who invest in commodities and the results show that individuals with internal and external locus of control differs on their mental accounting while taking decision of investment in Gold and Gold ETFs. Individuals from different gender, age groups, education level and income level differ in their mental accounting for taking decisions to invest in Gold and Gold ETFs