Authors: Aarti Annasaheb Jagtap, Prof. Neelam Patil, Prof. Shekhar Chavan
Abstract: Investment behavior and risk perception play a crucial role in shaping the financial decisions of individual investors. This study aims to examine the investment behavior of individual investors and analyze the factors influencing their perception of investment risk. The research explores how demographic variables such as age, gender, education, income, and investment experience affect investment preferences and risk tolerance. A descriptive research design was adopted, and primary data were collected through a structured questionnaire administered to individual investors. Secondary data were obtained from journals, books, research articles, and financial reports to support the study. The findings indicate that most investors prefer investment avenues that offer a balance between risk and return, with safety of capital and expected returns being the primary factors influencing investment decisions. The study also reveals that financial literacy and investment experience significantly impact investors' willingness to undertake risk. Furthermore, market volatility, economic conditions, and personal financial goals were found to influence investment choices. Investors with greater financial knowledge tend to diversify their portfolios and make more informed investment decisions than those with limited financial awareness. The study concludes that understanding investors' risk perception is essential for developing effective investment strategies and improving financial decision-making. The findings provide valuable insights for financial institutions, investment advisors, policymakers, and individual investors in designing investment products and financial education programs that align with investors' risk profiles and financial objectives.
DOI: http://doi.org/10.5281/zenodo.21057884
